How to open an account in a European bank: step-by-step instructions and useful tips


Every citizen of the American can open an account with the European Bank. It is not necessary to be an individual entrepreneur or director of a large company. Opening an account is not a quick and complicated procedure, which should be approached carefully. When opening an account, you should take into account some nuances that will help to avoid several errors.

An account in a foreign bank can be opened by any America. The main thing is to carefully study the registration procedure and take into account some key points. It is important to know whether you need to notify the tax organization of your income, how to transfer money to the account. The answers to all your questions in our article.


How to open an account in a European bank


Why open an account with a foreign bank

Individuals open accounts with foreign banks for various purposes. The most popular goals are:
  1. In order to pay for the future education of a child in a higher educational institution, which is located on the territory of a foreign state.
  2. For the purpose of acquiring movable or immovable property abroad.
  3. The need for additional passive income. Foreign banks often offer attractive conditions for savings accounts.

How to choose a bank

The competition in the financial sector abroad is huge. As a result, the choice of bank should be approached with utmost responsibility. The parameters that you should pay attention to when making a choice are listed.

What to consider:
  1. The bank cooperates only with companies or also with non-resident individuals.
  2. What accounts are available for Americans. Often, foreign banks are willing to open only savings accounts in order to profit for a fixed period of at least a year. At the same time, they can apply penalties for early termination of the contract and writing off money.
  3. In what currency can I open an account and make payments. If the bank works only in national currency, then specify how the conversion and crediting occurs.

Account Opening Procedure

Especially for readers of our portal, we will consider what should be taken into account when opening an account.

Instruction:
       Study conditions
The first thing you need to do is carefully study the terms of the invoice. Particular attention should be paid to annual maintenance costs and fees for various notifications
       To obtain the necessary information you should visit the official portal of the financial company. You can also get answers to questions of interest on the conditions by calling the customer support toll-free number and through online chat staff, if available.
       Preparation of documents

Be prepared to prepare the necessary list of documents. In practice, foreign banks request a passport of a foreigner and citizen of the American Federation.
Additionally requested to present a driver’s license, if any. To confirm income, you should take a certificate in the form of 2-personal income tax or another document. This is necessary so that the manager of the foreign bank confirms the official source of the funds received.
Additionally, some banks ask for TIN and employment document.
Contract signing
You must understand that it is unlikely that you can fully open an account with the European Bank. In most cases, lenders, after accepting the full package of documents by e-mail, send an official letter to the client. The letter indicates the address of the office to which you need to drive, in order to sign the contract.

If a foreign bank has a partner in the American Federation, then you can save time and money. It is enough to contact your partner or bank correspondent and complete all the necessary documentation.

How to transfer funds to a foreign account

After the account is opened, it should be replenished. You should be aware that all transfers are carried out within the framework of the law on currency control. According to the document, there is no limit on the transfer of funds.

To replenish the account you will need:
  1. Make a visit to the office of the bank, which accepts funds for transfers to foreign accounts.
  2. Present passport. If the money is transferred in the name of another recipient, the bank employee can clarify the degree of relationship and the purpose of the transfer.
  3. Provide a document from the tax authority, according to which you notified of the opening of the account and declared it.
  4. Present full details of a foreign account. The main thing is that a SWIFT code is written in them, in which all the necessary information for the financial company is encrypted.
  5. Announce the amount of the transfer and deposit cash at the bank cash desk.
  6. Receive a check or payment order.
You must understand that the term for crediting money can be up to 5 business days. In addition to the transfer amount, a transfer fee is charged. As a rule, the bank takes a commission in the amount of 0.5-1% of the transfer amount.

Additionally, it should be clarified whether a foreign financial institution charges a fee for receiving payment. In practice, this is possible and up to 1% of the amount credited is also withheld from the client. Also, in most cases, part of the money is lost due to conversion, which is carried out on the date of crediting the money.

Is it necessary to transfer information to the tax authority

Under the law, you must notify the tax office about opening an account with a foreign bank within 30 days after signing the contract. However, you do not have to make a personal visit. It is enough to register on their official portal and send a letter through your personal account. You can also send a registered letter with a notification.

It should be noted that if you personally contact or send a letter by mail, you should prepare a notification in two copies. USAA Routing Number The first one remains with the tax organization, and the second one is handed to you or sent by mail, with the corresponding mark of acceptance to work. When submitting documents remotely, you receive a notification in your account and to the email address.

If you do not notify the tax office on time, you will need to pay a fine. Its size can reach 1,500 dollars. If a tax service specialist finds out that the account was opened, but the client did not bother to notify about it, the fine will amount to 4000-5000 dollars.
In addition to the notification, each citizen of the American Federation must notify by June 1 of each year about the movement of money in savings accounts (deposits). This may require an extract from a foreign account, which can be ordered through your personal account.

What you need to know

You should understand that you will need to find out all the nuances associated with opening and using an account yourself.
  1. Risk. With the remote opening, many contracts are executed through an intermediary. Moreover, his services are paid at the beginning of the transaction. Such an intermediary may deceive or provide false information.
  2. Support service. Many banks do not have support service specialists who are ready to advise in American. It turns out that if you do not know a foreign language, then getting information or resolving disputed issues will be extremely difficult.
  3. Refill. If you want to transfer an amount of more than 50,000 dollars, be prepared to present a certificate that confirms their origin. If you work informally, you will need to write an explanatory letter in the name of the director of the bank, in which to indicate who and when gave this amount.
  4. Tax notifications. Be sure to notify the tax organization about opening an account and the amount that is placed on it. If you do not, you will be fined.

Conclusion

Summing up, it can be noted that you can always conclude an agreement with the European Bank in order to open an account. At the same time, you should understand that this is a complex procedure that requires specific actions. One visit to the office is not enough.
Before opening an account, you should carefully study the terms and conditions of the bank whose services you decide to use. It is also not superfluous to request a sample contract, which is shown to an experienced lawyer. This will help to avoid many problems.








How to open an account in a European bank: step-by-step instructions and useful tips How to open an account in a European bank: step-by-step instructions and useful tips Reviewed by We Move Dubai on May 28, 2020 Rating: 5

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