Banking as an American Abroad

Why your passport is a problem

FATCA — the Foreign Account Tax Compliance Act — requires every foreign bank to report accounts held by US persons to the IRS. The compliance cost per customer exceeds the revenue from one checking account. Many banks do the math and say no.

You're not being discriminated against. You're being priced out of a compliance obligation that no other country imposes on its citizens abroad. The US and Eritrea are the only countries that tax worldwide income regardless of residency. Welcome to the club.

Full FATCA explainer →

The American expat banking playbook

1. Keep a US account — Charles Schwab is the gold standard. No foreign ATM fees, no minimum balance, accepts international addresses. For Social Security, tax refunds, and keeping a US financial footprint.
2. Get Wise before you leave — Multi-currency account, local IBANs in 10+ currencies. Use it as your bridge account while local banking processes. No US tax residency problems.
3. Open local within 30 days — Salary deposits, utility bills, and rent payments need a local account. Start the process immediately. Bring: passport, proof of address, visa/residence permit, employment contract, and whatever dignity you have left.
4. File the FBAR — If your foreign accounts exceed $10,000 aggregate at any point during the year, file FinCEN Form 114 by April 15. Penalties for non-willful failure: up to $16,536 per violation.