2017 is a key year for offshore bank accounts since the automatic exchange of information will actually take effect, which is a mechanism that allows the tax authorities of the various States to send information concerning resident taxpayers. It is an administrative procedure that does not require the intervention of the courts and that excludes the existence of an investigation of the judicial power.
Automatic exchange is allowed under a bilateral agreement between members who wish to benefit from it. This is why 2017 has been called the turning point in the fight against the international “black.” The CRS (common information standards) is the system of automatic exchange of data of taxpayers, a system that now (see next article). ) has citizenship in 3/5 of the States worldwide and in 2018 almost all the acceding countries, which means that we say goodbye to bank secrecy, numbered accounts and bank insurance.
What should we do to protect our savings?
For those who have the possibility of establishing their residence in a country that does not charge taxes on income that comes from abroad, it is the best. For example, establishing your residence in Panama is very easy and when you obtain it, you can open offshore accounts through which banks do not exchange information automatically with the tax authorities. Another option is to take advantage of the second citizenship, which although it is a more expensive option (from 25,000 euros), is a permanent solution to protect your capital.
For those who do not wish to or can not invest in an alternative tax residence or can not opt for a second legal passport, there are other options such as using the account of a financial or fiduciary agent and electronic portfolios. So the war between the “tax hell” against the “tax havens” is still underway and, although in 2017 the offshore banking system could suffer a blow, there are still many battles and as Giuseppe Garibaldi said: “It starts with firmness and you will have already won half of the battle “, so it is necessary to reiterate that the citizen has the right to protect his capital, to move freely and the right to pay fair taxes that allow him to do business and lead a dignified life.