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accountantromania

New member
What you explain above would mean that Romania reports 99% of all foreigners systemically wrong. Only very few countries issue a national ID to a citizen who lives permanently abroad and even fewer write the full foreign address on a national ID.

How about showing the Romanian bank a Tax ID or permanent resident card of a third country as proof of address/proof of legal residency?
  • Example: Potential customer of a Romanian bank is a Portugese citizen who intends to opens a bank account by showing his Portugese passport + his permanent residence permit of Switzerland. The customer also has a temporary residence permit of Romania. He can only provide his permanent address in Switzerland and his temporary address in Romania to the bank since he has no address in Portugal (he left Portugal for good 20 years ago). Will the Romanian bank refuse this customer? Where will the Romanian bank report this customer for CRS purposes??
I am stating that the banks in Romania rely solely on the information stated on the documents of identification. If the information changes, they change their record, accordingly. Most countries issue new IDs to their citizens in their embassies, otherwise you wouldn't be able to leave a foreign country if you lost your ID on a vacation or business trip. To clarify the procedures contact your embassy.

Obtaining a certificate of Residence in Romania might be an indicator for the tax residence but it does not mean that you can just come to Romania, obtain a certificate of residence (temporary permit) and immediately your tax residences changes. As a consequence a first reporting might occur based on old information, that might indeed be the case.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
That's interesting information about the system in Romania.

Also any address held on bank record will be CRS reported to by the very nature of CRS indicia.

I suggested what to do below.

Whatever Romanian banks have going on is not reflective of behavior of other banks in EU. If you need a local Romanian account details specifically then just use Wise.
 

backpacker

Entrepreneur

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Already for quite a while WISE issues even debit cards for residents of Romania -> Can I get the Wise card in my country? | Wise Help Centre
Since the OP is foremost looking to open/maintain a private account, WISE should very well do the trick.

Yeah they offer Romanian local account details even.

Unfortunately, last time we attempted an application with WISE, they stated that the service was not available for Romania. This might be subject to change over time,

Anything is possible these days with compliance depts. So I have to ask also is that something new?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member

accountantromania

New member
Either a new applicant waits six months to be able to offer documented proof of residence in Romania for six months, updating his/her documents or taking the "risk" of being reported, which shouldn't be a problem at all, f supportive documentation can be provided to demonstrate factual tax residence in Romania.

If you think about it, it actually makes sense, because not everybody just showing up with a work and rental contract is automatically considered a tax resident. CRS is for most countries still a new bureaucratic beast and countries try rather to comply, than making mistakes along the way.

For "honest" tax residents it shouldn't be a problem at all being reported, even on preventive reportings..
 

backpacker

Entrepreneur
If you think about it, it actually makes sense, because not everybody just showing up with a work and rental contract is automatically considered a tax resident.
This is certainly true.

However, picking up again my example in post #20 the question remains if such an individual will be refused by a bank in Romania.
Let's forget CRS for a while and just concentrate on the address question: The potential client can not give an address in Portugal (passport country) because he did not live there for the past 20 years. He can only provide his address in Switzerland where he has permanent residency. His Portugese passport does not show any indication that he lives in Switzerland. As proof of address the potential client is able to provide a Swiss residence permit ID and Swiss tax number (AHV) ... (?)
 

Untangle

New member
Each country in Europe has different rules when it comes to opening bank accounts, in Ireland you need a PPS number (Irish tax ID), in Belgium you need to be registered with the commune so you have a local resident card and so on...welcome to Europe. Just adapt to whatever they want
 

thedirtyteller

New member
Some jurisdictions and banks ask for your permanent residence. As you mentioned you only have a temporary residence permit.

I have encountered the same issue in different countries and different banks and there is no way around. They don't even care what address you indicate there as long as the country matches with your citizenship unless you can proof permanent residence (with a permanent residence card) in another country.

The bank will probably report your bank account by CRS to your home country. If you have nothing to hide and you really broke ties there by being there a limited time, have no more assets and indicated in the civil register your address abroad this should be no problem.

Still even you live abroad with all proof, some European countries still will try to tax you and then a good tax lawyer is required.
Is Denmark a part of these countries that will try this?

Indeed, only very few countries do CRS reporting the right way. Countries with a system of legal address/de facto address are definitely not in this group of correct reporting.
In my situation will that be an advantage?

As a tax consultancy firm based in Bucharest we know the inner workings of the local banks very well.
The banks work quite primitive and take any address that is stated in your document of identification.

In most passports there is no complete address of residence, but in many national IDs.

Once you can prove to the embassy of your origin in Bucharest, that you are resident in Bucharest they might issue a new document of identification with the new address in Romania.

If you present this new document to the bank, the changes will be made, accordingly. But you will need six months of records and some processing time with the embassy to get to this point.

It is the only practical way, that I am aware of, to change your address with the bank.
I got help from a lawyer firm to receive this "certificate de inregistrare" Or temporary residence permit. I also got a CNP code. But they still asked for a permanent address. Was it that you meant in your third paragraph? And will they report the permanent address of my home country I gave them, back to my home country?

I am stating that the banks in Romania rely solely on the information stated on the documents of identification. If the information changes, they change their record, accordingly. Most countries issue new IDs to their citizens in their embassies, otherwise you wouldn't be able to leave a foreign country if you lost your ID on a vacation or business trip. To clarify the procedures contact your embassy.

Obtaining a certificate of Residence in Romania might be an indicator for the tax residence but it does not mean that you can just come to Romania, obtain a certificate of residence (temporary permit) and immediately your tax residences changes. As a consequence a first reporting might occur based on old information, that might indeed be the case.
So according to this, I'm not a tax resident here? You have to explain further.
 
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backpacker

Entrepreneur
In my situation will that be an advantage?
I do not know what you want to achieve, hence it is difficult to talk about advantage or disadvantage.
However, the RO bank will most likely report your account balance/turnover to the "wrong" country. "Wrong" in terms of CRS which gives clear guidance on how to handle your case correctly.
 

clemens

Corporate Services
Mentor Group Gold

pixbix

New member
Serious, you mean you can buy a house for a few thousand euros in Romania ?

What a mess of a country. With not too much money you can live as an King there, build a castle for no money and live your life, just don't look out of the windows!

For sure. You buy one in the forest, and the view will be amazing. You can also get a cheap one in Portugal, or anywhere. even in USA maybe, but in US i think it will in the desert... that's a mess... or in Detroit... but in Romania , you buy one in mountains and you are fine.
Just take care to not have any wolf or bears around.

Is this that bad ?

 
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thedirtyteller

New member
For sure. You buy one in the forest, and the view will be amazing. You can also get a cheap one in Portugal, or anywhere. even in USA maybe, but in US i think it will in the desert... that's a mess... or in Detroit... but in Romania , you buy one in mountains and you are fine.
Just take care to not have any wolf or bears around.

Is this that bad ?

I would be wary of buying that even if it is "cheap". Romania has a lot of gypsies and you don't want to live in a neighborhood with them. You will inhale the stench of burned tires 24/7 and keep anything of value indoors. This includes even something as silly as car tires or some iron. Secondly, Romania also has a problem with stray dogs; the farther away from the city, the worse the problem gets.
 
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