This is an article based on our own experience that led to our Liechtenstein bank account closing.
Here at Nomad Capitalist, we always aim to give out suggestions based on actual work and research. We don’t go around saying that you should open or close a bank account in a particular bank for 2 reasons:
- Some banks don’t necessarily want to be publicized in a particular way. Not only that, but it can be a bit unfair to those banks with whom we’re actually working with.
- Testing the waters is a vital stage. We want to be able to say that we’ve gone through the actual process before we endorse any kind of product or service.
Naturally, we want to give out suggestions based on our first-hand experience. This is why we aim to do a bit of research and development before we drop some bank names.
The research and development are done within our team. We do this because we want to talk to our clients and our readers, and we want to tell each and every one of you our honest opinions.
We aim to be unbiased and always give out first-hand information. This is very important to our company.
If you’ve worked with us, or if you’ve been following our journey for quite some time, then you’re well aware of the five magic words that we stand by: go where you’re treated best.
However, how can you go where you’re treated best when it comes to banking?
The Truth About Our Liechtenstein Bank Account
When you hear the word “offshore” what do you immediately think about?
There are some people who think that going offshore means that you’re dealing with some “shady” business. Some may say you’re trying to evade taxes from your home country. Quite frankly, the number of people who don’t know this word’s real meaning is a bit concerning.
By definition, offshore basically refers to a location outside of your home country. That’s it. Not only that but going offshore can seriously prevent any future bank failures on your end.
The bank in question didn’t like the term “offshore,” and they didn’t want to be associated with the offshore world. Although, going offshore just means that you would go somewhere outside of your home country’s regulations to set up corporations, investments, and deposits.
Maybe it’s about time that we break that taboo. Needless to say, that bank is now barred from our client list. We will never send out clients to that bank ever again.
Choosing the Right Liechtenstein Bank Account
You might be wondering why you’re going to set up an offshore bank account in the first place. Well, if you’re trying to do an immigration scheme to claim your second residence or second passport, then this is essential.
Opening a new bank account is a requirement for some immigration schemes like citizenship by investment programs or Europe’s Golden Visa. These immigration schemes require you to open a bank account in their jurisdiction. This is why it’s important to get into all these things.
However, how would you know if you’re choosing the right bank to open up a bank account in the country of your choice? Say, if you were to open a Liechtenstein bank account, how would you know you’re in the right bank?
This is how our research and development tactics come into play. We only want the best for our clients. In doing this, we tend to try out these banks first so we can give out our first-hand experience.
Not to toot our own horn, but this is what makes Nomad Capitalist different from our contemporaries.
When opening a new bank account in a new country, we tend to always put in the minimum amount. Let’s say that’s either EUR 1,000 or even GBP 10,000. We always stick to the minimum because we want to know how our new account in this jurisdiction will perform.
It’s an experiment, and this is something that we happily do to discover the best banks around the world.
Our Experience with Our Liechtenstein Bank Account
However, the whole banking situation doesn’t always go the way we expected them to.
There’s one instance when we tried opening our first Liechtenstein bank account. For a country like Liechtenstein, we expected so much. Then again, it was just a plain disaster.
Opening a bank account in one of those legacy brand banking countries will always seem like it’s so in-demand, right? We’re talking about countries like Austria, Liechtenstein, and Switzerland.
Now, we’ve chosen to open up a Liechtenstein bank account to further our research and development process. This is something that we’ve never done before, and we wanted to know the outcome.
So we put in the minimum amount of money necessary to open and set up our bank account. Then we waited a couple of days to get the basic banking necessities like access to online banking.
The Problem with Our Liechtenstein Bank Account
However, it took a couple of weeks back and forth to get a response from the one-line questions that we’ve sent out via email. These questions aren’t even hard-hitting ones. They’re mostly questions that we needed to ask the bank to proceed with our banking applications. We’ve managed to get past the countless paperwork that all the legacy brand banking countries need. Believe us when we tell you that there are quite a lot. They did manage to give us a bit of an investment portfolio, though. However, the bank took months just to provide us with the information we needed. We’re unsure whether it’s because we deposited the “minimum” amount, but it’s not that minimum if we’re talking about the world’s banking standards. So what’s going wrong here?
Choosing to Bank in A Country Like Liechtenstein
When you think about legacy brand banking countries, our minds might occasionally wander to Switzerland or the likes. However, Liechtenstein is also another country that might be considered a legacy brand banking country.
The country of Liechtenstein has grown popular over the years when it comes to offshore banking. It might be due to some important factors like the banking secrecy in the country and the likes.
However, just in 2018, the European Union had a deal with Liechtenstein. This deal makes it harder for people to bank in the country due to the automatic exchange of information that each European Union citizen is subject to.
This might come as an invasion of privacy, but it’s an agreement made to clamp down on both tax fraud and tax evasion.
The information that’s included in this information exchange not only consists of the account holder’s income. They also give out important information such as interests, dividends, account balances, and proceeds from the sale of any financial assets.
This might seem like such a blow for Liechtenstein, but this isn’t the only reason people opt to close their Liechtenstein bank accounts. The other reason might come as a surprise.
Customer Service is An Integral Factor
One of the reasons why people and clients come back for more is due to the customer service.
An establishment might have the best products, but if their customer service isn’t on par with what they’re offering, their business will not succeed. This is especially true for banks. If the customer service in banks is pretty terrible, their client base isn’t going to grow.
When we tried banking in Liechtenstein, we were appalled because of the level of customer service in their banks that we’ve received. Not only was it unacceptable, but it was also on another level that it became super agitating in the end.
As customers, we know what to expect from banks. However, what do banks expect from us as consumers?
Closing Our Liechtenstein Bank Account
The bank we tried to open a Liechtenstein bank account ended up having quite a delirious customer service representative. They also often gave out responses like, “You might hear from us in a couple of hours or a couple of weeks.”
To be quite honest, nobody wants to get that kind of response. It’s always supposed to be handled well, and if you’re in a country like Liechtenstein, which is still considered a legacy brand banking country, then the people deserve better. It’s that plain and simple.
However, this doesn’t seem to be the case for that particular bank. In the end, we ended up having to close the bank account that we opened just a few months prior.
A Bad Banking Experience in Liechtenstein
The terrible customer service we had in Liechtenstein ended up being so troublesome. It lead to us having to close the bank account.
They eventually returned our initial deposit, but it wasn’t in full. Maybe they used the money for the opening or closing account fee? We don’t know since we never received any kind of statement from the bank.
In the end, we would rather open accounts in those banks with great customer service. Trust us when we tell you that it changes a lot of things. Plus, it simply makes the banking experience so much more pleasant.
We know that some people might need to open up an offshore bank account due to an immigration scheme, and that’s completely fine.
We’ve listed a couple of banks on our website, and these are banks that we’ve tried and tested through the years.
Factors to Consider Before Choosing A New Bank
If you’re looking for a new bank, there are three things to consider:
- Great customer service for their customers.
- Easy and accessible website or online banking for globally mobile customers.
- Variety of investment portfolios that can diversify your investments and assets.
Depending on the reason as to why you’re looking to open a bank account in a new jurisdiction, it’s always great to look for the best banks that cater to your personal needs.
To those who are ready to take the next step, we’d be more than happy to guide you through the process. Here at Nomad Capitalist, customer service is a top priority, and it’s something that we take very seriously. Become a client today, and go where you’re treated best!