Opening Bank Account In Tax Heaven In 14 Days - BowTiedGlobe
25: Starting geo arbitrage the right way.
Bringing you another BowTied guest post. We got an inside tip from someone in our circle that Globe is as legit as it gets. So we used that as an excuse to invite him for a guest post. The gentleman that he is, he accepted our invitation. Dingo already did its own thing with the UTM tracking, while the Globe is here to bring insights into different fields. It is important when discussing WiFi money makers and those running lean businesses.
Before we get deeper into the topic. What about our guest, and why should you pay attention to him? BowTiedGlobe, also known as your freedom dealer, fluent in Spanish, Portuguese, and German, plus a tax-free company owner - we are not exaggerating. Not just that, he is also an expert and consultant on locations where most people go to play geo arbitrage. Helping others land where they will get the most out of their quality of life.
What is our guest bringing to our readers? This article will help you the most if you are setting yourself up with VPN arbitrage or planning to play geo arbitrage, as explained in the Teens Guide To Income Maxing. Setting yourself up with maximum protection if things go south is even better.
Multiple passports, bank accounts, and burner SIMs are never bad investments. There are many more cases and options regarding this topic. Resulting in more space to maneuver. Wondering where to start with geo arbitrage? Guide on how to open a bank in less than 14 days. Time for Globe to do his magic.
Offshore Locations And Country Of Choice
Most readers reading this already understand there are quite a few tax heaven locations. Cayman Islands, Switzerland, Thailand, Philippines, Malaysia, Singapore, Uruguay, Andorra, UAE and Panama.
They are all solid options. But they will depend on one’s needs and other personal interests. It’s also worth mentioning that each has a certain requirement for you to (ab)use their tax system - benefits better said.
Going into details would not make sense since books are written constantly about the same topic. It has to be updated depending on the country and how often they like to change regulations and laws. One of the most optimal solutions for individuals without ties to the specific tax heaven location would be choosing Panama.
The article will not be about moving out there, becoming a resident, or any other tax-evading trick. But it will be about opening a bank account and learning how to use it to your advantage. Does that mean you will not be obliged to pay taxes? Maybe.
There are other benefits, such as easy crypto purchases and no one challenging you each year. Is there anything better than tax authorities asking why your tax return is off by 3$. Hard to beat that.
Not to even go into the topic that we don't know what the future is bringing. There have been many cases of it in the last two years. We predict things will only worsen and smart ones will use everything they can to their advantage.
Why a Panama Account?
Panama is quite an attractive country regarding topics related to offshore finances. Not just for the bank accounts but for residency, tax-avoiding when it comes to boats, and a few other interesting tricks one could pull from their arsenal.
For more experienced readers, we can all agree that Panama is not what it used to be since regulations were amended. The Panama Papers forced them to introduce many transparency and bookkeeping requirements. However, it is still better than 90% of the other options.
Another point in favor is that Panama is easily accessible (for our US readers), and even though Spanish is the primary language, most of the stuff you will come across is in English - which those who have traveled around understand is not like that everywhere. Most banks and financial institutions are bilingual on their customer service and websites.
Individuals classify Panama as tax heaven because the income generated outside Panama is not taxed. Which is perfect for those making WiFi money from abroad. Another few points in favor of Panama are that it does not have a central bank and no legal tender. USD is the main currency, and the country has a low level of debt.
What Are The Benefits?
Without a doubt, most individuals reading this will ask themselves. Does opening a bank account in Panama mean I will not have to pay taxes? The answer is not straightforward, and giving one that fits all is almost impossible - depends on your situation.
For all US citizens, paying taxes in Panama is not avoided since we are discussing the FACTA exchange. For non-US citizens, your banking information can still be exchanged through DTTs, CRS, and TIEAs - something to keep in mind.
Depending on how your country of residency is taxed, there might be tax benefits to opening a foreign account, such as one in Panama. If you live in a country with a non-dom (Malta, Ireland, Mauritius, Thailand) or territorial tax system (Georgia, Paraguay, Philippines), you might gain an advantage. But not when it comes to worldwide taxation.
The real benefit, as already mentioned, is the diversification.
You want as much of it as possible. We don't know the future, and betting against putting everything in one basket is the way forward. Simple as that.
Another big advantage of opening an account in Panama is that it will allow you to cash out crypto from any exchange. The banks have started restricting access to CEXs, which is not a good sign going forward. You should not be using any of them.
Hopefully, all the readers of this newsletter are pro-crypto and understand where the future is heading. No doubt other countries allow you to do the same, such as Switzerland and Liechtenstein. But the "entry fee" can’t be compared with Panama. We are talking about a minimum of 500k+ CHF in Liechtenstein, and 200k+ CHF for most Swiss banks, which is not accessible to everyone. This bank in Panama has a 200 USD minimum deposit. Big difference.
What do we mean by pro-crypto here? Some banks are pro-crypto in the sense that they won’t block you when you wire money from an exchange to the account. While this also applies here, they take it a step further: You can make direct deposits in USDT, USDC and BTC, which are automatically converted to USD with a 2.14% fee.
Sure, the fees are not as good as an exchange, but can be useful if you want to skip exchanges altogether. Compared to many P2P markets, it is still competitive. Also, if you are making larger transactions, you could just send fiat (USD, EUR, GBP at a flat fee of 37.5 USD).
While the crypto-friendliness is great, the main advantage to me of having this bank account was an unexpected one: Its reliability. I have had multiple instances where other accounts let me down, but this account held up.
I’ve personally used the card to make payments or withdraw cash at ATMs in Colombia, Brazil, Paraguay, Uruguay, Argentina, DR and Venezuela.
In Venezuela specifically, it was a life-saver: Where all other cards got refused, my Panama bank let the transactions through. They never locked my account. They never suspended or held a transaction and asked me to call, like my US banks frequently do for transactions abroad.
What Are The Negatives?
It’s not all sunshine and rainbows. As with most offshore banking systems, the downside is higher banking fees. 37.5 USD for a fiat deposit means you won’t use it for small, recurring transactions. This account is better used my making infrequent, larger deposits.
For the readers from Europe, you have to understand that Panama is blacklisted - meaning you will have problems transferring money in and out. I do not recommend this account if you plan on doing many transactions with EU residents and companies with it. Ideally, pad the transaction chain with a non-blacklisted, non-EU bank account in the middle.
As mentioned, there is no tax avoidance with bank accounts since CRS, FACTA, and other tax legislations are in place - unless you are a non-US person who lives in a country outside of CRS and has no treaties with Panama. Few of those out there, though.
For those who have never dealt with LatAm business, they are usually slower compared to others. Personal bank accounts are now possible in 1-2 weeks if all the documents are in order, but business bank accounts are painfully slow to open.
In fact, I would not recommend you try to open a business account here at all unless you are using a Panamanian company. I’ve had a client take 5 months to get a bank account here with his US LLC. No fun. There are other options we can recommend for that. To wrap up, before we head into the FAQ section of the article.
Are you looking for an additional bank account?
Looking for a real bank that will allow you to cash out crypto? You don't want to invest too much money?
Flexible and accessible to English speakers?
A Panama bank account can be a solid answer for you.
FAQ
How hard is it to open a bank account in Panama?
Without someone's assistance and connections to provide VIP processing? Possible, but will take a lot more of your time. Same as with any other offshore location. Plus, you’ll have to be present if you don't have an established relationship with a trusted bank party that will allow you to do the openings remotely. Try to open on your own and it’ll be a frustrating process.
You don't necessarily have to have ties with Panama. But they increase the chances of your approval. When it comes to restricted countries. Panama will accept individuals from around the globe. Even those often on restricted lists, such as those from Venezuela. At the same time, they will not accept individuals from Russia. Felt it was worth mentioning.
Pro Crypto Bank Account?
Not only are you getting access to a pro-crypto country - Panama. But you are also getting access to a pro-crypto account. As mentioned earlier, the banks in the West are restricting crypto buying (since it’s not in their interest), meaning we can expect even more rigorous restrictions regarding crypto in the future.
The biggest benefit of a pro-crypto bank account is that you can deposit crypto directly into your bank account. Plus, it will allow you to exchange between your stables and BTC and your dollars, which is a huge plus in case you need fast cash. A win-win situation for a large majority.
What should one provide to have a pro-crypto bank account?
A BTC or ETH address you use that has an active balance.
Scanned passport
Utility bill showing your address
Proof of income (e.g., employment letter, social security card, pay stub, income tax return, rental contract, investment portfolio statement, Dividend statement or Certification of income issued by a Certified Public Accountant).
Are there any downsides to having a Panama bank account?
Like all other LatAm businesses, it is slow compared to the rest of the world. Other than that, there are only the increased costs of transactions, which are nothing different from any other tax heaven solution.
The exchange of information between countries could be another downside for a certain percentage of readers. Those would be better served by non-CRS countries like Paraguay or the Dominican Republic.
Can anyone help me open a bank account, and how much does it cost?
We can provide you with a remote bank account opening. Accelerated process and guidance in getting all the documentation right. All of that can be done in less than 14 days. Getting the VIP treatment you paid for is guaranteed. The price? 1500 USD for a remote personal account, 1350 USD for in-person opening. What payments do we accept? Bank transfer, crypto, Zelle, and credit card payments.
Ready To Open Your Bank Account?
Why would you bother opening a Tax Heaven bank account?
Cheap for what you are getting
Cash in and out of crypto without any restrictions
The first step in playing the geo arbitrage game
Once again, we want to thank BowTiedGlobe for taking his time and dropping this gem for all of us. Knowledge and information such as this are often gatekept from the "public", so those who know about them can profit massively.
You don't want to be in a situation to get your account blocked because you went out to protest or do anything similar that someone from above didn’t like.
We live in pure freedom, right?
Opening a bank account in a tax haven is one of the first steps to playing geo arbitrage successfully - something we plan to cover sooner or later with a series of articles. No one can deny the increase in life quality once you move to a lower-cost area of living while earning your paycheck in a stronger currency. Especially since the West is in decline in certain aspects of our lives. Something to think about.
The game plan is simple. Follow what is outlined here for all the extras or help you need to run your business operations successfully. Head over to the link or contact BowTiedGlobe directly on Twitter. Extra points if you mention that we have sent you. We strongly suggest anyone serious about playing geographical arbitrage or trying to set themselves up in the random village by the sea do so.
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Amazing Post! I'd love to hear some suggestions about Europe as well.
I've only consumed gold here. What a "simple subscription" adds to life... Regarding our guest, it seems that he is a root Brazilian lol . Forte abraço amigo, muito obrigado pela contribuição aqui