Home to many financial institutions, Hong Kong has long been recognised as a prime location for financial services. But amid the anti-government protests in 2019, there has been concern regarding the growth of the city’s economy, slumping Hong Kong into a long recession. While optimists believe the turbulence will subside and banks will recover, others see key growth pillars including finance, trade and tourism weakening further. This has been intensified by the COVID-19 pandemic, forcing people indoors as well as the closure of shops and restaurants, sending retail sales in a downward spiral.
Essentially, there is concern that the city is losing stability, business and consumer confidence. And with the prospect of more unrest, many top investors are either reducing their Hong Kong exposure or taking steps to ensure they can withdraw their assets in an instant. Another option for Hong Kong residents to secure their assets is by transferring funds out of the city and into an offshore bank account.
Offshore banking involves opening an account in a foreign jurisdiction to the one in which you reside. They can be held in a variety of currencies and tend to feature everything you would get from a standard current account, including online and mobile banking. Furthermore, offshore banks offer debit cards to access your funds from any ATM in the world, and you can transact in multiple currencies, which is particularly beneficial for those wanting to avoid costly exchange rate charges.
As well as better banking stability, an offshore bank account could provide Hong Kong residents with favourable tax advantages and higher interest earnings. Even if you do not wish to transfer your funds from your existing account, you could open one up alongside your existing bank account. This will diversify your assets and minimise your risk of tax reforms, depending on your chosen jurisdiction and bank.
Ultimately, the benefits of offshore banking will vary depending on individual circumstance. So be sure to do your research and seek professional advice to find the right jurisdiction for your bespoke needs.
HERE TO HELP
Whether you require a single personal Offshore Bank Account or Corporate Offshore banking for your business, Turner Little can help you arrange an offshore account regardless of where you call home. For trusted advice tailored to you and your, speak to a member of our experienced team today.