Largely recognized as one of the best country to open a bank account, Switzerland enables residents from basically any nation to open Swiss bank accounts.
Switzerland‘s financial industry plays a crucial role in its economy, with banking being a prominent and well-developed sector. The country boasts a multitude of local financial institutions, along with foreign banks from Western countries that serve both local and international clients.
When it comes to opening a bank account, Switzerland is a top choice for entrepreneurs and individuals seeking to protect their assets.
Swiss banking law
In Switzerland, the Federal Act on Banks and Savings Banks, commonly referred to as the Banking Law of 1934, serves as the governing legislation for banking operations.
While Swiss banks were previously known for their strict client confidentiality, amendments to the Banking Law in 2009 enabled them to disclose information about account owners through tax treaties established with other nations.
Why open a Swiss bank account?
Despite the new regulations regarding bank secrecy, Switzerland remains a preferred global banking destination due to its professional and secure banking system. The country has implemented the , ensuring the safety of all types of deposits, including securities, in the event of a bank’s insolvency.
Swiss bank account: who is eligible?
Switzerland is known for its thriving banking industry, and this allows both individuals and companies of any nationality to open bank accounts, without the need for a residential address or legal presence in the country.
Also, Damalion facilitates opening a Swiss bank account remotely, a convenience that extends to both foreign individuals and companies.
Types of Swiss bank accounts
Switzerland constitutes 26 cantons, with 24 of them housing cantonal banks regulated by cantonal laws. The country also hosts 13 private banks, some of which have a long-standing history and primarily cater to managing assets for private clients.
Swiss banks offer various types of accounts based on the customer’s residency status and whether they are individuals or legal entities. Residents can choose from current accounts for daily transactions, salary accounts, and savings accounts with higher interest rates.
The following account options are available to clients opening a bank account in Switzerland:
- Personal bank account: this is a Swiss standard account used for salary deposits, payments, and securities transactions.
- Savings bank account: this is a Swiss bank account is designed for saving money and earning interest.
- Swiss investment account.
Swiss bank accounts can be denominated in various currencies, including Swiss francs, U.S. dollars, euros, or British pounds.
Opening a bank account in Switzerland for individuals
Swiss bank accounts can be opened either in person at the chosen bank, through postal services, or via email. While each Swiss bank has its own specific procedures, here are some documents usually required:
- Notarized copies of the client’s passport.
- Evidence of funds to be deposited, in compliance with anti-money laundering regulations.
- Proof of residency.
- Contact information.
It’s important to note that clients will be required to disclose the intended use of their funds.
Opening a corporate bank account for a business in Switzerland
For foreign entrepreneurs setting up businesses in Switzerland, it is essential to connect local bank accounts to their financial operations.
Opening a Swiss bank account is a common requirement before incorporating the company with the Trade Registrar, as a bank statement confirming the deposit of the share capital is usually required. When applying to open a corporate bank account, the following documents are generally required by the chosen bank:
- Identification documents for the company shareholders.
- Business incorporation details
- Details about the desired account type, services, and usage intentions.
Please note that the bank may also request information regarding the company’s activities.
Additionally, banks may request business plans and additional information concerning expansion or growth plans to assess the financial stability of the Swiss company.
Opening a Swiss bank account as a non-resident
Foreign individuals choose Switzerland bank accounts due to the privacy offered by Swiss institutions. However, it’s important to note that Switzerland has implemented regulations and adheres to international standards to enhance bank account protection, including the obligation to report suspicious activities.
For those planning to move to Switzerland or simply wanting to have a bank account in the country, non-resident accounts can be established. Certain requirements must be met, including being of legal age to open the bank account.
Thanks to the country’s developed banking system, non-residents can initiate the process of opening a bank account online.
Alternatively, individuals can appoint a third-party service provider such as Damalion, to initiate the procedure on their behalf.
Some banks may require clients to visit in person to finalize the account opening process, usually for signing the necessary documents.
Similar to Swiss residents, non-residents will be required to provide identification papers, documents proving the source of income, and address information to the chosen bank. Additional documents may be necessary for foreign citizens.
Setting up accounts for online businesses in Switzerland
Merchant accounts, commonly used by e-commerce businesses, facilitate online payments for clients.
These accounts are not established directly with Swiss banks but with specialized service providers. However, they can be connected to corporate bank accounts, making them essential for e-commerce businesses. Typically, the same set of documents needed for opening a corporate account will be required when setting up a merchant account.
Opening a bank account in Switzerland: the costs associated
The general costs associated to opening a bank account in Switzerland are similar to those in other countries, although certain policies may differ among banks.
While some banks may have lower or no setup costs, they may impose higher maintenance fees or require a larger initial deposit. However, with the unique services offered by each bank, clients can find an option that suits their needs.
The costs associated with a Swiss bank account are determined by factors such as the account type, the size of the bank, and the range of services offered.
Note that the initial deposit is an important consideration, particularly for personal bank accounts. Non-residents may be required to deposit a slightly higher amount compared to Swiss residents.
Bank account succession
It is important to have a basic understanding of bank account succession in Switzerland before opening a Swiss bank account. To simplify the process for heirs, estate planning solutions can be utilized by both foreign and Swiss citizens. The available structures for bank account succession include trusts and foundations.
While setting up trusts in Switzerland is not commonly practiced, foreign trusts are recognized by Swiss courts. On the other hand, foundations are among the most frequently used estate planning tools in Switzerland.
Bank accounts inheritance
When it comes to bank account inheritance in Switzerland, co-ownership and joint tenancy, are the two types of joint ownership recognized by Swiss inheritance laws.
Co-ownership applies to assets acquired during marriage, while joint tenancy refers to assets held by multiple heirs.
In most cases, Wills contain provisions for the transfer of all assets, including bank accounts, upon succession, and Swiss banks always adhere to these instructions provided by the account holder regarding the heirs of the account.
In the event that the owner of the account pass away and didn’t leave a will, the succession of the bank account will adhere to the relevant inheritance regulations.
If you are interested in opening a personal or a business bank account in Switzerland, contact Damalion now for assistance.
