Which European bank should you keep your money in? 2023 - The Best Choice!

How do you choose a safe bank to keep your money, and where is the best place to keep your savings these days? In short, there are no safe banks in Ukraine! Someone who is afraid to keep their money at home and can't currently transfer it abroad has few options: either invest in a Ukrainian bank with Western capital and hope it doesn't disappear from our market (although many people want that), or invest in a state-owned bank and die waiting in line. Anything else is extremely risky.



In 2023, the question of which European bank to keep your money in becomes very relevant.
Let's figure it out.



1. CONFIDENTIALITY OF BANK DEPOSIT

Banking secrecy is the non-disclosure by bank employees of information about the account holder and the contents of the account, including sources of income and any movement of funds.

On the one hand, individuals and businesses who trust banks with their money expect that information about their accounts will remain within the bank's walls. This is a perfectly normal desire to protect their savings from third-party interests.

On the other hand, bank accounts are also used to conceal income from the tax authorities, so the government is interested in obtaining more information.
About depositors. Or rather, about the legality of the sources from which funds are deposited into the account. Based on EU directives, almost any bank in the European Union is required to provide information upon official request from government agencies.

Banks are caught between two fires. Currently, banks in almost all European countries comply with EU directives and adhere to openness policies, ensuring that depositor information is accessible.
and transparent to tax authorities.

Which banks in Europe are the most reliable?

Austria
Until recently, Austrian banks were among the most reliable in Europe. Now, Austrian banks disclose client information only in extreme cases, which are extremely rare. Enforcing this is virtually impossible.
A deposit in an Austrian bank gives you the opportunity to fully secure your "backup airfield" in Europe in the form of residence permit programs for wealthy individuals.

Switzerland
It's not part of the European Union, so national banking secrecy laws have been in effect for decades. It also offers the opportunity to obtain a residence permit for wealthy individuals.

The risks of opening bank accounts in the UK and Switzerland are primarily related to the extremely meticulous compliance procedures. You can't just show up at these banks and deposit money just because you have it. Due diligence, including a thorough background check, often leads to refusals, as the bureaucracy is paramount.
The slightest discrepancy in the documents (and believe me, they happen very often) and the bank refuses to work with such a client. Furthermore, many Swiss banks require a minimum deposit in the millions of dollars; here, they look at the client's ultimate goals, the specific account they need and what it's for, etc.

Poland
A month ago, I went to Poland to open accounts at two large, well-known banks. Lawyers prepared the documents a month and a half in advance and received preliminary approval to open the account.
* In the branches of both banks, of course, you had to stand in line (no personal manager).
*Then the manager brought a 5cm-thick stack of paper—it turned out to be all the forms, applications, guarantees, and other stuff. Including documents stating I would use the bank account in good faith, a personal data protection form, an oath pledging not to work with cryptocurrency, and so on and so forth. I signed 40 of them.
* Then we went to the computer in the bank building to access online banking and activate our logins. The computer mouse was impossible to use; I think even Sberbank of Ukraine has more modern technology. You know, when you move the mouse, and the screen can't keep up with the movement. Not to mention, we had to wait 3-5 minutes for each page to load.
* With great difficulty, I managed to activate the data. Overall, the meeting at one bank took about a couple of hours.
* After a month of verification, this bank still hasn't opened an account for us. They opened another bank, which is terribly inconvenient to work with.

But if we look at foreign banks as a whole, the most interesting offers for NON-RESIDENT depositors can be found in the following countries:
* Panama
* Serbia
* Kazakhstan
* Antigua
* Georgia

Antigua
If you need to deposit money in a bank abroad for savings, Antigua offers ideal conditions. Here you can open a deposit with a term of 30 days to 1 year, with the option to extend it. The required documents include:
* international passport;
* utility bill to confirm residential address;
* bank statement (if available);
* questionnaire.

The application form must include a list of currencies in which you plan to make your own deposits, as well as the jurisdictions from which the funds will be sent.

Almost all banks require you to submit information about planned transactions and the maximum amounts you'll accumulate in your account. It's important to carefully prepare documents about the source of your capital – you'll need to explain the origin of your assets, as well as the legality of their acquisition.

The most important factor is the legality of your capital. If you're prepared to document its legal origin, and a foreign bank accepts your deposit, you'll definitely receive the highest level of service and high asset protection.

2. How to open an account in a foreign bank for Ukrainian citizens (individuals)

Ukrainians can freely keep their money in foreign banks, provided that the funds are received outside of Ukraine as wages, stipends, alimony, pensions, and dividends. Individuals can also invest abroad without requiring individual licenses from the National Bank of Ukraine using funds held outside of Ukraine. This includes investing from foreign accounts, reinvesting funds outside of Ukraine, and trading financial instruments on foreign exchanges.

* However, in order to transfer funds from Ukraine for the purpose of investing them or placing them in foreign accounts, as before, individuals must have individual licenses from the National Bank of Ukraine, which can be obtained by completing all the paperwork at a branch of your local bank in Ukraine, and the amount of transfers abroad to your foreign account must not exceed a total of 50 thousand dollars per year.

* The possibility of carrying out a number of operations to place funds in foreign accounts does not exempt individuals from the obligation to declare income and pay the corresponding taxes on it in Ukraine.

Until Ukraine signs an information exchange agreement, a foreign bank will not send information about your income and/or account balances to Ukrainian tax authorities. However, once Ukraine signs such an agreement, such information will be sent to your tax office annually, and the question will arise as to whether a tax return has been filed and income tax paid.

2.1. How to open an account in a European bank in person

1) All my income in Ukraine is declared, taxes are paid; I have no income abroad;

2) Taking 9 thousand euros, since amounts up to 10 thousand euros do not need to be declared at customs when exported from our territory, I flew to one of the nearby European countries;

3) Local friends recommended a bank that works more with individuals;

4) I came to the branch, filled out forms (personal information) to open an account, the bank employee made a copy of my passport and, lo and behold, I am the owner of an active bank account;

5) I deposited 9 thousand euros into the account, the amount did not arouse any “interest” among the bank employees;

6) Having decided that everything had worked out quite easily, I asked the bank employee if next time I wanted to deposit, say, 25 thousand euros at once, whether he would need any documents.
Answer: You will simply have to verbally notify about the source of the money, for example, salary, dividends, sold something, etc.

Foreign banks require written confirmation of the source of the funds according to their internal procedures, some from 50 thousand, some from 100 thousand.

2.2. How to deposit money into a European bank remotely online?

Ideally, you would open a deposit remotely at a foreign bank, eliminating the need to travel to the country where you apply, which is often inconvenient and sometimes impossible due to individual restrictions.
The legality of the origin of funds, the cost of opening and maintaining them, minimum balances, restrictions on certain transactions, and fees are just a few factors that should be analyzed before you begin searching for a jurisdiction and the best institution abroad.

Not every bank will be willing to handle your money! Moreover, not every European bank can handle online account registration.

If you want to deposit money into a bank abroad remotely, you can use payment systems and digital banks. There's a wide range of options, including choosing an institution with high-quality service in a jurisdiction with maximum asset protection.







This is where jurisdictions that guarantee the security of foreign assets at the legislative level come into play. Particularly attractive options may be those in which the country is highly dependent on foreign capital and therefore actively encourages its inflow with various incentives. This means that in addition to a deposit in a foreign bank, you can also receive all sorts of perks, such as an investor visa, tax breaks, and even citizenship by investment. However, don't expect a high return – interest rates at foreign institutions are low, and diversification is more important here than income.

How do I deposit money into a foreign account?

To open a deposit in a foreign bank, you need to:
* decide on a financial institution and the country in which it is located (the bank is selected based on its reliability rating);
* read in detail the terms and conditions for opening an account and servicing foreign clients;
* select the account type, say, a term deposit, savings account, etc. from the products of a specific bank;
* carefully prepare the documentation, including a notarized translation and apostille (or legalize it through the embassy/consulate);
* send the completed package of documents to the bank for review;
* await a decision – if the answer is positive, sign the agreement remotely;
* make your first deposit – transfer funds via cross-border transfer, deposit cryptocurrency (if crypto storage is allowed);
* notify the government authorities of the country of permanent residence about the existence of a foreign account, if such a requirement is provided by law.

3. Safe storage of capital abroad or a way to avoid taxes?

The issue is indeed important because some wealthy people are still trying to find loopholes to evade taxes and now even to circumvent sanctions.

In an era of increased financial transparency, I strongly advise against using outdated and long-ineffective "gray" schemes, which will be quickly exposed by regulatory and supervisory authorities.

The result could be not only a hefty fine that will eat up a huge portion of your property, but also more serious problems such as all sorts of bans, asset seizure, and even a prison sentence.

4. PAYMENT SYSTEMS (DIGITAL BANKS)

When we offer our clients the opportunity to open an IBAN (International Bank Account Number) account with a payment system, it's usually met with hostility. The first thing we hear is: "I need a reliable bank, not just any payment system."

Clients who have been using foreign banks for several years aren't afraid to open an account with a payment system. In fact, they usually have several such accounts. Other clients, opening their first bank account, firmly believe that the bank is a reliable machine that will protect their funds and allow them to work without worry. No way!

Advantages of payment systems
To summarize: payment systems certainly have their weaknesses. But in light of recent events and the ever-tightening of banking regulations, not having an account with a payment system is simply impossible.
Modern payment systems treat their clients with care, they listen to their comments and respond to them, they are easy to negotiate with, and most importantly, they allow you to work.
Those who have been using banks for years will understand. When, after submitting all the necessary documents and contracts, a bank asks for a 1,500-euro payment and asks, "Could you explain how and where you met your partner?"—you want to reply, "Is that any of your business?"

Fraud in the payment industry
Of course, you shouldn't rush out and open an account with the first payment system that contacts you on Facebook. There's a lot of scamming going on in the payment world, so you need to take the time to choose.
Recently, a manager from the Moneypay.com payment system wrote to me. He wrote several times and was very persistent. I decided to look into this "payment system."
Surprisingly, we saw the US President and Angelina Jolie advertising the institution's services on the website. However, there were no legal documents, nor any necessary policies or certificates. Instead, there were contacts in the Philippines and a pushy manager.
You've probably already realized that these enterprising guys Photoshopped actress Jolie and the president into a cool video. That's what "payment systems" are like. So, carefully consider where you open an account. Don't be fooled by headlines like "Open an account in three hours."

How to avoid losing money? – Split your money!
1) It's definitely necessary to have an account in a reliable traditional bank, but you shouldn't neglect the services of payment systems.
2) Don't keep a lot of money in your payment system accounts. "A lot" means different things to different people: for some, 20,000 euros is a lot, while for others, 200,000 isn't a huge amount.
3) Separate your money into different “baskets”: banks, wallets, payment systems.
4) Check the financial institution you trust with your funds (legal documents, contacts, office location, founders, market history, etc.).