Banking, Money and Taxes in Ghana
Expats moving to Ghana will find that money matters in the African nation aren't overly complicated. Banking is easy - once you've opened an account, and tax laws are straightforward.
The Ghanaian currency is called the Cedi, and due to re-denomination in 2007 it is among the highest valued currencies in Africa. As of early 2011, the Cedi was worth approximately .66 cents in USD.
The US Dollar is widely accepted in restaurants and stores, especially in cities, but smaller notes and travellers cheques are not always accepted.
Foreign Exchange Bureaux (Forex) are located everywhere and usually give quite a good exchange rate, but will either give a lower rate on small denominations, or not accept them at all. Most Forex Bureaux do not require identification, however exchange desks at hotels might require expats to present their passport. The rates are usually much better at the Forex Bureaux.
There are many commercial banks located in the cities, and many international representatives with corresponding branches abroad. ATMs are commonplace as well now, and most International VISA cards are accepted at these machines and will pay out in local currency. MasterCard and American Express are far less common so if planning to withdraw from an international account expats should make an effort to get a VISA card.
Ghana is a predominantly cash based society, and the prevalence of credit card fraud makes it unwise to use cards too liberally.
It's fairly easy to bring money into Ghana, but strict maximums exist for taking money out. Be careful not to accumulate too many Cedis, as you may run into problems taking the money back to your home country.
All banks in Ghana do business in English, as this is the official language in the country. Most banks offer current and savings accounts, letters of credit, loans etc. to citizens and expats alike, but interest rates on loans can run at over 20 percent.
To open a bank account in Ghana most establishments require expats show a passport as identification, a letter of introduction from a bank in your home country, a personal reference from current account holders of the bank, and/or a reference from your employer in Ghana.
A company opening an account for the expat must provide a Corporate mandate and resolution, Certificate or Company Registration, along with various other documentation.
If you're going to be earning foreign currency it's best to set up an offshore account with a major bank; financial advisers can facilitate this process.
The offshore account will be linked to a proper VISA debit card which can be used internationally at any VISA Point of Sale, or online with services such as like PAYPAL.
It is not a good idea to have your foreign currency paid into a local bank account in Ghana, as chances are that you're earning quite a high salary, and taking the money with you when you want to leave can be complicated.
Barclays Bank, Standard Chartered, and Stanbic are all International Banks represented in Ghana and recommended for expats.
The expat tax situation will vary for each nationality. Most companies in Ghana cover the applicable taxes for their expat employees, and pay either offshore, or a combination of offshore salary and local.
Expats may owe taxes in their home country, depending on how many days a year they spend in Ghana, or out of their home country. Americans, for example are required to pay taxes in both countries, which is why it is helpful to negotiate with your employer in advance to confirm they will cover the local taxes in Ghana.
It's recommended expats consult a financial adviser to help with this issue.
Money in Ghana
The Ghanaian currency is called the Cedi, and due to re-denomination in 2007 it is among the highest valued currencies in Africa. As of early 2011, the Cedi was worth approximately .66 cents in USD.
The US Dollar is widely accepted in restaurants and stores, especially in cities, but smaller notes and travellers cheques are not always accepted.Foreign Exchange Bureaux (Forex) are located everywhere and usually give quite a good exchange rate, but will either give a lower rate on small denominations, or not accept them at all. Most Forex Bureaux do not require identification, however exchange desks at hotels might require expats to present their passport. The rates are usually much better at the Forex Bureaux.
There are many commercial banks located in the cities, and many international representatives with corresponding branches abroad. ATMs are commonplace as well now, and most International VISA cards are accepted at these machines and will pay out in local currency. MasterCard and American Express are far less common so if planning to withdraw from an international account expats should make an effort to get a VISA card.
Ghana is a predominantly cash based society, and the prevalence of credit card fraud makes it unwise to use cards too liberally.
It's fairly easy to bring money into Ghana, but strict maximums exist for taking money out. Be careful not to accumulate too many Cedis, as you may run into problems taking the money back to your home country.
Banking in Ghana
All banks in Ghana do business in English, as this is the official language in the country. Most banks offer current and savings accounts, letters of credit, loans etc. to citizens and expats alike, but interest rates on loans can run at over 20 percent.
To open a bank account in Ghana most establishments require expats show a passport as identification, a letter of introduction from a bank in your home country, a personal reference from current account holders of the bank, and/or a reference from your employer in Ghana.
A company opening an account for the expat must provide a Corporate mandate and resolution, Certificate or Company Registration, along with various other documentation.
If you're going to be earning foreign currency it's best to set up an offshore account with a major bank; financial advisers can facilitate this process.The offshore account will be linked to a proper VISA debit card which can be used internationally at any VISA Point of Sale, or online with services such as like PAYPAL.
It is not a good idea to have your foreign currency paid into a local bank account in Ghana, as chances are that you're earning quite a high salary, and taking the money with you when you want to leave can be complicated.
Barclays Bank, Standard Chartered, and Stanbic are all International Banks represented in Ghana and recommended for expats.
Taxes in Ghana
The expat tax situation will vary for each nationality. Most companies in Ghana cover the applicable taxes for their expat employees, and pay either offshore, or a combination of offshore salary and local.
Expats may owe taxes in their home country, depending on how many days a year they spend in Ghana, or out of their home country. Americans, for example are required to pay taxes in both countries, which is why it is helpful to negotiate with your employer in advance to confirm they will cover the local taxes in Ghana.
It's recommended expats consult a financial adviser to help with this issue.
