Just recently arrived in Luxembourg? In most situations, a current account with a Luxembourg bank is what you should consider getting first. This will allow you to get paid, pay your rent, or simply go shopping. You can open a bank account in Luxembourg online and locally as a resident or non resident without hassle.
Luxembourg is one of those wonderful small countries that happens to be strategically positioned, with easy access to other European capitals such as London, Brussels, Amsterdam, Berlin, and Paris. It attracts expats working in industry, technology, and banking, as well as visitors, students, businesses, and retirees, due to its high standard of living. As a result, international citizens account for about half of Luxembourg's population.
Luxembourg is one of Europe's smallest countries, sandwiched between France, Germany, and Belgium. Nevertheless, this great duchy is home to a vibrant culture, breathtaking scenery, and one of the European Union's four official capitals. Luxembourg, despite its tiny size, is a banking powerhouse.
That said, if you plan on residing in Luxembourg, you will need a bank account. Hopefully, this guide is here to help you out.
In this article, I will show you how to open a bank account in Luxembourg online or locally as a resident, non-resident, expat or student.
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Banking System in Luxembourg
An International Bank Account Number (IBAN) is assigned to a Luxembourgian bank account, allowing easy money transfers between nations in the Single Euro Payment Area (SEPA). Some accounts are free, however depending on the services you require, you may need to pay anything from €2 to €10 each month.
Surprisingly, cash still accounts for more than half of all transactions in Luxembourg. That's why it's critical to pick a bank that doesn't impose exorbitant fees for cash withdrawals.
Luxembourg's being European's heart simply means that most banks provide services and support in a different languages. German, French, Luxembourgish, and English are all common languages, as well Italian and Portuguese.
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Who is Eligible to Open a Bank Account in Luxembourg?
Anyone over the age of 18 can open a bank account in Luxembourg as long as they live in the country or will soon and are employed or studying at a local university. Traditional banks will also require confirmation of Luxembourg residency. A parent or guardian must open the bank account on their behalf if they are under the age of 18.
What are the Requirements to Open a Bank Account in Luxembourg?
You'll need to provide the following documents whether you're opening an account in person at a local branch or online:
- Valid passport or Identity card
- Proof of address. You can use documents that have your address: apartment leases, current utility bill and official correspondence
- A payslip, your work contract, or letter from an employer
- Sometimes you will also need a tax number (in Luxembourg or from your country of origin)
- If you want extra perks, such as overdraft protection, you are likely to be required to provide a credit report.
Check to see if the bank you've chosen has a good network of branches and ATMs across the country.
Depending on the services chosen, a bank account might be free or cost between 2 and 10 euros per month. If you want to apply for a credit card, you will be required to provide proof of credit solvency to show the bank that you have the financial means to repay the loan.
It's also vital to understand that the rules will vary depending on your citizenship country; citizens of European Union member states will have an easier time opening an account.
Many banks now provide mobile and internet banking services. Occasionally, you will also be able to open a basic account before arriving Luxembourg. However, you will need to provide the below information to open this account:
- your Luxembourg employment contract;
- a certificate of residence in Luxembourg (a rental contract is not a certificate of residence in Luxembourg);
- proof of enrollment at one of the local universities
- proof of eligibility for a CEDIES loan: student grant paid by Luxembourg if at least one parent works in Luxembourg;
- a document stating that you earn an income in Luxembourg, e.g. retirement pension, even if you aren’t a Luxembourg resident;
- proof that you collect rent from property in Luxembourg.
If you change your mind about the account you've opened, most banks will assist you in making the switch, closing your old account and opening a new one for you.
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How to Open a Bank Account in Luxembourg Online
Most banks in Luxembourg allow you to open a bank account online, and some even allow you to do so from another country provided you have the required documentation. Banks, on the other hand, may need you to mail or provide documents in person when picking up your card.
Here's How to Open a Bank Account in Luxembourg Online:
- Identify and print the documents that your bank requires.
- Send your documents by mail or schedule an appointment to drop them off at a nearby bank office.
- If necessary, answer certain questions and verify your identity with the clerk when you arrive. You may be required to complete a digital verification if you open an account online.
- Wait for your confirmation, card, PIN, and other required paperwork to arrive through the mail.
- Activate your account and register for online banking.
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Best Online Bank for Luxembourgian Residents and Non-Resident
If all of that seems like too much hassle, you may also open an account with an online bank. Current non-residents can open accounts with online banks, so you can open your Luxembourg bank account before your plane lands. N26 and Revolut provide this solution to non-residents of Luxembourg to open a bank account in the country.
However, you must first download the N26 mobile app, register, submit your ID, complete the in-app verification, and then create a unique pin. However, keep in mind that not all online banks are made equal, and it's a good idea to double-check that your bank is legally licensed before opening an account with them.
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Best Banks in Luxembourg for Residents, Non-Residents, Students, Internationals and Expats
Because Luxembourg's banking sector is the country's main source of revenue, there will be no shortage of banks to pick from. It is crucial to highlight, however, that the majority of banks in the country exist to serve the wealthy and handle investment funds.
With a large network of branches and cash machines, there are lots of retail banking options for your everyday banking needs. Among them are the following:
1. BNP Paribas
BNP Paribas is the country's largest bank, and as a large worldwide financial institution, it provides expats, non-residents with free bank accounts, a massive ATM network, and branches throughout Europe. It includes business and private banking solutions.
BNP offers a wide range of online services, including basic and premium Mastercard payment solutions, as well as financing, insurance, investments, asset diversification management, and other financial services. You can also share your BNP bank account with other account holders.
2. ING
ING is a popular Dutch bank among students, workers, and expats because of its extensive ATM partner network and outstanding internet banking. A contactless debit card is included with all accounts.
3. POST
The national postal company runs Post, which is a bank. They offer one of the country's most affordable bank accounts. Raiffeisen cash machines are part of their ATM network. To manage your online banking, Post has its own mobile app.
4. BCEE aka Spuerkess
BCEE, also known as Spuerkess, is a bank owned solely by the State of Luxembourg, indicating that it is a dependable and robust institution that has earned it a spot among the top ten most secure banks in the world. Spuerkess offers a vast network of branches, as well as all of the standard account kinds and fee-based debit cards.
They also offer packages of various current accounts that deal with everyday transactions, payments, and bills, as well as up to six cards with one account. Spuerkess has a mobile app that you can use to manage your banking. It also provides a unique Zebra Premium account for expats.
5. BIL, Banque Internationale à Luxembourg
Banque Internationale à Luxembourg (BIL) is one of the country's major banks, providing private, corporate, and institutional banking as well as other services. It includes branches in Switzerland, Denmark, and the Middle East, and has been around since the 1850s.
Bank GPB International S.A. and Raiffeisen Bank are two international banks worth considering.
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Can I Open a Bank Account in Luxembourg as a Non Resident?
You can open a bank account in Luxembourg as a non-resident. International banks such as BNP Paribas, ING offer an easier way to open non resident accounts within the country and within its limits, there are literally hundreds of banks and ATMs.
It's critical to understand and read the tiny print of your bank's cost structure. It's especially important to have knowledge about withdrawal limitations and which cash machines will charge you extra.
However, it is important to note that it is dependent on your nation of residence. While this is permitted in the European Union, other countries, such as the United States, place restrictions on it. Consider scouting more information locally.
They can thus take advantage of a variety of services, including a V Pay card, a MasterCard or Visa card, and a savings account if their income is earned in the United States.
However, it is important to note that, as part of fiscal transparency, banks engage in the systematic exchange of banking data in order to combat tax evasion. As a result, banks are compelled to provide financial information about their customers with the administration, including the administration of the country where the bank account user resides fiscally.
As a result, you will need to report your Luxembourg account to the tax authorities in your home country.
Everyone must also declare all of their sources of income, including international sources, to the administration of their country of residence.
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Opening a Bank Account in Luxembourg as an Expat
To open an account with most banks in Luxembourg, you will need to go to a branch. If you can open an account online or if you're opening a non-resident account from another country, you'll normally need to submit scanned or printed copies of any relevant documents.
To open a bank account in Luxembourg, you will need to provide:
- valid ID, such as a passport or national identity card;
- proof of Luxembourg address (or overseas address, if opening a non-resident account), such as certificate of residence or utility bill;
You may also be asked to provide:
- an employment contract from Luxembourg or proof of income, especially if you want access to credit cards or are opening an account where you need to deposit regular funds;
- tax number
You should also provide any necessary documentation for the account you are opening, such as evidence of education if you are opening a student account.
Your Luxembourg bank account will be opened pretty fast after you've completed the application and supplied all required papers, and you should receive your bank card and account information within a few days.
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Opening an Offshore Bank Account Luxembourg
Major banks in Luxembourg such as BNP Paribas, ING let you open an international offshore bank account in the country. These banks provide a more easier way for non-residents to open a bank account in the country.
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Opening a Corporate Bank Account in Luxembourg
Most banks in Luxembourg allow you to open a personal or business account. Business account options differ depending on the size and type of business, with some banks in Luxembourg offering specialized accounts for start-ups and small businesses.
Your business type will also influence the process and requirements for obtaining a business account. The procedure for a freelancer or lone trader is comparable to that of obtaining a personal bank account. You'll need a business name and address, as well as the same papers as for a personal account.
You'll need to provide documents such as company registration information and executive staff information for limited and incorporated companies. Larger and more constrained businesses may also face higher banking fees.
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Final Thoughts on How to Open a Bank Account in Luxembourg Online and Locally
Luxembourg is one of those wonderful small countries that happens to be strategically positioned, with easy access to other European capitals such as London, Brussels, Amsterdam, Berlin, and Paris. It attracts expats working in industry, technology, and banking, as well as visitors, students, businesses, and retirees, due to its high standard of living.
Because of that, opening a bank account online in the country shouldn't be a problem. Major international banks in the country offer offshore and non-resident accounts for those planning to arrive the country. However, you can open your account fully online with a licensed digital bank such as N26.