A Google search will provide you with thousands of banks across the globe, but do all of them provide services to non-residents? The answer is no. What is more, people are gradually getting used to doing everything online, including opening a bank account. And the task of opening a non-resident bank account remotely is even more complicated as banks want to be on the safe side and know their customers well. However, opportunities do exist, and we will discuss the best of them in this post.
Best Destinations for Non-Resident Banking
If you decide to open an account in a foreign country, you will do so with some particular purpose in mind: obtaining high-quality banking services, using banking products that are not provided in your country, minimizing financial risks, or finding opportunities to carry out transactions more conveniently.
Let’s look at the main benefits of non-resident banking:
- Easy 24/7 access to your funds kept in a safe place
- Access to global markets
- Flexible rates
- High personal data privacy standards
The choice of a jurisdiction for account opening will depend on a number of factors. The following questions will serve as a basis for the shortlist:
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- What is your nationality? Your country may be under sanctions, which will limit the choice. Some banks do not open accounts to US citizens as they do not want to report information to American authorities.
- Are you a foreign residence permit holder? If you legally reside in the EU, a good choice is to open an account in one of the EU member states. Green card holders can obtain financial services from American banks. That would be a natural choice.
- What is the source of your income? You will inevitably have to answer that question before you open a bank account: your business, salary, dividends, and all other sources of funds have to be disclosed to the bank.
- Can you provide the necessary information to the bank in a timely manner? Banks usually want to get their questions answered quickly, and a delay may result in a negative decision.
Purpose of Non-Resident Account Opening
The choice of a jurisdiction will also depend on the primary purpose:
- A non-resident account for investments. If this is your primary goal, consider the banks based in Liechtenstein, Switzerland, or Austria. They specialize in these services and have been successfully operating in this sector since the start of the 20th century. You will need to use the assistance of an investment manager or an experienced broker.
- Investment in non-standard objects. You may wish to invest in paintings, wines, rare earth metals, or gold. In this case, you will need a bank that has a safe vault. The services of an investment advisor will also be useful.
- Opening a corporate bank account for a non-resident company. If this is your case, consider some offshore jurisdictions, like Belize, Panama, or Nevis. An offshore company and an offshore bank account are a very powerful combo that protects you from all kinds of seizures and similar things.
If you are prepared to consider an alternative to traditional banks, take a look at payment systems. You will have much less trouble opening an account there, and they offer all the services you will find in a bank – except for one: you cannot take a loan there.
Easiest Path to a Non-Resident Account
There is no one-size-fits-all answer here, as everything depends on your legal residence or citizenship. Let’s consider some cases:
- Many offshore banks turn down applications submitted by American citizens. The matter is that opening an account for a US resident will mean additional paperwork (related to mandatory reporting to the IRS) at no additional fee – so they are simply unwilling to do that.
- Those who come from Russia, Iran, or Belarus, as well as other sanctioned countries, may find it challenging to find a bank that will onboard them because financial institutions are not sure they will not violate the sanctions by accepting residents of those countries.
- As the relations between the USA and China are rather tense, Chinese applications submitted to American or Canadian banks are often frowned upon.
What can you do to find out whether the bank will onboard you before making an effort to collect a complete package of documents? It would be great to use the pre-approval service: you submit your applications to several banks and wait for their answer. You can visit this page and talk to an expert to discover the details and save time, money, and effort.
Opening a Non-Resident Account: Documents
If you need a personal bank account, you will be required to provide the following documents:
- Passport copy
- Proof of residence address (a utility bill or a bank statement that is no older than 3 months)
- Proof of the legal origin of funds (an inheritance certificate, a job contract, a tax declaration, and so on)
- A letter of recommendation
- A CV
If you need a corporate bank account, the list of documents will differ:
- Certificate of company registration
- Details of the company’s activity
- The company’s beneficial owners (directors, founders, etc.) will need to provide copies of their passports and proof of address of residence
- A bank statement if the company has an account with another bank
- A detailed business plan
The list may vary from bank to bank, and sometimes, you will need to provide additional documents.
How to Choose an Offshore Bank for a Non-Resident Account?
Selecting the right offshore bank for a non-resident account is a challenging but important decision. It would be best to have a bank that is secure and capable of offering high-quality financial services.
The first step is picking the right jurisdiction. The country’s economic and political stability plays a vital role in minimizing risks. Some countries provide additional perks, such as European banks, where accounts are insured for at least 100,000 euros.
Next, you should consider the bank’s reputation. While global recognition and a long history are positive signs, it is essential to review the bank’s past. Even reputable institutions can face issues, particularly with national fiscal authorities.
One example is the IRS in the United States, which has blacklisted over 100 banks that pose potential risks. To avoid complications, choose offshore banks that have not served American clients in recent years.
If you need professional assistance in any matter related to banking, please follow the above link. You can have a free preliminary session with a consultant to discuss your needs and find the best solution possible. We wish you safe banking!
