Your Path to Hassle-Free Offshore Banking Starts Here
We receive many questions from our customers, both current and potential, every day. Most often, they wonder about foreign bank accounts: how to set them up, where the best place to do it is, whether a personal visit is obligatory to do so, etc.
It is obvious that people are eager to bank offshore, whether in small island nations or EU member states. Yet, this process can be tricky, so you need a careful step-by-step approach to succeed.
Bank and account selection
While it’s potentially possible to open a foreign bank account from home using online applications, non-resident banking has become increasingly difficult due to global efforts against money laundering and terrorism financing.
Therefore, we recommend you turn to expert help. With our extensive experience in helping clients set up foreign bank accounts, International Wealth is well-equipped to assist you.
Start with a free consultation and complete our questionnaire. Your responses will help us identify the best foreign banks or payment systems for your needs.
Once you’ve selected your top two banks or payment systems, we will apply for preapproval on your behalf. The preapproval service is cost-effective and will save you both time and resources.
Preapproval stage
Preapproval is a provisional agreement from the bank to consider your application. It involves reviewing a simplified profile, so you don’t need to submit all documents initially. However, preapproval doesn’t guarantee final approval. It just means the bank will seriously consider your application.
In today’s world, it’s important to have multiple foreign bank accounts. Banks can freeze accounts, go bankrupt, or be impacted by sudden legal changes. Depending on just one account is risky, so be sure to diversify your assets.
Once you have chosen a bank and secured its preapproval, start gathering the specific application documents that the bank requires.
Regular bank or PSP: what is better?
Alternatively, you can set up an account with a Payment Service Provider (PSP), which is often faster. However, PSPs also have their own compliance and due diligence requirements.
It’s a misconception that opening an account with a payment system is significantly easier in terms of compliance. Every financial institution has its own internal rules that must be followed to establish an account, which makes careful document preparation essential.
Modern financial institutions demand complete transparency. To prove your reliability, be prepared to provide accurate and well-documented information. Banks are now highly selective, especially with foreign clients.
Documents required to establish a personal banking account abroad
To open a personal bank account overseas, you’ll need to provide several key documents:
- Identification Document: This can be your foreign passport or ID card.
- Proof of Residential Address: Most banks will accept a recent utility bill. Still, some may also agree to a bank statement from your home country, provided it includes your residential address.
These two documents are mandatory for all banks and payment systems. Yet, here are some others that you may be required to submit:
- Bank Statement: A statement from the last six months to confirm the legality of your income sources.
- Letter of Recommendation: This can be from a bank or a professional like a lawyer, accountant, or notary public.
- Tax Declaration: Often required when setting up an investment account in a foreign bank.
- Résumé: The CV in question must detail your education and work experience.
Each bank may have its own specific requirements, so always check directly with the institution.
Steps to open a foreign bank account
To open a foreign bank account, first decide on the type of account you need. A regular current account is ideal for everyday transactions like transferring money, paying bills, and covering tuition fees.
For larger sums, consider an investment account. Choosing the right bank for this can be complex, so professional advice matters. Make sure the chosen bank is reputable, as you’ll be entrusting them with your funds.
If you’re involved in FOREX trading, a broker’s account might be beneficial. Not all banks offer non-resident broker’s accounts, but starting with a current account and then applying for a broker’s one may improve your chances.
Once you’ve chosen the type(s) of foreign bank account you need, decide how much money to deposit. Your bank choice will depend on this amount, and many banks prefer the initial deposit to come from an existing account.
Inform your consultant about your current bank account, as the country of origin for your funds is of no small importance. Some banks have restrictions and may hesitate to accept transfers from certain jurisdictions.
The bank will also need information about the origin of your funds. Prepare documents verifying the legality of your income sources. Many European banks now require a tax declaration to confirm taxes have been paid on the deposited amount.
Some banks and payment systems don’t request initial deposits or security balances, but they might not meet your needs in terms of tariffs, service fees, location, or available payment cards.
Next, choose the currency for your foreign bank account. Ideally, select the one you use most often. Some banks offer multicurrency accounts for various national currencies, while others support only a few and offer single-currency accounts.
You have many options: open both euro and dollar accounts in the same bank or establish a euro account in one bank and a dollar account in another. For better asset diversification, consider setting up accounts in multiple banks.
Finally, analyze the bank’s tariffs and service fees. Here’s what you need to consider:
- transfer commission rates
- account maintenance fees
- fees for account closure
- costs for issuing a plastic card
- ATM withdrawal fees and limits
- maximum balance allowed on the card
- deposit limits per transaction and annually.
Keep in mind that bank tariffs may vary widely based on the institution’s location, size, and policies. Hence, choose a bank with a fee structure that meets your financial needs and long-term goals.
Find your perfect bank account with ease
Feeling overwhelmed? Don’t be! International Wealth is here to make your life easier. Simply contact us to request the account type you need and say where you would like to open it. We’ll give you a few choices so you can pick the ones that you like best.
