The banking system in Luxembourg is composed of more than 120 international banks, whose parent companies are established in nearly 30 countries. These institutions offer many cross-border services, with an average solvency ratio of over 24%:
- network banks for your daily needs
- private banking with wealth management, investment funds, family offices,
- financial and treasury services to companies,…
Banking services in Luxembourg
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 wealth management.
However, some banks are more oriented towards private banking activities and offer specific products for the management of large assets.
More and more family offices are appearing in Luxembourg to meet the needs of very large international fortunes.
Network banks for daily needs
Bank branches are generally open Monday through Friday from 9:00 am to 4:30 pm. Please note that some agencies close between 12:00 and 13:30.
In addition, since Covid, many small agencies are closed and only receive clients by appointment.
Opening a bank account
To open an account in a bank branch, present your identity document (valid identity card or passport) and a certificate of residence (electricity bill, lease contract,…). Some banks will also ask for your employment contract and will require the direct debit of your salary.
Make sure that the chosen bank has a good network of branches and cash dispensers in the Grand Duchy. This is the case for network banks or retail banks, among others.
Having a bank account can be free or paid, from 2 to 10 euros per month, depending on the services chosen. Some banks offer service packages linked to your main current account. These paid packages include a number of free withdrawals in Luxembourg and the European Union, including outside its banking network.
Several banks offer specific packages for expatriates, with a number of adapted services.
Bank cards and cash machines
Withdrawals from other banks are subject to a fee, 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 that allows cash payments without any limit on the amount.
Cash withdrawals are mainly made with the V PAY card (European debit card system) offered by many banks. Cash withdrawals can also be made (but with additional fees) with your VISA or MasterCard.
Payment for your purchases is possible with V PAY (immediate debit) and VISA or MasterCard (deferred debit).
Online banking via internet and mobile
The major banks with teller machines offer a access to your accounts and simplified management via an Internet Banking service. In addition, this service offers numerous online tools (loan simulator, tax simulator, etc.). More and more banks are offering a Mobile Banking application for smartphones.
Before visiting a branch, do not hesitate to visit the websites of the different banks for a first information and impression.
Real estate or consumer loans
Your bank is also your partner if you need a personal loan or if you want to buy a property. It can indeed complete your contribution by granting a real estate loan in accordance with your income and your financial charges.
The rates offered today are particularly low. Beware, however, of the rise in rates in recent months.
Your bank will also offer you the possibility of opening a savings account, or other investment solutions to diversify your financial assets.
Find out about credit/debt interest rates. Due to the low interest rates, some banks have to tax the sums invested in accounts, from a certain amount.
Also considerlife insurance as a secure investment vehicle and tax-free transmission to your beneficiaries in the event of death.
Lost and stolen credit card assistance – credit card blocking
In case of loss or theft of your American Express, V PAY, Visa or Eurocard MasterCard, contact immediately the Worldline Six Payment – Cetrel service (24 hours a day, 7 days a week) to stop your card, at the following number : +352 49 1010
Wealth management services, family offices
Luxembourg is particularly well known for its wealth management. Its know-how, developed over many years, attracts businessmen and big international fortunes. However, the wealth management offer is completely adapted for smaller assets.
Whether through banks or specialized financial companies, everyone will find a solution for private banking and wealth management. The financial specialists will be able to propose a tailor-made offer for asset management, investment advice or even family office services or philanthropic activities.
Simple needs such aslife insurance, diversification of assets through pooled portfolio management or complex financial vehicles, Luxembourg’s expertise is real.
National or cross-border financial activities are carried out by experts, in full transparency and in full compliance with the rules of compliance.
Opening a bank account for non Luxembourg residents
Even if you are not a resident of Luxembourg, it is possible to open a bank account in Luxembourg, depending on your country of residence. If this is allowed in the European Union, other countries such as the United States for example impose restrictions. Find out more 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. They can thus benefit from many banking services. A V-Pay bank card or a Mastercard or Visa credit card will be issued to them, provided they have a direct debit. They will also be able to open a savings account. Other services may be offered to them.
However, it is important to know that in the context of tax transparency, banks are now systematically exchanging banking data in order to combat tax evasion.
All banks are now required to report their customers’ financial information to the Administration. If you live abroad, the information will also be transmitted to the administration of the country where the bank account holder resides for tax purposes. You will therefore have to 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.
Choosing your bank in Luxembourg
The choice of a bank is crucial when you arrive in a new country as an expatriate or a frontier worker. Your choice of bank should be based on your needs.
The bank is your financial partner who will accompany you on a daily basis, for the payment of your salary and in the realization of your projects, including theacquisition of a property for you or for rent.
More and more Luxembourg and international banks established in Luxembourg are now offering special expat banking packages. Find out more.
To open a bank account in Luxembourg, check with your bank in your current country if it does not have a branch in Luxembourg. The link between the two establishments may facilitate financial movements between your country of origin and your new host or working country, Luxembourg.
BIL, Spuerkeess, Raiffeisen are the main Luxembourg banks. They also have branches all over Luxembourg. Post also offers banking services in addition to postal services.
Other foreign banks such as BGL BNP Paribas or ING, … are also well established in Luxembourg. They often have an extensive agency 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 can also findother banking players almost exclusively oriented towards asset or fund management .
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