Brits are unprepared for the costs and different practices that come with having an overseas bank account, and maybe getting caught out by European banks charging fees at every opportunity.

According to the Overseas Guides Company, being prepared and researching your options is as important when choosing a foreign bank as it is any other service provider. 

Richard Way, editor of the guides, said: “We had an enquiry recently from someone needing to repatriate money to the UK from Cyprus whose Cypriot bank was going to charge around €1,000 just in fees to make the transfer.

“I’d imagine these people were already paying an annual fee just for having their account in Cyprus too. Charging a percentage of a transfer’s value is not uncommon with European banks – it’s extortionate and unnecessary.”

To save British people any nasty surprises when opening a foreign bank account, here are the below list of things to consider:

1) If you are not moving abroad permanently, your foreign bank account will be classified as a “non-resident’s” account, and your options will be less than if you were a resident. If you are relocating, take your residency card when you open an account, to ensure you are offered a more flexible “resident’s” account.

2) Many European banks charge a collection of fees for having a bank account, especially a non-resident account, which can in some instances, for example in Italy, easily add up to a couple of hundred euros a year.

Typically you could be charged a quarterly or annual administrative fee, for having a chequebook, for statements and for withdrawals from ATMs, both those of your own bank and other banks.

Check with your bank precisely what you will be charged for and how often – charges can be negotiable and really do vary by bank and even customer. If you are a second homeowner and leave funds in you overseas account to cover bills, make sure there is enough to cover bank charges too.

3) Not all countries are as cheque friendly as the UK, and post-dating a cheque, for example, can be frowned upon. Even worse, a bouncing cheque could land you in serious trouble in some countries. Similarly, going overdrawn is heavily penalised in Europe.

4) Some foreign banks, particularly in Spain and France, offer a service designed specifically for British people, including on-line banking in English and branches with English-speaking staff.