Keeping old address on my bank accounts in my home country after moving offshore

Jea

Member
I live in an EU country in central Europe and I’m going to cancel my permanent residence and move to Georgia (or other no tax jurisdiction).

I have some bank accounts in my original country. I don’t want to change the address of these bank accounts, because I don’t want the authorities in my original country to know where I moved to. Could this cause any problems?

I don’t really use the bank accounts, but wanna keep them opened so they can issue a bank reference for me when needed…
 

Outlander

Building Trust
Entrepreneur
If you care about your EU bank knowing where you live, it's probably because you care about your home country knowing where you live. Which means you don't plan to telling your home country where you have relocated to start with.

Which brings me to the next question: why would you care about them knowing you're in Georgia? What's your goal?

Objectively, I don't think you'd have any issues if you decided not to update your address, given that's your home country anyway.
 

Jea

Member
Which means you don't plan to telling your home country where you have relocated to start with.

Which brings me to the next question: why would you care about them knowing you're in Georgia? What's your goal?
Well, I don't have to tell my government where I'm living, so I won't for privacy reasons.
 

mange38

Building Trust
Entrepreneur
The tax office in your home (EU) country will most likely ask for your (new) address in the country you're moving to before they approve your request.
 

Jea

Member
The tax office in your home (EU) country will most likely ask for your (new) address in the country you're moving to before they approve your request.
It works differently in my country, there's no approval. Simply by cancelling my permanent residence I stop being tax resident (assuming I don't spend 183 days and don't own a property here).
Well actually, when cancelling the permanent residence, I have to fill a simple form and give them a country and address where I "aim to go". They don't verify this new residence in any way (I'll double check this), so I can give them some "intermediate" address. The cancelling of the permanent residence is instant and automatic. And once they cancel it I'm off the tax hook...


I'm not really sure about what will happen, but if the current bank send something by postal mail to you and the letter returns for sure something iwll happen.
Not and issue as I can receive mail at that address..
 

mange38

Building Trust
Entrepreneur
They don't verify this new residence in any way
Such form in my country states that you can be criminally prosecuted if you give false/incorrect info so if you want to stay 100% legal you can't just give them "some" address.

What I would do is get an Airbnb for a month and give them address of the Airbnb, then find some other apartment locally and move there.
 

Outlander

Building Trust
Entrepreneur
It works differently in my country, there's no approval. Simply by cancelling my permanent residence I stop being tax resident (assuming I don't spend 183 days and don't own a property here).
Well actually, when cancelling the permanent residence, I have to fill a simple form and give them a country and address where I "aim to go". They don't verify this new residence in any way (I'll double check this), so I can give them some "intermediate" address. The cancelling of the permanent residence is instant and automatic. And once they cancel it I'm off the tax hook...



Not and issue as I can receive mail at that address..
For your home bank, you don't need to update the address. They won't ever ask you if you have moved, specially if you don't use the account often. And you not acting to request an update of your own records is not a crime, not even an infraction. If much, you could claim it was a distraction - you just forgot to update.

To your government, in your specific situation, giving one address/country, even if fake, sounds like fine. The reason being once you're out of your home country, it's very unlikely you'd be legally bound to keep your current address updated with your government. Therefore, even if you gave your real address, and later moved to a new one, you wouldn't be expected to tell your home country anyway. They likely want to know your "exit address" for statistical purposes, not really track where you are.

All that said, it's always good (if possible) to never give your real current address to anyone. And by anyone I really mean anyone. There are a variety of ways you can legally achieve this, having a backup address for receiving mail.
 

blackeric

Active Member
Such form in my country states that you can be criminally prosecuted if you give false/incorrect info so if you want to stay 100% legal you can't just give them "some" address.
In which country that is?

Well, one can even stay in a hostel for $3 per day and give them that address. Correct address? Yes.
 

GiGoGo

Building Trust
Entrepreneur
Mentor Group
Depends on the reason of moving, if you don't want to pay taxes it's better to tell all your banks that you moved to a new address so for the tax office in your country you are not taxable.

If that's because running from liabilities, maybe it's a good idea
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
Well, I don't have to tell my government where I'm living, so I won't for privacy reasons.
You clearly have something to hide ca#"!

The cancelling of the permanent residence is instant and automatic. And once they cancel it I'm off the tax hook...
Ok I see now ns2

btw for 99% of banks you would be breaking their rules by failing to update the bank with your current address. However I guess you don't care if you are running from the tax man you have much bigger issues smi(&%
 

daxbr

Building Trust
Entrepreneur
The answer to your problem is very much country specific. I have done some research on this subject in my country, namely asked banks if I am allowed to maintain account while living in non eu country and keep nonresident status. Was told that I can, was asked for proof of foreign permanent residence and they changed their records. Then I asked if I need to change address but was told it is not relevant to tax status as I can still stay in eu for less than half a year annually and maintain nonresident status.
 

therealmarv

Building Trust
Entrepreneur
I live in an EU country in central Europe and I’m going to cancel my permanent residence and move to Georgia (or other no tax jurisdiction).

I have some bank accounts in my original country. I don’t want to change the address of these bank accounts, because I don’t want the authorities in my original country to know where I moved to. Could this cause any problems?

I don’t really use the bank accounts, but wanna keep them opened so they can issue a bank reference for me when needed…
* You violate terms of the bank
* CRS, your bank in EU reports yearly to their state:

  1. Name, address, Taxpayer Identification Number (TIN) and date and place of birth of each Reportable Person.
  2. Account number
  3. Name and identifying number of the reporting financial institution;
  4. Account balance or value as of the end of the relevant calendar year (or other appropriate reporting period) or at its closure, if the account was closed.
  5. Capital gains, depending on the type of the account (dividends, interest, gross proceeds/redemptions, other)
Source Common Reporting Standard - Wikipedia
 

BlueMist

Active Member
The answer to your problem is very much country specific. I have done some research on this subject in my country, namely asked banks if I am allowed to maintain account while living in non eu country and keep nonresident status. Was told that I can, was asked for proof of foreign permanent residence and they changed their records. Then I asked if I need to change address but was told it is not relevant to tax status as I can still stay in eu for less than half a year annually and maintain nonresident status.
It really depends on the bank. I informed my banks in EU and Asia that I am moving to UAE, I have updated both the residential (tax) and mailing addresses at these banks and neither has asked me to provide any sort of residency proof.

I also have a bank account in my home country (in EU) which doesn't allow for updating residential address online, my RM confirmed this can only be done at the branch, together with new passport etc. Since I never find time to do it when I am visiting my home country, I still have old residential address with them and old expired passport on file.

Also if you think about it, how many people moving abroad are actually updating their home bank records other than mailing (not residential) address? 1%? Less? We (tax nomads) are bringing this up because we want to be cautious to not play foul, but 99% people doesn't care or is not even aware they should do something about it.
 

GrumpyMess

Trusted Member
Business Angel
It really depends on the bank. I informed my banks in EU and Asia that I am moving to UAE, I have updated both the residential (tax) and mailing addresses at these banks and neither has asked me to provide any sort of residency proof.

I also have a bank account in my home country (in EU) which doesn't allow for updating residential address online, my RM confirmed this can only be done at the branch, together with new passport etc. Since I never find time to do it when I am visiting my home country, I still have old residential address with them and old expired passport on file.
You are really lucky, since UAE was in the EU blacklist and banks could even close the account, not to mention the request for documents. Also almost all banks will limit your account access without an active passport on file.
 

KJK

Building Trust
Entrepreneur
The tax office in your home (EU) country will most likely ask for your (new) address in the country you're moving to before they approve your request.
I'm not saying this can't happen in the future... however if you are an EU citizen, you do not need an "approval" to move out or request something. You were born in some country and in case you want to leave (for whatever reason), the state doesn't have a limitless right to know where you will live, what will your address be etc. There are some exceptions (possibly Finland, France) where it is more complicated and you may get into trouble later if you don't actually report beforehand.

* You violate terms of the bank
* CRS, your bank in EU reports yearly to their state
CRS is primarily intended for cross-border reporting. If you are e.g. citizen of Germany and have German bank account, CRS doesn't apply; other reporting may apply though... It is true that he may violate the terms of the bank - so probably the worst that can happen from the bank's side is account closure.

To answer OPs question whether this can cause problems - yes. If you have accounts opened in your home country and you are actively using them (e.g. salary, credit cards...) it can be used against you to claim you have your center of vital interests still in your home country. If you just keep the accounts opened and won't use them, you can defend yourself (if that situation arose) that you just forgot to close them and you forgot to update your new residential address because you didn't know you still had that account in your home country. If you want to be 100 % certain, just close those accounts.

_____________________________

Also I disagree with the fact that not telling your state where you live means you have something to hide. If you are a citizen, there really are no benefits if the state knows where you live - it can just be used against you (surveillance etc.). I'm from a country where everyone just believes this dogma that you MUST have an ID card and you MUST have a residential address and it is illegal not to have them. Actually when you do the research and study the law, you'll find out neither is mandatory.

In some countries ID card (and residential address) is not mandatory... for example Mexico or Sweden.
Some countries even do not have ID cards - Canada, United Kingdom.
 
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mange38

Building Trust
Entrepreneur
you do not need an "approval" to move out or request something
it depends on the country. in most cases you need to inform local tax authorities you are moving out and want non resident status.

in my country you have to file a "residency change form" and you have to specify the country and address to which you are moving to (mandatory field). later on you sign & accept that you can be held liable if you provide false info. this is in an EU country btw.

obviously no one's gonna call their home country and tell them each time they moved to a different apartment in Georgia, but they will probably ask you for an address first time you are moving out.
 

Sulu

Member
In Holland the banks have a policy to notify the tax man about your international activities, including address change or international transfers which they may flag as suspicious.
If the bank finds reason to believe the registered address is incorrect, the bank will contact you and question you to find out the specifics of your situation. They may do so in writing or by phone, or both.
Any random event might trip off their watchdog process, usually it's the activities you do on your account. For instance, if you require a replacement card and you ask them to send it to a foreign address, they would move to investigate further. Or if you transfer funds to or from foreign accounts.
It is ridiculous that they go to such lengths and abuse their customers like that. But what can you do.
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
In Holland the banks have a policy to notify the tax man about your international activities, including address change or international transfers which they may flag as suspicious.
That's the future model for rest of EU countries.:confused:
 
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