Switzerland’s banking privacy: how it works
Swiss banks are refusing to open accounts for individuals with untaxed money or without sufficient documentation on the source of funds. As part of their standard procedure, they request a TIN Number (Tax Identification Number) from their customers before accepting any money.
The Automatic Exchange of Information (AEOI) and Common Reporting Standard (CRS) introduced by the OECD, along with the Foreign Account Tax Compliance Act (FATCA) signed between the US and Swiss banks, are effective measures for preventing tax crimes.
Opening a Swiss bank account with untaxed money is no longer possible, as tax evasion is now a criminal offense in Switzerland.
Which is the best Swiss bank account for foreigners?
The best bank account for foreigners depends on your individual circ*mstances and whether you plan to visit Switzerland in the future. Here is a list of some of the larger Swiss banks to help you begin your research.
1. 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.
Select the account package that meets your requirements. For example, the Smart Banking Package has a monthly fee of 5 CHF unless you hold a balance of 25,000 CHF. ATM withdrawals made outside of Switzerland cost up to 5 CHF each, depending on the package and card you choose.
2. Migros Bank – Migros Bank offers various accounts. However, their website only supports German, Italian, and French. Foreigners can open accounts, but you must visit a branch. Therefore, you may need to take a local friend with you if you open an account with Migros.
3. UBS– UBS offers several account options that may suit you as a foreigner, depending on your circ*mstances. Browse the packages available online, then click the account application stage to receive an account package and proposal suited to your income level and personal situation.
Personal accounts can be opened and closed free of charge. Digital accounts have a monthly fee of 3-5 CHF, while accounts with paper statements have a 7-9 CHF fee. Card payments made abroad incur an extra 2% charge plus a surcharge based on the UBS exchange rate. International ATM withdrawals cost up to 5 CHF, plus the exchange rate surcharge.
Is it legal for non-Swiss residents to open Swiss bank accounts?
The Panama Papers have raised questions about the legality and morality of secret bank accounts. However, offshore banking in Switzerland is considered legal, and US account holders must comply with the requirements of FBAR filing.
Investing your savings in countries with a well-functioning legal system, such as Switzerland, is a great way to diversify your political risks legitimately and legally. Doing this will help ensure your money is invested in solid, well-capitalized institutions.
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?
Foreigners can open bank accounts in Switzerland, 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.
