Opening a Bank Account to Purchase Property Abroad

To purchase property abroad, you need to prepare a bank account and a method for funding it. If the money is in Ukraine, the task also includes checking whether it can be transferred or legally taken abroad in cash. Prikhodko & Partners provides legal support with selecting a bank, confirming the source of funds and legally preparing their movement and deposit into the account.

When is a bank account needed to purchase property abroad?

• You are purchasing property as a non-resident and do not yet have an account from which to make the payment.
• The money is in Ukraine and needs to be prepared for transportation abroad in cash.
• Your savings originate from the sale of property or a business, inheritance or a gift.
• The payment deadline has already been set, but the bank has not yet reviewed the documents.

We check whether a local account is required based on the country and the terms of the transaction. In some cases, payment may be made from another foreign bank; additional requirements may apply where a mortgage or banker’s cheque is used.

Which bank is suitable for a property buyer?

We check whether the bank works with your residency status, source of income and proposed funding method. We clarify the currency, fees, limits and procedure for paying for the property. For cash deposits, the specific branch and the documents it will accept are also important.

What documents are required to open an account?

We prepare the package according to the requirements of the specific bank, the amount and the source of funds. Before submission, we cross-check the information in the documents and the required form of translations.

• Passport, information about residence and tax residency.
• Tax identification numbers and proof of address in accordance with the institution’s requirements.
• Documents confirming the source of funds and statements showing their movement.
• Draft agreement, reservation documents or other materials relating to the property and its price.

If the flat was sold earlier, we establish the link between the sale agreement, receipt of payment and the current savings. The Bank of Spain explains that, when verifying the source of funds, a financial institution may also request tax returns.

Can an account be opened without travelling abroad?

Yes, if the bank allows remote identification or representation under a power of attorney in your circumstances. We first agree the format, the representative’s authority and the formalisation of the documents. Opening an account without travelling does not exclude a later visit to complete identification or deposit cash.

For example, for an entrepreneur from Ukraine who planned to purchase property on the Costa Blanca, the Prikhodko & Partners team assisted with opening a personal bank account in Spain under a power of attorney. The lawyers prepared the representative’s documents and coordinated the package with the bank; the account was opened without the client’s personal visit.

How to prepare the transportation of cash from Ukraine and funding of the account

When the money is in Ukraine, we first check the National Bank of Ukraine’s foreign exchange restrictions and whether a bank transfer is possible. If physical transportation of cash is chosen, the legal support includes confirming the source of funds, preparing banking documents, declarations along the route and coordinating the cash deposit with the foreign bank.

Under the rules for taking currency valuables out of Ukraine, amounts equal to or exceeding the equivalent of EUR 10,000 must be declared in writing. For a resident taking out an amount above this threshold, documents confirming withdrawal of the funds from their own accounts with Ukrainian banks are required and, where currency exchange has taken place, the relevant receipts for the amount exceeding the threshold. Withdrawal documents are valid for 90 calendar days. A representative who withdrew the funds under a power of attorney cannot take them abroad using those documents.

When entering the EU with cash of EUR 10,000 or more, the declaration is submitted in the first country of entry. For subsequently bringing this amount into Spain from another EU country, an S1 declaration is required, while internal movement of EUR 100,000 or more also requires declaration.

Before travelling, we check withdrawal timeframes and cash availability in light of the applicable limits. If the money is already held in cash, we identify which supporting documents are missing. A customs declaration confirms movement of the funds but does not replace evidence of their origin. We coordinate the amount, currency, branch and verification procedure with the bank; this affects whether the funds are ready to be used for the property payment.

• Prepare a complete chain of documents from receipt of the money through to its deposit into the account.
• Agree the bank’s acceptance of cash before taking it abroad.
• Check the declarations required for each relevant stage of the route.
• Coordinate the property payment deadline with the time required for the bank’s checks.

How we support the account-opening process

1. We analyse the country, amount, transaction deadline and location of the funds.
2. We select a bank and coordinate the method of opening and funding the account.
3. We prepare documents confirming the source of funds and, where necessary, their physical movement in cash.
4. We support the submission, respond to bank requests and assist with preparing the property payment.

The decision is made by the bank; the timeframe depends on its checks and any additional requests. We plan the transaction date with sufficient time for these steps.

What legal support provides to the buyer

• An account suitable for the amount, currency and payment method for the specific property.
• An agreed package of evidence confirming the source and movement of funds.
• Legal preparation of the cash transportation route from Ukraine.
• Coordination of bank requirements with the contractual payment deadlines.

The cost depends on the country, urgency, sources of funds and whether representation is required. Translation, notarial costs and bank fees are agreed separately.

Are you planning to open an account to purchase property abroad? Submit a request to determine the bank’s requirements, the necessary documents and the scope of legal support.