Investment via foreign bank
– here are answers to 10 questions

Many Danish wealthy have accounts in foreign banks and trade securities from foreign deposits. The reason is that an account with foreign banks provides access to other product types and more investment opportunities.

At Assure, we provide reports and a comprehensive overview of complex wealth for a wide range of customers. Also for customers who have foreign asset managers.

In addition, we often meet private well-wisherswho are considering opening a depository in a foreign bank, but who are holding back because they lack answers to a number of questions.

At Assure, we are happy to provide insight and knowledge so that private wealth owners can decide on the setup they want for their wealth.

Here is the list of the 10 typical questions about bank accounts abroad

CEO of Assure Klaus Lauenborg Breitenstein provides answers.

1 – Is it legal to have money in foreign banks?

Yes – it is perfectly legal to have accounts in foreign banks and securities in foreign deposits. If you are liable to tax in Denmark, exposures to foreign banks must of course be disclosed to Skat.

Banks in the EU are obliged to inform the Danish tax authorities about your customer relationship.

2 – Does it take anything special to set up a foreign depot?

No – the process is about the same as in Denmark. Foreign banks, like Danish banks, are obliged to conduct a thorough KYC investigation that prevents criminal activities. Many banks have automated processes and help customers through the investigation.

3 – Is it safe to have your money abroad?

Yes – the same rules apply to banks in Denmark as to banks in the rest of the EU. Cash deposits are covered to a certain limit, and invested funds are usually also covered. As always, it's a good idea to make sure that the bank you choose has a good credit rating and good ethics. In addition, you should always ask the bank to disclose how your securities and invested funds are secured in the event of the bank's bankruptcy.

4 – Is it difficult to handle your money in a foreign financial institution?

No – as a customer of a foreign bank, you have e-banking and banking apps just like in Denmark. You can make transfers as you know it from your Danish accounts.

5 – What does it mean for my total wealth overview if I have foreign managers?

Nothing if you are an Assure customer. We have automatic data connections with many foreign banks. Therefore, we can follow up on the performance, transactions and history of your foreign holdings. We provide consolidated wealth reports, where your foreign wealth is included in the overall wealth reporting on the same terms as the Danish part of the wealth.

6 – What currency do I want to see my foreign wealth in?

Assure converts your foreign portfolio into Danish kroner. This provides a consistent overview of your assets, risk and return across borders and currencies when you pull reports via My Assure or the Assure app.

7 – Is it difficult to handle accounting, accounting and reporting to Skat when you have foreign deposits?

No - all foreign transactions are registered with us and are included in the overall basis for bookkeeping, accounting and reporting to the Danish tax authorities when you are an Assure customer.

Gain insight into our digital wealth accounting.

8 - Can you have an easy account abroad?

Yes – as a company, but not as a private individual. On skat.dk you can find the form you need to get an easy account abroad for your business.

9 - Can you trade Danish securities from a foreign account?

Yes - without any problems. There is no difference between buying Danish securities through Danish or foreign banks. Many foreign banks offer a full currency account setup, so you can have a DKK account if you trade Danish securities through a foreign bank.

10 - Can you have pensions abroad?

Yes – it is possible to move pensions abroad. However, this requires that you have an insurance company abroad that has the necessary permission and experience in handling Danish pensions.

Who is Assure?

At Assure, we specialize in providing reporting and a comprehensive overview of wealth, risk and return regardless of the complexity of the assets.

We are not investment advisors, but we are happy to spar with you at a general level and explain the contexts, structures and concepts of the market so that you can make the decisions you want.

Disclaimer: The above is information of a general nature and is not advice or recommendation to choose – or not choose – to use foreign banks.