Whether you're looking for private banking, commercial banking, wealth management, or just interested in diversifying your savings, opening a bank account in Austria is worth exploring. 

This net-blank Alpine nation in central Europe has a long history of providing closed banking services to European elites, secret wealth management structures, and strong private banks.

At present, Austria is favored by Europeans from neighboring countries, Russia and some other CIS member states. And that makes sense given Austria's proximity to Eastern Europe, the fact that it shares a border with Hungary and the Czech Republic and Vienna is a short two-and-a-half-hour flight from Moscow.

But, anyone looking for a non-resident bank in Europe that can bear the fees and has a decent sum of money can consider Austria as well. While some of Austria's largest universal banks don't have the best finances, some of the smaller private banks have strong balance sheets and are worth considering.

Like all banking jurisdictions, opening a bank account in Austria is not for everyone. Depending on your goals, the banking services you need, the amount you want to deposit, and even where you're from, there may be better options elsewhere. Foster Swiss will advise you on the jurisdictions that benefit you the most. 

For decades, Austria was famous for banking secrecy and many considered it a tax haven. On top of that, the country was politically stable, in the EU, had attractive estate planning structures and had no inheritance or estate tax.

Austrian banking secrecy was literally written into the country's constitution.

And many non-residents liked that it was a cash society. Moreover, privacy was a virtue embedded in the hearts and minds of the people (and bankers) who make life in the jurisdiction.

For years, the Austrians took their banking secrecy very seriously. Austria also saw how the Swiss were profiting from bank secrecy and wanted to participate in the action. Austria then took the concept of an anonymous bank account to a whole new level, creating the (now infamous) Austrian bank account Sparbuch.

The point is that Austrian banking has a long history of attracting non-residents. But, the private banking industry here has a much lower profile than, say, Switzerland. This is because Austrian private banking has traditionally been dominated by domestic players, not big international names.

You won't see Austrian private banks with offices and subsidiaries scattered all over the world. Keep in mind that, thanks to new and stricter banking regulations, bank secrecy is a thing of the past. In fact, Austria now has a register of beneficial owners.

Benefits of an offshore bank account in Austria

Some Austrian banks may be safer than in their home country. Austrian bankers will not steal your money, fiscally responsible Austrian banks will not implode overnight and there is a rule of law.

Some Austrian banks accept foreign and non-resident companies. Therefore, for those who have difficulty opening accounts elsewhere in Europe, Austria could be a good backup option. 

First of all, Austria is one of the few quasi-respectable countries that offers private foundations. Introduced in 1993, an Austrian Privatstiftung (Private Foundation) is an asset protection and estate planning structure like those available in Liechtenstein and Panama.

The combination of such structures with zero wealth tax, zero inheritance tax and a host of double taxation agreements (DTA) to reduce withholding taxes on royalties, interest and dividends, is another reason why Austria is a favored jurisdiction for some groups. 

Economic stability and political stability of Austria is a great benefit they get, it does not hurt that Austria offers political and economic stability. Being a member of the European Union, it does not have the stigma of an extraterritorial jurisdiction.

Given the availability of stronger banking centers with similar account opening requirements, it is fair to say that the banking customers who are best suited to Austria are those interested in investing in Austria directly, doing business there, or looking to establish an Austrian structure.

If you consolidate an offshore company and a bank account in Austria, Foster Swiss can advise you. We help you in practically everything: we provide advice from the moment you choose a corporate structure for your company until even one year after you have incorporated your company. And of course we take care of the whole process for you.

For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com