Soon after a person decides to buy a foreign home, most likely, he will have to open a bank account in the country of the property being purchased. In many countries, this is necessary for the possibility of making a transaction, obtaining a residence permit, obtaining citizenship, etc.In addition, there are people who are wary of the domestic banking system, which is why they seek to open an account abroad. There are people who believe that this is a good way to diversify funds, so the more assets are located in different jurisdictions, the more securely the funds are stored. Sometimes it is legally impossible to get access to international banking products and services in the financial system of the country of residence. And let's not forget about the comfort of everyday life – when withdrawing cash abroad, in most cases, the commission will be withdrawn.
And here it is necessary to immediately determine for yourself whether your stay abroad will be long or not. If we are talking about a citizen of the Russian Federation, then within 30 days he is obliged to notify the Federal Tax Service about a bank account opened or closed outside the country. In addition, residents of Russia are required to submit a report on the movements of funds on a foreign account to the tax authority every year before June 1, but this is not necessary if a person lives outside the country for more than 183 calendar days.
Russians are exempt from this kind of reporting exactly until they return to Russia for a period exceeding 183 days. That is, if this limit is exceeded, then the requirements come into force again. In order not to face problems on this topic at the end of the year, it makes sense to submit an application and documents confirming the period of stay outside of Russia for more than 183 days.
Spain
The presence of an account in a Spanish bank is not strictly mandatory for the purchase of real estate, but in practice its absence significantly complicates both the purchase process itself and the further operation of the purchased property. First of all, the presence of an account in Spain is necessary in case of obtaining additional financing in the form of a mortgage loan, which foreign buyers can count on, including on very attractive terms.
In Spain, the process of transferring money in the form of a guaranteed check from a Spanish bank at the time of signing a bill of sale is a generally accepted form of payment when buying real estate and for this the presence of a local account is necessary. Further payments, such as utility bills, contributions to the housing community ("comunidad"), payment of taxes and much more are also linked to the account from which they are deducted automatically. Payment for the services of various specialists - builders, accountants, lawyers, etc., is also made from a bank account opened in Spain.
In addition, opening an account in a Spanish bank requires confirmation of the origin of funds, which guarantees that its owner does not violate the laws. Thus, the presence of an open account can positively affect the receipt of various types of residence permits. But it is worth noting that not all Spanish banks are ready to open accounts for foreign citizens, especially when it comes to non-residents from countries outside the Eurozone. Moreover, we are not talking specifically about Russians, for many other foreigners the restrictions in Spain are even more stringent (for example, for Chinese citizens).
The main requirement for opening a bank account in Spain is the presence of a confirmed income, justification of the need for this (for example, for the purchase of real estate) and the reliability of the applicant. At the same time, each request is considered individually by the analytical department of the bank and the list of documents may vary. Basic and necessary for everyone are a valid passport, an extract from the applicant's bank for the last six months, a certificate from work about the position and income and a tax return. The presence of a NIE (alien identification number) is not required for this.
One of the determining factors for making a positive decision on opening an account in Spain is an assessment by the manager of a particular branch of the bank to which the documents are submitted. In this sense, it is much more effective to apply there, where the company that deals with the execution of the transaction advises, since most often it has a partnership agreement with the bank. The submission of documents and obtaining approval for its opening can be carried out by a real estate agency remotely and the personal presence of the applicant will be required only once - to activate the account.
As for the latest changes in this area in Spain, it can be noted that since July 2021, cash payments for amounts over 1,000 euros are prohibited in the country when at least one of the parties is a legal entity or an individual entrepreneur. New restrictions on mortgages were also introduced for citizens who receive their main income in foreign currency (i.e. not in euros). In such cases, banks have practically stopped issuing fixed-rate loans, and some have completely suspended the issuance of mortgages for this category of applicants.Bulgaria
Foreigners can open an account in some banks in Bulgaria by presenting their passport. But every year there are more and more difficulties in this process, so experts do not recommend delaying it. For example, now citizens of Russia and CIS countries (as well as Germany and Israel) also need an internal passport with a residence permit and a tax number (in the case of Russia, this will be an INN).
Opening an account in a Bulgarian bank usually takes 1-2 hours by appointment and costs from 25 euros and above. After opening an account, it can be linked to the subscriber numbers of housing and communal services, thanks to which funds will be automatically debited. It is possible to open a bank account in Bulgaria remotely through a power of attorney and by providing all the necessary notarized copies of documents.
Cyprus
Today, an account can be opened in this country not only by arriving in Cyprus, but also remotely. A potential buyer of local housing who has applied to a Cyprus real estate agency working with the local housing market can choose the objects they like, while the company's specialists will already begin the process of remotely opening a current account in a Cyprus bank for the buyer. Where he soon sends the necessary documents in scanned form with the help of an agent.
Then the bank's personal manager coordinates with the buyer a meeting at his representative office in his country, to which it will be necessary to bring the originals of the documents sent earlier in order to identify them and certify authenticity. The procedure of opening an account in Cyprus is completed by a short personal Skype conference with a representative of the bank for the purpose of personal visual acquaintance. Then all account information, login, password, etc. are provided to the buyer according to the procedure agreed between him and the manager. Thus, opening a bank account in Cyprus for a foreigner is a very simple event that does not require both financial expenses and travel to the country.
UAE
In the Emirates, in order to purchase ready-made or secondary housing, a foreigner needs to open a personal account with a local bank.At the same time, such a service for non-residents of the country is provided only in a few banks. In this situation, a lot depends on the realtor who conducts the transaction, – he will either select a bank that will open the necessary account, or make the payment through a state company specializing in such transactions.However, in the second case, you will have to pay a substantial commission.
It is strongly not recommended to transfer money to the account of a brokerage company, as well as to the account of the owner of the property from whom it is purchased. You need to open your own account, take a check for the required amount and transfer it when registering the transaction at the local land department in a specially designated room.
Turkey
Citizens of almost all countries can open an account in any bank in Turkey, and it can be in dollars, euros and Turkish lira. This account will be needed for obtaining a residence permit, processing automatic payment of bills, etc. You need to get it both in person and online, which will take a few minutes. Opening a bank account and obtaining a tax number does not require any payments.
Thailand
In addition to the fact that foreigners will need a Thai bank account to purchase local real estate, it is necessary to obtain a Foreign Exchange Transaction certificate, which is a confirmation that the funds to the account came from abroad and were legally converted into Thai baht. It is mandatorya condition for the registration of an apartment in private ownership. You will also need a local bank account to open some types of visas that allow foreigners to work in Thailand or just stay in the country for a long time.
Each bank in this country may have its own conditions for opening an account for foreign citizens. But common to all is the availability of a visa for the applicant for a period of at least 30 days and documents confirming the place of residence. If you open an account in a Thai bank yourself, you will need to visit the immigration service in advance to obtain a resident certificate, which will indicate for what purpose it was issued, and you will also need a rental agreement. The bank will need to explain the reason for opening an account, present documents and fill out the necessary forms. In order to open an account in Bangkok Bank, residents of some countries, including Russians, will also need to take out insurance.
Thank you for your help in preparing the material:
Denis Shchurov, co-founder of the company Decart Property Partners
Evgeny Prokazov,Sales Director of the companyBulgaria Avenue
Sergey Smolensky, CEO of the companyEmpire Property Cyprus
Olga Barteneva, head of the companyGallery Real Estate Co. Ltd.
Tileka Dzhaychieva, sales manager of the company Z&TSkyReal Estate