Want to open a bank account in Luxembourg? or are you planning to relocate to Luxembourg? then you have found the right article as I will let you discover the banking system in Luxembourg, alongside various banking accounts that you can find in the country.
Most often, what you have to consider first once you arrive Luxembourg is a current account with one of the banks in that country as this will allow you pay you rent, get paid or go for shopping. As a Resident or non Resident, you are able to open a bank account in Luxembourg online or locally without any issue.
Luxembourg features among those small amazing countries that are strategically positioned with quite easy access to other European headquarters such as London, Brussels, Amsterdam, Berlin and Paris.
Aside from these, this small country also attracts numerous expats working in the industry, technology and banking sector as well as students, businesses and retirees due to its high standard of living and as a result of this, about half of the country's population is made up of international citizens.
So with all these amazing features mentioned above, am sure some if you might want or are already planning to reside in Luxembourg.
If you plan to move to Luxembourg, then you will need a bank account and hopefully, this guide if here for you. Stay glued to your reading and discover how you can open a bank account in Luxembourg online or locally as a resident, non resident expat or student.
Banking System in Luxembourg
Money is easily transferred between countries that figure in the Single Euro Payment Area( SEPA) because of an International Bank Account number - IBAN which is assigned to a Luxembourg bank account. Some of the accounts are free but depending on the services that you demand, you may need to pay anything from 2 euro to 10 euro each month.
You might be a little surprise to here that cash still accounts for more than half of all the transactions that take place in Luxembourg and this is also the reason why it is critical for you to pick a bank that does not impose exorbitant fees for their cash withdrawals.
Since the nation Luxembourg is said to be located at Europe's heart, this is also means that most banks here provide services and support in different language such as French, Luxembourgish and most especially English alongside Italian and Portuguese.
What are the Requirements to Open a Bank Account in Luxembourg?
Well, in order to open a bank account in Luxembourg, you will have to provide the following documents no matter how you are trying to open the account either online or in person at a local branch.
- Valid passport or identity card
- A pay slip, your work contract or letter from an employer
- Proof of address and you decide to make use of documents that have your address or current utility bill
- At times, you might need a task number - in Luxembourg or from your country of origin
It is often necessary that you check to see if the bank that you have selected has a good network of branches and ATMs across the country.
As previously seen higher above in this article, a bank account might be free or cost between 2 and 10 euros each month and in case you want to apply for a credit card, then you will need to provide proof of credit solvency so as to show the bank that you have that financial aptitude to repay the loan that you will receive.
Also there are numerous banks that now provide mobile and internet banking services and on some occasions, you will also be able to open a basic account before arriving Luxembourg and if you are such person, then you will need to provide the following information so as to open this account.
- Your Proof of enrollment at one local university
- Proof of eligibility for a CEDIES loan which is a student grant paid by Luxembourg if at least one of your parents work in Luxembourg
- Your Luxembourg employment contract
- A certificate of residence in Luxembourg - and it is necessary to known that a rental contract is not considered as a certificate of residence in Luxembourg
- A document that states that you earn an income in Luxembourg- like for example a retirement pension, even if you are not a Luxembourg resident.
- A proof that you collect rent from property in Luxembourg
In case at some point you decide to change the account that you have earlier opened, most banks will help you in making the switch, closing your old account and opening a new one for you.
Whos is Eligible to Open a Bank Account in Luxembourg ?
As long as you are already over the age of 18 years old, you can open a bank account in Luxembourg as long as you also live in the country or will soon arrive the country for work or for studies in a local university. Traditional bank will also require a confirmation of Luxembourg residency.
If the person that wants to open the bank account is below the age of 18, then the parent or guardian must open the bank account for them.
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Best Banks in Luxembourg for Residents, Non Residents, Students and Expats
Due to the fact that Luxembourg's banking sector is the main source of revenue of that country, you will have a variety of banks to select from but it is important to let you know that most of the banks in the country are made to serve the wealthy and handle investment funds, Below are some few retail bank options for you that have everyday transactions to make in Luxembourg;
1. BNP Paribas
This is actually the country's largest bank that operates worldwide as a financial institution. BNP Paribas being a well known financial institution, they provide expats and non residents with free accounts, a massive ATM network to ease your withdrawals at any point, and branches throughout the European continent. This bank features business and private banking solutions.
This bank also offers its customers with a wide range of services including basic and premium Mastercard payment solutions as well as financing, insurance, investment, assets diversification management and other financial services. You are also able to share your BNP bank account with other account holders.
This is a well known Dutch bank among students, workers and expats due to its vast ATM partner network and outstanding internet banking. With this bank, you have a contactless debit card being included with all accounts.
This is another amazing banking option in Luxembourg for Non residents as this is actually a postal company runs Post that acts as a bank and they offer one of the nation's most affordable bank accounts. Post features its own mobile app that allows you to manage your online banking. Raiffeisen Cash machines are part of their ATM network.
BCEE bank which is also referred to as Spuerkess, is a bank that is owned solely by the government of Luxembourg, showing that it is a robust institution that has gain the spot among the top ten most secure banks in the world. This bank offers a vast network of branches as well as all of the standard account kinds and fee- based debit cards.
Once you open an account with this bank, you will be also be able to benefit from their packages of various current accounts that deal with everyday transactions, payments and bills as well as up to six cards with a single account.
You can also manage your banking via their mobile app alongside the unique Zebra Premium account that the bank provides for expats.
Banque Internationale a Luxembourg often known as BIL, is one of the country's major banks that provides private, corporate and institutional banking as well as other services. This bank has branches in some big European nations such as Switzerland, Denmark, and the Middle East and has existed since the 1850s which makes it feature among some of the oldest banks.
How to Open a Bank Account in Luxembourg Online
Most of the banks available in Luxembourg allow you to open a bank account online with them and some even go as far as allowing you to open a bank account from another country given that you have the required documentation. On the other hand, banks will have to mail or provide documents in person when picking up your card.
Here is how to open a Bank Account Online in Luxembourg
- You have to identify and print the documents that you bank demands
- Send your documents by mail or better still, you can book an appointment to drop them off at a nearby bank office
- You may be required to complete a digital verification if you open an account online
- Then you will have to wait for your confirmation, card, PIN and other required paperwork to arrive via the mail.
Best Online Banks For Luxembourgian Residents or Non Residents
In case all the above procedures might seem like too much hassle to you, then you can also open an account with an online bank. You are able to open your Luxembourg bank account online even before the plane lands. Non residents have these solutions provided to them by online banks such as N26 and Revolut which allow you to open an online bank account.
If you select to open an online bank account with N26, then you will first of all have to download the N26 mobile app, register, submit your ID, complete the in app verification and then create a unique PIN.
Can I Open a Bank Account In Luxembourg as a Non Resident ?
Yes you can open a bank account in Luxembourg as a non resident as international banks such as BNP Paribas, ING offer an easier way to open non resident accounts within the country and within its limits, there exist more than 100 banks and ATMs.
It is necessary that you understand and read the tiny print of your bank's cost structure and it is most important for you to have knowledge about withdrawal limitations and which cash machines will charge you extra.
However, you have to know that this is dependent on your nation of residence since it is permitted in the European Union but other countries such as the United States, place restrictions on it so it is left over to you to make out more time to carefully read your chosen bank's information.
So as to fight tax evasion, banks engage in the systematic exchange of banking data as part of fiscal transparency. As a result of this, banks are compelled to provide financial information about their customers with the administration of the country where the bank account user resides fiscally.
For this reason, you will need to report your Luxembourg account to the tax authorities in your home country. More to that, everyone must also declare all of their sources of income including international sources to the administration of their country of residence.
Opening a Bank Account in Luxembourg as an Expat
For you to open a bank account in Luxembourg as an expat, you will need to show up at a branch. If you can open an account online or if you are opening a non resident account from another country, you will normally have to submit scanned or printed copies of any relevant documents.
What to do if you are refused a bank account in Luxembourg
Banks in Luxembourg are private businesses that are entitled to refuse you an account if you don’t meet the required criteria. However, they cannot discriminate against you based on things such as nationality or sexuality.
If you feel that you have been unfairly refused a bank account in Luxembourg, you should first contact the complaints department of that particular bank.
If you haven’t heard anything back from the bank within one month, you can complain through the CSSF, which regulates banks in Luxembourg.
Final Thoughts on How to Open a Bank Account in Luxembourg Online and Locally
Luxembourg is one of those wonderful small countries that is strategically located, with easy access to other European capitals like London, Brussels, Amsterdam, Berlin, and Paris. Because of its high standard of living, it attracts expats working in industry, technology, and banking, as well as visitors, students, businesses, and retirees.
As a result, opening a bank account online in the country should be simple. For those planning to visit the country, major international banks in the country provide offshore and non-resident accounts. You can, however, open an account entirely online with a licensed digital bank, such as N26.
Frequently Asked Questions on How to Open a Bank Account in Luxembourg
Can non-residents open a bank account in Luxembourg?
Both residents and non-residents can open a bank account in Luxembourg, whether you have Luxembourgish nationality or not. However, it is not a legal requirement to do so. You can manage your finances from an overseas account if you prefer.
Which bank is best in Luxembourg for expats?
As a bank focused on those living and working abroad, HSBC Expat offers expert banking and wealth management services, providing expats with a secure, central place to easily manage and grow their money, no matter where they move.
Is Luxembourg good for banking?
Few might be aware that Luxembourg represents a leading global financial center reputed for its highly developed, stable, and diversified economy, with banking and financial services forming a key component of its macroeconomic structure.