Opening bank account to collect rent for foreign investor

[BstYet2Be]

Originally Posted by cyril_madrid

Thank for your answers. Yes, I am the owner of the property, live in Spain. I do have a property management company who does collect the rent, but yes, I wanted a bank account to keep the money to pay for property tax, repairs, and also not to have credit risk against the property management company.
I spoke to various banks, like Bank of America, Citibank, who would open an account for me, but only if I come to the US first to open it. Will try to do that in due time.
In the meantime, the property management company suggested they kept the money in a secure account, then wire it to me once or twice a year.

HSBC does banking in both Madrid, Spain and in Florida (11 locations). It would seem to me that you could open an account right there at HSBC and have the property mgmt company direct deposit to your account on an agreed-upon schedule.

Check with HSBC where you're at to insure this will work for both parties first. Good luck!

[kodaka]

Contact the bank's International Personal Banking division, to open a US account while abroad. Be prepared to provide extensive documentation. They may require a minimum amount to open the account and hold deposits for longer before the funds are available.

[cyril_madrid]

Originally Posted by BstYet2Be

HSBC does banking in both Madrid, Spain and in Florida (11 locations). It would seem to me that you could open an account right there at HSBC and have the property mgmt company direct deposit to your account on an agreed-upon schedule.

Check with HSBC where you're at to insure this will work for both parties first. Good luck!

Not quite. Actually, I work for HSBC in Madrid, and not even as a Premier client and staff for 16 years, they accepted to open an account to collect rents !

[cyril_madrid]

Originally Posted by bentlebee

Remember they have to pay taxes upfront for you....

I have filed for an ITIN and will then file for exemption from withholding tax.

[PacificFlights]

Originally Posted by cyril_madrid

Not quite. Actually, I work for HSBC in Madrid, and not even as a Premier client and staff for 16 years, they accepted to open an account to collect rents !

You can open an account at any bank with international ties to colect rent in the US. You have to understand the rules. For a foreign bank in the US to accept payment in the US they have to have a US subsidiary. That means they have to follow US banking laws. Take Barkleys Bank. They have branches all over but their US branches are actually a US subsidary called Barleys Bank US. Same with HSBC. They also have US subsidaty of their international banks. These are considered seperate banks from their international bank.

You cant open an account at their international branch and condust US bsuiness. So you need to open an account with their US subsidary and can use their international branches to acces your US subsidaiary account.

But to open that account in a US subsidary you have to folow US banking laws that require to to verify your identity to the bank. That usually means you have to physically appear at a US subsidary branch and present ID. The other option is to use a US company to accept payment and they do a eft transfer tio you bank. Does this make sense?