Opening an Account Abroad

Why Might a Ukrainian Need to Open a Foreign Bank Account?

Opening a foreign bank account is a strategic step that not only broadens financial horizons but also ensures stability and security. Here are several compelling reasons why individuals might consider this option:

• Receiving salaries, scholarships, and other payments abroad: Opening an account with a foreign bank enables the smooth receipt of financial transfers from overseas sources, including salaries for work or university scholarships that many Ukrainians receive outside the country.
• Saving funds in foreign bank deposits: Foreign banks may offer competitive deposit terms, providing convenience and benefits for safeguarding your finances, especially when working or studying abroad.
• Paying for purchases, withdrawing cash abroad: With a foreign bank account, you can make non-cash payments and withdraw cash in your country of residence or while traveling abroad.
• Investing in real estate or business: By opening an account with a foreign bank, you can conveniently manage your finances for investing in real estate, business development, or acquiring securities on international markets.
• Generating income from entrepreneurial activities: A foreign bank can serve as a convenient tool for managing the finances of your international business, allowing for efficient tracking of income and expenses.

It's essential to explore further why opening an account with a foreign bank is particularly advantageous for a legal entity. A legal entity may consider opening a bank account abroad for various reasons, including:

1. Business relocation or expansion into international markets: Expanding business operations beyond domestic borders requires having an international bank account to facilitate financial transactions with clients and partners from other countries.
2. Risk diversification: Opening a bank account abroad can be part of a company's strategy to diversify risks. It allows for the allocation of assets across different jurisdictions, reducing the potential adverse impact of events in one country.
3. Tax benefits or optimization: In certain jurisdictions, opening a bank account can enable companies to benefit from tax advantages, such as lower corporate tax rates or deferred taxation.
4. Financial flexibility: A foreign bank account enables seamless fund transfers between various regions globally and provides access to financial services wherever the bank operates.
5. Access to international capital markets: Establishing an account abroad can provide companies with access to international capital markets, including foreign investors, and creditors, and opportunities for issuing bonds.

Choose our company to initiate the opening of your foreign bank account and gain access to the full range of benefits offered by the global market. Additionally, we are prepared to assist with business relocation or establishing a business abroad from inception. We guarantee reliability, professionalism, and a personalized approach to each client.

Tax Regulations When Opening an Account Abroad: What You Need to Consider

Understanding the tax implications of opening an account abroad is crucial to ensure compliance with all tax obligations. It's important to note that earning income abroad does not exempt individuals from paying taxes in Ukraine. Many foreign banks act as tax agents. Ukraine has enacted the Law on the Automatic Exchange of Tax Information. This exchange requires financial institutions in CRS participant countries to collect information about personal accounts of individuals and corporate accounts of companies (CFCs) and transmit this information to their country's tax authority.

Subsequently, the tax authority of the bank's registration country transmits financial information to the tax authorities of the company's registration country and the country of the beneficiary's residence. In other words, this law imposes the obligation to transmit information:

• for foreign banks/tax authorities to transmit information to Ukraine;
• for Ukrainian banks/Ukrainian tax authorities to transmit information to other countries based on the tax residency of the beneficiaries.

For Ukrainian citizens holding accounts abroad, this Law requires timely and accurate reporting of all financial assets in income declarations. Violating these rules can lead to tax penalties and other legal consequences. We always address the tax aspect during consultations and when opening an account in a foreign bank. This ensures peace of mind for our clients and effective financial management without tax risks.

Нow Much Cash Can Be Taken Out of Ukraine?

According to the Procedure for Cross-Border Movement of Currency, an amount exceeding 10,000 EUR or its equivalent must be declared at the border. Documents confirming the source of funds must be provided with the declaration. Amounts up to 10,000 EUR do not require declaration.

Selecting the Right Account Type and Bank for Opening an Account Abroad

Considering the diverse needs of clients, there are various account options that can optimally meet specific conditions and circumstances. The type of account is determined based on how it will be used: for purchasing real estate, receiving salary payments, conducting business activities, or accumulating funds. Will it be a current account for daily financial transactions, a deposit account for saving money, or an investment account for asset placement?

Our legal experts can quickly select a foreign bank that offers the required type of account and meets your service requirements. Additionally, we pay special attention to researching:

• the bank's reputation;
• services, fees, and conditions for opening the required type of account;
• level of service and security.

We always emphasize that the decision to open an account in a particular foreign bank should be carefully considered, taking into account tax, financial, and legal aspects. Our company is always ready to assist you in this complex process.

Bank Account Opening Services Abroad: Why Choose Us?

Our legal firm is prepared to offer you a comprehensive range of services to successfully open an account abroad while ensuring legal compliance throughout the process. We can assist you at every step, from selecting the appropriate account type and bank to preparing the necessary documentation and addressing legal issues. Our services encompass consultations on tax and legal aspects of opening an account, the preparation and verification of all required documents, as well as liaising with banks and tax authorities. Why should you opt for our services?

1. Our specialists will serve as dependable partners for all aspects related to opening an account abroad. With partners in numerous countries, we can facilitate remote account opening, even if you are residing overseas.
2. Backed by years of experience and ongoing practice in this field, our company ensures a professional approach to each client and a successful outcome.
3. We guarantee maximum security and confidence in your financial transactions – all our actions are geared toward legal compliance and adherence to the legislation of the chosen jurisdiction.

Working with us is convenient. We provide an individualized approach in every case, tailored to your specific situation.

When opening an account abroad for individuals, you'll receive:

• Swift and secure establishment of a personal overseas account tailored to your unique situation and preferences.
• Individual consultation on all matters concerning your legal status and income sources.
• Comprehensive support in preparing and submitting all necessary documents, along with pertinent recommendations at each stage of the account opening process.

When engaging our team to open a bank account for legal entities, you can always count on:

• Professional preparation and provision of all required documents for establishing a corporate account abroad, considering your business's specifics and the banking institutions' requirements.
• Thorough verification to ensure all documents comply with the bank's standards, helping avoid unnecessary delays or misunderstandings.
• Careful analysis of your company's business model to optimize it and align with the banking institution's requirements.

Choose us to open an account abroad and gain a reliable, experienced partner to ensure this process is efficient and secure. Call our toll-free hotline at 0 800 201 958 or use the "Request a Call" button to schedule a consultation now!