Swiss bank account: close it or keep it before moving back home?
Planning to move back home? Find out when it makes sense to keep your Swiss bank account, when to close it, and what tax and legal consequences you need to consider.
Why decide in advance: close it or keep it?
The question of a Swiss bank account is one of the most frequently postponed tasks when moving back home — and one of the most costly mistakes.
If you leave the account open without making a decision, the following problems may arise:
The bank an inactive account fee (Kontoführungsgebühr) may charge, which is typically CHF 5–15 per month, but can be higher at some banks.
The Swiss tax authority (Eidgenössische Steuerverwaltung, ESTV) withholds withholding tax (Quellensteuer / impôt anticipé) on interest and investment returns on the account — this can be reclaimed, but only if your tax residency is properly settled.
In Hungary, foreign bank accounts and the balance held in them must be reported in the tax return (see the Personal Income Tax Act and the Hungarian-Swiss double taxation agreement).
If the account details are not updated (address, tax residency), the bank may report incorrect data to the Hungarian tax authority (NAV) under the automatic exchange of information system (Common Reporting Standard, CRS / automatischer Informationsaustausch, AIA).
So the decision is not just a matter of convenience — it has tax and administrative consequences.
Keeping a bank account from abroad — conditions and options
When is it worth keeping a Swiss bank account?
Keeping it makes sense if any of the following apply:
You expect regular payments from Switzerland (e.g. a partial payout from the second pillar / berufliche Vorsorge / BVG, rent from Swiss property, investment returns).
You are still receiving salary from your employer in Switzerland (e.g. during a notice period).
You travel back to Switzerland regularly, and a CHF-based account is practical.
You do not want to convert the savings in the account right away, and you are consciously accepting CHF exchange-rate risk.
What conditions do banks impose on non-residents?
This varies by bank and canton, but some general rules apply:
Aspect | Typical situation for a non-resident client |
|---|---|
Account maintenance fee | Usually higher than for residents; some banks do not offer retail accounts to non-residents |
Minimum balance | Some banks require a minimum of CHF 5,000–25,000 |
Declaration of tax residency | Mandatory: the bank must be informed of the new address and tax residency (under CRS/AIA) |
Credit card / debit card | Some banks withdraw the card if there is no Swiss address |
Online banking | It usually remains available, but SMS authentication may be tied to a Swiss phone number |
Important: the major commercial banks (UBS, successor to Credit Suisse, Raiffeisen, Postfinance) apply different policies to non-resident clients. Postfinance, for example, has traditionally served only customers with a Swiss address — if you deregister, the account may be closed. Be sure to check this specific condition directly with your bank.
What must be reported to the bank?
As soon as your Swiss address ends, you are obliged to notify your bank. The bank will then:
Update the tax domicile (Steuerdomizil) to Hungary.
Under the CRS/AIA framework, it will send annual data on the balance and returns to the Hungarian NAV.
It may also amend the terms of the account agreement (fees, access).
Failing to report this does not exempt you from tax obligations — neither in Switzerland nor in Hungary.
Closing a bank account — step by step
When is it better to close it?
You no longer have regular Swiss income or payments.
The balance on the account does not justify the maintenance fees.
You do not plan to return to Switzerland in the foreseeable future.
You want to simplify your tax filing obligations.
The steps for closing it
Check the active mandates. Cancel all standing orders (Dauerauftrag), direct debit mandates (Lastschrift) and automatic payments (e.g. insurance, subscriptions).
Settle pending transactions. Wait until all transfers in progress have been completed. It is generally worth allowing 3–5 business days.
Transfer the balance. Enter the IBAN of the receiving bank account (e.g. a Hungarian one). Pay attention to transfer fees and the exchange rate — when converting CHF/HUF, the bank applies its own rate, which may differ from the market mid-rate.
Request the account closure in writing. Most banks accept a closure request submitted by email or through online banking, but some banks require an in-person visit or a letter by post. Ask for written confirmation of the closure.
Request the account statements. Download or request the statements for the last 5–10 years before access is terminated. These may be needed for tax audits.
Return the cards. Expired or valid bank cards must be returned to the bank on request, or destroyed.
Check that the closure has been completed. 2–4 weeks later, request written confirmation that the account has indeed been closed and that no subsequent fees have been charged.
How long does the closure take?
The process typically takes 5–15 business days, but this varies by bank. It’s worth starting at least 4–6 weeks before your planned move-out.
Tax and legal consequences
Swiss side
From the perspective of Swiss tax law, closing or keeping a bank account is tied to the end of tax residency (steuerliche Ansässigkeit), not to the mere existence of the account.
Withholding tax (Quellensteuer / impôt anticipé): Swiss banks deduct 35% withholding tax from interest and dividends. If you are tax resident in Hungary, you may be able to reclaim part of this under the Hungarian-Swiss double taxation agreement (1981, as amended) from the ESTV — but the relevant forms must be submitted.
Tax year after deregistration: for the year of departure, you still have to file a tax return in Switzerland in the relevant canton (for the pro rata period). The account balance and returns are included in this.
Hungarian side
Personal income tax return: interest and investment income on a foreign bank account is taxable income in Hungary and must be reported in the annual personal income tax return (page 05).
Declaration of foreign bank accounts: in Hungary, there is an obligation to report foreign bank accounts to the NAV if the balance exceeds a certain threshold. ⚠️ The exact threshold and the details of the reporting obligation in force in 2026 are marked in the INTERNAL NOTES block for human review.
CRS/AIA data exchange: the Swiss bank automatically reports the balance and returns to the NAV if you are tax resident in Hungary. This cannot be avoided — the only question is whether you also declare them correctly.
The double taxation agreement (DBA/CDI) between Hungary and Switzerland
Under the agreement signed in 1981 and amended since then, interest income is generally taxed in the country of tax residence (i.e. Hungary). The Swiss withholding tax can be reclaimed, but the refund process creates administrative burden.
Alternative solutions: digital banks and international accounts
If neither keeping a traditional Swiss account nor closing it immediately is ideal, it is worth considering the following alternatives:
Digital banks with CHF management
App-based financial institutions such as Wise (formerly TransferWise), Revolut or N26, allow you to hold a CHF balance and receive CHF transfers without needing a Swiss address. These are not Swiss banks (they are not FINMA-licensed, or they fall under different regulation), so Swiss deposit protection (Einlagensicherung, max. 100 000 CHF) does not apply to them.
Solution | CHF balance | Swiss IBAN | FINMA supervision | Deposit protection |
|---|---|---|---|---|
Traditional Swiss bank | Yes | Yes | Yes | Yes (up to CHF 100,000) |
Wise | Yes | No (Belgian/EU IBAN) | No | Partly (e-money institution) |
Revolut | Yes | No | No | Partly (e-money institution) |
N26 | Yes | No (German IBAN) | No | Yes (German deposit protection) |
When is a digital solution enough?
If you only expect occasional CHF transfers (e.g. refunds, small amounts).
If you do not need to provide a Swiss IBAN to payers.
If the amount held in the account does not exceed the level where the lack of deposit protection becomes a risk.
Common mistakes and pitfalls — what to avoid
1. You leave the account open “just like that” without notifying anyone. The bank is not aware that you have moved away, so it does not update your tax residency. The CRS data exchange runs with incorrect data, and a tax discrepancy may arise.
2. You forget about standing orders. An active Dauerauftrag can keep generating fees or a rejected transaction even after closure, which delays the final shutdown.
3. You do not save the account statements. Accessing the archive of a closed account later is difficult or impossible. During a tax audit, statements going back 5–10 years may be requested.
4. It does not deal with reclaiming withholding tax. Reclaiming the 35% Swiss withholding tax involves administrative work, but it can amount to several hundred CHF. The deadline for submitting the R form (Rückerstattungsantrag) to the ESTV is usually 3 years from the tax deduction.
5. It does not check whether the bank has actually closed the account. In some cases, for technical reasons, the account remains in a “suspended” state and fees continue to accrue. Always ask for written confirmation.
6. It does not report the transferred amount to NAV. A larger CHF transfer to Hungary is visible in banking systems. If the amount is not reported in the personal income tax return, the discrepancy may raise questions from the tax authority.
Checklist: tasks before and after departure
Before departure (at least 4–6 weeks in advance)
[ ] Decision: keep or close?
[ ] Contact the bank: clarify the conditions as a non-resident
[ ] Cancel standing orders (Dauerauftrag) and direct debits (Lastschrift)
[ ] Close pending transactions
[ ] Download account statements (for at least the past 5 years)
[ ] Transfer the balance to a receiving account (if you decide to close it)
[ ] Submit the closure request in writing
[ ] Return or destroy bank cards
After departure (within 1–4 weeks)
[ ] Request written confirmation of the closure
[ ] Update your tax residency status with the bank (if you keep the account)
[ ] Keep a copy of the Swiss deregistration certificate (Abmeldebescheinigung)
[ ] Prepare your Hungarian tax return: declare the foreign account and income
[ ] Start the Swiss withholding tax reclaim procedure, if relevant (ESTV, R form)
[ ] Check whether any subsequent fees were charged on the closed account
Sources
Federal Chancellery — ch.ch (general information for Swiss administration): https://www.ch.ch/en/
Eidgenössische Steuerverwaltung (ESTV) — Swiss Federal Tax Administration, withholding tax reclaim: https://www.estv.admin.ch
Swiss Financial Market Supervisory Authority (FINMA) — Swiss financial regulator: https://www.finma.ch
Swiss Bankers Association (SBA / Schweizerische Bankiervereinigung) — banking standards and consumer information: https://www.swissbanking.ch
OECD — Common Reporting Standard (CRS) information: https://www.oecd.org/tax/automatic-exchange/
National Tax and Customs Administration (NAV) — declaring foreign income: https://www.nav.gov.hu
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In Brief
Before moving back home, what happens to your Swiss bank account is not just a matter of convenience: leaving it open can lead to fees, incorrect CRS/AIA reporting, and tax obligations. Keeping it is justified if you still have Swiss income, payouts, or regular CHF use; in all other cases, closing it may be simpler, but you should first save your statements and settle all transfers.
Key Takeaways
- You need to decide whether to keep or close the account before moving out, because leaving it open can create fees and tax risks.
- Keeping it is justified if payments, salary, investment returns, or regular CHF-based use will still continue from Switzerland.
- You must inform the bank that your Swiss address has ended, because this updates tax residency in the CRS/AIA system.
- Before closing, cancel standing orders, direct debits, and all automatic payments.
- You should save your account statements, because after closure it may be difficult or impossible to access the archive later.
- After closure, you should still check whether any technical suspension or later fee remains on the account.
Frequently Asked Questions
When is it worth keeping a Swiss bank account after moving back home?
Keeping it is justified if you still receive regular payments from Switzerland, such as salary, a partial withdrawal from the second pillar, rental income, or investment returns. It can also be useful if regular travel to Switzerland means a CHF-based account remains practical. If none of these apply, the cost of maintaining the account can easily become unjustified.
What happens if the Swiss account remains open without notification?
The bank may not know about your move, so it will not update your tax residency. As a result, incorrect data may be reported to the Hungarian tax authority through the CRS/AIA system, and an inactive account fee may also be charged. Failing to notify the bank does not exempt you from tax obligations.
What fees can apply to a non-resident Swiss bank account?
According to the article, an inactive account fee is typically CHF 5–15 per month, though it can be higher at some banks. For non-residents, account maintenance fees are usually higher, and some banks may also require a minimum balance, for example between CHF 5 000 and CHF 25 000. In some cases, the bank may also discontinue certain card services.
How do you close a Swiss bank account?
First, cancel all standing orders, direct debits, and automatic payments, then wait for any pending transactions to clear. After that, transfer the remaining balance to the receiving account and submit the closure request in writing. At the end of the process, it is worth asking the bank for written confirmation.
How long does it take to close an account?
Closure usually takes 5–15 business days, but this can vary by bank. According to the article, it is advisable to start the process at least 4–6 weeks before the planned move. That way, there is enough time to settle mandates and download the necessary statements.
Do you have to pay tax in Hungary on interest or returns from a Swiss account?
Yes, interest and investment returns on a foreign bank account are taxable income in Hungary and must be reported in the annual personal income tax return. The 35% withholding tax deducted by the Swiss bank may be reclaimable in some cases, but this requires a separate procedure with ESTV. Under the Hungarian-Swiss double taxation treaty, the income is generally taxed in the country of tax residence.
Why is it important to download account statements before closing?
After the account is closed, access to the archive may be difficult or even impossible. According to the article, statements going back 5–10 years may be needed for a tax audit. That is why it is worth saving all important documents before closure.
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