Offshore accounts advice?

[Alter]

I am considering opening an offshore account to use as a base for some investments. Not sure if it is relevant but I am a Canadian national with permanent residence in Japan. I am unable to have a bank account or investments active in Canada because if I earn any money there then I will be taxed on my income in Japan. In Japan, the interest rate for savings is less then 1%! (then again, mortgages are less than 3%

) and the process of using Japanese investment houses is complicated.

Any recommendations on providers or pros or cons?

 

[EL72]

Buy some of these:

 

[Journeyman]

A friend of mine working in the mining industry in West Africa, used a bank located on the Isle of Man.

He did say that it was a bit frustrating to have to pay international transfer charges from time to time if he wanted to withdraw large sums of money, but most of the time he simply used his bank-issued credit card to withdraw money from the Manx account, using local ATMs.

Alter: In specific reference to your situation, have you thought of taking out a yen loan at a very low rate of interest and then using the money to purchase property or "blue chip" investments overseas (ie in Canada)?

Friends of mine currently working in Japan have done this successfully, and have used the technique to purchase a couple of investment properties here in Australia. The rise in value of the AUD$ against the JPY means that it is not such an attractive option as it was even just last year, but it is still a means of borrowing money far below the prevailing rate in Australia (which varies from about 6.5 to 7.5% per annum on housing loans at present, depending on the loan product).

Of course, for the above to work, you have to stay in Japan and continue to earn JPY. If you leave Japan, the currency exchange necessary to make your loan repayments would probably render the exercise uneconomical (or certainly a lot more troublesome and expensive).

Cheers,
JH

 

[Dragon]

Maybe you should look into Hong Kong or Singapore since you can quickly fly to the bank directly if needed from Japan.

Of course Isle of Man, Jersey, etc. type accounts are good too, but keep in mind that ATM, transfers, and exchange fees will be higher than what you are used to paying at your local bank in Japan. You can get discounts on all the fees if you deposit a certain amount.

Also, keep in mind the time zone difference. Even if you are able to contact the bank 24/7, the actual bank will not be open while you are awake if you are banking with the Isle of Man, for example.

 

[Alter]

I am reviving this thread to see if there are any fresh recommendations on offshore banks. I didn't get around to opening an account last year but plan to do it soon. I am leaning towards Isle of Man at the moment but would really appreciate any advice. Please PM if preferred over posting.

 

[scarphe]

Originally Posted by EL72

Buy some of these:

+1 now more than ever. or possibly diamonds, if the weight issue bother you.