Just arrived in Luxembourg as an expat? One of your first steps will be the opening of a bank account to receive, particularly, your salary.
The banking system in Luxembourg consists in retail banks for your everyday needs. Private banking offers a service more oriented toward private asset management and fund management.
Retail banking for your daily needs or private banking?
There are many banks in the Grand Duchy’s financial centre. In most cases, they will offer you day-to-day banking services as well as asset management.
However, you should be aware that some banks are more oriented towards private banking and offer specific products for the management of large assets.
Bank branches are generally opened from Monday to Friday from 9:00 am to 4:30 pm. Watch out, certain agencies close between 12:00 am and 1:30 pm.
Opening a bank account in Luxembourg
To open an account in a bank branch, present your ID card (ID card or valid passport), a proof of residence (electricity bill, contract of lease…) and according to the banks, your contract of employment. Make sure also that the chosen bank has a good network of branches and cash machines on the Grand Duchy territory. It is among others the case of retail banks.
Holding a bank account can be free of charges or chargeable, from 2 to 10 euros per month, depending on the services chosen.
Bank cards and cash machines
Except with the machines of your own bank, retreats are charged. Some banks propose all the same formulas including a number of free withdrawals in Luxembourg and in the European Union.
With regard to cash payments, it should be noted that Luxembourg is one of the few countries un the European Union that allows cash payments, with no limit on the amount. Cash withdrawals are mainly made with the V PAY card (European system of debit card) offered by numerous banks or possibly (but with additional costs) with your Visa card or MasterCard.
You can pay your purchases with the V PAY card (non-deferred debit) and the VISA or MasterCard credit cards (deferred debit).
Internet and mobile banking
The main banks with counters offer an access to your accounts via a banking internet service with numerous online tools (taxes and loans simulator, etc.).
Banking institutions are more and more numerous to propose a banking mobile application. Before visiting a specific agency, do not hesitate to visit the different banks’ websites to get some information and a first impression.
Your bank is also your partner if you wish to buy a real estate property. It can indeed complete your provision by the granting of a real estate loan according to your income and your financial charges.
Assistance in case of loss or theft of your bank card – blocking your bank card
In case of loss or of theft of your American Express, V PAY, Visa or Eurocard MasterCard card, contact the Six Payment service (Cetrel) (24/7).
Phone: +352 49 10 10
Bank account for the Luxembourg non-residents
It is possible to open a bank account in Luxembourg, even if you are not a resident. Be careful, however, it depends on your country of residence. While this is allowed for European Union countries, other countries such as the United States impose restrictions. Find out more locally.
They can thus benefit from numerous services, including either a V Pay or a MasterCard or Visa card on condition of domiciling their income, a savings account…
It is however necessary to know that within the framework of the fiscal transparency, banks practise the systematic exchange of banking data to fight against tax evasion. Banks are therefore required to communicate to the Administration the financial information of their customers, including the administration of the country where fiscally lives the bank account holder. You will therefore have to declare your Luxembourg account to the tax authorities of your country of residence.
Everyone also has to declare all their sources of income, including the foreign ones, to their country of residence administration.
Finding a bank in Luxembourg
The choice of a bank is crucial when you arrive in a new country as an expatriate, or more simply as a new cross-border worker. Your choice of bank depends on your needs so that you find a financial partner that will help you daily and to realise your projects, including the acquisition of a property for your personal use or in order to rent it.
More and more Luxembourg or international banks in Luxembourg propose today banking packs designed for expat people.
When opening a bank account in Luxembourg, check with your banking institution in your current country if this one has a subsidiary in Luxembourg. The link between both establishments can potentially facilitate the financial movements between your country of origin and Luxembourg.
The BIL, Spuerkeess, and the Raiffeisen are the most common Luxembourg banks. They propose among others agencies almost everywhere on the Luxembourg territory. Post Luxembourg also proposes banking services.
Other foreign banks such as ING or BGL BNP Paribas are also well implanted in Luxembourg, often through a vast network of agencies. They will propose you daily bank services as well as private asset management.
Banks often offer a property and patrimonial management service, in adequacy with their international presence. You can also find other banking organisations almost exclusively dedicated to private asset or fund management.
How to find your bearings? The best option is to ask your own bank in your current country, to define with them which banking institution in Luxembourg is the most likely to offer you the services meeting your financial needs.
13 August 2020
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28 May 2020