EMI/Bank account / Paraguay resident / withdraw from Euro Pacific Bank

[Soterus]

Dear all,
I have a special question regarding a personal bank account. Here is some relevant background information.
I am an Austrian national, living in Paraguay since Jan 2021. Previously I lived in Brazil (for about 15 years).
I have currently 3 non-Paraguayan bank accounts: 1 national Austria (not relevant sum), 1 with Euro Pacific Bank (30k), and Wise (empty).
When in 2016-2018, the Brazilian Real started losing heavily its value, I transferred everything to EPB, since I had already plans
to leave the country.

It is now so that since 2018, due to my non-EU residence, I could not get any card for spending that money (banks know my correct address).
In Brazil I was not allowed to keep a bank account; I tried to get one of the type CDE (= conta para domiciliados no exterior) with Santander, but this was
rejected due to the fact that Paraguay has a territorial tax system, so the account would not be tracked by the financial authorities there.
As an EU national, I have the right to own 1 EU account independent of the country of residence, but I do not have the right to get an international
visa/mastercard. So that account works only for transfers inside the EU.

I do not want that money here in Paraguay for several reasons, for instance, I expect a very high inflation/devaluation as in Brazil has been going on for a while.
Besides that, in Paraguay Banking is horrible: I opened my account here without any proof of residence (the only positive thing).
The account works only on a national basis, it comes with a debit card, but payments I can do only inside Paraguay. Withdrawing cash works inside and
outside of Paraguay, but payments in a supermarket not!!!
For international payments, I was offered a credit card with a monthly limit of 200 USD, and this only after having provided a
proof of residence in form of a utility bill (as internationally required). Another: the Deposit Guarantee Fund here covers only around 7,000 USD.

Some friends of mine recommended to found a US-LLC for trading, that would then guarantee a US bank account. But I am not prepared
for that now. What would you recommend, where to open an account where I can get at least a virtual debit card so that I can spend normally?
I am particularly concerned, assuming I will opt one day for the US trading company, then the problem is huge:
EPB does not allow transfers to the US, as EPB does not accept US residents. From the experience in the past, the only document for demonstrating the legal
origin of funds was a recently filed tax return (listing funds in the sender account), this was required by Wise and was the only acceptable document.
Now I still have the recently filed tax return from Brazil for the 2020 year, it lists the EPB account. But when I will file in March 2022 for the 2021 year here in
Paraguay, the EPB account cannot be mentioned, so how is then the compliance? MAybe should I now transfer to Wise, as Wise accepts US residents?

Thank you for your suggestions.

 

[KJK]

That depends...

What do you want to use the account for? Transfer some money from EPB and that is it? Or later use it for something else, like active use of the card, cashing out some crypto maybe, sending international wires?

Also do you have dual citizenship besides your EU one?

 

[Soterus]

That depends...

What do you want to use the account for? Transfer some money from EPB and that is it? Or later use it for something else, like active use of the card, cashing out some crypto maybe, sending international wires?

Also do you have dual citizenship besides your EU one?

Hi, I have no other than EU citizenship, and my idea is to spend that sum over the next 2 years, while saving most of my PY income here, which I will document well regarding the sources for any possible future transfers to the US. I will not buy or cash out any crypto.

 

[Martin Everson]

What would you recommend, where to open an account where I can get at least a virtual debit card so that I can spend normally?

You can try ItalBank in Puerto Rico.

P.S Avoid EPB.

 

[EuroKiss]

As an EU national, I have the right to own 1 EU account independent of the country of residence, but I do not have the right to get an international
visa/mastercard. So that account works only for transfers inside the EU.

I don’t understand this part: why only one account and why with only inside-EU payment? Tbh I don’t think even exist a EU visa/mc that only works inside the EU.
I am a EU national resident in Latin America and I personally hold several EU accounts w/o any specific limit (besides the normal withdrawal and atm limits ofc).

 

[Marie Manila]

I don’t understand this part: why only one account and why with only inside-EU payment? Tbh I don’t think even exist a EU visa/mc that only works inside the EU.
I am a EU national resident in Latin America and I personally hold several EU accounts w/o any specific limit (besides the normal withdrawal and atm limits ofc).

You can restrict credit cards to domestic use only. It can be programmed in the "Application Usage Control" section of the card's chip. But honestly, I have seen that only once in Georgia. And inside EU, I do not know, if domestic means whole EU or only one country.

But I think, OP does not mean the credit card would be restricted to domestic use. Usually EU banks do not or cannot provide cards to non-EU residents (prohibited by Mastercard and I think also VISA rules).

As an EU national, I have the right to own 1 EU account independent of the country of residence, but I do not have the right to get an international
visa/mastercard.

From where did you get that information, that you have the right to own 1 EU account as an EU national?
Usually the so called basic bank accounts are only available, if you are resident of an EU country (but independent from your nationality).

Do you still have an address in Austria?

 

[KJK]

I don’t understand this part: why only one account and why with only inside-EU payment? Tbh I don’t think even exist a EU visa/mc that only works inside the EU.
I am a EU national resident in Latin America and I personally hold several EU accounts w/o any specific limit (besides the normal withdrawal and atm limits ofc).

This is very common in Germany - they are issued by Mastercard but used to be called Maestro (or Girocard) instead. Such cards can only be used locally and won't work e.g. if you wanted to borrow a car in the Americas - or they may not work abroad at all.

Banks don't like to open accounts for non-residents, so one way to do it is to open an account while being a resident, then stop being a resident and keep the account (here you may need a bit of creativity about what to tell the bank).

The right to a basic payment account is defined e.g. here: Payment accounts - Directive 2014/92/EU - basically a bank may not reject you for a basic account if you are EU citizen.

 

[EuroKiss]

This is very common in Germany - they are issued by Mastercard but used to be called Maestro (or Girocard) instead. Such cards can only be used locally and won't work e.g. if you wanted to borrow a car in the Americas - or they may not work abroad at all.

Banks don't like to open accounts for non-residents, so one way to do it is to open an account while being a resident, then stop being a resident and keep the account (here you may need a bit of creativity about what to tell the bank).

The right to a basic payment account is defined e.g. here: Payment accounts - Directive 2014/92/EU - basically a bank may not reject you for a basic account if you are EU citizen.

Many thanks for the explanation, didn’t even know about that! Currently I got accounts and cards with the most known EMI in EU/UK and always got international cards, you can try with Monero, Revolut, AdvCash etc.

 

[daxbr]

Dear all,
I have a special question regarding a personal bank account. Here is some relevant background information.
I am an Austrian national, living in Paraguay since Jan 2021. Previously I lived in Brazil (for about 15 years).
I have currently 3 non-Paraguayan bank accounts: 1 national Austria (not relevant sum), 1 with Euro Pacific Bank (30k), and Wise (empty).
When in 2016-2018, the Brazilian Real started losing heavily its value, I transferred everything to EPB, since I had already plans
to leave the country.

It is now so that since 2018, due to my non-EU residence, I could not get any card for spending that money (banks know my correct address).
In Brazil I was not allowed to keep a bank account; I tried to get one of the type CDE (= conta para domiciliados no exterior) with Santander, but this was
rejected due to the fact that Paraguay has a territorial tax system, so the account would not be tracked by the financial authorities there.
As an EU national, I have the right to own 1 EU account independent of the country of residence, but I do not have the right to get an international
visa/mastercard. So that account works only for transfers inside the EU.

I do not want that money here in Paraguay for several reasons, for instance, I expect a very high inflation/devaluation as in Brazil has been going on for a while.
Besides that, in Paraguay Banking is horrible: I opened my account here without any proof of residence (the only positive thing).
The account works only on a national basis, it comes with a debit card, but payments I can do only inside Paraguay. Withdrawing cash works inside and
outside of Paraguay, but payments in a supermarket not!!!

The account you are referring to is a special account for people on limited income. Only cedula is required to open it. You may want to go back to the same bank and open a standard account in EUR, USD or PYG and provide full documentation.

For international payments, I was offered a credit card with a monthly limit of 200 USD, and this only after having provided a
proof of residence in form of a utility bill (as internationally required). Another: the Deposit Guarantee Fund here covers only around 7,000 USD.

Thebank deposit insurance is about USD20,000.00

Some friends of mine recommended to found a US-LLC for trading, that would then guarantee a US bank account. But I am not prepared
for that now. What would you recommend, where to open an account where I can get at least a virtual debit card so that I can spend normally?
I am particularly concerned, assuming I will opt one day for the US trading company, then the problem is huge:
EPB does not allow transfers to the US, as EPB does not accept US residents. From the experience in the past, the only document for demonstrating the legal
origin of funds was a recently filed tax return (listing funds in the sender account), this was required by Wise and was the only acceptable document.
Now I still have the recently filed tax return from Brazil for the 2020 year, it lists the EPB account. But when I will file in March 2022 for the 2021 year here in
Paraguay, the EPB account cannot be mentioned, so how is then the compliance? MAybe should I now transfer to Wise, as Wise accepts US residents?

Thank you for your suggestions.