Private banking is investment, financial and other day-to-day banking services provided by banks and other financial institutions to people with high levels of income and other assets, usually called high net worth individuals. Generally, the term private refers to the more personal attitude and services provided by the bankers as part of the private banking service package in comparison the mass-market retail banking. Private banking is typically a subset of wealth management and consists of numerous services, such as general banking, brokerage, discretionary asset management, wealth structuring, insurance, advisory, lending, investment services and even tax planning.

Historically, opening a private bank account was only possible to particularly high net worth individuals with liquidity over 2 million USD. Also now, there are banks who will demand even higher amount to be deposited in your bank account to join their exclusive private banking. Typically, the biggest amounts of deposit are demanded by the offshore private banks, and it can easily surpass the level of 5 million USD. Meanwhile, there are banks that offer to open a private or sometimes called premier bank account with significantly smaller deposits. Surely, the personal attitude, as well as the range and quality of the services offered, will differ accordingly.

Customer service among other things is essential for private bank account holders. As you are handing over your wealth to be managed by professionals, you want to be confident that they will make the right decisions, work with your best interests in mind and keep your funds safe.

Banking in Malta overview
Malta with its fast-growing banking industry and specialised niches such as trust services, wealth management and private banking has managed to establish itself as an international banking centre in Mediterranean region. Banking has been the Malta’s backbone that supports the growth of numerous other sectors. Capital buffers of domestic banks are among the highest ones in Europe and solvency ratios are consistently kept at a level that is almost two times higher than the EU average. The average Tier 1 capital ratio among Maltese banks is almost double the rate required by the Basel III. Thanks to a significant transformation over the last decade, Maltese banking sector has transformed from a strictly controlled public sector to liberal and privately owned. This has helped to attract international businesses to establish their operations in Malta and expand further to Europe, Africa and the Middle East.

No matter if you are looking to open a private or a corporate bank account, Malta can offer numerous benefits. The Country’s banking sector was judged to be the 10th soundest among 144 countries in the world by the World Economic Forum in its Global Competitiveness Report 2014-15. In addition to being a trustworthy and safe location for your savings, the diverse banking industry provides their clients with wide range of quality services, including trade and project finance, custodian banking and specialist wealth management services. And this is done by highly experienced, English speaking legal and financial professionals. Additionally, Maltese fiscal policies have been among the main drivers of creating an attractive investment environment. The country’s tax system is compliant with EU non-discrimination principles and shares around 70 double tax treaties, therefore with proper structuring and planning both companies and private individuals are able to achieve considerable fiscal efficiency.

Private bank account in Malta
If you are a Maltese resident or planning to transfer your funds to a Maltese bank from abroad, you should consider the personal attitude and professional services guaranteed by the Maltese private banking. Malta is rich with banks, especially considering the size of the country, therefore you are able to choose among numerous possibilities. In case you are a foreign investor, you might choose the biggest international bank in Malta – HSBC (or maybe you already have an account in this bank in your home-country, which would significantly ease the process of bank account opening in Malta). HSBC also offers highest quality private banking for private individuals with capabilities to deposit at least 70,000 EUR.

Being eligible for private banking opens a whole new world of benefits for you and your family. Interestingly, all these benefits are for free as long as you hold at least 70,000 EUR in your account. The benefits include preferential rates and terms of overdraft and debit cards, free internet and telephone banking, exclusive services from other banking divisions, such as loans and insurance, and of course – dedicated relationship manager available to you and your family 24 hours a day, 7 days a week.

In order to open a private bank account, the main criterion is the set minimum amount of deposit you need to keep in your bank account. Other requirements are related to Know Your Client procedures in order to make sure that your funds are not coming from illegal activities. Upon opening a private bank account you would need to declare your passport, a proof of residency and documents verifying the legitimacy of your income (such as inheritance certificate, financial statements, proof of sale of real estate or business, etc.). Generally, the opening procedure takes more time in comparison to traditional checking account due to the compliance procedures carried out by the bank. After you apply for a private bank account online or via telephone and provide all the necessary documents, a special committee will evaluate your eligibility as their client and your personal banker will defend your interests.

Today, banking accounts for the largest share of the Luxembourg economy, estimated by net worth and turnover. Already in 2017, according to the data of the Global Financial Centers Index, Luxembourg was ranked as the 18th most competitive financial center in the world and at the same time ranked third in the level of competition among banks in the European Union. Luxembourg has a narrow specialization in the cross-border financial management industry. Since Luxembourg's internal market is quite small, the country's financial center is predominantly internationally oriented.

Today there are a total of 144 banks in Luxembourg. Over 120 of them are actually branches and subsidiaries of international banks. The Luxembourg financial sector is currently one of the largest contributors to the domestic economy. The total net worth of Luxembourg banks is roughly estimated at almost 760 billion euros. Luxembourg is also the second largest global investment hub after the US.

Below is an overview of the top 6 largest commercial banks in Luxembourg.

Deutsche Bank Luxembourg S.A.
Total volume of assets in year 2015: ~ €80,023,000,000

Annual total profit in year 2015: ~ €289,000,000

One of the biggest German banks - Deutsche Bank has successfully established a subsidiary bank on the territory of Luxembourg back in year 1970. Back in the days it was one of the first foreign subsidiary banks in the post-World War II period. Deutsche Bank Luxembourg was one of the original financial institutions which were incorporated in the state. Today Deutsche Bank Luxembourg S.A. provides wealth management services to wealthy private individuals and clients, issues international loans as well as provides agency services, corporate and investment related banking services, and retail investment services.

CACEIS Bank Luxembourg
Total volume of assets in year 2015: ~ €46,082,000,000

Annual total profit in year 2015: ~ €84,000,000

CACEIS originates from France. It specializes in fund management. CACEIS is a part of Credit Agricole Group - a French banking cooperative comprised of 39 smaller local banks. The bank was established in year 2003 and today one of the biggest financial institutions in the country. CACEIS provides wide range of services, including different kinds of deposits and custody related services, wealth management, transfer agency, as well as institutional and corporate banking services.

Banque et Caisse d'Epargne de l'Etat (BCEE)
Total volume of assets in year 2015: ~ €42,797,000,000

Annual total profit in year 2015: ~ €230,000,000

The Banque et Caisse d'Épargne de l'État (also known as BCEE) currently is the biggest domestic financial institution in Luxembourg. Better known as Spuerkeess in local language, it was established in year 1856 and since then is fully owned by the state of Luxembourg. The bank provides wide range of commercial and corporate banking services, including fund management, project investment, and narrow specialized private banking. Bank's long term credit rating according to Moody's is Aa2, which is a high grade.

Société Générale Bank & Trust
Total volume of assets in year 2015: ~ €36,399,000,000

Annual total profit in year 2015: ~ €406,000,000

Societe Generale Bank & Trust is one of the oldest international financial institutions based in Luxembourg. It was originally established as a branch bank of Société Générale Alsacienne de Banque (also known as OGENAL). In the past well known as Luxbanque Société Luxembourgeoise de Banque S.A., the bank had changed its name to Société Générale Bank & Trust S.A. back in year 1995. Societe Generale Bank & Trust currently provides a great variety of banking services and products, including wealth management, securities trading and fund management, provision of corporate financing services both in Europe and globally.

BGL BNP Paribas
Total volume of assets in year 2015: ~ €32,969,000,000

Annual total profit in year 2015: ~ €152,000,000

Banque Générale du Luxembourg (also known as BGL) was incorporated back in year 1919 as a local bank. In year 2009, BGL became a part of the international BNP Paribas Group. Today Banque Générale du Luxembourg offers banking products mostly in retail banking, individual wealth management, as well as corporate and institutional investment banking and fund management. BGL BNP Paribas' long term credit rating according to Moody's is A1, which is upper medium grade.

UniCredit Luxembourg S.A.
Total volume of assets in year 2015: ~ €19,728,000,000

Annual total profit in year 2015: ~ €64,000,000

UniCredit Bank historically was one of the first international financial institutions to operate on the territory Luxembourg. The bank is a part of UniCredit Group, which was established by a merger of several banks from Italy, Germany, and Austria, in addition to acquisitions in Central and Eastern Europe. Currently UniCredit Group runs several branches and subsidiaries in almost 50 countries of the world. The bank provides wealth management and corporate banking services and had been granted a long-term credit rating of A3, upper medium grade, according to Moody's.

With regard to political and civil freedoms, Chad is 3. Citizens in Chad experience little to no civil liberties and political rights. Citizens are not free to express themselves and do not enjoy political freedom or a representative government. Countries with this political situation are dangerous for investment, as an authoritarian government may have outsize control over economic matters. The businesses of Chad are 5 in terms of economic liberty. Citizens in Chad are considered not free with regards to their economic decisions. The government prohibits all economic activities by citizens, and some illegal business activities could be punishable by imprisonment or even death. Investors should avoid countries that are not free economically, as the risks do not justify any potential gain. In terms of journalistic freedom, the media of Chad is in a 4. In Chad, journalists face a very serious situation. Censorship dominates all publications and the government controls the majority of media outlets. Journalists that express opinions against the government may be punished with fines, imprisonment, or death.

The development of telecommunications and economic globalization have made it possible for interested investors to set up companies all over the world. With proper research, financial investment and legal backing, business ventures can be safely incorporated in almost any country in the world. Building an international business used to be a complicated entrepreneurial venture, but today it is commonplace with the help of experienced legal and business advisors.

The advantages of founding a company abroad are as numerous as they are obvious. Many countries offer specific locational advantages, ranging from natural resources and well-established infrastructure to beneficial laws and regulations that encourage growth in a particular industry. Likewise, it can be difficult to start a business or an acquisition in your own country due to adverse situations: political or regulatory environment, lack of resources and more. In this situation, it makes sense to consider an overseas option that offers greater opportunities for growth, development, and success.

Company registration in Chile
When starting a business in Chile, an interested investor must conduct due diligence regarding legal procedures, international regulations, and sufficient investments for success. It is crucial to understand cultural, social and political factors that influence starting and growing one's business. Failure to do so may result in unintended consequences. Poorly researched and toneless international launches often end in disaster as time, money and energy is wasted due to poor planning.

Legal Documents
Every country in the world presents its own intricate challenges when it comes to starting, developing and maintaining a business. Owners, financiers and investors must make these commitments with the support of a knowledgeable and experienced legal team. Only someone with in-depth knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that plague many new businesses.

Additionally, smart business people can consider ways to invest in foreign companies without actually starting their own businesses. In these situations, it is still beneficial for the investor to partner with a knowledgeable global economics and litigation advisor. International investments create a truly diverse portfolio that offers growth opportunities that were unthinkable decades ago.

Potential investors, venture capitalists and entrepreneurs should consider the existing infrastructure in Chile when planning to start a new business. While extensive infrastructure and systems can help make the process of starting a business a smooth one, it could also represent market saturation and reduced growth potential. On the other hand, a lack of infrastructure is often a major obstacle to growth; However, the lack of infrastructure points to a clear market opening for a creative and efficient new business.

Bank account opening in Chile
In connection with the formation of a company, it is necessary to open one or more bank accounts in Chile. Confidus Solutions offers the ability to open a bank account in over twenty jurisdictions, making it easy for you to avoid challenging language barriers or bureaucratic hassles.

Given that within the European Union there are no withholding taxes on IP royalties between member states, we can suggest a number of countries where royalties are particularly advantageous.

CYPRUS
The intellectual property royalties tax regime in Cyprus has changed as a result of the recommendations of the Organization for Economic Co-operation and Development (OECD) Action Report 5 and the Ecofin Council conclusions published on 8 December 2015. Legislation has been changed to limit the companies that can benefit from research and development (R&D) exemptions, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies using Cyprus intellectual property want to license -resident companies (intermediaries), where this right is then sub-licensed to the end user. Overall, the effective tax on IP royalty income should be less than 2.5%.

IRELAND
In 2015 Ireland introduced an effective corporation tax rate of 6.25% on intellectual property income based on an allowance for research and development costs borne by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly within the EU - leading to the creation of intellectual property - while discouraging them from acquiring licenses without directly committing to R&D.

BELGIUM
Belgium has introduced a tax system that favors those with income from acquired copyrights. This tax regime can have many different applications and can be used to protect artworks as well as a useful tax break for IT developers. Income from IP rights royalties is taxed at 15%. This income is not taken into account when calculating social security contributions. In addition, these taxes are reduced by 50% for imports due to the application of standard import costs. The first €15,000 that a copyright owner earns in a year is therefore taxed at 7.5%, and the next €15,000 at 11.25%. This tax system applies to people with a total annual income of up to 56,450 euros.

LUXEMBOURG
In general, corporate tax in Luxembourg is 29.22%, but for IP licensing income it can be as low as 5.8%. This is due to an 80% corporate income tax exemption. Interestingly, this exemption also applies to companies that have registered a patent for use in connection with their own business, which then calculate a notional net income as if they had received the licensing income.

ITALY
Italy is a larger market compared to the other countries discussed and can be a very attractive place for a company to invest in R&D since 2015 companies have been able to deduct intellectual property income from their taxable income base. The tax deduction was set at 30% in 2015, 40% in 2016 and 50% from 2017. Businesses will therefore enjoy a significant tax rebate by reducing their taxable income.

THE NETHERLANDS
Since 2010, IP income has been taxed at only 5% in the Netherlands. Except for patents, there is no income limit. Patent holders can actually have access to this tax regime if their share of the expected revenue is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies owning intangible assets or companies that have received research and development accreditation from the Dutch Ministry of Economic Affairs if they are owners of software IP or trade secrets. The only other caveat to this favorable tax regime is that it doesn't apply to marketing and branding-related assets.