If you're considering opening a bank account in Luxembourg, whether you live there or not, this article is here to guide you through the process.
Banking landscape in Luxembourg
Luxembourg, a thriving economic center that attracts many investors, is home to various private banks and major banking groups. Among the approximately 120 banks in the country, some notable ones include: Banque et Caisse d'Épargne de l'État (Spuerkeess), BIL, ING, Banque de Luxembourg, Quintet, BGL BNP Paribas, and Post's banking services (in partnership with Raiffeisen). Numerous banks are associated with the Association des Banques et Banquiers du Luxembourg (ABBL), and you can access the websites of these member banks through ABBL's online directory.
Choosing your bank in Luxembourg
When it comes to choosing a bank, several essential factors come into play. It's highly recommended to reach out to multiple financial institutions before making a final decision about where to open your account. Why? Because account opening and maintenance fees, tax benefits, and interest rates can vary from one bank to another. Additionally, the convenience of managing your bank account remotely is a significant advantage, especially for those who regularly cross borders.
Keep in mind that some banks may have specific policies regarding the initiation of remote accounts. Therefore, it's crucial to carefully review the terms and conditions of the bank you plan to open an account with.
Moreover, if you're a non-resident looking to open a bank account in Luxembourg, some banks might require additional evidence of your ties to the country, such as professional or financial reasons for establishing a banking relationship in Luxembourg.
Before opening a remote account, it is a good idea to compare the offers from various banks, assess the associated fees, review the services they offer, and consider your specific requirements. This will help you make an informed decision that aligns with your financial needs.
Formalities to open a bank account
When you're ready to open a bank account in Luxembourg, you'll need to provide at least the following documents to the bank:
- Valid ID;
- Proof of address;
Some banks may require additional documents, such as:
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Proof of income (pay slip, employment contract, benefits, rental income, etc.)
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Tax number
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Luxembourg matricule
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LuxTrust certificate
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Copies of any ongoing loan agreements
During the account opening process, the bank will inform you about the fees associated with various transactions. Furthermore, in line with anti-money laundering and counter-terrorism financing measures, Luxembourg banks may request information about the source of funds deposited into the account.
Services for non-residents in Luxembourg
Non-residents, including cross-border commuters, can access various banking services in Luxembourg. These services typically include current accounts, bank cards, online banking, savings options, and, under certain conditions, loans and credit facilities. Foreign exchange services are also available. However, the offerings can vary between banks, so it's advisable to inquire with your chosen bank about the services available to non-residents and any potential limitations.
There is a critical requirement to meet for these services: the account holder must declare all sources of income received from outside their country of residence.
The Use of Checks in Luxembourg
Checks are almost never used in Luxembourg, where bank transfers are widely preferred. Making a transfer from any Luxembourgish bank or adding a new beneficiary is therefore very simple and quick. However, banks rarely accept checks for deposit, and those that do charge for the service (usually around €20 per check). Additionally, the processing time is very long, often taking 2 to 3 months before the check is actually cleared. Moreover, Luxembourgish banks do not provide a checkbook when opening an account. Those that offer this service generally charge around €25 per checkbook, with additional fees of approximately €5 per check issued.
Finally, note that access to banking services is done via a LuxTrust certificate. This is an OTP (One-Time Password) service that ensures secure access through a unique and temporary security code. It allows users to use the same credentials to log in to their bank accounts, even if they have accounts with multiple banks, as well as to all platforms that use LuxTrust, such as MyGuichet — a government platform for completing administrative procedures online.
Useful links:
Association des Banques et Banquiers du Luxembourg (ABBL): www.abbl.lu
ABBL member banks: https://www.abbl.lu/fr/accueil-3/a-propos
LuxTrust: https://www.luxtrust.com/en
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
