Offshore accounts are actively used both in business and in private life. These accounts provide the full range of features offered by traditional financial institutions but are much easier to open and usually cost significantly less to maintain.
But how to choose the proper jurisdiction for you to open an offshore bank account? Offshore industry experts from International Wealth shared all the details about Mauritius as one of the best countries where you can open a bank account without being a resident.
Next, you will learn about the benefits and features of offshore banking in Mauritius and everything you need to know about the account opening procedure.
The main advantages of an offshore account in Mauritius
The banking sector in Mauritius has long been oriented towards servicing traditional manufacturing and tourism. As a result, the list of services was rather limited. It satisfied the country’s current needs but was not interesting to solid investors, international businesses, and offshore companies.
However, in recent years the situation has begun to change. Mauritian banks have opened up new areas of activity. Specialized services have appeared for clients who do not have visible points of contact with the country’s economy. Offshore banking began to develop rapidly in the jurisdiction, and accounts for non-residents and financial services for wealthy individuals became in demand.
All this has led to the fact that the banks of Mauritius have become popular far beyond the country’s borders. They compete with financial institutions of classical offshore companies – Belize, Vanuatu, Cayman Islands, or Nevis. The advantages of a bank account in Mauritius are based on two factors: the merits of the jurisdiction itself and the features of its financial institutions.
Note that an offshore bank account in Mauritius is a completely legal financial instrument. Next, we will talk about main advantages of such an account:
- High interest rates – interest rates in Mauritius are significantly higher than in onshore and midshore jurisdictions. Offshore critics talk about the less reliable banks in tax-free countries, but you should not pay attention to such rumors. Everything will depend on your choice and the tasks to be solved.
- Deposit security – no bank is immune from bankruptcy. But those located in offshore zones try to do everything to ensure that the client stays with them, because the competition is too high. Therefore, in general, the safety and security of deposits in offshore banks in Mauritius is no worse than in European and Asian financial institutions.
- Flexibility – any onshore bank in the current realities does not look for clients but chooses them. Therefore, it is problematic to open an account in Europe, Asia, or the USA, as the probability of refusal will be quite high. Offshore banks in Mauritius are a different story. Competition in the market forces financial institutions to offer the most attractive conditions for cooperation.
- Investment opportunities – offshore banks in Mauritius are becoming almost an ideal tool for serious investors. Therefore, jurisdiction is often chosen as a starting point for implementing promising projects. Local banks provide the necessary financial tools and services with much lower customer requirements than European or American ones.
- Favorable loan programs – getting a loan is not the most demanded service in financial institutions in tax-free jurisdictions. But in Mauritius, it is offered very actively. The reasons for the popularity of credit programs are loyal conditions and low rates. Note that in Mauritius, the service is available for the corporate sector.
- Effective tax optimization – this is one of the main reasons for the popularity of financial institutions in tax-exempt jurisdictions. Competent tax optimization, using the capabilities and resources of offshore banks in Mauritius, is absolutely legal, although it is quite challenging to implement in practice. But subject to proper planning and taking into account all the requirements of international regulators, the project will be successful.
- Easy access to your account 24/7 – online banking is a standard service of any reputable financial institution. But in offshore banks in Mauritius, it is implemented at a much higher level, and the priority is a concern for the client’s convenience, not profit considerations.
Another advantage is that in Mauritius, you can open offshore bank account online.
Why Mauritius has become one of the leading offshore centers
A developed banking sector, as well as financial services for corporate clients and individuals, are far from all the advantages of the jurisdiction. Mauritius is one of the most famous offshore centers. Here it is very profitable to register companies and engage in business that is focused on international markets, launch projects related to the protection and diversification of assets, and implement various investment programs.
Offshore banks in Mauritius make all these tasks much easier, but the arguments in favor of Mauritius are not limited to the financial sphere. Therefore, international business is increasingly choosing Mauritius, not one of the Caribbean or Asian offshore zones. Let’s consider the most essential features of the jurisdiction, useful for commercial activities:
- Favorable geographical location – gives a unique opportunity to do business with partners from Africa, Asia, Europe, and the USA on the same day. Without a developed business infrastructure, this would not matter much. But Mauritius really has all the conditions for doing serious international business.
- Legal system – based on a symbiosis of the British and French systems. This combination allows not only to effectively resolve any commercial disputes but also guarantees legal stability.
- DTAs (Double Taxation Agreements) – this offshore jurisdiction has concluded 46 DTAs, 5 more are awaiting ratification, and 21 are under discussion of details. With proper use of DTAs, they significantly reduce the tax burden on international offshore business, making it transparent for regulators at the same time.
- Developed banking sector – offshore banks in Mauritius are an example of how the financial sector of a tax-free jurisdiction should function. Few countries that have bet on non-resident companies can offer such a wide range of banks.
