Why is France the Best European Country for Offshore Banking?11 min read

Why is France the Best European Country for Offshore Banking?11 min read

In Europe, France is a preferred offshore banking destination because of its stability, strong banking rules and tax advantages. 

In this blog, we will see why France is the continent’s number one option for opening an offshore bank account.

Ease of Opening an Offshore Account in France

It’s quite easy to set up an offshore account in France. In contrast to some other offshore financial centres, French banks do not have rigorous residency or minimum deposit criteria. Holders only have to submit basic documents such as a passport and proof of address.

Many banks even allow non-residents to open accounts at home instead of physically visiting the branch. That makes France an offshore jurisdiction that anyone, even the foreigner, can reach. 

To receive an account, all you need to do is fill out the necessary forms online or by post.

The application process is quicker and simpler than opening an offshore bank account in some other European nations. If all the paperwork is complete, successful applicants can have their new account activated in 2-4 weeks. 

With the right partner financial institution like The Kingdom Bank, the onboarding process is efficient and hassle-free.

Who Should Consider Offshore Banking in France?

Offshore banking in France draws the attention of many people and entrepreneurs that want to get some sort of financial benefits:

Global investors and traders: Investors and traders from other countries love the fact that they can make multi-currency purchases with one payment using a France-based account. It offers an easy access point to the European economic zone.

Entrepreneurs: Entrepreneurs enjoy the tax breaks France provides on out-of-country earnings. An offshore company account also allows easier foreign transfers and investments.

High-net-worth individuals: Families and individuals with large wealth create offshore entities in France in part because of France’s political and economic stability. It provides a safe place to hold large quantities of money.

Tax-payers in high-tax countries: Taxpayers in tax-tight economies that levied punitive wealth or capital gains rates can minimize their tax liability by banking offshore in France. In some French overseas territories, income and capital taxes are non-existent.

For those who have foreign wealth, corporations, important assets or are based in high-tax countries, setting up an offshore bank account in France seems like the perfect fit.

Best Features of Offshore Banking in France

With the exception of the ease of opening an account, offshore banking in France does have some distinctive advantages over other offshore hubs. 

Here are some of its most popular features:

• Strong banking supervision: France is highly regulated to ensure that offshore banks are well-regulated in terms of solvency, liquidity and transparency. This offers account holders some peace of mind.
• Political and financial stability: As a leading European economy, France provides a low-risk environment safe from geopolitical disruptions that could threaten assets in other offshore jurisdictions.
• Proven financial infrastructure: Customers receive access to online/mobile banking, multi-currency accounts, wire transfers, debit/credit cards, investment products, and much more from established institutions.
• Tax benefits: Properly designed offshore structures can reduce taxes on capital gains, investments, foreign profits, etc, through France’s vast network of tax treaties and exemptions in its overseas jurisdictions.
• Privacy and confidentiality: Banking client confidentiality is fully guaranteed by French law, with confidential financial data and transactions kept to a minimum.

By establishing accounts offshore in France, the account holders gain the stability and power of the French banking system and some tax benefits – all within a regulated and open environment.

Tax Advantages of Offshore Banking in France

One of the main reasons to have an offshore bank account in France is because it will help you save taxes. 

Let’s take a look at some of the main ways in which a well-intentioned offshore banking approach can reduce taxes:

• Exemption to overseas territories: Foreign income and capital gains from corporations and investments located in French overseas colonies such as Monaco, Mayotte and St Pierre et Miquelon are exempt from French taxation.
• Tax treaties: France’s broad double tax treaties allow you to dodge two separate taxes on the same source of income. Investment earnings, for instance, can be tax free in the destination country.
• Tax deferral of corporate income: Foreign companies controlled by French nationals can defer taxes on unused foreign profits indefinitely as long as revenues are held offshore.
• No wealth tax: Unlike some other European countries, France doesn’t charge an annual net worth tax on money held out of the country in an offshore account.
• Estate tax exclusion: Only assets located in France are subject to French inheritance and gift taxes. International investments are subject to less or no levies, depending on the country.

When it comes to taxes, offshore banking in the right French country or organisation is a great way to minimize the total tax burden for French taxed individuals and businesses. The payoffs can be enormous in the long term.

Which Digital Bank is the Best to Do Offshore Banking in France?

If you’re looking for an all-digital alternative for your offshore banking in France, The Kingdom Bank is a perfect option. 

The Kingdom Bank is one of the pioneers and the largest online banks in the nation. 

There are a few benefits to using The Kingdom Bank:

• No minimum deposit or balance needed to create an account. All you need to do is submit ID and address documents online.
• Multiple-currency accounts in USD, EUR and other major currencies to support international trade and investments.
• Modern online and mobile banking offers all the benefits of traditional banking as well as budgeting capabilities.
• Wire transfer, debit cards, payments and other services for easy money management globally.
• Licensed by the French authorities as a licensed bank for stability and safety.
• Provides private and corporate banking services to both personal and corporate customers.
• It has recently ventured into crypto banking functions such as trading and custody.

So, if you’re looking for an all-digital offshore banking service in France with affordable rates and a robust feature suite, then The Kingdom Bank is the right place. 

New clients can register an account today through our secure website or app.

For offshore banking, France is an extremely appealing country — not only in terms of its political stability, financial strength, developed economy, regulatory and tax advantages. 

Individuals and corporations with an account with a bank such as The Kingdom Bank can effectively manage their foreign transactions and investments with a tax profile that meets their requirements.

The combination of availability, facilities, supervision and incentives that France offers make it one of the most popular offshore jurisdictions in Europe. 

If you are looking for a low-risk but productive environment to run your global financial affairs, then an offshore bank account in France is a highly recommended investment.