Opening a foreign bank account depends on where you live and which country's bank you want to use
If you are a US citizen or resident living abroad, you can open a bank account in your country of residence through the same process as local citizens—walk into a branch with your passport and proof of address, and most banks will open an account within days. If you are in the US and want to open an account in another country without moving there, the process is much harder: most foreign banks will not open accounts for non-residents, and those that do often require a minimum deposit of thousands of dollars, proof of income, and a reason for the account (such as a business or property ownership).
The real barrier for US citizens and residents is FATCA reporting. The Foreign Account Tax Compliance Act requires all foreign financial institutions to report accounts held by US persons to the IRS, and many banks have simply stopped accepting US customers because the compliance cost is too high. This means your options are narrower than they were ten years ago, and you will need to plan ahead rather than expect a quick process.
Key Takeaways
- US citizens and residents living abroad can open local bank accounts using their passport and proof of address, usually within a few days.
- Opening a foreign bank account from the US without relocating is difficult because most banks will not serve non-residents, and those that do require high minimum deposits and proof of business purpose.
- FATCA requires foreign banks to report US-held accounts to the IRS, which has caused many banks to stop accepting US customers entirely.
- You must report all foreign accounts over $10,000 to the US government using FinCEN Form 114 (FBAR), filed by April 15 each year.
- Some banks and fintech services cater to US expats, but they charge higher fees and offer fewer services than local banks.
Opening an account as a US citizen living abroad
If you have moved to another country and have a local address, the process is straightforward. Go to any major bank branch in your country of residence with your passport and a proof of address (utility bill, rental agreement, or government ID issued in that country). Most banks will open a checking or savings account on the spot or within a few business days. You will need to provide your name, date of birth, and sometimes a tax identification number for that country.
Some countries require additional steps. Germany and France may ask for a reference from another bank or proof of employment. Australia and Canada often ask for a local phone number and may require a minimum deposit of $100 to $500. The UK allows account opening with just a passport and proof of address. Ask the bank directly what documents they need before you visit, because requirements vary by institution and change frequently.
Once your account is open, you will need to report it to the US government. Any foreign financial account with a balance over $10,000 at any point during the year must be reported on FinCEN Form 114, also called the Foreign Bank Account Report (FBAR). This form is filed electronically through FinCEN's website and is due by April 15 each year (with an automatic extension to October 15 if you file before the April deadline). Failure to file carries penalties starting at $10,000 per account per year.
Opening an account from the US without moving
Most foreign banks will not open accounts for people who do not live in their country. They view non-residents as higher risk and do not want to manage the compliance burden. However, a small number of banks and financial services do accept US-based customers, usually with significant restrictions.
HSBC, Barclays, and a few other multinational banks sometimes open accounts for US residents if you have an existing relationship with them (such as a mortgage or investment account) or if you meet a high minimum deposit requirement—often $100,000 or more. You would need to contact their international banking department directly; these accounts are not available through their standard online process. Processing takes four to eight weeks, and you will pay higher fees than a local customer would.
Fintech services like Wise (formerly TransferWise), Revolut, and N26 offer multi-currency accounts and debit cards that function like bank accounts for some purposes. These are not true bank accounts—your money is held by partner banks, not by the fintech company itself—but they allow you to hold and spend money in foreign currencies without opening a traditional bank account. Wise and Revolut accept US customers and can be opened entirely online in 10 to 20 minutes. However, they do not offer loans, investment services, or the full range of services a traditional bank provides.
FATCA and why it matters
The Foreign Account Tax Compliance Act (FATCA), passed in 2010, requires every foreign bank to report accounts held by US citizens and residents to the IRS. This reporting requirement has made it expensive and legally risky for foreign banks to serve US customers, because they must verify the tax status of every account holder and file annual reports with the IRS.
As a result, thousands of foreign banks have closed accounts held by US persons or stopped accepting new US customers. This happened even in countries with close ties to the US, such as Canada and the UK. If you are a US citizen living abroad and your bank closes your account, you will receive notice (usually 30 to 90 days) to move your money elsewhere. This is legal and happens regularly.
The upside is that FATCA compliance is now routine for banks that do accept US customers. If a bank is willing to serve you, they have already built the systems to report your account to the IRS. You do not need to worry about whether they will comply—they must, or they lose access to the US financial system themselves.
Tax reporting requirements for foreign accounts
If you hold a foreign bank account as a US citizen or resident, you have two separate reporting obligations to the federal government.
The first is the FBAR (FinCEN Form 114). You must file this form if you have a financial interest in or signature authority over any foreign financial account with a balance over $10,000 at any time during the calendar year. "Financial interest" means you own the account or have the right to control it. "Signature authority" means you can withdraw money from it, even if you do not own it (such as a business account you manage for your employer). The form is filed electronically at FinCEN.gov and is due by April 15 (with an extension to October 15 if you file before April 15). There is no paper option.
The second is Form 8938, filed with your tax return. This form is required if you are a US citizen with foreign financial assets totaling more than $200,000 (if you are single and living in the US) or $400,000 (if you are married filing jointly). The threshold is higher if you live abroad—$400,000 for single filers and $600,000 for married filers. Foreign bank accounts count toward this total, as do foreign brokerage accounts, foreign real estate held in your name, and foreign insurance policies with a cash value.
Both forms must be filed even if you owe no US tax. Penalties for not filing start at $10,000 per account per year for the FBAR and can reach 40% of the unreported account value for Form 8938. If you have not filed these forms in prior years, you may be able to file them late without penalty under the IRS Streamlined Filing Compliance Procedures, but you must act before the IRS contacts you.
Banks and services that accept US customers
Your options depend on which country you want to bank in. In most developed countries, at least one bank or fintech service will accept US customers, though usually at higher cost than local customers pay.
| Country | Options for US Customers | Minimum Deposit / Fees |
|---|---|---|
| Canada | TD Bank, RBC (if you have existing relationship); Wise, Revolut | Varies; Wise and Revolut: $0–$15/month |
| UK | Barclays, HSBC (high minimums); Wise, Revolut, N26 | $100,000+; Wise/Revolut: $0–$15/month |
| Australia | Commonwealth Bank, Westpac (if resident); Wise, Revolut | $100–$500; Wise/Revolut: $0–$15/month |
| Mexico | BBVA, Scotiabank (if resident); Wise, Revolut | Varies; Wise/Revolut: $0–$15/month |
| Most other countries | Wise, Revolut, N26 (where available) | $0–$15/month |
If you are living in a country and want a traditional bank account, contact the major banks in your area directly and ask whether they accept US citizens. Be prepared to provide your Social Security Number, proof of US tax residency, and documentation of your local address. Processing takes two to six weeks.
If you are in the US and want a foreign account without moving, Wise and Revolut are your most practical options. Both allow you to hold money in multiple currencies, receive international transfers, and spend using a debit card. Neither offers loans or investment services, and both charge fees for certain transactions (currency conversion, ATM withdrawals, or account features). Wise is generally cheaper for large transfers; Revolut is better if you travel frequently and need multiple currency accounts.
What to do if a bank closes your account
If you are a US citizen with a foreign bank account and the bank closes it, this is legal under FATCA. The bank must give you written notice, usually 30 to 90 days, to move your money. You will not lose access to your funds—you simply need to transfer them to another bank before the deadline.
When you receive a closure notice, move your money immediately rather than waiting until the last day. Banks sometimes freeze accounts before the official closure date if they detect suspicious activity or compliance issues. Transfer your funds to another bank in the same country (if you can find one that accepts US customers) or to a fintech service like Wise. Keep documentation of the transfer in case the IRS asks questions later.
If you cannot find another bank in your country that accepts US customers, you may need to move your money to the US or use a fintech service. This is inconvenient but not uncommon for US expats in countries with smaller banking systems or countries where US banks have limited presence.
Frequently Asked Questions
Do I need to report a foreign bank account to the US if it has less than $10,000?
No, the FBAR is only required if the account balance exceeds $10,000 at any point during the year. However, if you have multiple foreign accounts that total more than $10,000 combined, you must file. Form 8938 has a higher threshold ($200,000 to $600,000 depending on your filing status and where you live) and is filed with your tax return.
Can I open a foreign bank account if I am a permanent resident but not a US citizen?
Yes. Permanent residents (green card holders) are treated the same as US citizens for FATCA purposes and must report foreign accounts the same way. Most foreign banks will accept a green card as proof of US residency status. You will need to provide your green card number and Social Security Number when opening the account.
What happens if I do not report a foreign bank account to the IRS?
The IRS can impose penalties of $10,000 per account per year for not filing the FBAR, and up to 40% of the unreported account value for not filing Form 8938. If the IRS determines the violation was willful, criminal penalties can include fines up to $250,000 and prison time. If you have not filed in prior years, you may be able to file late without penalty under the Streamlined Filing Compliance Procedures, but you must act before the IRS contacts you.
Can I use a fintech account like Wise instead of a traditional bank account?
Wise and similar services work well for holding and spending money in foreign currencies, but they are not full bank accounts. You cannot get a loan, apply for a credit card, or use them for some business purposes. If you need only basic checking and spending, they are sufficient and much cheaper than traditional banks. If you need more services, you will need a traditional bank account.
How long does it take to open a foreign bank account?
If you are living in the country and have a local address, most banks open an account within one to five business days. If you are applying from the US as a non-resident, processing takes four to eight weeks, and many banks will not accept your application at all. Fintech services like Wise and Revolut open accounts in 10 to 20 minutes entirely online.