Opening a bank account in Luxembourg

Banks in Luxembourg - Spuerkeess

Have you just arrived in Luxembourg as an expatriate? One of the first things you'll need to do is open a bank account. You'll be able to collect your salary, among other things, as well as your day-to-day expenses.

Luxembourg's banking system is made up of more than 120 international banks, whose parent companies are based in nearly 30 countries: 

  • network banks for the day-to-day needs of the population 
  • private banking with wealth management, investment funds, family offices 
  • financial and other treasury services to companies.

These banking and financial institutions offer a wide range of cross-border services. The average solvency ratio is over 24%.

Multiple banking services in Luxembourg

There are many banks in the Grand Duchy's financial center. In most cases, they offer day-to-day banking services, as well as asset management.

Some banks, however, are more oriented towards private banking activities, and offer their customers specific products for managing large estates.

More and more family offices are appearing in Luxembourg. These structures meet the needs of very large international fortunes.

The major international banks also offer dedicated services for corporate customers.

Retail network banks

Bank branches are generally open Monday to Friday from 9am to 4:30pm. Please note that bank branches generally close between 12 and 1:30 pm. In addition, since Covid, many smaller branches are closed in the afternoons. They receive customers by appointment only.

Opening a bank account in Luxembourg

Opening a bank account in Luxembourg is essential. It will enable you to receive your salary, family allowances, etc., but also to pay your rent, electricity, etc. 

To open an account at a bank branch, you'll need to show proof of identity (valid identity card or passport) and proof of residence (electricity bill, lease contract, etc.). Some banks will also ask for your employment contract and direct debit of your salary.

Make sure the bank you choose has a good network of branches and cash dispensers throughout the Grand Duchy. This is the case for network banks and retail banks, among others.

Some digital banks offer you the option of opening an online bank account.  

Before you visit a branch, don't hesitate to visit the websites of the various banks in Luxembourg, for a first impression and information.

Cost of opening an account and management fees

Depending on the bank, having a bank account can be free or not. The cost varies, from 2 to 10 euros per month, depending on the services chosen. The average monthly management fee is 5 euros. Please note that paper statements sent by post are not free of charge. 

Some banks offer service packages linked to your main current account. These fee-based packages include a number of free withdrawals in Luxembourg and the European Union, including outside the bank's network.

Several banks offer specific packages for expatriates, with a number of adapted services.

Bank cards and cash dispensers

Bank cards with immediate or deferred debit.

Banks offer their customers a range of payment solutions, including bank cards. There are 2 types of card: immediate debit cards and deferred debit credit cards.

Rates and packages vary from bank to bank. Ask your bank for details.

Cash withdrawals

Withdrawals from other banks are subject to a charge, except at your own bank's ATMs. 

As far as cash payments are concerned, Luxembourg is one of the few countries in the European Union to allow unlimited cash payments.

Cash withdrawals are mainly made with the V PAY card (European debit card system) offered by many banks. Cash withdrawals can also be made with VISA or MasterCard (but at an additional cost).

Payment for purchases

You can pay for your purchases with V PAY (immediate debit) and VISA or MasterCard (deferred debit).

VPay cards cannot be used to pay for online purchases.

Lost and stolen bank card assistance - Bank card blocking

If your American Express, V PAY, Visa or Eurocard MasterCard card is lost or stolen, contact Worldline Six Payment - Cetrel immediately (24 hours a day, 7 days a week) to block your card, on the following number. Tel: +352 49 10 10

Online banking via internet and mobile

Banks are increasingly offering online services. It's virtually no longer necessary to visit a branch. 

The major over-the-counter banks offer simplified account access and management via a Web Banking service . This service also offers a range of online tools (loan simulators, tax simulators, etc.).

An increasing number of banks are also offering a Mobile Banking application for smartphones. These can be used to pay directly in stores, instead of using a bank card.

Mortgages and consumer loans in Luxembourg

Your bank is also your partner if you need a personal loan or want to buy a property. It can supplement your contribution by grantinga property loan in line with your income and financial charges.

For a home loan, you can borrow at either a fixed or variable rate. Only the variable rate allows you to repay your loan early without incurring additional costs. Think about it if you're expecting a large cash inflow. 

Interest charges paid to your bank can be deducted from your tax return. Find out more here.

Savings accounts in Luxembourg

Your bank will also suggest opening a savings account, or other investment solutions to diversify your financial assets.

You can also find out about savings products that allow you to deduct part of the sums paid into them from the income you declare each year. Home savings and life insurance are two such tax-free savings products.

Life insurance is a secure investment vehicle. What's more, this product allows you to pay your beneficiaries free of inheritance tax in the event of your death.

Would you like to know more about inheritance laws in Luxembourg?

Wealth management services, family offices

Luxembourg is particularly well known for its wealth management. Its expertise, developed over many years, attracts businessmen and international fortunes. However, the wealth management offering is fully adapted to smaller fortunes.

Whether through banks or specialized financial companies, there's a private banking and wealth management solution for everyone. Financial specialists can offer tailor-made solutions for asset management, investment advice, family office services or philanthropic activities.

Whether your needs are simple, diversifying your assets through pooled portfolio management or complex financial vehicles, Luxembourg's expertise is real.

National and cross-border financial activities are carried out by experts, with complete transparency and in full compliance with compliance rules.

Opening an account for non-residents

Non-European and cross-border bank accounts

Even if you're not resident in Luxembourg, it's possible to open a bank account in Luxembourg, depending on your country of residence. While this is permitted in the European Union, other countries, such as the USA, impose restrictions. Find out more locally. In all cases, you will be subject to a certain number of rules.

Cross-border commuters can open an account in Luxembourg, among other things, for the payment of their wages. They can benefit from a wide range of banking services. They will be issued a V-Pay bank card or a Mastercard or Visa credit card, provided they have their income domiciled in Luxembourg. They can also open a savings account. Other services may also be offered.

End of banking secrecy since 2016

Banking secrecy has been a thing of the past in Luxembourg since 2013 and enforced since 2016. Luxembourg banks now systematically exchange banking data to combat tax evasion.

Today, all banks are obliged to communicate their customers' financial information to the authorities. If you live abroad, the information will also be sent to the tax authorities of the country where the account holder is resident for tax purposes. You must therefore declare your Luxembourg account to the tax authorities in your country of residence.

Everyone must also declare all sources of income, including foreign ones, to the authorities in their country of residence.

Which banks in Luxembourg?

Choosing a bank is crucial when you arrive in a new country as an expatriate or frontier worker. Your choice of bank in Luxembourg should above all be based on your needs.

Choosing the right bank for your needs in Luxembourg

The bank is your day-to-day financial partner during your stay in Luxembourg. Whether it's paying your salary or carrying out all your projects, including buyingreal estate.

More and more Luxembourg and international banks based in Luxembourg are offering "special expat" banking packages. Find out more. 

To open a bank account in Luxembourg, check with your bank in your current country to see if it has a subsidiary in Luxembourg. The link between the two establishments could facilitate financial transactions between your home country and your new host or working country, Luxembourg.

Luxembourg banks

Raiffeisen, Spuerkeess and BIL are the main Luxembourg banks. They also have branches throughout Luxembourg. Post also offers banking services, in addition to postal services.

International banks

Other foreign banks such as BGL BNP Paribas and ING Bank are also well established in Luxembourg.

All of them often have an extensive branch network , with offices close to your home or workplace.

These same banks will often offer you a wealth management service, in line with their international presence. You may also findother banks that focus almost exclusively on wealth or fund management .

Gold partner

Banque Raiffeisen Luxembourg

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