Today, more than 100 CRS countries are involved in what is known as automatic exchange of information. Among them are the most important financial centers in the world and even traditional tax havens such as Bermuda, Bahamas and Cayman Islands.

To be more precise, the number of countries anchored to the CRS is 106, a list that only continues to grow every year. The function of this tracker is to help project more concrete perspectives regarding the sharing of financial information with your country of origin.

To get into the subject, we must first know what CRS countries are, which is an abbreviation of the name Common Reporting Standard. This information exchange system was created in 2014 and is used by tax authorities and by all entities involved in the financial world to exchange information on account holders and residents.

What happens after a country becomes a member of CRS?

All banks in that country must comply with a number of requirements, among the most important of which are to confirm the tax residency of the account holder and in turn, send complete financial information to the tax authorities in their country.

Why are people in CRS countries concerned?

The complication that some people have with CRS countries is that they do not like the idea that any bank where they are going to do business will report their financial holdings to the tax authority in their country of residence.

One of the considerations for CRS countries, is that you must prove that you have tax residency somewhere, otherwise, banks are required to report your holdings to your home country. In addition, they report your account information to the country that claims tax residency.

"Can't I just bank in non-CRS countries?"

One solution that at first glance seems simple, is to avoid exchanging information by looking for countries that are not affiliated. This is the move that many digital nomads or people who simply want their financial privacy. Although in the long run, it may not be a very cost-effective option. 

Something you should know is that the exchange of information is a reality in which little by little more countries will be integrated, in this way banking regulations will do nothing but increase. It is expected that soon the vast majority of countries will be involved in one way or another.

What else should you know?

There is currently a trend that is only continuing to grow, which is that tax experts are looking for ways to make CRS seem more complicated and hindering than it really is. 

The best recommendation is to stay informed about it, it is easy to get residency somewhere with the right guidance. Foster Swiss is aware of all the competent information; we work with consultants specialized in the financial world.

We help you in the whole process when making your operations, to declare correctly your financial tendencies and with the best advice you can receive.

Contact us at info@fosterswiss.com