In this article, we’re explaining the meaning of “non-resident alien” from a banking perspective.
This is part of our free series on navigating the complexities of opening international and offshore accounts.
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Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Meaning of Non-Resident Alien
- Can a Non-Resident Alien Open a Bank Account in the United States?
- Frequently Asked Questions
- Ready to Explore Your Options?
Meaning of Non-Resident Alien
The meaning of non-resident alien is any person that is neither a citizen nor a resident of a given country. For example, a non-resident alien of the United States would be anyone that is not a US citizen and resides outside of the US. Not-resident alien status typically relates to formal applications, like opening bank accounts.
Importantly, while the term “non-resident alien” is primarily used in the United States, it has the same application in other countries. Of course, certain jurisdictions use different terminology when referring to non-citizens that do not have the right to reside within their borders. For example, Canada uses the term non-resident foreign national and most other countries simply use the term non-resident.
One reason why “non-resident alien” may be more commonly used in the United States is that the US government imposes citizenship-based taxation while the vast majority of countries do not. So, a non-resident alien has a meaning that is very distinct from a non-resident US citizen. Comparatively, non-resident has the same meaning in most other countries regardless of citizenship.
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Can a Non-Resident Alien Open a Bank Account in the United States?
Yes, a non-resident alien can open a bank account in the United States. In fact, there are a number of US banks that allow non-resident aliens to open bank accounts 100% remotely. That said, the account opening process can be challenging to navigate and the account opening requirements are often more onerous than they are for residents.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into the meaning of a non resident alien. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Is the Difference Between Resident Aliens and Non-Resident Aliens?
The main difference between resident aliens and non-resident aliens is that resident aliens are foreigners that reside in a given country while non-resident aliens are foreigners that do not reside in a given country. For example, a resident alien in the United States would be a foreigner that lives and works in the US. On the other hand, a non-resident alien would be a foreigner that does not live or work in the US.
How Do I Know if I Am a Resident or Non-Resident Alien?
You would know if you are a resident or non-resident alien based on whether you have residency status in a country. Depending on the country, residency status may be determined by a physical presence test, establishing a center of vital interest, having certain economic interests, and more.
Can a Citizen Be a Non-Resident Alien?
A citizen cannot be a non-resident alien. Instead, alien refers to someone who is not a citizen of a particular country. Therefore, while a citizen can (in most cases) become a non-resident, they cannot become an alien unless they rescind or renounce their citizenship in accordance with the nationality laws of their country.
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