What qualifies as a foreign financial asset?
Andrew Mclaughlin
Published Apr 06, 2026
Generally, the IRS has explained that a specified foreign financial asset includes any financial account maintained by a foreign financial institution; Other foreign financial assets, which include stock or securities issued by someone other than a U.S. person,any interest in a foreign entity, and any financial …
What foreign assets are reportable?
The CPA Office
| TYPES OF FOREIGN ASSETS | REPORTABLE TO THE IRS |
|---|---|
| Foreign currency held directly | No |
| Precious Metals held directly | No |
| Personal property, held directly, such as art, antiques, jewelry, cars and other collectibles | No |
| ‘Social Security’- type program benefits provided by a foreign government | No |
Is a foreign bank account a foreign financial asset?
A foreign account is a specified foreign financial asset even if its contents include, in whole or in part, investment assets issued by a U.S. person. You do not need to separately report the assets of a financial account on Form 8938, whether or not the assets are issued by a U.S. person or non-U.S. person.
What is a foreign account or asset?
What is a foreign financial account?
Foreign financial accounts include bank accounts, securities accounts, and certain foreign retirement arrangements. Accounts located outside of the 50 states, D.C., the U.S. possessions, and tribal territory are considered “foreign” accounts.
Can I open a bank account in a foreign country?
Most foreign banks will not allow you to open an account without checking your credit. If you open a checking account in another country, the bank may be able to issue you a debit or credit card to access the account. Savings and checking accounts can typically be accessed online as well as in person.
Did you have a financial account located in a foreign country?
If You Have a Bank Account in a Foreign Country, You May Need to File a Report with the IRS. As a result, the IRS requires that the FBAR be filed each year by anyone who has a financial account outside the United States. Failure to comply can lead to draconian penalties.
Can an American open a bank account in another country?
Most countries require an initial deposit, your passport and proof of residence to open a bank account. Some countries could also require a certified copy of your birth certificate or a second form of identification. When picking a bank, look for relationships your U.S. bank may have with foreign banks.
Is it legal to have bank account in another country?
Special Considerations for Offshore Accounts There’s nothing illegal about establishing an offshore account unless you do it with the intent of tax evasion. The Foreign Account Tax Compliance Act (FATCA) requires banks around the world to report balances and any activity of American citizens to the IRS or face fines.
Should I open a foreign savings account?
If you plan on spending a significant time abroad (we’re saying three months), you should seriously consider opening an account abroad. That can help you avoid heavy foreign transaction fees you’d meet if you used a credit card.
