Remote Banking in China

Guide to Banking in China for Expats

China is a popular destination for expats due to its vibrant culture, booming economy, and numerous job opportunities. If you are planning to live or work in China, it's important to understand the banking system in the country to manage your finances effectively. In this comprehensive guide, we will cover everything you need to know about banking in China as an expat.

Banks Accepting Foreigners

Several major banks in China accept foreigners for opening bank accounts. Some of the popular banks that cater to expats include Bank of China, ICBC (Industrial and Commercial Bank of China), China Construction Bank, and Agricultural Bank of China. These banks have branches across the country, making it convenient for expats to access their accounts.

KYC Requirements

When opening a bank account in China, you will need to fulfill the Know Your Customer (KYC) requirements. This typically includes providing a valid passport, residence permit, and proof of address in China. Some banks may also require additional documents such as a work permit or visa.

Wise/Revolut Availability

Wise (formerly TransferWise) and Revolut are popular online money transfer platforms that allow users to send and receive money internationally at competitive rates. While Wise is available in China and can be used for international transfers, Revolut is not currently available in mainland China due to regulatory restrictions.

ATM Fees

Most banks in China charge a fee for using ATMs, especially if you are using an ATM that belongs to a different bank. The fees can vary depending on the bank and type of transaction. It's advisable to check with your bank regarding ATM fees to avoid any surprises.

Multi-currency Options

Some banks in China offer multi-currency accounts that allow you to hold and transact in different currencies. This can be beneficial for expats who receive income in multiple currencies or frequently travel internationally. HSBC and Standard Chartered are known for providing multi-currency account options in China.

Opening Process

To open a bank account in China, you will need to visit a branch of the bank of your choice with the required documents. The bank staff will assist you in filling out the account opening forms and verifying your identity. Once your account is opened, you will be provided with a debit card and online banking access.

Currency Exchange Tips

When exchanging currency in China, it's advisable to use official channels such as banks or licensed money changers to ensure the best rates and avoid scams. Additionally, it's important to keep track of the official exchange rates to get a fair deal on your currency exchanges.

Tax Residency Clarification

As an expat living and working in China, it's important to understand your tax residency status to comply with local tax laws. China follows a residence-based taxation system, which means that individuals who reside in China for 183 days or more in a tax year are considered tax residents and are subject to Chinese tax laws.

Specific Banks and Procedures in China

Bank of China is one of the most expat-friendly banks in China and offers a range of services tailored to foreign customers. To open an account with Bank of China, you will need your passport, residence permit, and proof of address. ICBC and China Construction Bank also have dedicated expat services and can assist you in opening a bank account.

In conclusion, banking in China as an expat can be a smooth and seamless process if you understand the requirements and procedures involved. By choosing a reputable bank, familiarizing yourself with the local banking practices, and staying informed about currency exchange rates and tax regulations, you can effectively manage your finances while living in China. Remember to keep your documents safe and consult with banking professionals if you have any questions or concerns about banking in China.