Everything You Need to Know About Expat Banking

11/08/2011 01:04

A major restraint to obtaining a bank account in a new country is the fact that they are considered as offshore accounts by your homeland (particularly in the US). There are some countries that are lax in their handling Expat banking or offshore accounts. This is mainly because they don't have the resources to do follow up checks on their diaspora. For other countries, they BCP-421 follow the money thoroughly and they are strict enforcers of tax payments. Thus, it would be wise to continue filing your taxes in order to eliminate the risk of hefty fines as well as prosecution.
Opening a new expat bank account in any country may require proof of employment as well as proof of residence. You may present to your preferred bank a letter from your employer. There are also banks that may require in addition, pay slips for the previous three months. For proof of residence, this may come by way of a rental agreement or proof of ownership of property in your new country.
For most banks common to your homeland as well as your new country, these banks can offer you lower transfer fees. You may also want to open an account in one of these bank branches prior to leaving your homeland. As a tip, always use banks common to both your homeland and new country.
In addition BCP-520 to your income as well as other forms of taxes, you will be asked to pay in your new country, additional taxes. That is - if the money in your expat bank account passes a certain threshold. Take note that this won't be the only form of taxation you will face since you are also most likely subject to taxation from your homeland.
For most countries, it is a requirement to divulge all overseas assets. This will include monies that are held in your bank account. If this amount, together with your other assets pass a certain threshold amount then you will be liable to pay taxes. If you fail to do so, you may get BCP-710 persecuted for tax evasion and/or for money laundering grounds.
Some popular international banks include:
- HSBC: situated in Canada, Britain, USA, China and other countries in Europe. For transferring funds such as HSBC accounts within these countries, they are tax free. Just visit their website.- Bank of Nova Scotia: situated in Canada, Jamaica, Singapore and Malaysia. You can get more information about this when you visit their site.