The Internet has been a permanent fixture in our lives for a while now, and our habits have changed. We travel more and more frequently for work or pleasure, so it’s natural that more and more of us are wondering whether it would be worthwhile to have a bank account in another country and what the best foreign bank accounts are .In this article, we’ll look at the advantages and disadvantages of having a foreign bank account and the best solutions available in our country that allow you to have one.
The characteristics of foreign current accountsA foreign current account is much more than a simple bank account in a foreign country. It is a financial instrument issued by a non-Italian bank, subject to the regulations of the issuing country.
This unique feature offers interesting opportunities, but also requires a thorough understanding of the applicable regulatory framework.
The day-to-day management of these accounts is surprisingly easy thanks to modern online banking services and the presence of partner branches throughout Italy.
Technological innovation has virtually eliminated the operational barriers that once made managing a foreign account complex.
Operationally, a foreign current account offers all the features of a traditional Italian account, with the addition of specific features for international transactions .
The account comes with its own IBAN, through which you can make and receive both national and international transfers .
Its unique feature is the ability to simultaneously manage multiple currencies within the same account , a significant advantage for those who frequently do business abroad.
Associated payment cards , usually from the international Mastercard or Visa networks, allow withdrawals and payments worldwide. Many institutions also offer virtual cards for online purchases, providing an additional level of security for digital transactions.
Are foreign bank accounts legal?
The answer is yes, and it is legal for an Italian citizen to have accounts in other countries .
From a regulatory perspective, foreign accounts follow the regulations of the issuing country, although they must also comply with some Italian regulations .
European anti-money laundering legislation requires thorough checks on the account holder’s identity and the source of funds. Foreign banks must also comply with PSD2 directives for payment services, ensuring high transaction security standards.
An important difference to be aware of is the stamp duty . While Italian accounts are subject to the traditional stamp duty, foreign accounts require the payment of IVAFE (Tax on the Value of Financial Assets Abroad) when the average annual balance exceeds €5,000 . This tax must be calculated and declared annually using the Unico form.
How safe are foreign bank accounts?
We noted in the paragraph above that foreign current accounts follow the regulations of their own country. Therefore, if it’s an account in a country within the European Union, you can rest assured that deposits are protected up to €100,000 per account holder through national guarantee schemes, identical to those in Italy. Furthermore, banks in the EU follow similar regulations and laws to those in Italy.
For banks with registered offices outside the EU, it’s up to you to carefully study the regulations of the country in question and the guarantees it offers.
Foreign banks implement advanced security systems to protect online transactions, including two-factor authentication systems and continuous monitoring of suspicious activity.
Why do some people choose a foreign bank account?
A distinctive aspect of foreign accounts concerns liquidity management . Many institutions offer more advantageous interest rates than Italian banks, especially for deposits in currencies other than the euro .
The ability to hold balances in multiple currencies also allows you to benefit from exchange rate fluctuations and protect your capital from the volatility of a single currency .
When it comes to investments, numerous foreign accounts offer direct access to international financial products , from shares listed on the world’s major stock exchanges to more sophisticated instruments such as international ETFs or investment funds that are not easily accessible through Italian banks.
Of course, we’re not hiding our finger; there are less honest people who use foreign accounts to launder money. Naturally, foreign accounts are closely monitored.
After this long but necessary introduction, here are the best foreign current accounts.
Best foreign current accounts
Multicurrency Credem
The first of the best foreign current accounts we’ll look at is Credem’s Multicurrency account, a perfect solution for those who operate with multiple currencies . This account allows you to hold and manage funds in multiple currencies, facilitating international transactions without having to convert money each time.
It’s a popular choice for entrepreneurs and professionals who receive payments from foreign clients.
One of the strengths of this account is the absence of withdrawal fees, making it ideal for those who need to withdraw cash frequently. However, transfer fees are not among the cheapest: €12.73 for online transactions and €16.35 for over-the-counter transactions. This could be a problem for those who frequently send money to foreign banks.
Website | Multicurrency Credem
N26 Standard
N26 is another very popular digital account, particularly suitable for those who want a completely online banking experience. Account opening is quick and requires no paperwork. It offers a virtual card compatible with Apple Pay and Google Pay, allowing you to make digital payments quickly and securely.
Among its main advantages is the ability to make free transfers and fee-free withdrawals up to three times a month .
However, for those who need to withdraw more frequently, a €2 fee applies for each additional transaction. Furthermore, compared to other digital banks, N26 offers fewer advanced features for managing foreign currencies.
Website | N26 Standard
Wise Personal
Wise (formerly TransferWise) is the perfect account for those who need to manage transactions in multiple currencies without paying hidden fees. With Wise, you can hold money in over 50 currencies and get an IBAN in multiple countries, making international payments easier.
A positive aspect of Wise is its cost transparency: currency exchange fees are very low (about 0.41%), and cash withdrawals are free up to €200 per month. However, beyond this limit, a fee of 1.75% plus €0.50 per withdrawal applies. It doesn’t offer a credit card, which could be a limitation for those seeking greater payment flexibility.
Website | Wise Personal
Wirex Standard
Wirex stands out for its strong focus on the world of cryptocurrencies. This account allows you to hold and trade not only traditional currencies, but also Bitcoin and other cryptocurrencies, making it an excellent choice for those involved in the digital asset sector.
One of Wirex’s main advantages is the ability to make international payments without fees and withdraw up to €400 per month free of charge.
However, those who exceed this limit face a 2% fee on withdrawals. Furthermore, being an innovative platform, it may be less intuitive for those accustomed to traditional banking systems.
Website | Wirex Standard
bunq Easy Money
The bunq Easy Money account is designed for those who want to manage their money in a smart and personalized way. It offers up to 25 subaccounts with unique IBANs, making it ideal for those who want to organize their finances in detail. It also supports payments in 16 different currencies, eliminating the need to open separate accounts for each currency.
The main disadvantage of bunq is its high cost : the annual fee is €107.88, making it less convenient for those looking for a budget-friendly solution.
However, its advanced features justify the price for those with specific financial management needs.
