What you need to open a foreign bank account

Opening a bank account outside your home country requires a valid passport, proof of address, and often a minimum deposit. The exact documents and amounts vary by country and by bank — some nations require you to be a resident or have a visa, while others let non-residents open accounts remotely. You will also need to provide your tax identification number (your Social Security Number if you are a U.S. citizen) because most countries now share financial information with the IRS under the Foreign Account Tax Compliance Act (FATCA).

The process itself differs sharply depending on where you want to bank. Some countries let you open an account entirely online with a video call to verify your identity. Others require you to visit a branch in person. A few nations have made it harder for U.S. citizens specifically to open accounts because of FATCA reporting requirements, so you may find that banks in certain countries will not accept American clients at all.

Before you choose a bank, research whether it participates in FATCA. If it does not, you will still have to report the account to the U.S. government, but the bank itself will not send your information directly to the IRS — you will handle that part yourself through your tax return.

Key Takeaways

  • You will need a valid passport, proof of address, and your tax identification number (Social Security Number for U.S. citizens) to open most foreign bank accounts.
  • Some countries require you to be a resident or hold a visa; others allow non-residents to open accounts remotely, but policies vary widely by nation and bank.
  • U.S. citizens must report all foreign bank accounts with a combined balance over $10,000 to the U.S. government on the Foreign Bank Account Report (FBAR), filed annually with FinCEN.
  • Many banks now refuse to serve U.S. clients because of FATCA compliance costs, so you may need to contact banks directly to confirm they accept Americans.
  • Opening an account online is faster but requires the bank to offer remote verification; in-person visits at a branch take longer but may be your only option in some countries.

Residency and visa requirements by country

Some countries make it straightforward for non-residents to open accounts. Mexico, for example, allows foreigners to open bank accounts without a visa or residency permit if they have a valid passport and proof of address (which can be a hotel booking or rental agreement). Canada and the United Kingdom also permit non-residents to open accounts, though they may ask for additional documentation like a reference from your home country bank.

Other countries require you to hold a residency visa or long-term visa before any bank will open an account for you. Spain, Portugal, and many EU nations fall into this category. If you are moving to one of these countries, you typically need to obtain your residency visa first, then open the account once you have arrived and registered with local authorities.

A third group of countries — including some in Southeast Asia and the Middle East — have restrictions that change based on your nationality. U.S. citizens may face additional scrutiny or outright refusal from banks in these regions because of FATCA compliance. Your best approach is to contact the bank's international department directly and ask whether they accept U.S. citizens before you spend time gathering documents.

Online versus in-person account opening

Remote account opening is faster and requires no travel, but not all banks offer it. Banks that do allow online opening typically use video verification, where you show your passport to a camera and answer questions to confirm your identity. The entire process can take 15 to 30 minutes, and you may receive account details within one to three business days. This route works best if the bank has a strong online platform and clear instructions in English.

In-person opening at a branch takes longer but is often more straightforward if you are already in the country or planning to visit. You walk in with your documents, speak to an account manager, sign paperwork, and sometimes deposit money on the spot. The account is usually active the same day or within one business day. This method also gives you a chance to ask questions and understand the bank's fees and services before committing.

If you are opening an account while traveling, bring multiple forms of proof of address — a hotel confirmation, a rental agreement, or a letter from someone who lives in that country confirming your stay. Some banks accept these; others do not. Call ahead to confirm what the branch will accept.

U.S. tax reporting requirements for foreign accounts

If you are a U.S. citizen or resident alien, you must report any foreign bank account with a combined balance of $10,000 or more at any point during the calendar year. This report is called the Foreign Bank Account Report (FBAR), and you file it with the Financial Crimes Enforcement Network (FinCEN), not the IRS directly. The deadline is April 15 of the following year, though you can request an extension to October 15.

You file the FBAR using FinCEN's online system at bsaefiling.fincen.treas.gov. You will need the account number, the bank's name and address, the account type, and the highest balance the account held during the year. If you have multiple foreign accounts, you list them all on a single FBAR.

Failing to file the FBAR can result in civil penalties of $10,000 per violation, or criminal penalties if the IRS determines the omission was willful. If you discover you have not filed in previous years, you can file late FBARRs without penalty under the IRS's streamlined filing compliance procedures, but you must also file amended tax returns for those years.

In addition to the FBAR, you may also need to report foreign accounts on Schedule B of your Form 1040 tax return if you have over $50,000 in foreign financial accounts. Your tax preparer or accountant can tell you whether this applies to your situation.

Minimum deposits and account fees

Minimum deposits range from zero to several thousand dollars, depending on the country and the type of account. Many banks in Mexico, Costa Rica, and Portugal have no minimum or ask for $500 to $1,000 to open a basic savings account. Premium accounts or investment accounts often require $5,000 to $25,000 or more.

Monthly or annual fees also vary. Some banks charge $5 to $15 per month for account maintenance. Others charge nothing if you maintain a minimum balance or set up direct deposit. A few banks charge annual fees of $50 to $200 just to hold an account, especially if you are a non-resident. Always ask the bank for a full fee schedule before you open the account, because these costs add up over time.

Currency conversion fees are another cost to watch. If you transfer money from your U.S. bank account to your foreign account, you will pay a conversion fee — typically 1 to 3 percent of the amount transferred. Some banks charge a flat fee per transfer instead. Compare these costs across banks before you decide, because they can significantly reduce the amount you actually receive.

How to transfer money to your foreign account

The most common methods are international wire transfer, online transfer services, and ATM withdrawals. An international wire transfer through your U.S. bank takes three to five business days and costs $15 to $50 per transfer, plus currency conversion fees. You will need the foreign bank's SWIFT code and the account's IBAN (International Bank Account Number) to complete the transfer.

Online transfer services like Wise (formerly TransferWise), OFX, and Remitly often charge lower fees than banks — sometimes 1 to 2 percent of the amount transferred — and offer better exchange rates. These services are faster too, often completing transfers within one to two business days. You set up an account with the service, link your U.S. bank account, and then send money to your foreign account.

If you are in the country where your foreign account is located, you can withdraw cash from an ATM using your U.S. debit card and then deposit it at your foreign bank. This avoids wire fees but costs you in ATM charges and currency conversion. It also works only for smaller amounts.

Banks that accept U.S. citizens

Finding a bank that accepts U.S. citizens has become harder since FATCA took effect in 2014. Many smaller banks and banks in developing countries have simply stopped serving Americans because the compliance costs are too high. However, larger international banks and banks in countries with strong U.S. ties still accept U.S. clients.

Banks known to accept U.S. citizens include HSBC (which operates in many countries), Scotiabank (Caribbean and Central America), Banco Azteca (Mexico), Banco Santander (Spain and Latin America), and various banks in Canada. However, policies change, and you should contact the bank directly to confirm they currently accept U.S. citizens before you apply.

Some countries have banks specifically designed for expats and non-residents. In Portugal, for example, banks like Caixa Geral de Depósitos and Millennium BCP have expat-friendly programs. In Mexico, Banco Inbursa and BBVA Bancomer both serve non-residents. Research banks in your target country and read recent reviews from other U.S. citizens who have opened accounts there.

What to do if a bank refuses to serve you

If a bank declines your application because you are a U.S. citizen, you have a few options. First, try a different bank in the same country — policies vary from bank to bank. Second, consider banks in countries with stronger U.S. ties or larger expat communities, where banks are more accustomed to FATCA compliance. Third, look into online banks or fintech companies that operate internationally and may be more willing to serve U.S. clients.

You can also work with an immigration lawyer or expat financial advisor in your target country. They often have relationships with banks and can sometimes help you open an account when you would be refused on your own. This service usually costs $200 to $500, but it may be worth it if you have been rejected multiple times.

As a last resort, some U.S. expats use a trusted friend or family member who is a citizen of the country to open an account on their behalf, then transfer ownership or access to the American. This is legal in some countries but not others, and it carries risks. Consult a local lawyer before attempting this.

Frequently Asked Questions

Do I have to report a foreign bank account if it has less than $10,000?

No, the FBAR requirement applies only to accounts with a combined balance of $10,000 or more at any point during the year. However, if you have multiple accounts, you add them together to reach that threshold. If your accounts total $9,500, you do not file an FBAR, but if they total $10,001, you must file for all of them.

Can I open a foreign bank account if I do not live in that country?

Yes, many countries allow non-residents to open accounts, but policies vary. Mexico, Canada, and the UK permit non-resident account opening. Others, like Spain and Portugal, require residency. Contact the bank directly to ask whether they accept non-residents before you apply.

What happens if I do not report a foreign bank account to the U.S. government?

The IRS can impose civil penalties of $10,000 per violation. If the IRS determines the omission was willful, criminal penalties can reach $250,000 or more, plus imprisonment. If you have not filed in the past, you can file late FBARRs under the streamlined filing procedures without penalty, but you must also file amended tax returns.

How long does it take to open a foreign bank account online?

Remote account opening typically takes 15 to 30 minutes for the video verification call, and you receive account details within one to three business days. In-person opening at a branch is often faster — sometimes the same day — but requires you to visit the bank in person.

What is the difference between FBAR and FATCA reporting?

The FBAR is a report you file with FinCEN if you have foreign accounts totaling $10,000 or more. FATCA is a law that requires foreign banks to report U.S. client accounts directly to the IRS. If your bank participates in FATCA, it sends your information to the IRS automatically; you still file the FBAR yourself.