How to open a bank account abroad as a US citizen (and the FATCA problem)

Opening a local account overseas is harder for Americans than for almost anyone else — and the reason is a US law called FATCA. Here's why some foreign banks quietly turn US citizens away, what you actually need to get an account, the realistic order to do it in, and the one workaround you can set up before you even move.

The short version

Some foreign banks decline US citizens because FATCA makes reporting US account holders to the IRS expensive — more common with smaller EU banks. It varies by bank, so shop around.
What you usually need: a local tax ID (Portugal NIF / Spain NIE / Mexico CURP / Germany Anmeldung), proof of address, your passport, and often residency or a visa.
Realistic order: get residency/visa → get the local tax ID → open the account. The exact sequence varies by country.
The universal workaround: a multi-currency account you open online before you move, plus keeping a US account for ACH and Social Security.

By The Expat Money Hub editorial team June 3, 2026

Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.

Why some foreign banks reject US citizens

FATCA — the Foreign Account Tax Compliance Act — requires foreign financial institutions to identify accounts held by US persons and report them to the US Treasury and the IRS. To stay compliant, a foreign bank has to collect your US tax details (typically a W-9 with your SSN or ITIN), build the systems to track you, and file annually. For a large international bank that's routine. For a smaller local one, the cost and legal risk of onboarding a single American can outweigh the revenue — so some simply decline US citizens rather than deal with it.

This is why you can walk into a perfectly ordinary bank abroad, ask to open an account, and be told no — not because you did anything wrong, but because of your passport. It's most common with smaller banks and brokers in parts of the EU. The good news: it's bank-specific, not country-wide. In our country research, the major high-street banks in most expat destinations do serve US persons; you just may need to skip the one that won't and try the one that will. Always verify current policy with the specific bank before you count on it.

What you typically need to open an account

Requirements differ by country and bank, but the same four things show up almost everywhere:

What	Why the bank wants it
A local tax ID	The country's own identifier ties the account to you for tax. Portugal NIF, Spain NIE, Mexico CURP; Germany expects city-hall registration (Anmeldung).
Proof of address	Usually a local utility bill, lease, or residency certificate. The hardest item for new arrivals, since you may not have one yet.
Passport	Primary ID. As a US person you'll also complete a FATCA self-certification (your SSN/ITIN on a W-9 or equivalent).
Visa / residency	Many banks open a full local account only once you have a residence permit; some offer limited "non-resident" accounts before then.

Exact documents vary by bank and change often — treat this as a starting checklist, not a guarantee. Confirm with each bank.

The realistic sequence (it's usually an order, not a single step)

The frustrating part for most movers is the chicken-and-egg ordering: the bank wants a local address and tax ID, but those often depend on residency, which depends on a visa. For most people the realistic path runs:

Secure your visa / residency permit (or at least arrive on a path to one).
Register and get your local tax ID — e.g. a NIF, NIE, CURP, or, in Germany, complete your Anmeldung. A few, like a Portuguese NIF, can be arranged before you move via a fiscal representative.
Establish proof of address — a lease or utility bill in your name.
Open the local account with passport, tax ID, and proof of address in hand, picking a bank that serves US persons.

Because steps 1–3 can take weeks or months, you don't want to be without working money in the meantime — which is where the workaround below comes in.

The universal workaround: a multi-currency account you open before you move

The single most useful move is to open a multi-currency account online from the US before you fly. Unlike a local bank, it doesn't need a local address or residency to get started, so it bridges the gap while you work through the sequence above. You can hold and convert dollars to euros, pesos, pounds and more at the mid-market rate, spend on a debit card the day you land, and receive local-currency payments — all before any local bank will touch you.

Set up your money rail before you go

Wise is the default expat starting point: open it online while you're still stateside, hold multiple currencies, and use the debit card on arrival — no local tax ID or proof of address required to begin. Verify current account eligibility for your country.

Open a Wise multi-currency account →

Treat it as a bridge and an everyday-spending rail, not necessarily a full replacement for a local bank — some local rent, utilities, and government payments still expect a domestic account number. But it removes the worst of the timing pain, and many expats keep using it long-term for transfers.

Keep a US account open — don't close everything

A common mistake is closing US accounts on the way out. Keep at least one open. You'll likely still need US-domiciled banking for ACH transfers, US direct debits, and incoming Social Security or pension deposits, which generally route to a US account most smoothly. It's also your safety net if a foreign bank declines you. Reopening a closed US account from abroad is often far harder than simply keeping one alive, so check your bank's policy on overseas customers and keep a US mailing address you control.

What to do if banks decline you

Try a different bank. Rejection is bank-specific. The larger high-street banks usually have FATCA processes in place; smaller local banks and some brokers are the ones most likely to say no.
Ask for the FATCA process explicitly. Sometimes a front-line clerk says "we don't take Americans" when the bank actually does — ask whether they accept US persons with a W-9 / self-certification.
Lean on your multi-currency account for the interim so a slow or repeated rejection doesn't leave you stranded.
Use a fixer or relocation service. In tougher markets, local relocation agents and fiscal representatives know which banks onboard Americans.
Check country specifics below — the friction differs a lot by destination.

How it differs by country

The headache is real but uneven. A few examples from our country guides — each has a full banking section:

Portugal: get a NIF first (obtainable before you move via a fiscal representative), then passport plus proof of address opens most accounts. Portugal banking section.
Spain: non-resident accounts exist with a passport and a non-resident certificate; once you have an NIE / residency it becomes a standard account. Spain banking section.
Mexico: in practice you'll want temporary or permanent residency plus a CURP for most accounts. Mexico banking section.
Germany: a German address and city-hall registration (Anmeldung) are generally required; fintechs are more flexible, but as a US person you'll complete a FATCA self-certification and some banks still decline US citizens. Germany banking section.

Once you're banked abroad: you'll likely owe FBAR

Opening a foreign account doesn't itself trigger a US filing — but a balance can. Once the combined high point of all your foreign financial accounts tops $10,000 at any moment in the year, you must file an FBAR (FinCEN Form 114) with the Treasury, separately from your tax return. Larger balances can also pull in FATCA Form 8938. It's an information report, not a tax bill — but skipping it is where the penalties live.

Full thresholds and deadlines: FBAR & FATCA explained.

Where this gets people

Assuming one rejection means the country is closed. It's almost always the specific bank, not the country — the next one over may onboard you happily.
Flying in with no money rail. Without a multi-currency account, the weeks before a local account opens can leave you paying brutal foreign-card fees.
Closing every US account. You'll miss it for ACH, Social Security, and as a fallback — and reopening from abroad is painful.
Expecting to open a local account before you arrive. Most need a local address and tax ID you only get on the ground; the multi-currency account is the pre-move option.
Forgetting the FBAR. The new foreign account quietly pushes your aggregate over $10,000 and a separate FinCEN filing kicks in.

Don't move without a working money rail

A Wise multi-currency account is the one thing you can set up today — before the visa, before the tax ID, before the local bank says yes. Hold dollars, convert at the mid-market rate, and spend on day one.

Open your Wise account →

FAQ

Why do some foreign banks refuse to open accounts for US citizens?

It's FATCA. The Foreign Account Tax Compliance Act requires foreign financial institutions to identify their US account holders and report them to the IRS. For a small or mid-size bank, the compliance and paperwork cost of taking on US persons can outweigh the profit, so some simply decline US citizens rather than deal with it. This is more common in parts of the EU than in countries built around expats. It varies bank by bank, so shopping around usually works.

Can I open an account before I move and have a residency visa?

For a local high-street bank, usually no — most want a local tax ID, proof of address, and often residency first, which you only get after you arrive. The practical workaround is a multi-currency account like Wise, which you can open online from the US before you fly, then use immediately on the ground for everyday spending while you sort out a local bank. Verify current eligibility for your situation.

Do I need a local tax ID number to open an account?

Usually, yes. Most countries tie a bank account to a local tax identifier — Portugal’s NIF, Spain’s NIE, Mexico’s CURP, and in Germany a city-hall registration (Anmeldung) plus ID. Some of these (a Portuguese NIF, for example) can be obtained before you move through a fiscal representative; others effectively require you to be on the ground with residency. Requirements change, so confirm with the specific bank.

Should I close my US bank account when I move abroad?

No — keep at least one US account open. You will likely still want US-domiciled banking for ACH transfers, US direct debits, Social Security or pension deposits, and as a fallback if a foreign bank declines you. Closing it can be far harder to reverse than keeping it. Use a US address you control (or a trusted family address) and check your bank’s policy on overseas customers.

I opened a foreign account — do I now have to file anything with the US?

Probably. Once the combined high balance of all your foreign financial accounts tops $10,000 at any point in the year, you must file an FBAR (FinCEN Form 114) with the Treasury, separately from your tax return. Higher balances can also trigger FATCA Form 8938. Opening the account itself is not the trigger — the balance is. See our FBAR and FATCA guide for the thresholds.

Keep reading

FBAR & FATCA explained — what you must file once your foreign accounts top $10,000.
Money guide: Americans in Portugal — and the other country guides for banking specifics.
Transfer cost comparison tool — once you're banked, move money for less.

Published 2026-06-03. General information, not financial, tax, or legal advice — bank requirements and FATCA rules vary by institution and change often, so confirm current eligibility and documents with the specific bank and a qualified cross-border professional.