Undoubtedly, the banking sector in Switzerland is among the country’s main assets. As of 2024, it attracts many customers from around the world who seek security, privacy, and stability. Although often associated with the wealthy and the elite, Swiss bank accounts are not exclusive to them. In fact, nearly anyone can open a Swiss bank account, as long as they meet the requirements and follow the procedures. However, it may not be cheap or easy, considering the fees and conditions involved.
Swiss bank account: how to open one
Opening a Swiss bank account is not much different from setting up a regular one in your own country. You need to fill out some forms and provide certain documents that prove your identity and source of income. However, depending on the account type you want and the bank you choose there are some specific steps and rules to follow.
- Decide which bank you want to open an account with. There are hundreds of banks in Switzerland, ranging from large international ones like Credit Suisse and UBS to smaller regional banks (think Raiffeisen and PostFinance). You can compare different banks online or consult a financial advisor to find the best option for your needs and preferences.
- Make up your mind as to which type of account you want to open. Basically, you’ll have to choose between personal and business ones. Personal accounts are for individuals who want to save, invest, or manage their money in Switzerland. In turn, business accounts are designed for companies or entrepreneurs willing to conduct business activities or transactions in the jurisdiction. Each account type comes with different subtypes that have varying features.
- Prepare the documents and funds necessary to open an account. The documents may vary depending on the bank and the type of account, so you’d better consult the chosen bank about them. The amounts to pay also differ but generally you need to deposit a minimum required deposit and maintain a minimum balance to keep it active. These may range from a few hundred to several million Swiss francs. For example, UBS requires a minimum deposit of CHF 10,000 and a minimum balance of CHF 10,000 CHF for a personal account, and a minimum deposit of CHF 100,000 and a minimum balance of CHF 250,000 for a business one.
- Submit the documents and funds in question to the bank and wait for their approval. You can do this in person, by visiting a branch of the bank in Switzerland, or by mail, which implies sending the documents and funds to the bank’s address. Some banks may also allow you to open an account online. For that purpose, you’ll have to upload the documents, complete a remote contract with the recommended Swiss bank, and transfer the funds electronically. However, this option may not be available for all types of accounts, or all nationalities. The approval process may take from a few days to a couple of weeks. The bank can also ask you some questions or request additional information to verify your identity and source of funds and to comply with the anti-money laundering laws.
Once the bank approves your application, you will receive a confirmation letter and an account number. After that, feel free to start using your account.
Benefits of Swiss bank accounts
Swiss bank accounts have many benefits that make them appealing to customers from around the world.
Known for their security and stability, Swiss banks have strict regulations and high capital requirements protecting them from financial crises and risks. They also come with a deposit insurance scheme, which guarantees up to CHF 100,000 per customer in case of a bank failure.
In Switzerland, banks are obliged to keep their customers’ information confidential, unless its disclosure is authorized by the customer or ordered by a court. Swiss banks never disclose the name, balance, or transactions of an account holder, except in cases of serious criminal activity (terrorism, money laundering, or tax evasion). They also do not report the income or assets of a person or entity behind the account to their home country, unless there is a bilateral agreement or a request for information exchange.
Banking institutions in Switzerland do not impose any income, corporate, or capital gains tax on most accounts, except for those in banking and insurance. Swiss banks also boast a low value-added tax (VAT) of 7.7%, which is among the most favorable in the world. With their network of double taxation treaties with over 80 countries, Swiss banks let you avoid paying taxes twice.
Offering a wide range of services and products, including savings, investments, loans, mortgages, insurance, wealth management, and asset protection, Swiss banks offer their customers the possibility to choose their currency and to switch between them as needed. Besides, they give you access to global markets and opportunities, e.g., stocks, bonds, commodities, and derivatives.
Challenges associated with Swiss bank accounts
Swiss bank accounts also have some drawbacks, and customers should be prepared to deal with them:
Neither cheap nor easy to open and maintain, they involve various expenses. Here, we are referring to account opening and maintenance charges, transaction fees, as well as fees for currency conversion and the like. These may vary depending on your bank and account. NB: Over time, these fees may add up to a significant amount.
Swiss banks must adhere to Swiss and international laws, including anti-money laundering and tax regulations. They are obliged to verify your identity, disclose funding sources, and report any suspicious activity to Swiss authorities. These financial institutions fulfill tax obligations and share information with the account holder’s home country, as dictated by bilateral agreements or information exchange requests like FATCA for U.S. citizens and AEOI for EU citizens.
However, a bank account in Switzerland is not the only or the best option for customers who seek security, privacy, or diversification. You will find other countries and jurisdictions on the world map that offer similar or even superior benefits and services. Examples include Singapore, Hong Kong, Luxembourg, and say the Cayman Islands.
For detailed information about your banking opportunities, including the ones offshore, you are welcome to contact the International Wealth team. With their years of industry experience, your satisfaction is guaranteed!
