Country of residence, meaning the country where you live, is an important consideration when sending and receiving money as a foreign non-resident around the world.
The main reason for this is that your country of residence will dictate your reporting and tax liabilities. But, it will also dictate whether banks are able to accept you as a customer.
In this article, we’ll explain what your country of residence means while also answering common questions we receive on the topic.
This article is part of our free series on opening an offshore personal bank account online, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Country Residence Meaning
- Residency vs Citizenship
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Country Residence Meaning
Country of residence, meaning the country where an individual has the legal right to reside, is commonly used in international banking to determine reporting requirements, tax-related matters, and whether a prospective client is eligible to open an account.
In other words, a person’s country of residence is an important consideration that can impact their choice of banks, their personal tax and account reporting requirements, and the costs associated with accessing international banking.
That said, even when an individual has residency (or citizenship) in countries that are considered more challenging, there are often banks available that will cater to their profiles.
However, certain countries that are sanctioned, blacklisted, or under intense international scrutiny will struggle to open international bank accounts in most major banking jurisdictions.
Residency vs Citizenship
The main difference between residency and citizenship is that residency refers to an acquired right to reside in a country based on certain criteria while citizenship refers to a person’s legal status in a country as defined by the country’s citizenship laws.
Importantly, while residency does not usually result in a legal right to obtain citizenship, citizenship almost always ensures that a person has the legal right to reside in a country.
Additionally, residency often has specific restrictions, terms, conditions, and timelines associated with maintaining residency status while citizenship is generally permanent unless specific steps are taken to renounce citizenship.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the meaning of country residence. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is My Country Residence?
Your country of residence is the country that you call home. Importantly, in order for a country to be your country of residence, you need to have the legal right to live there.
What Are Examples of Country Residence?
An example of a country of residence would be the Republic of Panama if you are a foreigner who has legally obtained permanent residence in Panama. Alternatively, if you are a Panama citizen who lives in Panama, you would have the legal right to live in Panama by virtue of citizenship, making it your country of residence as well.
What Does Country of Residence Mean for Airlines?
When airlines ask you for your country of residence, they are trying to determine where you legally reside. In other words, where do you have the right to live? Depending on the airline and where you are traveling to or from, the airline may request supporting documentation such as a residence permit or card.
Is the USA My Country of Residence?
The USA is your country of residence if you are a permanent resident of the United States. In other words, are you a citizen of the United States living in the United States? Or, are you a foreigner that has the right to reside in the United States and does? If you answered yes to either of these two questions, then the USA is your country of residence.
Do You Want Help Opening Bank Accounts?
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