Swiss bank account
Published on March 14, 2023
Updated on November 04, 2024
by Darryl Albuquerque
Darryl Albuquerque is an IRS-enrolled agent with 19 years of experience in expat taxation. He specializes in US tax preparation, planning, and advisory services for US citizens and Green Card holders residing in the Middle East. He is also skilled at guiding clients through the Streamlined Tax Amnesty Program.
Table of Contents
How do I open a Swiss bank account as a US expat?
It will be challenging given the regulations and conditions on being a non-resident but you will need to select a bank that meets your specific needs and the only requirement is to be at least 18 years old to open a Swiss bank account.
Since the Foreign Account Tax Compliance Act (FATCA) was brought in, US expats are subject to compliance with local and international laws and swiss banks must comply with strict standards of compliance and transparency.
What are the benefits of opening a Swiss bank account?
Swiss bank accounts are known for their advantages such as low financial risk and a high degree of privacy of the account holder. Additionally, Swiss laws requires that banks maintain substantial capital reserves with strong depositor protection or insurance, safeguarding deposits from financial crises.
Swiss law ensures that banks cannot share any information about an account, including its existence, without the depositor’s consent. The only exceptions are if a government agency suspects the depositor of criminal activity or financial issues like bankruptcy, divorce, or inheritance.
Additionally, Swiss anti-money laundering regulations require depositors to provide proof of the source of their funds.
What are the steps in opening a Swiss bank account?
The usual steps to open a bank account in Switzerland are as follows:
- Choose a suitable Swiss bank: Central banks working in large Swiss cities like Zurich, Geneva, and Basel can be easier to apply and offer more services.
- Fill out the application: You can start the process online and follow their required procedures and submit the necessary documents.
- Verify your identity: You can verify your identity by visiting a bank or via video call. Some banks will also need to see your residence status in Switzerland or other European countries.
It’s also important to note that some banks may set high minimum deposit conditions when the application process is completed entirely remotely.
What should I consider when choosing a Swiss bank?
Here are some of the factors to consider when choosing your bank:
- Accessibility: For when you need online banking, international transfers, or regular banking services.
- Minimum Deposit: Other banks require high initial deposits, especially for private banking or other management services.
- Banking Fees: Swiss bank accounts often come with management and service fees, especially for international accounts.
- Privacy and Security: All Swiss banks are known for their privacy and stability, but some banks specialize in higher security for sensitive wealth management.
Which is the best Swiss bank account for me?
Here is a list of some of the larger Swiss banks to help you begin your research.
- PostFinance: If you live in Switzerland, you can open your new PostFinance account online using your smartphone. Non-residents must begin the account opening process online and then wait to receive physical documents by mail to finish the application.
- UBS (Union Bank of Switzerland): UBS offers several account options that may suit depending on your circumstances. Personal accounts can be opened and closed free of charge. They also offer digital accounts.
- Migros Bank: They offer various accounts. However, their website only supports German, Italian, and French. Foreigners can open accounts, but you must visit a branch.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
Connect with over 10,000+ expats today!
Embarking on an international journey shouldn’t mean navigating the complex world of US taxation alone. If you’re living and working abroad, our friendly, supportive Expat Tax Online Help Facebook group is here to assist. We’ve designed a community that serves as a comprehensive guide and resource platform tailored for US expats.
How does Switzerland’s banking privacy work?
Swiss banks refuse to open accounts for people with untaxed money or without proper documentation on the source of funds. They also require a Tax Identification Number (TIN) from customers before accepting any deposits.
The Foreign Account Tax Compliance Act (FATCA) signed between the US and Swiss banks, are effective measures for preventing tax crimes so opening a Swiss bank account with untaxed money is no longer possible, as tax evasion is now a criminal offense in Switzerland.
Is it legal for non-residents to open Swiss bank accounts?
Yes, offshore banking in Switzerland is considered legal, and US account holders must comply with the requirements of FBAR filing.
Tax evasion makes Swiss bank accounts illegal. Almost all Swiss bank accounts have been disclosed to the tax agencies of the client’s place of residence. Swiss bank accounts are legal if you comply with tax reporting requirements.
Can I open a Swiss bank account online from the US?
Yes, some banks in Switzerland allow you to open an account online, although some require customers to visit a branch to complete the process.
If you don’t plan to travel to Switzerland soon, you must verify the details of any account you are considering before starting the application process online.
How do I be tax-compliant when opening a Swiss bank account?
If you plan on managing a Swiss bank account, you need to fill out Form W-9. This form allows you to authorize the bank to provide your information to the US tax authorities.
Once filled out, you will be fully compliant with US tax law and able to take advantage of the benefits of Swiss banks.
Spread the word. Please share… 👉
