Offshore Bank Account Formation – Liechtenstein
Banking System in Liechtenstein
Liechtenstein is a tiny country, which is doubly land, locked between Switzerland and Austria. Liechtenstein has mountain slopes that rise above the Rhine valley.
Banking System in Liechtenstein
Liechtenstein belongs to the custom and currency union of Switzerland and to the European Economic Area. Liechtenstein is considered as a safe haven for banking. Liechtenstein has an excellent reputation worldwide for being an expert in the management of private wealth. This country has more than 150 years of banking experience.
Liechtenstein enjoys Triple A country rating. This credit rating reconfirms the credit worthiness of the country. This credit rating is because of the stable political scenario and sound economic position, in Liechtenstein. Liechtenstein also has a currency of Swiss francs. It provides strength to the economy and banking of Liechtenstein.
The government and the banks in Liechtenstein never involve in high risk investment activities or in risky business of credit.
Liechtenstein has the best capitalisation in Europe. The banks in Liechtenstein have the average tier 1 capital ratio of 21.3%. This tier 1 capital ratio is the ratio of bank core equity capital to its risk weighed assets. This high tier 1 capital ratio is meant to protect the banks from unprecedented and unexpected financial losses. It also ensures that the banks never enter in too much debt.
The banks in Liechtenstein voluntarily hold more than double of the equity which is required under Base III and CRD IV. No bank in Liechtenstein, has ever asked for any state aid to avert any financial crisis.
Liechtenstein focuses on private banking. Liechtenstein provides a stable centre for banking. These banks operate on prudent business strategies. These banks are also experts in personal wealth management. These banks have a professional advisory service that helps in creating focussed centres for banking that fully avoids risky investments and doubtful credit businesses.
The state of Liechtenstein is closely associated with Switzerland and hence has a large number of foreigners as their customers. The tax implied by the government is very low due to which a number of people prefer to open their accounts in this region. It’s financial sector is very strong due to which unemployment is exceptionally low and it has one of the highest GDP per capita. There is 0% tax on interest, 4% on dividends, 4% on VAT and 5% on payroll taxes by the employer.
Banks Available at Liechtenstein
As compared to other banks which take 30 to 45 days to open your bank account, this bank will take only 10 to 14 days. Multicurrency transactions are possible as well as the bank provides travel cash card. The setting up fees is also considerably low – EUR 180 as set up fee which is required one time, EUR 120 as annual fee and EUR 60 as card loading fee. Processing fee is EUR 170 and guarantee issuing fee is EUR 300. The banking services are good and are also financially very stable.
You can open a bank account in less than EUR 4200. The bank provides services in multiple languages – English, German, French and Russian. This bank is also compliant with OECD policies and that is one of the reasons why it is suitable for individuals whose country has stricter norms.
Documents Required For Opening Bank Account
Banking Benefits in Liechtenstein
- Physical presence not required.
- One of the safest regions to have a bank account
- Most private banks are managed by wealthy families who reside in Switzerland
- Follow OECD norms
- Online banking available
- Traditional banking also available with modern technologies.
- Full confidentiality provided to account owners
Why form an offshore bank account with DNS?
We have been helping individuals and companies to open up their bank account in various offshore locations. We have a cumulative experience of over 25 years in forming bank account for our customers. The process is hassle free and you just need to share some basic documents with us after which our account manager will handle all the necessary paperwork.