Open an account and banking services

Have you just arrived in Luxembourg as an expatriate? One of your first steps will undoubtedly be to open a bank account.

There are many banks in the Grand Duchy's financial center. In most cases, they will offer you retail banking services for your day-to-day transactions, as well as wealth management.

Banks in Luxembourg

The banking system in Luxembourg comprises more than 120 international banks, with parent companies based in nearly 30 countries.

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

Network or retail banks are best suited to your day-to-day banking transactions, such as salary payments and payment methods.

Private banks offer more sophisticated services such as wealth management and asset management. More and more family offices are appearing in Luxembourg. These structures meet the needs of very large international fortunes.

Large international banks also offer dedicated services for businesses.

Opening a bank account for individuals

Bank branches are generally open Monday to Friday from 9 a.m. to 4:30 p.m. Please note that they may also close between 12 p.m. and 1:30 p.m.

Is it mandatory to open a bank account in Luxembourg?

Check out our EXPERT APPOINTMENTS with Yves Sommer, Branch Manager at our partner, Banque Raiffeisen. He answers all your questions about opening a bank account in Luxembourg. Video in French.

How do I open a bank account in Luxembourg?

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

Make sure that the bank you choose has a good network of branches and ATMs throughout the Grand Duchy. All network banks and retail banks offer these services, even though ATMs are tending to disappear due to the development of other means of payment besides cash.

Luxembourg has traditionally been a local banking market. In 2021, there were 34 bank branches per 100,000 inhabitants. However, the Covid crisis has also had an impact on this market. Since then, the overall trend has been towards the closure of retail branches. See below

To open an account at a bank branch, you will need to present your ID (valid ID card or passport) and proof of address (electricity bill, lease agreement, etc.). Some banks will also ask for your employment contract and require your salary to be paid into the account.

Before visiting a branch, feel free to visit the websites of the various banks in Luxembourg for initial information and impressions.

Online and mobile banking

Digital banks also offer the option of opening an online bank account.

Banks are now offering more and more online services. It is almost no longer necessary to visit a branch for day-to-day banking transactions.

The main high-street banks offer access to your accounts and simplified management via a web banking service. This also offers a range of online tools (loan and tax simulators, etc.).

Access and transactions are completely secure thanks to an electronic certification and digital identification system called Luxtrust. Accessible via smartphone using the LuxTrust Mobile app, all transactions are verified and secure.

Cost of opening a bank account and management fees

Depending on the bank, holding a bank account may be free or subject to a fee. The cost varies from €2 to €10 per month, depending on the services chosen. Expect an average of €5 in monthly management fees. Please note that there is a charge for sending paper account statements by post. Remember to request that this be canceled if you do not need it.

Some banks offer service packages linked to your main checking account. These paid packages include a number of free withdrawals in Luxembourg and the European Union, even outside the bank's network.

Several banks offer specific packages for expatriates, with a number of tailored services. Ask for details when you open your account.

Other banking services for your everyday needs

Means of payment

Banks offer their customers several payment solutions, including bank cards.

Immediate or deferred debit bank cards

There are two types of bank cards: immediate debit payment cards and deferred debit credit cards.

It should be noted that VPay immediate debit cards cannot be used to pay for online purchases. They can only be used in stores or to withdraw cash from ATMs.

Depending on the bank, the rates and packages offered vary. Check with your bank for more information.

Paying for purchases with a debit or credit card

You can pay for your purchases with a VPAY card (immediate debit) or with VISA or MasterCard credit cards (deferred debit).

Since Covid, card payments have fallen sharply in favor of mobile payments.

Assistance with lost or stolen bank cards - blocking your bank card

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

Cash withdrawals

Except at your own bank's ATMs, withdrawals made at other banks are subject to a fee. To withdraw cash from an ATM, you will need a bank card.

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

Cash withdrawals are now on the decline. At the same time, the number of ATMs is also decreasing. They can be found in bank branches or shopping centers.

Cash payments

With regard to cash payments, it should be noted that Luxembourg is one of the few countries in the European Union to allow cash payments without any limit on the amount.

Mobile payments and electronic transfers

More and more banks are offering mobile banking apps for smartphones. These apps allow users to pay directly in stores using their phones instead of their bank cards.

Luxembourg currently ranks third in terms of payments made using mobile apps. The use of Payconiq, a Luxembourg app, is growing rapidly. It allows users to pay merchants or public administrations directly by scanning a QR code. The Payconiq app is very convenient and free to use. It also allows instant money transfers between individuals, directly from mobile phone numbers.

Mortgage or consumer loans in Luxembourg

Your bank is also your partner if you need a personal loan or want to take out a mortgage to buy property. The bank can supplement your down payment by granting you a loan in line with your income and financial obligations. Other financial institutions, particularly brokers, also offer this type of financial service.

For a mortgage, you can borrow at a fixed or variable rate. Only the variable rate allows you to repay your loan early without additional costs. Consider this if you are expecting a large influx of cash.

The interest charges paid to your bank can be deducted from your tax return.

Savings accounts in Luxembourg

Your bank will also offer you the option of opening a savings account or other investment solutions to diversify your financial assets.

Find out about savings products that allow you to deduct part of the amounts paid from your declared annual income. Home savings and life insurance are among these tax-free savings products.

Life insurance is a secure investment vehicle. This product also allows you to pay out to your beneficiaries without transfer duties in the event of death.

Find out more about inheritance in the event of death and inheritance laws in Luxembourg here.

Banks can also offer you retirement savings products to help you prepare for your future retirement.

Wealth management services, family offices

Luxembourg is particularly well known for its wealth management services. Its expertise, developed over many years, attracts businesspeople and high net worth individuals from around the world. However, wealth management services are also available for smaller estates.

Whether through banks or specialized financial companies, everyone can find a solution for private banking and wealth management. Financialspecialists can offer you tailor-made asset management, investment advice, family office services, or philanthropic activities.

Whether you have simple needs, want to diversify your assets through pooled portfolio management, or require complex financial vehicles, Luxembourg offers genuine expertise.

Domestic and cross-border financial activities are carried out by experts with complete transparency and in full compliance with regulations.

Opening a bank account for non-residents

Bank accounts for intra-European and cross-border non-residents

Even if you are not a resident of Luxembourg, it is entirely possible to open a bank account there depending on your country of residence. While this is permitted for European Union countries, other countries such as the United States impose restrictions. Please check locally. In all cases, you will be subject to a number of rules.

Cross-border workers can open an account in Luxembourg, among other things for the payment of their salary. This allows them to benefit from a wide range of banking services. They will be issued with a V-Pay card or a Mastercard or Visa credit card, provided that their income is paid into the account. They can also open a savings account. Other services may be available to them.

End of banking secrecy since 2016

Banking secrecy has not been in force in Luxembourg since 2013 and has been implemented since 2016. Luxembourg banks now systematically exchange banking data in order to combat tax evasion.

All banks are now required to disclose their customers' financial information to the authorities. If you live abroad, the information will also be sent to the authorities in the country where the bank account holder is resident for tax purposes. You will therefore need to declare your Luxembourg account to the tax authorities in your country of residence.

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

Which bank to choose in Luxembourg?

Choosing a bank is crucial when you arrive in a new country as an expatriate or cross-border worker. Your choice of bank in Luxembourg should be based primarily on your needs.

Retail banks for your everyday needs in Luxembourg

A retail bank is the financial partner that will support you on a daily basis during your stay in Luxembourg.

Retail banks are particularly recommended for everyday transactions such as paying your salary, providing means of payment, or even helping you achieve your goals, such as buying real estate. They can also provide you with other services such as savings products or wealth management advice. If necessary, they can refer you to private banks for wealth management services.

More and more Luxembourg banks and international banks based in Luxembourg now offer "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 branch in Luxembourg. The link between the two institutions may facilitate financial transactions between your country of origin and your new country of residence or work, Luxembourg.

Luxembourg retail banks

Our partners Raiffeisen, Spuerkeess, and BIL are the main banks in Luxembourg. They have branches throughout Luxembourg.

Post also offers banking services in addition to postal services.

These same banks will often offer you wealth management services, in line with their international presence. You can also find other banking players that focus almost exclusively on wealth or fund management.

International retail banks

BGL BNP Paribas, a French banking group, is also well established in Luxembourg.

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

ING Bank recently announced that it was discontinuing its retail banking activities in Luxembourg in order to focus on its private banking activities. Customers were invited to transfer their bank accounts to other institutions in the market.