Updated
GL-C-04
Glossary · Taxes and residency
CRS - the automatic exchange that tells your tax authority about your accounts abroad
Automatic exchange of tax information: banks automatically report to the tax authority of your country about your accounts abroad — balances, interest, turnover. Over 100 countries take part, including Vanuatu. The US does not: it has its own FATCA.
01 / In 30 seconds
The short answer
- What it is
- Automatic exchange of tax information on foreign accounts between countries
- Where it applies
- Banks and tax authorities of 100+ countries
- What is reported
- Account balance, interest, turnover — to the country of tax residence
- What it looks at
- Tax residence, not citizenship
- Can you prepare
- Yes: determine residence and structure correctly in advance
02 / In plain words
What CRS means
CRS (Common Reporting Standard) is a system for the automatic exchange of tax information between countries. Put simply: the bank where you hold an account abroad reports your account to the tax authority of your country once a year of its own accord — the balance, interest and turnover.
It works like this: the bank uses your details to determine which country you are a tax resident of and passes the information to its regulator, which passes it on to the tax authority of your country of residence. More than 100 countries take part in the exchange. An important exception is the United States, which has its own separate mechanism, FATCA. Vanuatu does take part in CRS and has exchanged data since 2018; hardly any jurisdictions remain outside the exchange.
What it means for the client: hiding a foreign account from your tax authority is almost impossible today — the information goes automatically. The key point is to determine your tax residence correctly, because that is the country the data will go to. And remember: citizenship and tax residence are different things — a Grenadian passport does not make you a Grenadian tax resident.
A case from practice
A person lives in and remains a tax resident of their own country but has opened an account with a bank in Cyprus. Under CRS, the Cypriot bank reports the account data at the end of the year — the balance and interest — and through the exchange they reach the tax authority of the person’s country of residence. No separate request is needed; the exchange is automatic.
Where you encounter CRS
- Opening a foreign bank account
- Holding foreign assets
- Tax planning when relocating
- Investing through foreign structures
- Changing tax residence
- Compliance at banks and brokers
03 / What it covers
How CRS works
What is reported
- Account balance
- Interest and income
- Account turnover
Who is identified
- Tax residence
- From the bank’s questionnaire
- Not by citizenship
Who takes part
- More than 100 countries
- Banks and regulators
- The USA — separately (FATCA)
How it proceeds
- Automatically, once a year
- Without a separate request
- Between tax authorities
04 / How it works
How the automatic exchange works
The bank determines your residence
From the client's form and documents.
Collects the account data
Balance, interest and turnover for the year.
Passes it to its regulator
The report goes to the bank's tax authority.
The regulator, to the tax authority of residence
The data is passed to your country of residence.
The data are with your tax authority
Your tax authority sees the account without asking.
05 / Key facts
What you need to know
01What is reported
Balances, interest, turnover
Once a year the bank reports the account to your country of tax residence.
02Who takes part
Over 100 countries
Including Vanuatu since 2018. The US does not take part: it has its own FATCA.
03What it looks at
Residence, not passport
The data goes where you are tax resident. A second passport does not switch it off.
04The takeaway
Hiding an account is almost impossible
Hardly any jurisdictions remain outside the exchange. What matters is getting your residence right.
Common mistakes
Thinking a second passport will hide an account
Start from tax residence: that is where the data goes.
Stating the wrong residence on the bank form
Give your actual residence and taxpayer number.
Counting on countries outside CRS
Build the structure expecting the information to be exchanged.
06 / Expert advice
How to prepare in advance
Before opening an account or building a structure, determine your tax residence clearly — that is where the data will go under CRS. It helps to understand in advance which bank and programme jurisdictions give a predictable picture, and not to base plans on the mistaken assumption that a passport changes your residence. Then the automatic exchange will not come as a surprise.
What we do for you. BRIDGES GLOBAL helps you build your structure with a clear understanding of where the data on your accounts goes under CRS: we determine your tax residence correctly and choose bank and programme jurisdictions so that the automatic exchange brings you no unpleasant surprises.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
No. CRS looks at tax residence, not citizenship. As long as you are a tax resident of your country, the account data will go there.
More than 100 countries do. The United States follows its own mechanism, FATCA. Some jurisdictions remain outside CRS for now, but their list shrinks year by year.
As a rule, the account balance at year end, interest and income credited, and turnover. Plus the owner’s identification details and their country of tax residence.
CRS is a multilateral exchange between 100+ countries. FATCA is a US law concerning only persons with a US connection, with reporting to the US tax authority (IRS). The United States operates under FATCA and does not take part in CRS.
Most often by the 183-days-a-year rule, but the centre of vital interests is also taken into account: home, family, business. It is a separate subject that we work through before the account is opened.
An account cannot be hidden, but residence and structure can be planned properly. It is not about concealment but about making the picture transparent and predictable.
Related terms
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