If you often travel abroad or are planning a trip in the next few months, open an account in another country this is an alternative that can help you save. If the goal is to live abroad, work or study, know that this is also an excellent choice. An account abroad allows you to manage your money much easier than going to exchange offices to change Brazilian currency whenever you need it, and in this article we will talk about some of the benefits and teach you how to use this opportunity. .

What do I earn with a foreign account?

Firstly, having an international account eliminates exorbitant taxes IOF (Financial Transaction Tax), which currently stands at 6.38%. This fee is charged whenever you use your national credit card for purchases outside of the country, whether online or in person. The tax is also levied on the purchase or sale of foreign currency; take out a loan or financing; use an overdraft or revolving loan; redeem investments and even when buying insurance.

Other highlights that also draw attention start with simplicity, as the customer can withdraw money in foreign currency from international ATMs, use credit or debit cards, and even checkbooks (does anyone else use this method?). Some banks also allow customers to link their current accounts to different currencies, making it more convenient to hold money.

But of course, as in Brazil, international banks or banks with banking services outside the country charge a monthly account maintenance fee. In some cases, you may be able to waive this fee depending on your level of account commitment – such as making monthly deposits or maintaining a minimum balance. So in this aspect, you can save.

What you need to know before opening an account in another country

First, we need to remember some basic questions before opening an account abroad.

For starters, it’s important to determine where you’re going and what your financial goal is with this account. For example, for an exchange trip, it is interesting to bet on a bank that does not charge a monthly fee, since the user will only use the account for a few months.

Another relevant question is whether it is more profitable to hire a digital bank or open an account with a traditional bank of which you are already a client. Depending on service and fees, a traditional bank may offer good options for long-term customers. At the same time, it is necessary to put on the tip of the pencil which institution can offer more benefits and less losses. To do this, look for items such as “What are the costs of maintaining an account?”, “What are the conditions for transfers and exemption from commissions?”

How to open an account abroad

Traditional banks in Brazil already offer the service of opening an account abroad. But not everyone has this opportunity, and the conditions for opening and using this type of account vary depending on the parameters of each institution. Currently, banks that already have this capability are: Banco do Brasil, Bradesco and Santander. So, if you want to have an account abroad and you are already a customer of one of these banks, you can go to any branch or go to the provider’s website to find out what type of account you can open and in which country.

As already mentioned, the conditions and services in each institution are different. For example, in Banco do Brasil, the conditions for opening and using this account depend on the country in which you want to open it. In Bradesco, the account holder must be over 18 years old, and the limit for deposits coming from abroad to this account is 10,000 reais per month.

How santanderoptions are more limited: the bank offers an international account only for legal entitiesif you do not have a residence permit in Europe. Santander is a Spanish bank based in Brazil, and besides it, here in the country there are two other European banks with branches that allow you to open accounts abroad: PP Millennium this Atlantic Europe Both are from Portugal.

Documentation for opening an international account also varies from bank to bank. However, the vast majority ask for the standard information: personal details, passport, proof of residence, and a letter from a bank or statement from previous months. Some may even require other proof of income and documents showing some connection to the country in which you wish to open an account. Banks also often ask for an initial deposit.

international digital banks

But if you don’t like to go to branches and negotiate with a manager, or if you are not going to open an account abroad in any traditional financial institution, there is another easier and less bureaucratic option: international digital account. This type of account allows the client to have a foreign currency balance with deposits abroad in a completely digital way.

What many people have done in recent years is to open a checking account in other countries from fintech, which are financial services companies with fully technological processes. Here in Brazil fintech very popular one Nubank. However, it is not yet possible to open an international account with this digital bank. Maybe you heard about Wise, C6 or Nomad – all of these companies fintech which offer accounts abroad and even investment services in other countries.

Like traditional banks, digital banks also come with different costs and benefits – by far the biggest pro is the ability to complete all transactions through a mobile app, including opening an account. In the case of a digital institution, simply download the app of your chosen bank, sign up and request to open an account, and most of them charge no fees for this initial process. Upon request, the bank will analyze your personal details, bank rating, and credibility of documents in order to approve (or disapprove) your account abroad.

With an active international account, it will be possible to send money to her via TED or PIX in real. The balance will be displayed in Brazilian currency (real) and the user can choose whether to exchange for dollars, euros or another currency.

Most of these digital banks also send a credit or debit card to the customer for use outside of Brazil, which works the same as national cards, only without the 6.38% IOF charge. With an international account, you can also withdraw funds abroad (in the local currency of the country) with lower fees.

See below the table of digital banks offering international accounts for Brazilians, as well as the main conditions for opening and maintaining them. Information collected by the journal You are C/A.

Do you have an account abroad? If not, have you thought about this possibility before? Tell us your story in the comments!

Source: Você S/A, Valor Investe