Resident individual, meaning a person with the legal right to remain in a country, is an important concept that many people still overlook in banking.
In this article, we’re going to explore the meaning of resident individuals further. This will include comparing a resident to a non-resident, discussing bank account opening, and answering common questions that we receive on the topic.
This article is part of our series on bank account opening in different countries, which you can access for free by following the link above.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Resident Individual Meaning
- Resident vs Non-Resident Individual
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Resident Individual Meaning
Resident individual, meaning a person that is a legal and fiscal resident of a particular country, refers to someone that is permitted to live and work in a country indefinitely. This term most commonly refers to foreigners who have completed the steps to obtain residency from the government in a particular country.
Banking as a Resident of a Country
Not surprisingly, when it comes to opening bank accounts in a given country, residents are usually able to open accounts with ease. This is because the government of the country has already completed a lengthy and detailed background check in order to determine that the person is qualified to live in the country.
Importantly, being a resident de-risks a person’s client profile substantially from a compliance perspective and makes them significantly more attractive to banks. In other words, a resident individual also has the meaning that opening bank accounts is easier.
Banking as a Non-Resident of a Country
In most countries, non-residents have a significantly harder time opening accounts. In fact, many countries have specific regulations that can impact whether a non-resident can open an account or not.
Likewise, certain countries will restrict non-resident transactions, block non-residents from accessing the local currency, place controls on their foreign exchange activities, and even limit access to certain financial products. This happens in many countries, including major banking jurisdictions like Singapore, the UAE, and the UK. Not surprisingly, these types of criteria can dramatically impact a non-resident’s eligibility to open accounts in a particular country.
Proving Residency in a Country
Banks use different methods to determine a person’s legal status in a country. One of the most obvious ways that they can do this is by requesting to see an official document, including a residency permit, card, or letter from the relevant government authority.
That said, banks also ask to see other documents, including proof of address, a driver’s license, or other forms of government-issued identification.
Importantly, this is not just a consideration when trying to open a bank account in a country where you are a resident. Any time you open an international bank account, you are required to confirm your country of residency, meaning where you pay tax as an individual. Likewise, most banks will require you to submit one of the items above in order to prove your residency.
Resident vs Non-Resident Individual
The main difference between resident and non-resident individuals is that a resident individual has the legal right to live and work in a country indefinitely while a non-resident is restricted to the permitted stay based on their citizenship or visa status.
Additionally, individuals with official residency in a country often receive the same status and rights as the citizens of a country while non-residents do not receive this status and are instead most commonly viewed as tourists.
How Do I Find My Residence Status?
You can find your residence status in a particular country by first confirming whether you have completed the necessary steps to obtain residency. In most cases, the process is bureaucratic, requires providing a number of certified documents from your home country or the country of your last legal residence, and has fees attached.
With this in mind, if you have not gone through a legal process that involves providing certified documentation and paying fees to government agencies, then it is highly unlikely that you are a resident. Instead, you are most likely a non-resident individual in the country that you are referring to.
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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 resident individual. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is Resident Individual and Non-Resident Individual?
The main difference between a resident individual and a non-resident individual is that a resident individual is someone that has been granted the legal right to live and work in a country indefinitely while a non-resident individual is someone that does not have a legal right to stay in a country past the allowance of their citizenship or a particular visa that they may have obtained.
What Are the Conditions of Resident Individuals?
The conditions of resident individuals often depend on the type of residency that an individual holds. For example, if someone is a permanent resident in a country, then they typically have full legal status and the same rights as a citizen of the country, as long as they do not do something to lose their resident status.
How Do You Find the Residency of an Individual?
To determine the legal residency of an individual you will need to have them confirm their legal status in a particular country. This can include requesting to review their resident card, visa, or other official government documents that specifically state their residency status and rights within a country.
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