An offshore bank account, meaning an account in a country other than the one you live or are taxed in, is legal to hold almost everywhere, as long as you declare it and pay tax on what it earns. For most nomads the realistic option is a multi-currency fintech or an expat banking arm; premier and private banking in Singapore, the UAE or the Channel Islands wants £75,000 or more on the pages we checked.
Last checked: September 2026
In short:
- US citizens and residents must file an FBAR with FinCEN if their foreign accounts together exceed $10,000 at any time in the year, due 15 April with an automatic extension to 15 October.
- Under the OECD’s Common Reporting Standard, more than 100 jurisdictions automatically send account holders’ names, addresses, tax ID numbers and year-end balances to the tax authority where they’re resident, every year.
- Verified entry points on banks’ own pages start at £75,000 for HSBC Expat in Jersey, S$200,000 for HSBC Premier in Singapore, US$200,000 for Citigold international clients and AED 500,000 for HSBC Premier in the UAE.
Is an offshore account legal?
Yes. What gets people into trouble is not declaring it. Two reporting systems do most of the work.
For US persons (citizens, green card holders, US residents, and US LLCs, corporations, partnerships, trusts and estates):
| Form | Who files | Threshold | Penalty headline |
|---|---|---|---|
| FBAR (FinCEN Report 114) | Any US person with a financial interest in, or signature authority over, foreign accounts | Aggregate value over $10,000 at any time in the year | Civil and criminal penalties; civil maximums adjusted yearly for inflation |
| Form 8938 (FATCA), filed with your tax return | Taxpayers living abroad, single | Over $200,000 on the last day of the year or $300,000 at any time | $10,000 for failure to file, up to $50,000 more after IRS notice, and a 40% penalty on understated tax |
| Form 8938, living abroad, married filing jointly | Over $400,000 at year end or $600,000 at any time | As above | |
| Form 8938, living in the US | Single | Over $50,000 at year end or $75,000 at any time (joint: $100,000 / $150,000) | As above |
The FBAR is filed electronically through FinCEN’s BSA E-Filing System, separately from your tax return, whether or not the account earns income. Many people must file both forms for the same accounts.
For everyone else: the OECD’s Common Reporting Standard (CRS) means a bank in one participating country collects your tax residence and passes your details to the tax authority where you’re resident, annually. Per HMRC’s manual, the reportable data includes your name, address, taxpayer identification number, date of birth, account number and the year-end balance or value. Amended “CRS 2.0” rules apply in the UK from 1 January 2026, with first reports in 2027.
Assume your home tax authority will learn about the account.
Why “offshore” doesn’t mean tax-free
Where the bank sits doesn’t decide your tax. Where you are tax resident does (and for Americans, citizenship). The IRS is blunt that US citizens and residents abroad are “subject to tax on worldwide income from all sources.” Interest earned in a Jersey or Singapore account is still taxable in your country of residence, unless that country taxes residents only on local income. If you’re not sure where you’re tax resident, settle that first; our tax residency guide explains why the 183-day rule doesn’t answer it on its own.
What an offshore account can legitimately do: hold multiple currencies, keep money in a stable jurisdiction while you move, and spread risk if one account is frozen.
Realistic options, from cheapest to most demanding
| Option | What it costs to get in | Deposit protection |
|---|---|---|
| Multi-currency fintech (Wise, Revolut) | Nothing or a small card fee | Depends on the entity: Wise safeguards money rather than insuring it |
| HSBC Expat (Jersey) | £75,000 in savings or investments, or HSBC Premier status plus £10,000; accounts in GBP, EUR or USD | Jersey scheme, up to £50,000; not UK FSCS |
| HSBC Premier Singapore | Total relationship balance of at least S$200,000 (or Premier status elsewhere) | Singapore SDIC, up to S$100,000 per depositor per bank |
| Citigold, Singapore (international clients) | AUM of US$200,000; Citigold Private Client from US$1 million | Singapore SDIC, up to S$100,000 |
| HSBC Premier UAE | Total relationship balance of AED 500,000, or salary routes that need UAE income | UAE rules (verify) |
| Swiss banks | We couldn’t find a minimum published on a major Swiss bank’s own pages; check directly | esisuisse, CHF 100,000 per client per bank |
| Cayman Islands banks | No minimum we could verify on a bank’s own pages | (verify) |
Some notes on that table:
- Fintechs are the real “offshore account” for most nomads. A multi-currency account in USD, EUR and GBP covers most of what people want offshore banking for.
- HSBC Premier status travels. Singapore and the UAE both accept Premier status held in another country, subject to local terms.
- Residence lists matter more than balances. HSBC Expat says you don’t have to live in Jersey, but you must live in an eligible country, and Citi says its offers aren’t available to residents of certain jurisdictions. A balance won’t get you in if your country of residence is on the excluded list.
- Protection limits are modest. Above S$100,000 in Singapore or £50,000 in Jersey, you’re relying on the bank itself.
What the bank will ask for
Expect more paperwork than a domestic account. Lloyds Bank International’s identity guide is typical:
- Certified ID. A certified copy of your passport or national ID. Certification must come from a professional such as a lawyer, accountant or notary, not a family member, and be no older than three months.
- Proof of address. A bank statement, utility bill, council tax bill or driving licence no more than six months old. Nomads without a fixed home fail here most often.
- Source of funds and wealth. Lloyds says it “may, in certain circumstances” ask for it; private banks routinely do. Have contracts, invoices, company accounts, sale documents or inheritance paperwork ready.
- Tax residence. A CRS (and, for Americans, FATCA) self-certification with your tax ID number. Declaring tax residence nowhere is a common reason for rejection.
Red flags and scams
The US SEC warns that “prime bank” and offshore investment schemes share recognisable traits. Walk away if you see:
- Returns that sound impossible. One case the SEC cites promised “900% in 20 days.”
- Claims of links to the World Bank, the IMF or a central bank.
- “By invitation only” or “the secret way the wealthy make money” pitches, or a non-disclosure agreement before you’ve seen anything.
- Promises that your money sits safely in an “escrow or trust account.”
- Sellers who aren’t licensed or registered.
Add two of our own: anyone selling an “anonymous” or “unreportable” account (CRS and FATCA make that a fiction), and introducers charging a fee to “guarantee” approval. Only the bank decides.
Related: Why banks close digital nomads’ accounts, and which are safer bets · Wise vs Revolut for digital nomads: fees, limits and when you need a local bank · Tax residency explained: why the 183-day rule is a myth for most countries · FEIE vs Foreign Tax Credit (2026): which one US expats should use · Offshore company formation (2026): BVI, Cayman, Seychelles and Nevis compared
Quick answers
Q: Is it legal to have an offshore bank account?
Yes. Holding an account abroad is legal; failing to declare it is the problem. US persons file an FBAR when foreign accounts together exceed $10,000 at any time in the year, and may also need Form 8938. Others should assume CRS will report the account to their tax authority annually.
Q: Do I pay tax on money in an offshore bank account?
Usually yes. Your tax residence, not the bank’s location, decides what’s taxable, and the IRS says US citizens and residents abroad are taxed on worldwide income. Interest earned in Jersey or Singapore is still taxable at home unless your country of residence only taxes local income.
Q: How much do you need to open an offshore bank account?
Fintech multi-currency accounts need little or nothing. Bank pages we checked list £75,000 for HSBC Expat in Jersey, S$200,000 for HSBC Premier Singapore, US$200,000 for Citigold international clients and AED 500,000 for HSBC Premier UAE. Your country of residence must also be eligible.
Sources
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Summary of FATCA reporting for US taxpayers
- IRS: Taxpayers living abroad
- OECD: Peer review of the automatic exchange of financial account information, 2025 update
- HMRC: IEIM400080, background to the Common Reporting Standard
- HMRC: IEIM402005, reportable information
- HSBC Expat: bank account
- HSBC Singapore: Premier
- Citibank Singapore: Citigold
- HSBC UAE: Premier
- SDIC: Singapore deposit insurance
- esisuisse: Swiss deposit protection
- Wise: is my money safe
- Lloyds Bank International: confirming your identity
- SEC Investor.gov: “Prime bank” investments are scams
This is general information from the Nomad Forums team, not immigration, tax or legal advice. Rules change; check the official source or a qualified adviser before applying.
Over to you: If you’ve opened an account in Singapore, Switzerland, the UAE or the Channel Islands as a non-resident, what balance did they actually ask for, and how long did onboarding take? And which proof of address did they accept when you didn’t have a fixed home?