How to Open a Foreign Bank Account: Step-by-Step Guide

If you’re going to be traveling to a foreign country for work, school, or just for fun, it’s more convenient when your money can come with you, too. Opening a foreign bank account can simplify your finances when you’re living overseas or give you more flexibility and control when managing your money from home.

We’ll go over everything you need to know about how to open a bank account in another country and walk you through the process, step-by-step.

Key takeaways

• A foreign bank account is a convenient way to manage your money when living, working, studying, or traveling overseas.
• You can open a bank account in another country without living there, if you want to make it easier to invest abroad or diversify your cash holdings.
• To open a foreign bank account, you’ll usually need to fill out an application and provide documents that prove your identity and address, though the exact requirements vary by country.

Why open a bank account in another country?

There are plenty of reasons you might want to open a foreign bank account. Moving to another country for work, traveling overseas, or sending money abroad are all activities that can be easier with a foreign bank account.

Or, perhaps you won’t be traveling, but your money will. A foreign bank account is convenient for international investing or foreign property purchases. It cuts down on foreign exchange fees and lets you diversify your cash holdings into other currencies. It could speed up fund transfers and allow you to receive money more easily, which could be useful if you do a lot of business abroad.

When you open a foreign bank account, you gain a lot of flexibility and cut down on delays and fees.

Is it legal to open a foreign bank account?

It’s legal to open a foreign bank account. Sometimes people worry whether it’s legal to open a foreign account because they’ve heard of criminals hiding their money in offshore accounts. You will run into legal trouble if you open the account fraudulently or use it to commit fraud, tax evasion, or other crimes. You’d face punishments of fines and prison time—up to $100,000 and five years imprisonment, in the case of tax evasion.

If you open the account properly, use it honestly, and report your accounts as required, you won’t have to worry. In the U.S., you’ll need to report your foreign accounts if they total more than $10,000 in a calendar year.

What you’ll need to start

If you want to open a bank account in another country, you’ll generally need to provide proof of identity and other documentation. The specifics can vary depending on the country.

• Proof of identity: Your passport or national identity card will usually be good options. In some countries, digital identity services streamline the verification process, but you’ll need to sign up ahead of time. Other countries provide birthright citizenship if you can prove a parent or grandparent was a legal citizen.
• Proof of address: You may need to prove your address. A utility bill will typically work for this.
• Visa: Some banks will require you to upload a copy of your work visa, residency permit, or tax identification document, so make sure you have those handy.
• Other documents: In some countries, students may need to show their student ID. If you’re working, proof of employment may be required, such as a form filled out by your employer.
• Initial deposit: You’ll also need to provide funds for your initial deposit. This amount can vary by bank, so check to see how much you’ll need to deposit to open the account.

How to open a bank account in a different country

Here’s how to open a foreign bank account.

1. Research banking options

Look for banks that are popular with expats or international students, since these are more likely to work well for a non-resident. Make sure your chosen bank offers the services you’ll need, such as wire transfers, online banking, or debit card access.

2. Apply for an account

Once you’ve chosen a bank, apply for an account. You may be able to complete the application process entirely online, depending on the bank and location. Otherwise, you may need to stop by a branch in person once you arrive.

3. Submit verification documents

If applying online, the bank should provide a secure way to upload electronic copies of your verification documents. If you apply in person, simply bring your documents with you. In some countries, the bank might verify your identity over a video call.

4. Fund the account

The last step is to fund your new account. Sending a wire transfer from an existing bank account is a common method. You may be able to use a credit or debit card to fund your account, but you’ll have to check with the bank since not all banks accept this method for initial deposits.

Popular countries for foreign bank accounts

Switzerland and the Cayman Islands are popular destinations for offshore bank accounts because of their commitment to privacy and security, but there are other countries where it’s convenient to open a foreign bank account, too.

For instance, Singapore banks offer remote account opening, which lets you get started without leaving home. Meanwhile, Hong Kong is known for its efficient banking system and English is widely used.

Mexico, which is home to the largest number of American expats, has a number of banks with bilingual staff, where you can open a bank account with a passport, proof of income, and a visa. Other popular countries for opening a foreign bank account include Mauritius, Belize, and the United Arab Emirates (UAE).

Managing money across borders

Once you know how to open a bank account in another country, you can use it to spend, save, and protect your money overseas. Use the Western Union app to send money to a foreign bank account or mobile wallet, or let a loved one pick up cash in person at one of our thousands of agent locations. No matter where you are or where you’re going, Western Union makes it easy to manage your money and transfer funds safely.