Can a Foreigner Open a Bank Account in Canada?

In this article, we’re going to answer the question “Can a foreigner open a bank account in Canada?”.

So, if you’re looking to start an account as a foreigner in Canada, you’re not alone. A bank account in Canada has proven to be a safe and secure banking option for opening an international bank account over the last few decades.

And with a recession looming, it’s not surprising that foreigners and non-residents are interested in opening bank accounts here.

In fact, it’s a common question we get asked by entrepreneurs, especially those who own an online business.

KEY TAKEAWAYS

• Opening a bank account in Canada as a foreigner is difficult
• Most banks will require you to show up in person to open
• Banks in Canada offer CAD and USD accounts
• Banks strongly prefer opening bank accounts for Canadian residents
• Business accounts may be easier to start (in-person opening)
• Int’l money transfers may be better served outside of Canada (send money abroad)

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. Can a Foreigner Open a Bank Account in Canada?
2. What Are the Benefits Offered By a Canadian Bank?
3. What Do I Need to Open a Canadian Bank Account as a Foreigner?
4. What Are the Challenges of Opening a Canadian Bank Account as a Foreigner?
5. How Do I Know Which Canadian Banks Best Suits My Needs?
6. Frequently Asked Canadian Banking Questions
7. Ready to Open an Offshore Bank Account?

Can a Foreigner Open a Bank Account in Canada?

To open an account in Canada as a foreigner you will need to provide proper documentation, meet the bank’s standard due diligence requirements, and be able to clearly communicate your reason for requiring a Canadian bank account. In most cases, you will be required to show up in person.

Of course, understanding the account opening process and exactly how to open a non-resident bank account in Canada can be frustrating and time-consuming without the right information. This is especially true if you are trying to open an account from your home country or online.

That’s why our team of banking experts has analyzed all of the Canadian banks that allow foreigners to open bank accounts. And, we’re happy to report that it’s very much possible to do so. In some special cases, you might even be able to start an account without visiting Canada.

In this article, we provide you with the information you need to know when applying. So, if you’re a foreigner and opening an account in Canada is something you’re interested in, keep reading!

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What Are the Benefits Offered By a Canadian Bank?

After the 2008 global financial crisis, Canadian banks were (at the time) hailed as some of the safest and best-managed in the world. Today, Canada is still seen as a stable banking jurisdiction when compared to other countries like opening a bank account in Mexico.

But, with so many other options to choose from, why do foreigners and non-residents want to open a Canadian bank account?

Firstly, opening an account here as a foreigner has many perks. These include both personal and business perks. For instance, banking in Canada can form an important part of your international banking and tax strategy as this country offers an efficient structure, known as the Canadian LP, which offers efficiency and privacy.

Additionally, when opening payment processing relationships in Canada, businesses are able to access both CAD and USD. Meaning, that if your business is primarily selling to customers in the US, you will be able to save on foreign currency fees while still using low-cost payment processing outside of the US. That said, with foreign currency fees fluctuating, it’s important to consider whether it’s better to exchange your money in the US or Canada depending on where you are visiting, and which currency your business wants to prioritize.

Here are eight benefits foreigners can expect when opening bank accounts in Canada.

1. Access to CAD and USD payment processing
2. Saving on foreign currency transactions
3. Accounts are easily accessible
4. Reduced foreign exchange rates and fees
5. Stable banks
6. Strong online banking platforms
7. English-speaking bankers
8. ATM availability

Now, we don’t recommend opening a bank account with just any Canadian financial institution. This is especially true because issues can arise when choosing the wrong bank.

Additionally, if you already have an account in here, you shouldn’t automatically choose your personal bank for your business bank or vice versa. Not only could you be limiting yourself to a bank that doesn’t fit your business needs, but you could also end up paying unnecessary fees.

What Do I Need to Open a Canadian Bank Account as a Foreigner?

Unfortunately, there can be a lot of confusion over how to open a bank account in Canada as a foreigner.

Canadian banks require specific documentation and have multiple identity requirements when it comes to opening a bank account, especially for non-residents and foreigners.

That said, even if you’re not a Canadian citizen, you still have the option to start a bank account as long as you have the proper documentation and can overcome the bank’s onboarding procedures. Of course, some banks here do require you to show up in person when opening a bank account. However, this isn’t required in all cases.

Whether you’re looking to open a personal bank account or a business bank account, you’re required to provide proof of specific documents. These documents can vary from bank to bank.

What documents do you need to open a Canadian personal account?

Banks may request the following five documents when you apply for a personal bank account.

• Your valid, current/unexpired passport
• A copy of your driver’s license
• Other identifying documents issued by a governmental agency
• Verification of your residence or physical address (having a Canadian address makes this process run smoothly, but it’s not always a requirement)
• Financial reference documents or bank statements

What documents do you need to open a business account in Canada?

Since there’s a lot of misinformation out there, here’s an overview of the most common documents that are needed in order to open a business bank account here as a foreigner.

Firstly, to set the record straight, you do not have to be Canadian, nor physically live in Canada in order to start a Canadian business bank account. In fact, most banks do not have any residency requirements when it comes to opening a Canadian business bank account. Of course, it does require different documents than if you were to start a personal bank account.

Below is a list of required documents for each type of business.

Corporations

• Business Number & License
• Certificate of Status/ Profile Report / Existence / Compliance
• Articles of Incorporation/ Association
• Corporate Annual Government Filing
• Notice of Assessment for Income
• 2 pieces of Government ID for the signing authorities

Partnerships and Limited Partnerships

• 2 valid forms of ID for the business owner
• Registered declaration of partnership
• Copy of partnership agreement
• Trade name registration

Sole Proprietorships

• 2 valid forms of ID for the business owner
• Master business license
• Trade name registration

Regardless of what type of document you provide to the bank, banks do need to ensure these documents are authentic. So, don’t be surprised if the bank requests further verification of the documents submitted.

Bottom line: With the right information and knowing which banks are most open to accepting foreigners, along with understanding what their account opening quirks are, foreigners can start bank accounts here without too much hassle. That said, a few challenges come with opening bank accounts as a foreigner in Canada.

What Are the Challenges of Opening a Canadian Bank Account as a Foreigner?

To make sure you have all the facts and are well prepared before opening an account, let’s take a look at the most common challenges foreigners face.

Below is a list of challenges foreigners may face when opening accounts here. That said, each bank is different. So, make sure you prepare by understanding the specific challenges each bank presents before applying.

Challenges When Opening Accounts in Canada

1. Personal visit is sometimes required
2. Intense identification process
3. Explaining why you need a Canadian account
4. Limited banks to open a Canadian account with
5. Higher fees may be applied depending on the type of account
6. Social Insurance Number (SIN) is required by some banks
7. Canadian banks sometimes place holds on your money
8. Difficult to access credit products and cards
9. Chequing accounts often have high fees
10. You may be asked to go back to the bank to verify the documents
11. Can be expensive to manage from your home country

Again, not all banks will present these challenges. But, some banks here do make it more difficult for foreigners to open bank accounts than others. Especially when you’re not able to do so in person or are not planning on living in Canada. However, it’s not impossible.

That said, if you’re planning to move to Canada permanently, then it becomes a lot easier for a foreigner to open an account here. This is a topic we will be discussing more in other articles.

Important Considerations

It’s worth noting that Canada is a signatory to both CRS and FATCA. This means, if you open an account here, your account information will be shared with your country of tax residency and possibly your country of citizenship as well. Furthermore, the Income Tax Act of Canada does require banks to ask you for your Government issued Social Insurance Number (SIN) when you are opening an interest-bearing account. However, if you’re looking to open a non-interest-bearing account as a foreigner, then a Social Insurance Number is not required.

Needless to say, there are challenges to overcome when opening an account here as a foreigner and we provide proven strategies on how to overcome these challenges within GlobalBanks IQ & GlobalBanks Insider. That said, the bank you choose will likely consider the amount you want to pay in fees and which account opening requirements you can meet.

How Do I Know Which Canadian Bank Best Suits My Needs?

Now that we’ve discussed what is required when opening an account as a foreigner and the challenges you’ll likely face, let’s take a look at how a foreigner can find the best bank in Canada to open bank accounts with. Depending on your needs and reason for wanting to open a bank account in Canada, both the bank and types of accounts available to you can vary.

Firstly, when choosing a bank, you need to ensure that they offer the services you need. Likewise, you need to be able to meet the bank’s deposit levels and account fees. To help you with this, here is a list of questions that you should ask yourself before applying for an account. This will help you decide which bank will best suit your needs.

Questions to Ask Before Opening Accounts in Canada

1. What are the account fees for transactions?
2. Is there a limited number of transactions per month?
3. What are the monthly fees for the account? Can you deposit a fixed balance to avoid it?
4. Do you need to visit the branch in person to access any banking services?
5. Does the account come with a debit card?
6. Is mobile banking available?
7. Do you require a multi-currency account?
8. Do you require to have a certain amount in your account?
9. Can you access your account information online?

It’s important to ask yourself these questions as certain banks may have some limitations, hidden fees, and other limiting factors that do not align with your banking needs. It’s also important to note that not all banks will accept you.

Not surprisingly, with more than 88 banks and over 6,000 branches in Canada, knowing which bank (and branch) to approach and which strategies to use can be a very daunting task for non-residents.

In fact, while most people think that one of the “Big 5” Canadian banks is more likely to open for non-residents, the reality is actually the opposite. With so many branches and so few accepting non-residents, opening an account with one of these banks can be extremely costly and time-consuming.

Virtual Bank Account (Bank Account Online)

Virtual bank account options exist in Canada. But these are typically harder to access and tend to be a resident bank account option. In other words, to open a digital account with a Canadian financial institution you need to actually live in Canada.

With this in mind, you may find that international banking options or international money transfer options are better suited to your needs instead those of a Canadian bank if you want to open a bank account online.

Of course, if you would like to better understand how you can obtain a digital bank account number in Canada, this is something we can help you with. It’s just important to recognize that the vast majority of options available at a Canadian online bank are targeted toward local individuals.

Additionally, in almost all cases, foreigners will not be able to access credit or credit cards from a Canadian online bank. This is because foreigners won’t have the necessary documents demonstrating taxes locally, which these platforms will require.

For all of the reasons mentioned, an account with a digital financial institution in Canada may be better suited to those foreign non-residents who are in the process of moving here and making it their home.

Frequently Asked Canadian Banking Questions

Below are a three of the most common questions we receive from people exploring if a foreigner can open a bank account in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

Can I Open a Bank Account in Canada With a Tourist Visa?

The short answer is: It depends. Certain banks will allow foreigners to open an account on a tourist visa if they have the required documents and identification to support account opening. However, you may also be asked for proof of a Canadian address and a Canadian phone number.

Can a Foreign Open a Bank Account in Canada Online?

In most cases, foreigners and non-residents will not be able to open an account online in Canada. This is due to the online onboarding process that foreigners will need to complete through Canadian banking apps. The process of opening an account online often requires you to be located in Canada at the time of completion and requires you to have a Canadian phone number, despite being a fully online application.

Which Bank is Best for Foreigners in Canada?

The best bank for foreigners in Canada should be determined on a case-by-case basis. In other words, it depends on the account opening objectives, desired services, and preferred location for account opening.

Ready to Open an Offshore Bank Account?

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