Short answer: the Common Reporting Standard (CRS) is an OECD standard under which financial institutions in participating jurisdictions exchange account information with tax authorities based on the holder’s tax residence. The key point: CRS follows tax residence, not nationality.
How CRS works
- When you open an account, the bank asks for a tax residence self-certification.
- The bank uses it and other information to determine where you’re tax resident.
- Information is exchanged annually with the relevant tax authorities.
Does a second passport change CRS reporting?
| Situation | Usual effect |
|---|---|
| Second passport, still living where you did | Generally no change — reporting follows actual tax residence |
| Residence obtained without moving | Generally no change |
| Genuinely moving and becoming tax resident elsewhere | Reporting may change |
The OECD has also listed some citizenship- and residence-by-investment schemes as potentially high-risk, and banks check clients who claim tax residence through them closely.
What determines tax residence?
Usually days present, your home, family and economic ties — the rules vary. Some people are tax resident in two places at once, resolved under tax treaties.
Lawful planning
- If you move, genuinely become tax resident under the new country’s rules.
- Review your asset structure and reporting before moving.
- Have a qualified tax adviser assess your whole situation.
This is general information, not tax advice.