How to open a bank account in Luxembourg
Written by Ziye Zhou
Luxembourg banks attract global customers and businesses with advantages as an international financial center, political stability, favorable tax policies, asset management expertise, financial technology innovation, and a multicultural environment.
There are 136 banks in Luxembourg. About a quarter of banks in Luxembourg are branches of foreign banks. Most of them come from Germany, France, and Switzerland. It also has a large number of investment banks. The main banks in Luxembourg include BGL BNP Paribas, Banque Internationale à Luxembourg, Banque et Caisse d’Épargne de l’État, etc.
In Luxembourg, residents and non-residents can open a bank account, also known as a “compte à vue.”
The types of bank accounts in Luxembourg are divided into:
Current accounts
Banks in Luxembourg typically offer a range of current account options, including basic accounts, online or mobile accounts, and tailored accounts for students or young people. Many banks also provide joint accounts where more than one name is on the account.
Saving accounts
Savings accounts usually include taxes on interest. General students, children, and new customers under 30 are also generally entitled to discounts and benefits.
Offshore accounts
Many international people choose Luxembourg for offshore banking. Because Luxembourg offers privacy and favorable taxes, it has one of Western Europe’s lowest overall tax rates.
Standard documents required to open a bank account in Luxembourg (resident/non-resident):
Like many other countries, Luxembourg requires you to provide some valid paper documents:
Resident:
Valid passport or ID card
proof of address
Residence permit
Some banks also require proof of employment, income, or proof of student enrollment.
Non-residents:
Valid passport or ID card
Are over 18 years old
proof of address
You will need to provide proof of address in your home country. This can be proof of residence or an official document confirming your address.
Residence permit
Proof of employment or income
Tax ID number
Open a bank account in Luxembourg as a student:
Luxembourg recommends and welcomes students to open accounts and will enjoy specific welfare policies. Aged between 18–30 years old. Banks in Luxembourg offer a wide range of services based on the needs of students and international students. For example, students renting in Luxembourg also use bank accounts because landlords or apartments usually require students to pay an initial deposit.
Banks such as Spuerkeess offer free packages to students, including debit cards, credit cards, personal loans, preferential rates, and a range of discounts.
Open a bank account in Luxembourg as a tourist:
Opening a bank account in Luxembourg as a tourist can present some challenges, as many banks may require a utility bill, local address, or residence permit. You can open a bank account if you can prepare all valid paper documents and reach your age.
To open an account for your child:
Parents can open a bank account for their child in Luxembourg; current and savings accounts are available. However, identification documents and address proof of parents and children are required. When children reach 16, they can withdraw money from the account without parental consent.
A minor can only open a bank account or savings passbook with a legal guardian before age 12.
When can you expect to receive your debit or credit card:
The card will be sent to your postal address with a maximum delay of 10 working days. Once you receive it, you can activate it and use it.
Fees for opening a bank account:
Opening and having a bank account is free. After that, the management fee for current and savings accounts will be around 3 euros monthly. Management fees for premium accounts can be as high as 100 euros or more. Online accounts are often cheap and may even be free.
Both debit and credit cards may have annual or monthly fees and yearly rate (APR) fees attached. There are no fixed monthly or annual fees for debit cards. Credit cards usually charge a fixed fee ranging from 15 euros to more than 100 euros per year.
How to choose a bank in Luxembourg：
BNP Paribas: It is the largest bank in Luxembourg and an extensive international financial institution that offers free bank account options to foreigners. It provides options for corporate and private banking.
ING: It’s a Dutch bank. Popular with students, workers, and expats. The account comes with a contactless debit card. Provide wealth management, investment services, professional cross-border transactions, and international trade financing services.
Postal Bank: It is a bank operated by the National Postal Company. They have one of the most affordable bank accounts in the country.
Spuerkess: Ranked among the top ten safest banks in the world, it is a reliable Luxembourg government bank. Spuerkess has an extensive branch network, all typical account types, and fee-based debit cards. An account can have up to 6 cards.
BIL: A central bank in Luxembourg. It provides private, corporate, and institutional banking, among other services. BIL Bank focuses on customer relationships and meets the diverse needs of individual and corporate customers.
In addition to the above banks, Luxembourg has many banks for residents and non-residents. You only need to confirm the documents and conditions required by each bank to choose the bank that best suits you.