Banking Setup Basics for Expats

Managing money across borders is one of the practical challenges every expat faces. This guide covers the basics to help you understand your options—though the right approach depends on your specific situation, destination, and financial needs.

Understanding Your Options

When living abroad, you typically need to think about several banking-related areas:

1. Maintaining home country accounts – For ongoing obligations, receiving income, or as a backup
2. Opening local accounts – For daily expenses, receiving local income, and building local credit history
3. International transfers – Moving money between countries efficiently
4. Multi-currency management – Handling money in different currencies

Home Country Accounts

Before moving, consider how your current bank handles international access:

• Can you access online banking from abroad?
• Are there foreign transaction fees on your cards?
• Will the bank close your account if you’re no longer a resident?
• Can you receive wire transfers from other countries?

Some people choose to:

• Keep their existing accounts if the bank allows it
• Notify their bank of the move to prevent fraud alerts
• Set up a trusted contact or power of attorney for home country matters

Opening Local Bank Accounts

Requirements for opening bank accounts vary significantly by country. Common requirements may include:

• Proof of address (which can be challenging when you just arrived)
• Residency permit or visa
• Tax identification number
• Proof of income or employment

Tip: Requirements vary not just by country but by individual bank. If one bank can’t help you, another might have different policies for non-residents.

When a Local Account Makes Sense

A local bank account is often useful when you:

• Plan to stay long-term
• Will receive local income
• Need to pay rent and utilities
• Want to build local credit history

Alternatives When Local Banking Is Difficult

If you can’t open a traditional local account immediately:

• Digital banks that operate across multiple countries
• Multi-currency accounts from fintech providers
• Keeping funds in your home country account and using low-fee cards

International Transfers

Moving money between countries typically involves some combination of:

• Bank wire transfers (SWIFT) – Traditional method, often with higher fees
• Specialized transfer services – Companies focused on international transfers
• Multi-currency account providers – Hold and convert multiple currencies in one account

Factors to Consider

When comparing transfer options, look at:

• Exchange rate offered vs. the mid-market rate
• Flat fees per transfer
• Transfer speed
• Transfer limits
• Convenience and reliability

No single option works best for everyone—it depends on the amounts you’re transferring, how often, and between which currencies.

Managing Multiple Currencies

Living abroad often means dealing with at least two currencies. Approaches include:

• Converting as needed – Simple but may result in unfavorable timing
• Holding multiple currencies – Useful if you have expenses in both currencies
• Setting target rates – Converting when exchange rates are favorable

Exchange Rate Realities

• Exchange rates fluctuate constantly
• No one can reliably predict rate movements
• The “best” time to convert is often simply when you need the money
• Building a buffer can reduce the stress of rate watching

Practical Steps

Before You Move

1. Research local banking requirements for your destination
2. Check your current bank’s policies on international use
3. Consider opening accounts with international-friendly banks or services
4. Gather documents you might need (proof of address, etc.)

After Arrival

1. Open a local account when you have the required documentation
2. Set up the transfer method that works for your needs
3. Keep some funds accessible in multiple ways as backup
4. Monitor your accounts for unexpected fees

Important Considerations

• Banking regulations change – What works today may change; stay informed
• Tax implications exist – Holding accounts in multiple countries may have tax reporting requirements; consult a tax professional
• Security matters – Use strong passwords, enable two-factor authentication, and be cautious with financial information
• This is general information – Not financial advice; consult qualified professionals for guidance specific to your situation

The right banking setup is personal. What works for a digital nomad differs from what works for someone relocating with a family for a corporate job. Start with the basics and adjust as you learn what your situation requires.