Luxembourg spearheads many rankings for richest country in the world. This tiny country’s reaping much from its strategic position. And because of this, it’s very foreign-oriented. That’s why it’s popular amongst expats and international organizations. It’s namesake capital is one of the four institutional seats of the European Union.
If you are planning to move to Luxembourg, consider opening a Luxembourg bank account with the local banks to avoid excessive fees such as currency conversion fees.
Documents Needed to Open a Bank Account in Luxembourg
- Proof of identity by use of a passport or identity card
- Proof of address
- A recent payslip or a letter from your employer indicating your work situation
Open Bank Account Luxembourg Non Resident And Resident
It is possible to open a bank account in Luxembourg whether you are a resident or a non-resident. The process is straightforward and it will only take you a few minutes to open an account. You will need the above mentioned documents.
A majority of people are from other countries but work in Luxembourg. For this reason, banks are used to dealing with expats. As a non-resident, you only need a proof of address like a recent utility bill.
To get a credit card, you will need to provide more documents to prove that you can pay your bills, some banks will use your payslips as proof of income. Some banks will delay in offering you a credit card until you establish your financial solvency.
Open Bank Account Online Luxembourg Non Resident
You can start the process of opening a bank account in Luxembourg online. However, you may still need to post the necessary documents to the bank or take them to the bank on when you arrive.
Banks such as BNP Paribas allow you to open an account before entering the country. You must first meet all the residency requirements. You also need to transfer 100 euros to an account in Luxembourg, France, Belgium, or Germany. This amount is the initial deposit, or it is returned to you in case your account is rejected.
Some agencies help expats to create bank accounts. However, if you are looking for an account for your day to day transactions, you shouldn’t use an agency.
Online Banks For Use In Luxembourg
Another way of opening a bank account for use in Luxembourg while being abroad is using online banks.
Banks in Luxembourg
The banking sector is the largest of all sectors in Luxembourg. You should not be worried about how you can open a bank account. If you want an account for your day to day transactions, consider the following banks.
BNP Paribas is Luxembourg’s largest bank. They have different types of accounts for different interests. For instance, they offer student accounts and for people living abroad. They also provide a web-based account which you can use transact across the world. However, the account is free to open, but you need to pay some monthly fee for flexible services.
ING is known for its largest ATM network. The bank also boasts excellent online banking and accounts come with contactless debit and credit cards. The bank serves the interest of different groups such as students and expats.
You can open a bank account with a post office. Luckily, these are one of the cheapest accounts in Luxembourg. They have an extensive network of ATMs. However, first make sure that their ATM network is convenient for you. It is free to make cash withdrawals in their ATMs. However, the cost is higher if you are not withdrawing from their ATMs.
BCEE has the most extensive network of branches and ATMs. It has 110 ATMs and more than 72 branches in Luxembourg. Their branches and ATMs are conveniently located. Besides, they have convenient online banking. They have different types of bank accounts and come with a debit card that attracts a small fee.
Banking Fees in Luxembourg
You must check out for monthly and annual fees from a specific bank before you can open an account with them. For example, for a standard BNP Paribas account, you are likely to spend 2.50 euros every month on bank transfers. Other fees that you need to look for are the monthly charges levied on credit and debit cards, cash withdrawal fees from the ATM.
Virtual Bank Account as an Alternative
International money transfers are usually expensive while using banks since they charge beyond the mid-market rate. You can use a virtual bank account which is cheaper by far compared to banks. Also, virtual bank account transfers are usually fast and convenient compared to bank transfers. With a virtual bank account, you get IBAN which you can use to make free cash transfers with SEPA.
You can open an online bank account for use in Luxembourg using N26. This bank offers Euro IBAN, N26 personal account and N26 business account. It takes only 8 minutes to sign up for N26 account. Once you sign up, you can order a contactless debit MasterCard and start making contactless payments.
Money transfer within the EEA (including Luxembourg) is free, N26 supports all SEPA transfers. Its international money transfer service is provided in partnership with Wise money transfer, one of the cheapest and fastest money transfer services in the world.
Wise, fomerly TransferWise
You can also use Wise directly to open a virtual bank account in Luxembourg. When you open a Wise account, you will get a Euro IBAN and you can use it to make SEPA payments.
You are allowed to open a personal account or business account. You can hold, send, receive and spend money in different currencies using Wise multicurrency account. Wise uses real exchange rates for currency conversion.
Revolut is a crypto friendly bank that offers multi-currency accounts in 28 currencies, IBAN for personal accounts and business accounts, virtual cards, money transfer services and crypto trading.
Revolut’s key products and services include prepaid debit cards, currency exchange, peer to peer payments, withdrawals in over 120 currencies and transfer money directly in over 29 currencies. You can buy cryptocurrencies such as Bitcoin and altcoins such as Ethereum. However you cannot transfer them to an external wallet, you can only exchange them for fiat money inside Revolut app.
Monese is a British online bank that accepts customers from many countries including Luxembourg. You have to be a resident of the EEA or the UK. It offers a multicurrency digital bank with IBAN and supports SEPA payments. You can open EUR or GBP personal, joint or business accounts with Monese. Monese accounts works with contactless payments like Google Pay, Apple Pay and PayPal.
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