Opening a foreign business bank account: rules and form 3916

Quick answer. Any French tax resident who opens, holds, uses or closes an account abroad must declare it each year to the administration, via form 3916 (and 3916-bis for digital-asset accounts), filed with the income-tax return (Article 1649 A of the French tax code). This obligation covers bank accounts, including those of foreign neobanks (foreign IBAN), and crypto-asset accounts opened on foreign platforms. Failing that, the fine is EUR 1,500 per undeclared account, raised to EUR 10,000 if the account is in a State that has not concluded an assistance agreement with France. Commercial companies, for their part, mention their foreign accounts in their accounts.

Opening an account abroad has never been easier: European neobanks, payment platforms, crypto-asset accounts. But this ease creates a compliance blind spot. Many are unaware that an account opened with a neobank whose IBAN is not French, or a crypto account on a foreign platform, must be declared. The oversight is not trivial: it exposes you to penalties and an extended audit period. This obligation adds to the taxpayer's other tax filings.

The rule is broad and long-standing, but often overlooked.

• Who? Individuals, associations and non-commercial companies, domiciled or established in France.
• What? Any account opened, held, used or closed abroad during the year. The notion is deliberately broad: even a little-used or inactive account must be declared.
• How? Using form 3916 (bank accounts and capitalisation contracts) and form 3916-bis (digital-asset accounts), filed with the annual income-tax return.
• When? Each year, together with the income-tax return.

• Bank accounts: current accounts, savings accounts, securities accounts, deposit accounts, opened with an institution located outside France.
• Foreign neobanks. What matters is the country of the institution holding the account (and of the IBAN), not the language of the app. An account with a neobank whose IBAN is foreign is a foreign account, even if the app is used from France and the balance is low.
• Crypto-asset accounts. Since 2020, crypto-asset accounts opened with platforms established abroad must be declared via form 3916-bis, as we discuss regarding the crypto-asset obligations.

Commercial companies (subject to corporate tax) do not declare their foreign accounts via form 3916: these accounts appear in their accounts and notes. The 3916 obligation therefore mainly concerns individuals, sole traders and non-commercial structures. For a director, the line between private and professional wealth must be clarified, alongside administrative and accounting management.

• The base fine. Failure to report is penalised by a fine of EUR 1,500 per undeclared account.
• The aggravated fine. It is raised to EUR 10,000 per account when it is held in a State or territory that has not concluded an administrative assistance agreement with France.
• The increase in duties. In case of undeclared income linked to the account, an 80% increase in duties may apply.
• The extended audit period. The administration has an audit period extended to 10 years for undeclared accounts.

1. List all your foreign accounts, including neobanks with a foreign IBAN and crypto-asset accounts.
2. Identify the nature of each account (bank or digital asset) to choose the right form.
3. Complete form 3916 or 3916-bis for each account, with the full references.
4. File the declaration with your annual income-tax return.
5. Keep the supporting documents of opening, holding and closing.

The "French" neobank with a foreign IBAN. Some popular apps have an IBAN from another EU country: the account is then abroad and must be declared, even when used from France.

The joint or inactive account. A jointly held account, or an account opened but little moved, remains subject to the obligation: holding is enough, use is not required.

The crypto-asset account. An exchange platform established abroad triggers a reporting obligation via form 3916-bis, distinct from the taxation of any capital gains.

• The IBAN, not the app. It is the country of the holding institution that determines the obligation, not the brand's nationality.
• Small balances count. The obligation applies even for a low-balance or inactive account.
• Crypto is concerned. Foreign crypto-asset accounts are declared via form 3916-bis.
• The audit period is long. Ten years: a late regularisation costs more than a spontaneous declaration.
• Distinguish private and professional. Commercial companies declare their accounts in their accounts, not via form 3916.

Recently, a director told us he held an account with a European neobank for his travel, "nothing professional". The balance was modest and he had never thought to declare it. The analysis confirmed that the account's foreign IBAN made it declarable under form 3916, regardless of the balance. We regularised the situation through a spontaneous declaration, far less risky than a discovery during an audit, where the EUR 1,500-per-account fine and the ten-year audit period could have applied.

Our conviction, as accountants registered with the Ordre, is that declaring foreign accounts is a simple obligation to meet, but easy to forget. The proliferation of neobanks and crypto-asset platforms has created a blind spot: many taxpayers hold a foreign account without knowing it is "declarable". The good practice is a systematic annual review, treated as a line of tax advice, like income.

Hayot Expertise advice. Each year, take stock of your foreign accounts: neobanks with a foreign IBAN, securities accounts, crypto-asset accounts. For each, file form 3916 (or 3916-bis for crypto) with your income-tax return. Do not rely on the balance: even an inactive or little-used account must be declared. If you forgot in the past, a spontaneous regularisation is always preferable to a discovery by the administration. Compliance here costs a few minutes; the oversight can cost dearly.