In this article, we explore why Taiwan banking is interesting and who can benefit from opening accounts. We’ll also share important warnings for prospective applicants and lesser-known tips on how to save money during account opening.
Individuals who are looking for remote account opening in Asia may consider a Singapore non-resident bank account. Unlike banking in Taiwan, bank accounts can be opened in Singapore 100% remotely.
But first, let’s look at why we’re talking about banking in Taiwan in the first place…
KEY TAKEAWAYS
- Expats, non-residents, and foreign companies can open bank accounts in Taiwan
- Taiwan has its own banking secrecy law
- Opening a Taiwan bank account remotely is nearly impossible
- Not all banks in Taiwan accept foreign non-resident clients
Taiwan Banking for Expats & Foreigners
Taiwan banking is an interesting option for expats, foreigners, and even international companies with a presence in Asia. This is due (in part) to the country’s isolation from key international organizations. In fact, while the rest of the world has seen a rapid expansion of regulations, Taiwan’s banking sector has been doing its own thing.
In other words, Taiwan banks aren’t completely overburdened by compliance teams in the same way that banks in many other countries are today. Instead, they maintain some flexibility and are able to onboard clients when it makes sense for the bank.
So, if you’re looking for an offshore bank account in Asia, Taiwan banking might be the solution you’ve been looking for.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open an international bank account in top banking hubs around the world.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Taiwan Banking Report Uncovered
- What Are the Challenges of Banking in Taiwan?
- Who Can Benefit From Banking in Taiwan?
- Taiwan Banking for Foreigners
- Ready to Open an Offshore Bank Account?
Taiwan Banking Report Uncovered
For some, Taiwanese banking is a breath of fresh air when compared to the stiff, heavily restrictive banking antics in other Asian markets.
But (and this is a big but), Taiwan banking is not without challenges. In fact, if you plan on opening accounts here, you need to prepare to navigate red tape, bureaucracy, and a few inefficiencies. This is especially true if you have any desire to open accounts remotely — more on this later.
For now, let’s take a look at why Taiwan banking is interesting and how you (as a prospective client) might be able to benefit.
Benefits of Opening Bank Accounts in Taiwan
Here’s a quick hit list of the benefits that some foreigners seek from Taiwan banking:
- Taiwan has its own banking secrecy law (Article 48)
- Tax haven status (China blocks Taiwan from regulatory groups)
- Not subject to FATF reviews as a non-OECD member
- Easy to acquire a local identification number for banking
- Presence of international, local, and Chinese banks
- Offshore Banking Units (OBU) cater to foreign clients
- Zero tax on OBU client accounts
Now, if you’re looking for an offshore banking hub, you might be thinking that Taiwan banking ticks all the boxes. But, banking in Taiwan has some drawbacks too.
What Are the Challenges of Banking in Taiwan?
Like opening accounts in any country as a foreigner, Taiwan banking does have its challenges. Here’s a look at some of the most common challenges that our members have shared with us:
- Opening accounts remotely is almost impossible
- Limited integration with fintech (e.g. Transferwise doesn’t work here)
- Limited debit cards (eg no international access)
- Online banking access (must set up in Taiwan)
- Bankers outside of Offshore Units may reject foreign applications
- Banks scrutinize incoming transfers from abroad
- Banks verify incoming transfers by calling a local phone number
- Local Taiwanese phone number often required to manage account
Taking both the benefits and the challenges into consideration, you can start to see that Taiwan banking isn’t accessible to everyone. Instead, it’s going to be best suited to those prospective clients who already have ties to Taiwan.
Likewise, unlike banking in many other offshore banking hubs, Taiwan banking is best suited to people who actually need to bank in Taiwan.
In other words, if you are just looking for an offshore account anywhere, you should consider opening accounts in a third country. Such third countries include those in the Channel Islands or the Caribbean, which are better suited to international banking activities.
Now, if you’re struggling to meet bank requirements and deposit levels but want to open an offshore bank account in Asia, opening a Labuan offshore bank account might be worth considering. Not only are banks in Labuan more affordable than Singapore and other Asian banking hubs, but they can be a more accessible banking option for certain client profiles.
With the above in mind, let’s take a look at who can actually benefit from Taiwan banking. Then, we’ll discuss how you can actually get started with opening accounts.
Who Can Benefit from Taiwan Banking?
As mentioned above, Taiwan banking is best suited to individuals and businesses in Asia with at least some ties to the country. So, it should come as no surprise that the list below is populated by those with ties to Taiwan.
Of course, if you don’t find yourself on this list, there’s still a chance that you can open a bank account in Taiwan if you show up in person. However, it’s also important to recognize that there are better banking hubs available for you elsewhere. If that’s you, feel free to message us and we’d be happy to help you find the best banking jurisdictions for your needs.
Groups That Benefit From Taiwan Banking:
- Taiwan residents (work, study, live)
- Foreigners and expats who regularly visit Taiwan
- Foreigners and expats who can demonstrate ties to Taiwan
- Foreign companies with existing ties to Taiwan
- Offshore companies with existing ties to Taiwan
Not surprisingly, the first question most people will ask after reading this list is “What is a tie?”
That’s a good question.
But, unfortunately, there is no “one size fits all” answer. Like anywhere in the world, the specific ties that a bank (or banker) will accept will ultimately depend on the specific bank and banker that you’re talking to.
That said, what is considered a “valid” and “acceptable” tie for each bank can vary dramatically. And, some banks are stricter than others.
For example, some banks will require multiple ties, whereas others might deem certain categories of ties more credible than others. So, you have to analyze the account opening requirements at each individual bank and talk to experienced bankers to understand the type of supporting documents that are most appropriate for your situation.
We talk about these nuances, how to acquire ties and specific strategies anyone can use to overcome tie-related hurdles in our premium products. Check out our premium products page to see how you can benefit.
However, in most cases, you’ll need to present documented proof of any relevant ties you have to the country. For instance, if you have any kind of contractual relationship that you can show to a bank, there’s a chance that you might be able to tap into the benefits of Taiwan banking.
Taiwan Banking for Foreigners
If you’ve made it this far and you’re still interested in banking in Taiwan, we’re going to help you get started. As we’ve written in our last Taiwan banking article, there’s a lot of confusion over banking in Taiwan, so hopefully, the following steps will help streamline the process for you.
Individual Account Opening
1. Apply for a Record ID number online here with the National Immigration Office.
2. Choose the bank that you want to open accounts with.
3. Choose a branch that accepts foreigners with Record ID numbers.
4. Have your local phone number enabled to receive SMS
5. Go to the branch and apply for the account in person.
While that might not seem too different from opening accounts elsewhere, Step 2 and Step 3 tend to be very challenging to navigate as a foreigner in Taiwan. Even if you find a bank (or branch) that accepts foreigners, you need to make sure that you find a banker that is willing to accept your Record ID number.
In most cases, we suggest bringing a copy of the immigration law that says foreigners with Record ID numbers are allowed to open bank accounts (this is available on the Taiwan immigration agency’s website). Otherwise, you might end up wasting all of your time and money running around to banks without ever opening an account.
So, it’s no surprise that most people after Taiwan banking end up spending all their time and money on trying to navigate Step 2 and Step 3.
Fortunately, that’s where we come in…
Ready to Open an Offshore Bank Account?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
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