Luxembourg is landlocked country enjoying a host of benefits due to its strategic position. It is a prominent country among expatriates and international organizations. The Grand Duchy features world-class towns known for their stunning beauty and abundance of outdoor activity opportunities. The standards of living in Luxembourg are high as per capital median income recorded at $43,768. If you are seriously considering relocating to Luxembourg, it is crucial to set up a local bank account with a reputable bank to avoid excessive processing fees and currency conversion fees.
Open a Luxembourg Bank Account : required documents
Non-Luxembourg residents can open a bank account in the Grand Duchy. The process is simple and straightforward and involves a few simple steps. If you are a non-resident, here are the documents that most banks will require to open a bank account:
- Recent payslip or letter from your employer proving your employment status
- Proof of address
- Proof of identification like a passport or identify card
To get a credit card in Luxembourg, you will be need to provide additional documents to prove your ability to pay your bills. The majority of banks will require payslips as proof of income, while some banks will delay access to credit cards for non-residents until they will first verify your financial insolvency.
Opening a Luxembourg Bank Account Overseas
You may also begin the process of opening a Luxembourg bank account online. Despite this, you will need to send necessary documents or take them to the bank in person upon your arrival.
With financial institutions such as BNP Paribas, you can easily open a bank account prior to entry to Luxembourg. To open a bank account, you must first meet all residency requirements and make a minimum initial deposit transfer of EUR 100 to an account in Luxembourg, Belgium, France, or Germany. If your bank account application is denied, your initial deposit will be refunded.
Many non-residents have their own Luxembourg bank accounts. Most of these account holders live in neighboring countries but work in the Grand Duchy. For this reason, many banks in Luxembourg are familiar in processing non-resident bank accounts. To open a bank account, you need to submit a proof of address and recent utility bill statement.
Banks in Luxembourg Where Non-Residents can Open a Bank Account
The Luxembourg banking sector is the largest industry in Luxembourg. As a non-resident, you should not worry about issues when opening a bank account. If you need a bank account for daily transactions, such as in the case of debit cards, here are major banks that you should consider:
BNP Paribas is inarguably Luxembourg’s largest bank. It offers a wide range of accounts for different applications. They offer student bank accounts for non-residents studying in Luxembourg. BNP Paribas also offers a web-based bank account that you can use for transactions wherever you are in globe. While there are no fees when you open an account, you will need to pay a monthly fee to gain access to flexible solutions.
ING has the most extensive ATM network in Luxembourg. The bank also features an exceptional online banking system for select groups such as expatriates and international students.
You may also open a bank account with a post office. This platform offers the cheapest and easiest process to open a bank account in Luxembourg. They have an extensive network of ATMS throughout the country. But before opening an account under Post Luxembourg, make sure that their ATM machines are convenient to access from where you live or work. There are no fees associated with cash withdrawals in their ATMs. The only drawback is that they assess higher fees if you are not withdrawing from their ATMs.
BCEE is a major financial institutions with an expansive network of local branches and ATMs. In total, BCEE has a total of 110 ATMs and more than 72 branches, all of which are conveniently throughout the country. They also have an intuitive and smooth online banking system. They offer different bank account types, with its debit card being popular for its minimal fees.
Luxembourg Banking Fees
Do your due diligence and check out the fees assessed by your Luxembourg bank of your choice. For instance. BNP Paribas charges EUR 2.50 as monthly bank transfer fee. Other fees that you need to consider include monthly charges assessed in debit cards, credit cars, fees for ATM cash withdrawals.
Luxembourg Virtual Bank as an Alternative
Transferring money to an international bank account using a standard bank account is typically expensive. In fact, many banks will charge over mid-market rate. To save on fees, you can use a virtual bank account that charges far cheaper fees compared to traditional banks. Finally, virtual bank accounts ensures faster and convenient bank transfers. With a virtual bank account, non-residents need to retrieve their IBAN that they can use to make cash transfers free of charge.
If you need assistance evaluating your bank options in Luxembourg, our financial consultants at Damalion will be at your service. Whether you are an international investor or looking to relocating in Luxembourg, we will use our experience and expertise to ensure a successful bank account set-up process. Reach out to a Damalion expert today to learn more.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.