Articles
Open a Bank Account in Luxembourg
Updated on Tuesday 06th February 2024 Rate this article
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Residents, as well as non-residents, can open a current bank account in Luxembourg, also known as "compte à vue". Unlike other procedures, opening a bank account does not require a complicated procedure or many documents. The person interested in opening a bank account in Luxembourg in 2024 needs to present a valid identification document such as a passport or identity card and a proof of address. We kindly invite you to get in touch with our team of company formation agents in Luxembourg and ask for details and assistance if you would like to open a bank account for personal matters or for corporate purposes.
| Quick Facts | |
|---|---|
| Who can open a bank account in Luxembourg | Both natural persons and companies, local or foreign |
| Formalities to open a bank account | - natural persons: employment contract or proof of income for expats; - legal persons: company documents, certificate of registration for shareholders |
| Required documents | - Articles of Association for companies; - Valid passport, residence certificate, utility bills for expats |
| Types of bank accounts | - current, - for savings, - offshore accounts |
| Debit or credit card issued with a bank account | Yes, depending on the financial purposes |
| Cash deposit to open a bank account (YES/NO) | Some banks require a small deposit to open the account |
| Fees to open a bank account | For issuance of a debit or credit card |
| Banking services offered (YES/NO) | Yes |
| Possibility to open a bank account online (YES/NO) | Yes |
| Possibility to pay the utility bills (YES/NO) | Yes |
| Overseas money transfers accepted (YES/NO) | Yes |
| Formalities for student bank account | Letter from the university, proof of courses in Luxembourg |
| Loans option available (YES/NO) | Yes |
| Offshore bank accounts (YES/NO) | Yes |
| We provide support to open a bank account | We can manage the formalities |
Documents for opening a bank account in Luxembourg in 2024
Luxembourg’s banking system is in favor of non-residents as fewer taxes apply to non-residents in comparison to Switzerland, for example. If you are interested in using other opportunities, the banks offer different facilities, such as attaching a debit or a credit card to your account. If you choose this facility, you must also submit proof of income to the bank. Newcomers or new residents of Luxembourg are obligated to present either a work contract or a letter from the employer. Our company formation team provides information on how to open a bank account in Luxembourg. No matter if you are a natural person or a company, our specialists in Luxembourg will provide you all the information needed.
Opening a business in Luxembourg is uncomplicated if you seek specialist help. Also, our accountants in Luxembourg are at your disposal with tax advice and compliance, audits, bookkeeping, payroll, annual financial statements, and more. Thus, we suggest you use our services and benefit from the necessary support for the business you have in this country.
Below you can discover an infographic on this topic:
Types of bank accounts in Luxembourg
Luxembourg banks offer several choices for foreign citizens deciding to open bank accounts here. Those living here or working for a Luxembourg company may open current or savings bank accounts. Compared to other countries where current accounts are by far the most popular, savings accounts in Luxembourg can be an appropriate choice as the small country offers certain tax exemptions for certain incomes kept in a savings account.
Payroll in Luxembourg is a business trip that you can benefit from if you contact our accountants. The distribution of electronic payroll records, calculation, and payment of taxes plus salary delivery are some of the aspects related to payroll. There are various procedures that only an accountant with experience in this area knows. But to find out the costs of these services, contact our company.
Living in Luxembourg as a foreigner means opening a bank account for a wide range of financial transactions. With such a bank account one can pay utility bills, and make different money transfers, local or overseas.
Online banking system, developed in Luxembourg
Even if many banks offer the possibility of opening a bank account in Luxembourg using the internet, the documents needed for the procedure and listed above are to be sent to the bank by post. In addition, banks in Luxembourg have special offers that include lower or no banking fees for students, job seekers or children. If you are interested in opening a savings account with a bank in Luxembourg, you should be aware that the fees applied in 2024 by banks are different depending on the chosen bank and that the state applies a tax on the interest accumulated called "précompte mobilier".
Non-resident bank accounts are also available in Luxembourg. In this sense, the passport and ID with information about the current domicile are solicited by the financial institution. Here is a video presentation about bank accounts in Luxembourg:
Private banking in Luxembourg
Banking in Luxembourg is a very attractive option for those interested in using private banking opportunity as well. Even if Switzerland has a very developed sector in regards to private banking, Luxembourg is also a country that has private banking at the heart of its economic environment. Private banking in Luxembourg represents a significant sector of the banking system because it attracts many clients due to the compliance with the strict laws set by the European Union. Moreover, according to statistics, in 2013 Luxembourg accounted for 6% of the world’s private banking business. Being a very important sector for the country, that maintains a very active banking industry, private banking has increased the country’s attractiveness.
Clients under 30 years can easily open saving accounts in Luxembourg and enjoy the advantages offered by the selected bank in this country. Special services and rates can be provided by employers if customers choose the bank they work with.
Can I open a bank account from overseas?
Yes, it is possible to open a bank account in Luxembourg from overseas, on the internet. Opening a bank account online is quite a simple procedure if all the documents are provided. However, it is still needed to present the documents to the bank at the time you need to collect the credit card. To simplify the things even more, you can appoint our consultants with a power of attorney and let us represent you with the financial institutions in Luxembourg, in order for you to skip traveling to this country. In the case of confidential arrangements with the bank, it is recommended to be present at the time the bank account needs to be open. Additional information in this matter can be provided by our team of company incorporation specialists in Luxembourg.
Can foreigners open bank accounts in Luxembourg?
Yes, foreign natural persons or entrepreneurs without residency in Luxembourg can easily open a bank account in Luxembourg, if all the requirements are fulfilled and accepted by the bank. Providing information about the home address with a utility bill or a lease contract is necessary for opening a bank account in Luxembourg as a foreigner. Instead of dealing with misunderstandings, it is best to talk to our consultants and find out more about the services we can provide for you. You can also ask for company formation in Luxembourg and let us help you with the conditions in this sense.
Do I need a bank account for a shelf company in Luxembourg?
Yes, if you decide on purchasing a shelf company in Luxembourg and establish your business presence in this country, you should know that a bank account is necessary. It takes approximately two days to set up a bank account, and if you would like to skip all the formalities, you may address to our team of consultants.
Conditions for opening a bank account in Luxembourg
The requirements in terms of documents should be considered once you wish to open a bank account. Here are a few facts you should bear in mind:
- • a valid identification card or a passport is needed for opening a bank account;
- • proof of mortgage or a utility bill should be provided to the bank;
- • some banks may ask for proof of employment if the account is opened by a natural person;
- • some financial institutions might ask for income proof, especially if debit or credit cards are solicited.
Do not hesitate to get in touch with our team and ask for complete details in this matter.
Internet banking services in Luxembourg
Internet and mobile banking are necessary for both natural persons and companies in Luxembourg because most of the transactions can be settled with the help of such services. A mobile banking application is normally provided to the clients at the time the bank account is established. The banking system in Luxembourg is extremely appealing to foreign investors and non-residents because there are important foreign financial institutions with establishments in this country. This is the most important sector in Luxembourg and the field in which numerous entrepreneurs decide for business development and settle branches and subsidiaries. If you would like to know more about how you can open a bank account in Luxembourg, do not hesitate to get in touch with our team of consultants.
Cards and ATMs in Luxembourg
Withdrawing money from the ATMs of the bank you work with is free of charge, yet, using other banks for such services might be subject to different fees. Bank account owners in Luxembourg can also withdraw money in EU countries for free, but some banks might impose specific costs. One should note that there is no limit for cash payments in Luxembourg, plus, one can choose the type of credit or debit card, as proposed by the bank. If you would like to know more about the bank services in Luxembourg and about how to open a bank account as a non-resident in this country in 2024, you can talk to our specialists.
Bank accounts for students in Luxembourg
Luxembourg is chosen by many foreign students interested in high-class education, and the opportunities of the prestigious colleges in this country. When it comes to students and financial independence, banks in Luxembourg provide a wide range of services tailored to their needs.
The possibility of managing the day-to-day finances through varied facilities, tailored fees, no costs for cash withdrawals, unlimited electronic transfers, using more than just one currency, and access to all accounts 2/7 are a few of the services provided by most of the banks in Luxembourg to foreign students in this country. A bank account is also used by students renting a property in Luxembourg, as landowners normally ask for an initial deposit. If you are a student in Luxembourg, you can talk to our agent and find out more about how to open a bank account as a non-resident.
Savings accounts in Luxembourg might include interest tax, but a share of the savings can be exempted from this kind of tax. An example in this sense is an account established to save for a house in Luxembourg. Benefits and discounts are provided by banks in Luxembourg for customers under 30 years of age.
Can a bank refuse my application for opening an account?
Private banks in Luxembourg impose specific conditions for opening a bank account as a non-resident, so, if the criteria aren’t met, then the institution has the right to refuse potential clients. Instead of dealing with such problems, you can talk to our company formation agents in Luxembourg and find out how you can open a bank account as a non-resident in this country, as a natural person or businessman. The same team will help you register a company in Luxembourg by handling all the formalities involved. Feel free to discuss this with us.
Foreigners who want to open a bank account in Luxembourg can also benefit of simplified online procedures. Many banks in Luxembourg offer this possibility, plus easy money transfers from personal accounts to the new one opened in Luxembourg, depending on the selected currency.
FAQ about bank accounts in Luxembourg
1. Can I open a bank account as a non-resident in Luxembourg?
Yes, foreigners in Luxembourg have plenty of opportunities in terms of bank services. It is quite easy to open a bank account in this country, yet you can talk to our specialists about the formalities of such an operation.
2. What types of bank accounts can I open in Luxembourg?
Current or savings bank accounts can be opened in Luxembourg. Both natural persons and company owners can open a bank account in Luxembourg as a non-resident.
3. Can I ask for online banking facilities?
Yes, most financial transactions can be made online, as banks provide a wide range of facilities that can be performed without customers to go to the bank.
4. Can I open a bank account in Luxembourg from abroad?
Yes, opening a bank account in Luxemburg can be done without having to travel. One of our specialists can tell you more about the formalities you need to consider.
5. What documents are necessary for opening a bank account in Luxembourg?
A valid passport, proof of utility bills, proof of employment, and evidence of a clear criminal record are among the documents that can be requested by a financial institution in Luxembourg. All the help you need in this matter can be solicited from our agents.
6. What types of internet banking facilities can I receive in Luxembourg?
All banks in Luxembourg offer internet banking facilities, allowing customers to make online payments, transfers, currency exchange, and many more. There are financial institutions that can provide tailored services.
7. How do I open a bank account for my company in Luxembourg?
The obligation of opening a bank account for a newly-formed company in Luxembourg is explained by one of our company formation specialists at the time the registration of a firm starts. The minimum share capital is normally deposited in a local bank account.
8. When does a bank refuse an opening application?
Banks in Luxembourg can refuse opening an account to persons who do not respect the conditions imposed.
9. How fast can I open a bank account in Luxembourg?
Normally, you can open a bank account and use it in just one day. The formalities are quite simple.
10. Can I close a bank account and open a new one in Luxembourg?
Yes, you need to open a new bank account, transfer the money and then close the old one. Our agents can help you.
One should note that the highest number of bank branches per capita in the world is in Luxembourg, with about 59 banks per 100,000 population.
Why choose Luxembourg for business?
Even if it is a small country, the business potential of Luxembourg is huge for both domestic and foreign entrepreneurs. The stable economy, the great strategic geolocation of the country with connections with countries worldwide, the excellent infrastructure and transportation are among the advantages considered by investors from abroad before establishing their business presence in Luxembourg. It is quite easy to open a company in Luxembourg because there are no harsh formalities, Luxembourg being known and extremely appreciated for the ease of doing business.
The incorporation procedures are fast and allow foreign business persons to enter the market in a fast and reliable manner, without any restrictions. The financial sector is considered the most important one, followed by information and communication technology, automotive, shipping, logistics, tourism, medicine, etc. It is important to know that our team of consultants is at your service if you would like to open an investment fund or to register a company in Luxembourg, by offering the needed assistance and guidance. Here are some interesting facts and figures about investments in Luxembourg:
- Around USD 128 billion was the total FDI stock in Luxembourg in 2018.
- Bermuda is the main investor in Luxembourg, 13.5% of the FDIs being directed in this country.
- ½ of the total FDI in Luxembourg in 2019 came from EU countries.
You are invited to contact our company formation agents in Luxembourg for extra information about how to open a bank account in Luxembourg as a non-resident.
Meet us in Luxembourg
Contact our specialists in company formation in Luxembourg, who have a large experience in finance and international business.
Set up an appointment with us at +352 671 533 922. Alternatively you can incorporate your company without traveling to Luxembourg.
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As a BridgeWest partner for many years, CompanyFormationLuxembourg.com is for sure a great choice when wanting to start a business in this important financial hub. International entrepreneurs can rely on the professionalism of this team.
Vlad Cuc, Director of BridgeWest www.bridgewest.eu
Read more testimonialsVlad Cuc, Director of BridgeWest www.bridgewest.eu