FATCA
Foreign Account Tax Compliance Act
Other languages: Deutsch · Français · Español
US law under which foreign financial institutions must report accounts of US persons to the US tax authority, the IRS.
Switzerland and Austria implement FATCA under Model 2 (direct reporting to the IRS), Germany under Model 1 (reporting via the Federal Central Tax Office). Switzerland signed a Model 1 agreement in 2024.
In practice
For families with members who are US citizens, green card holders or otherwise US persons, FATCA affects every bank relationship and every structure in which they hold an interest. In practice, the family office records the US status of each person, keeps the W-9 or W-8 forms current and checks how trusts and foundations are classified under FATCA. A change of citizenship or residence is followed up with all banks.
Distinctions and common mistakes
FATCA and the CRS are separate regimes with their own definitions, and a classification under one does not automatically apply under the other. A common mistake is to overlook US persons among beneficiaries or controlling persons, for example children born in the United States.
Relevant in: Switzerland · Germany · Austria · Liechtenstein
Related terms
- Common Reporting Standard
- The OECD's global standard for the automatic exchange of information on financial accounts.
- Controlling person (CRS)
- Under the CRS, the natural person who controls a passive non-financial entity – for trusts and foundations in particular the settlor or founder, the governing bodies, the protector and the beneficiaries.
- Tax identification number
- The number issued by the country of tax residence to identify a taxpayer.
Mentioned in these guides
- KYC for trusts: which documents are requiredWhich documents banks and family offices require for a trust: trust deed, letter of wishes, information on settlor, trustee, protector and beneficiaries.
- FATCA in Switzerland: what family offices need to knowHow FATCA works in Switzerland, what the Model 2 agreement means, how structures are classified and what the planned move to Model 1 changes for family offices.
- The Liechtenstein trust (Treuhänderschaft)How the Liechtenstein trust works under the Persons and Companies Act and how it differs from the trust enterprise and the foundation.
- CRS classification of family structures, step by stepFinancial institution, active or passive NFE? How holdings, foundations and trusts are classified for AEOI/CRS – with a decision path and an example.
- KYC for foundations: which documents are neededWhich documents the KYC review of a foundation requires: deed, by-laws, register extract, founder, foundation board, beneficiaries and source evidence.
- Compliance calendar: deadlines over a family office's yearWhich deadlines a family office must track over the year: AEOI/CRS, FATCA, registers, foundation supervision, KYC reviews, identity documents and powers.
- Visualising the wealth structure: the structure chartHow a structure chart shows persons, companies, foundations and trusts with percentages and roles – and why banks, authorities and heirs ask for it.
- Tendering banking relationships: the RFP process for family officesHow a family office tenders its banking relationships: needs, questionnaire, model calculation, scoring matrix, negotiation, switch and annual cost review.