Citizens of living abroad, or people working with foreign clients, have an absolutely logical question: is it possible to open an account in a foreign bank and how to do it correctly.
The PaySpace Magazine editors figured out how to open an account in a foreign bank for a citizen. And I'm ready to share some life hacks.
Who needs it and why
The question is, in fact, rhetorical. There can be many reasons for opening an account of an individual in a foreign bank:
Is it legal to open an account in a foreign bank
Yes, absolutely legal. According to currency legislation, citizens can freely open accounts in foreign banks.
Currency regulation is based on the following principles [...] the right of resident individuals and legal entities to conclude transactions with residents and (or) non-residents and fulfill obligations related to these agreements in national currency or in foreign currency, including opening accounts in financial institutions of other countries
In addition, the latest version of the Law "On Currency and Foreign Exchange Transactions", which entered into force on February 7, 2019, weakens control and simplifies the procedure for opening a deposit in a foreign bank.
How to open an account in a foreign bank for a citizen:
Required documents
If earlier it was possible to open an account in a foreign bank without obtaining additional licenses only on the territory of the country where the bank is located, now it can be done. There is no longer a need to obtain a license, and there is no need to inform the NBU about opening an account in a foreign bank.
However, the documents from you will most likely be required by a foreign bank, which is interested in clearly understanding the purpose of opening an account and the activities with which you will replenish this account.
Most often, foreign banks have their representatives on the territory, who have the right to certify documents and the client's signature.
In which countries is it better to open a bank account
If you live or study abroad, then it is logical to open an account in the country where you are now.
But if you live, and the need for a deposit in a foreign bank is still present, then you should pay attention to the requirements of banks in different countries from their non-resident clients.
There is no hope of simply opening a bank account in the United States. The basis for opening an account in the United States by a citizen can only be a legal stay in the country.
And also you will be required to confirm your place of residence. You can verify the address by submitting utility bills, a letter from your employer, or a college letter.
How to fund your bank account
The main question is where does the replenishment of a bank account in a foreign bank come from .
If you replenish it from other countries or in the country where this bank is located, then, most likely, no difficulties should arise. If a certain limit is exceeded, of course, they may be required to confirm the origin of the funds, but this is not critical.
If the replenishment occurs from the territory, then the situation is actually very similar.
Previously, to replenish an account in a foreign bank, it was necessary to obtain a special e-license from the NBU. Now this system has been replaced by the e-limit system.
It will be necessary to confirm the legality of the origin of funds if their total amount per year exceeds 50 thousand euros (for legal entities this limit is higher - 2 million euros). If the amount is less, then no questions should arise.
How beneficial is it
The logic is to open an account in a foreign bank to receive earnings on it in dollars or use it abroad, there is definitely. However, one should not hope for a benefit in monetary terms.
Foreign banks offer fairly low deposit rates from 0.2% to 3% per year. For example, banks for March 2019 offer rates on deposits in dollars up to 6% per annum, and in euros - up to 5%.
If you are worried about the safety of your funds in the event of bankruptcy or bank liquidation, then you should know that, as a rule, the guarantee amount is equal to the amount of funds on the account, but with a maximum threshold of 100 thousand euros. However, it is better to check this information for each specific country before opening a foreign bank account for a citizen.
The PaySpace Magazine editors figured out how to open an account in a foreign bank for a citizen. And I'm ready to share some life hacks.
Who needs it and why
The question is, in fact, rhetorical. There can be many reasons for opening an account of an individual in a foreign bank:
- a person is a citizen of a country other than the one in which he currently lives and works
- the client trusts foreign banks more
- the user does not want to keep all his funds in one bank or in one country
- the depositor sells goods abroad or provides services to foreign customers (a full-fledged withdrawal of funds from PayPal to payment cards issued by banks is not yet available).
- students study in foreign higher educational institutions
Is it legal to open an account in a foreign bank
Yes, absolutely legal. According to currency legislation, citizens can freely open accounts in foreign banks.
Currency regulation is based on the following principles [...] the right of resident individuals and legal entities to conclude transactions with residents and (or) non-residents and fulfill obligations related to these agreements in national currency or in foreign currency, including opening accounts in financial institutions of other countries
In addition, the latest version of the Law "On Currency and Foreign Exchange Transactions", which entered into force on February 7, 2019, weakens control and simplifies the procedure for opening a deposit in a foreign bank.
How to open an account in a foreign bank for a citizen:
Required documents
If earlier it was possible to open an account in a foreign bank without obtaining additional licenses only on the territory of the country where the bank is located, now it can be done. There is no longer a need to obtain a license, and there is no need to inform the NBU about opening an account in a foreign bank.
However, the documents from you will most likely be required by a foreign bank, which is interested in clearly understanding the purpose of opening an account and the activities with which you will replenish this account.
Most often, foreign banks have their representatives on the territory, who have the right to certify documents and the client's signature.
In which countries is it better to open a bank account
If you live or study abroad, then it is logical to open an account in the country where you are now.
But if you live, and the need for a deposit in a foreign bank is still present, then you should pay attention to the requirements of banks in different countries from their non-resident clients.
| Country | Requirements | Additionally |
| Poland | These countries are as loyal to non-residents as possible. They allow you not to account again for the placement of cash imported from the territory. | The easiest way to open an account is in Poland. Some financial institutions may require you to indicate an address in Poland (often indicate the address of residence of friends and relatives who live in the country) |
| Luxembourg | ||
| Switzerland | ||
| Latvia | ||
| Lithuania | ||
| Estonia | ||
| Slovakia | ||
| Montenegro | To open an account in these countries, a foreign passport is enough | |
| Montenegro | ||
| Czech | The situation is similar to opening an account in a Polish bank, but in the Czech Republic they may require you to provide a student ID or a certificate from the place of work | |
| Holland | These countries are not so loyal to non-residents and may require an impressive package of documents:
| If your account receives money from another bank or even you replenish your deposit in cash, then many of these countries may ask you to confirm the origin of funds, regardless of the amount |
| Sweden | ||
| Denmark | ||
| Norway | ||
| France | ||
| Spain | ||
| Germany | It is very important to legally stay in the country, so tourists, when trying to open an account, are likely to be refused. | You can open an account in Germany in many banks online. To do this, you need a foreign passport and an address of residence in the country (some financial institutions may ask for confirmation) |
There is no hope of simply opening a bank account in the United States. The basis for opening an account in the United States by a citizen can only be a legal stay in the country.
And also you will be required to confirm your place of residence. You can verify the address by submitting utility bills, a letter from your employer, or a college letter.
How to fund your bank account
The main question is where does the replenishment of a bank account in a foreign bank come from .
If you replenish it from other countries or in the country where this bank is located, then, most likely, no difficulties should arise. If a certain limit is exceeded, of course, they may be required to confirm the origin of the funds, but this is not critical.
If the replenishment occurs from the territory, then the situation is actually very similar.
Previously, to replenish an account in a foreign bank, it was necessary to obtain a special e-license from the NBU. Now this system has been replaced by the e-limit system.
It will be necessary to confirm the legality of the origin of funds if their total amount per year exceeds 50 thousand euros (for legal entities this limit is higher - 2 million euros). If the amount is less, then no questions should arise.
How beneficial is it
The logic is to open an account in a foreign bank to receive earnings on it in dollars or use it abroad, there is definitely. However, one should not hope for a benefit in monetary terms.
Foreign banks offer fairly low deposit rates from 0.2% to 3% per year. For example, banks for March 2019 offer rates on deposits in dollars up to 6% per annum, and in euros - up to 5%.
If you are worried about the safety of your funds in the event of bankruptcy or bank liquidation, then you should know that, as a rule, the guarantee amount is equal to the amount of funds on the account, but with a maximum threshold of 100 thousand euros. However, it is better to check this information for each specific country before opening a foreign bank account for a citizen.
