- You can manage your monetary transactions outside the euro area without having to convert currency into euros. This allows you to hedge against exchange rate risks.
- The account is covered by the deposit guarantee.
Foreign Currency Account is like an ordinary bank account. You can withdraw funds from the account in euros any time you want and you get a statement of your account transactions.
Individual currency investments always carry an exchange rate risk.
If the exchange rate falls from the level prevailing at the time of making the deposit, you suffer an exchange rate loss, and if the rate rises, you gain exchange rate profit.
Remember that you are responsible for any exchange rate losses.
A tax-at-source on interest income is levied on the interest of your deposits.
Potential exchange rate profits are considered taxable capital income. Profits will be realised only when the foreign currency is converted into euros.
For personal customers, exchange rate profits are tax-free up to 500 euros a year. You must declare the profits in your tax return.
Exchange rate losses are not tax deductible.