Foreign Bank Accounts for Individuals. Take Comfort In Banking Abroad

An account with a foreign bank today is becoming a sheer necessity both for legal entities and individuals.

Travel arrangements and tickets, accommodation and meals, training and education, insurance and medication, shopping for goods and services are just a few expenditure items that many people have to pay when going or staying abroad. Banking with a financial institution outside your home country is the best way to feel at home wherever you are.  

Moreover, an overseas account helps to protect funds from foes or adverse events in one’s own country. Non-resident bank account(s) abroad will shield your wealth, help you ease major concerns, and handle multiple chores at home and overseas. 

There can be many reasons for you to look for a reliable foreign bank for your assets.

That is why the importance of our readers’ questions of how to open a foreign bank account for individuals is growing.  The answer needs consideration of many nuances. 

Our experts’ customized recommendations always take into account the country of residence/citizenship of the individual, the relevant policy of the target jurisdiction,  the chosen bank’s rules regarding opening accounts for non-residents. During a free online consultation you can discuss with our expert your current situation, concerns, and aspirations.

This knowledge makes a great difference, as not all banks are ready to open accounts and provide banking services to foreign citizens. Non-resident accounts often carry additional risks and complications, mainly related to due diligence procedures, and therefore a client needs to know which bank will consider onboarding of foreign clients. 

Besides, even when the bank is willing to open an account for a non-resident individual, the applicant needs to be aware of and observe its procedures and requirements for foreign clients, and compile the application documents accordingly. 

As we have explained in many articles, the international and national AML/CFT regulations prompt financial institutions to be most meticulous in performing the due diligence of their prospective clients and checking the origin of their funds. Moreover, the bank of your choice may even require your in-person visit to apply for an account and be interviewed by Compliance. Right now, there’s nothing unusual about it.

However, our team maintains cooperation with many reliable reputable foreign banks across the world that open accounts remotely for our customers. Isn’t this good news to you, particularly in this time of restricted international travel? 

The entire procedure of verification of your documents can be done at a distance, and the interview can be held online. 

We recommend and deal with such foreign banks that take it as their special mission to display loyalty to their foreign clients by maintaining a high level of privacy and convenience.

Why should an individual open an account with a foreign bank?

A foreign bank account allows you to access several important advantages at once. Let us sum them up below.

• A bank account abroad is a way to protect your savings from the devaluation of the national currency and any financial turmoil in the country of your residence. 
• By holding foreign bank accounts you diversify your assets internationally while deciding where to go next – to avoid political tensions, climate change, unemployment, and health security uncertainties in your part of the world.
• A foreign bank account is an essential practical arrangement for aging clients (nomads in search of healthcare perks), start-up entrepreneurs (particularly those engaged in remote digital occupations), investors in migration programs – in case their short-term destinations turn to long-term Covid-free residences or home away from home due to other circumstances. 
• The more of your assets are parked in different jurisdictions, the more secure your future wellbeing is.
• A bank account set up outside your home country allows you to access international banking products and services that may be unavailable or inaccessible in your country’s financial system.
• A multi-currency account with an international bank is a way to saving on transactions in foreign currencies.
• As a client of a foreign bank you may get access to funding at quite attractive rates and on more benign terms than at home – loans for personal needs, the mortgage loan(s), etc.
• A foreign bank may offer you various discounts and bonuses available to its customers (for example, when you use its Visa or MasterCard cards).

What should you know before you open personal accounts with a foreign bank?

Non-residents who open an account with a foreign bank must comply with the following basic requirements:

• be ready to transfer the minimum deposit required by the bank; these amounts can be different: from 1 USD to several million US dollars (USD). It all depends on the requirements of the foreign bank. In some cases, even a huge deposit cannot guarantee that the account will be opened if the applicant fails to comply with other terms;
• be ready to maintain a minimum balance as required by this bank;
• be ready to visit the bank, when necessary.

For example, a personal visit may be needed to open a personal account in such countries as the Czech Republic, Austria, Georgia. To open a personal account in UAE banks, you may need a resident visa.

You can open an account at a distance in Europe. For example, such an opportunity is offered by some banks in Switzerland, Liechtenstein, Macedonia, and Portugal. 

In most offshore jurisdictions, you can open a personal bank account remotely by submitting the entire portfolio of application documents electronically and/or by mail. 

What are the steps to be taken by individuals before applying for bank accounts abroad?

Our experts offer the following important recommendations: 

• get acquainted with the terms of the bank and understand whether it is suitable for your purposes;
• read the requirements set for the application and prepare a package of documents according to the instructions stipulated by the bank; 
• if there are questions, be sure to refer to expert assistance;
• prepare the amount for a minimum deposit – it can be from 1 USD and up to a million or more;
• please remember that some banks require you to maintain a minimum balance on the account.

In many cases, you need to visit the bank personally, but we can offer help in the remote opening of an account.

Are there any restrictions to be aware of when applying for foreign bank accounts for individuals?

Individuals can legally open foreign accounts and keep deposits in foreign banks. However, there are certain limitations.

1. Depending on the applicant’s home country, its legislation may not allow some categories of citizens to have foreign accounts and deposits (for example, government officials, their spouses and minors). Citizens of most countries are not prohibited from opening foreign accounts. However,  there may be a requirement to keep the tax authorities fully informed about their foreign accounts. 
2. The double tax treaties of some countries may specify a saving clause that prevents citizens or residents from avoiding some particular taxes on the income derived abroad as if no tax treaty were in effect.  Many treaties limit the number of years you can be entitled to some tax exemption.
3. Besides, individuals may need to submit their cash flow reports to the Tax Service in their tax residency jurisdiction.

The relevant details can be discussed during a free consultation with our expert. 

Who can help with opening foreign bank accounts for individuals?

To choose the right bank to open a foreign/offshore account, please use our free consultation. Please complete the online fillable booking form on our website and submit it to us. Our experts will promptly contact you with their feedback. You should never feel alone and at a loss when trying to choose a foreign bank. Our experts are ready to guide you and assist you through the procedure of opening an account that will meet all your goals and plans.

In case you doubt that a foreign bank will open an account for you, you can use our Pre-Approval service and be sure the chosen bank will agree to accept your application. 

Our partners are well-established banks from economically and politically stable countries in Europe, America, Asia, and other parts of the world. We have been dealing with them for many years. Some of these banks are willing to play by modern rules. Careful verification of documents and confirmation of the legal origin of your funds is still important, but a personal visit to the bank is not always necessary. You can save time and money, and you can be interviewed and communicate with a bank employee via Skype or another web-based app.