Tax Guide for Foreign Bank Accounts & Interest in Europe (2026 Comprehensive Guide)

Holding a bank account or investment account in another EU member state (such as Germany via Trade Republic, Lithuania via Revolut, Belgium via Wise, or the Netherlands via Bunq) is fully protected under EU law on free movement of capital.

However, holding assets across international borders brings specific tax reporting obligations that every investor and saver should understand.

In this comprehensive guide, we explain how foreign interest income is taxed, how the automatic exchange of financial information operates under CRS, and how to remain 100% tax compliant.

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📌 1. Tax Reporting on Foreign Interest Income

Most cross-border digital banks (e.g. Trade Republic, Revolut LT) pay interest gross without deducting local withholding tax at source.

As a tax resident, you are legally responsible for declaring your total annual gross interest income on your local annual personal income tax return under savings or investment income.

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🌍 2. Automatic Information Exchange (CRS / DAC7)

Under the Common Reporting Standard (CRS) and EU Directive on Administrative Cooperation (DAC), financial institutions across all EU member states automatically report your account balances, interest earned, and personal identification tax details to your home tax authority each calendar year.

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💡 Practical Checklist for Peace of Mind

1. Download Annual Tax Certificates: In January, export your Annual Tax Summary PDF from Trade Republic, Wise, or Revolut.
2. Report Gross Interest: Sum your annual interest earnings and enter them into your tax return under investment/savings income.
3. Verify Local Foreign Asset Thresholds: Check if your jurisdiction requires mandatory informational declarations for offshore balances exceeding specific thresholds.