Foreign currency account

A foreign currency account is just like an ordinary bank account.

A personal customer’s foreign currency account is like an ordinary bank account. You can withdraw funds from the account any time you want and you get an account statement of your account transactions. However, you cannot link a card to a foreign currency account.

Benefits of a foreign currency account

• A foreign currency account is the cheapest way to invest abroad, but risks related to exchange rates should always be kept in mind.
• You can take care of your monetary transactions outside the euro area without having to convert the currency into euros. In this way you can hedge against exchange rate risks.
• When you make acquisitions outside the euro area, you can deposit the funds needed for the acquisition when the exchange rate of the currency in question is low. When the acquisition is realised you already have the currency needed for the payment.

The interest paid on a foreign currency account and possible exchange rate profit are subject to tax. The bank will levy tax-at-source on the interest. You must declare possible exchange rate profit in your tax return.