Open a Bank Account in Europe as a Non-Resident

If you’re looking to open a bank account in Europe as a non-resident, you’ve probably noticed that it’s getting increasingly difficult.

And the reason is pretty simple: non-residents (especially those with no connection to the country or region are considered “high-risk.”

But don’t worry, there are still plenty of options when it comes to opening a European bank account for non-residents that we’ll share below – including opening remotely.

KEY TAKEAWAYS

• Non-residents can open a bank account with a European bank
• European bank account options include brick-&-mortar & digital
• Foreign individuals should target countries where they have ties
• Business owners should find banks that cater to their industry
• Services vary so find a European bank that matches your needs
• Use the information below to get started opening today

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. How to Open a Bank Account in Europe as a Non-Resident?
2. Why Is It So Difficult to Open a European Bank Account?
3. Why Bank in Europe as a Non-Resident?
4. Who Should Bank in Europe?
5. What Are the Benefits of Banking in Europe as a Non-Resident?
6. What Other Factors Should I Consider Before Banking in Europe?
7. Ready to Open an Offshore Bank Account?

Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open an international bank account in top banking hubs around the world.

How to Open a Bank Account in Europe as a Non-Resident?

To open a bank account in Europe as a non-resident there are several important considerations and stumbling blocks that you need to be aware of. These will ultimately determine which bank and EU country are most suitable for you.

The account opening process can vary depending on which country and bank you are considering.

While the account opening process is slowly becoming more standardized across the European banking industry, there are still major differences and inconsistencies.

For certain banks, account opening may depend on whether or not you have a local address. Alternatively, it might be determined by whether you have an accepted proof of address. And in some cases, you might need other types of ties to the country.

At another European bank, the opening requirements might be much more lenient. For instance, maybe a foreign proof of address will work. If that’s the case, you won’t need to show ties to the country. Instead, you just have to physically show up at the bank with your standard documents.

Let’s take a look at some specific requirements below…

Reason for Wanting to Bank in Europe as a Non-Resident

One of the key questions you will be asked when opening a bank account in Europe as a non-resident will be your reason for wanting an account.

Remember: as a non-resident, you’re automatically considered a higher-risk client to the bank, so your answer matters.

Ultimately, the bank will have its policies for what it deems to be an acceptable justification. And this will have a big impact on your ability to open a non-resident bank account in Europe as a non-resident. Obviously, if the bank deems your reasoning acceptable or not is an important step in account opening.

We discuss specific non-resident account opening strategies for European countries and other major banking hubs in our Banking Intelligence Reports, which are available to GlobalBanks Insiders in the member’s area of the site. For more information, click here.

Ties to Europe & the Local Country

Another major stumbling block for non-residents trying to open accounts in Europe is their ability to prove local ties. This can be more complicated than your justification for wanting an account.

To prove local ties, a bank might require that you provide local reference letters. Alternatively, they may accept supplier contracts or even lease agreements. Though this can also include a certain type of visa or an employment contract. And if you don’t have any of these documents, you’re going to need to find a different way, another bank, or another country.

Where Are You From & Where Do You Live

As with account opening in most countries, your citizenship and your place of residence will matter to banks in Europe. Some European banks also do not look favorably on individuals from countries that are on black or greylists.

With this in mind, if you come from a less desirable or high-risk country, you might find yourself going through enhanced due diligence. This can often be a more stressful and costly experience than it is worth. If it happens, you’ll be subject to more stringent requirements. This usually includes providing more supporting documents and authentications. And the bank may even charge fees just to review your application. If that’s the case, you might want to consider another bank account at a different bank.

Local ID or Tax Number Requirements

Banks in certain European jurisdictions may require a local tax identification card or a local tax number. If that’s the case, you will almost always need to obtain this before applying for an account.

While this may look like a useless slowdown, banks will often request this information as part of their compliance with local regulations (in part, due to the issues referenced above). This is especially common in countries like Spain, Portugal, and Italy where the local tax authorities require such documentation for certain transactions.

However, as we’ve already shared with GlobalBanks Insiders, it is possible (in certain instances) to obtain the necessary documentation in order to open accounts even if you are not a tax resident and don’t live there.

We‘ll outline this process in a future premium report. This report will explain how to open European bank accounts as a non-resident in more detail. It will also include specific account opening strategies and first-hand experiences. And of course, you will receive direct contact information for the best banks in the region.

The key is having the right information and strategies. And where possible, having direct contacts and knowing what to do. But you also need to know what not to do. And when possible, where to go, what is acceptable, and what each bank’s preferences and sensitivities are.

It’s also a huge advantage if you can access specific details on what has worked in the past. Similarly, feedback from people just like you who were able to successfully open accounts is key.

GlobalBanks IQ members can access all this information from the Banking Database in the membership section of the website. They can look up the country or specific bank they want. Then, they can find the best strategies and account opening insights for that bank.

Why Is It So Difficult to Open a European Bank Account?

Regulators, governments, and bank compliance everywhere are waging war against non-resident accounts.

Why? Because, in recent years, several European banks were busted for facilitating money laundering through non-resident accounts. We’ve seen this happen in Latvia, Estonia, Malta, and even Andorra.

Now, these “non-resident accounts” weren’t actually set up for legitimate banking purposes. They were opened to facilitate illegal activity. Moving money into the country, and then out again.

Unfortunately, in the eyes of the regulators, it’s becoming difficult to tell the difference between good non-resident accounts and bad non-resident accounts that might be used for illegal activity.

Good vs Bad Non-Residents

While a few bad apples shouldn’t impact the ability of all non-residents with real banking needs to open accounts, it does.

Fortunately, if you’re a law-abiding citizen that’s capable of providing the necessary documents and passing KYC & AML procedures, you can still open an account. And in this article, we’ll explain how to open a bank account in Europe as a non-EU resident.

We’ll also share some important considerations, the pros, and cons of banking in Europe, as well as some of the specific questions that you need to ask before applying for an account.

To get started, there are three important questions that you’ll first need to answer before you can open a bank account in Europe as a non-resident. These are…

1. What is your client profile and reason for wanting an account?
2. Where do you want to bank and can you meet the bank’s requirements?
3. Which banks will really accept you and provide the services you need?

We’ll explore each of these questions and get you on your way to opening bank accounts in Europe as a non-resident.

Why Bank in Europe as a Non-Resident?

Not surprisingly, many European countries are at the top of the list when it comes to banking excellence. These include such places as Andorra (pictured), Austria, Liechtenstein, Luxembourg, Monaco, and Switzerland.

But, there are other countries in Europe that find themselves at the opposite end of the spectrum. And, you might be better off avoiding them –unless, of course, you have a specific reason to bank in that country (e.g. family, real estate, or corporate ties). 

Examples of such places include Cyprus, Estonia, France, Greece, Italy, Latvia, and many other countries.

That said, be very careful about where you choose to open accounts in Europe. The country you choose is just as important as the bank you open with. It can mean the difference between a top-notch banking experience or drowning in fees, basic customer support, and regretting that you ever applied. 

Imagine not being able to send outgoing transfers because you don’t have a local phone number that can receive SMSs. Or discovering that the bank charges absurd fees for services that should be free- like balance statements, transfer confirmations, or just viewing your transaction history. Or worse, after physically traveling to the bank and applying for an account, you discover that you can’t even make international transfers via online banking – which was the whole point of the account in the first place!

Fortunately, you can avoid all of these problems and find great banking options in Europe. But you need to pick the right banks in the right country.

We’ll share more details on how you can do this below, for now, let’s discuss the main non-resident groups that can benefit from banking in Europe to make sure it’s the right choice for you.

Who Should Bank in Europe?

There are a number of different types of non-resident clients that can benefit from banking in Europe. The benefits for each group will vary and ultimately depend on their banking goals.

Here’s a quick list of the different types of non-residents that can benefit from banking in Europe. We’ll expand on each of these below:

• Non-resident entrepreneurs
• Freelancers serving European clients
• Online businesses selling to Europeans
• Frequent travelers
• Non-European citizens wanting to diversify to stable jurisdiction
• Non-profit organizations with international donors

Non Residents Requiring a European Business Bank Account

For example, entrepreneurs with business operations in Europe might need a business bank account in Europe to send and receive payments. For example, this may include an account in one of the 36 Single Euro Payment Areas (SEPA countries) with a local IBAN.

Similarly, freelancers who need to receive payments from clients in European countries would benefit from a European bank account.

In addition, any business that wants to sell digital or other products via online channels would benefit from having European payment processing solutions and the ability to process payments in euros. Having low-cost payment processing in the same currency that you customers to pay you in ultimately decreases your processing costs.

But it’s not just businesses and entrepreneurs in Europe (or selling to Europeans) that can benefit from having a European bank account…

Frequent Travelers Requiring a Euro Bank Account

Anyone who travels to Europe from abroad frequently, even if just for pleasure, would benefit by being able to access funds via a euro bank account while in the region. By doing this, they would slash the cost of international transfers, currency conversion fees, likely capturing preferential rates from a local bank, and hold multi-currencies in a single account.

Many foreigners will use a debit card or credit card when they travel. These debit and cards will also charge additional fx fees (3% or higher), just for making a purchase abroad. So instead of using your local bank account from your home country and incurring high fees, you could us an EU debit or credit to avoid these fees entirely.

Another benefit of having a European account if you frequently travel to the continent is that it would be easier to book accommodation, car rentals, and other activities that require a local phone number or address. This is especially helpful if you travel to Europe regularly.

Non-Resident Bank Account to Diversify Wealth Into a Saver Account

Depending on where you’re from, you might want to open a bank account in Europe as a non-resident in order to diversify away from risks and limited rights in your home country. For many people, this is the sort of bank account makes sense.

For instance, people from countries with unstable currencies may want to open euro-denominated accounts. When compared to other currencies, the euro is still relatively stable and less prone to shocks. Likewise, if you are in a country with a plummeting currency, like Lebanon or South Africa, by moving your money to a European bank, you can preserve your wealth and protect yourself from risks at home.

While the Eurozone has suffered some political and economic bumps, it is still relatively stable when compared to many countries around the world. By opening a bank account in Europe as a non-resident, you can better protect yourself from risk. This is especially true if you are from a less stable country, with shaky banks, and a volatile currency.

What Are the Benefits of Banking in Europe as a Non-Resident?

We’ve touched on a few of the benefits that can be achieved by specific groups when opening accounts in Europe as non-residents.

But, there are additional benefits and advantages that come with having a EU bank account that are also worth mentioning.

Better Quality Traditional & Online Bank Account Options

By banking in Europe, you will be able to access a number of regional benefits from your traditional bank account. These can include everything from free transfers to most European banks and low-cost multi-currency accounts that aren’t always available in other regions.

Similarly, some European banks charge low fees for maintaining accounts. This can allow you to open with good quality banks for zero fees if you can meet minimum balance requirements.

Additionally, banks in Europe tend to offer access to a high-quality virtual experience via your online bank account. This can make it easier for you to manage your accounts while abroad. But you can run into difficulties with accessing your bank account online while abroad. To resolve this, some people report using a VPN to access their accounts while traveling.

Deposit Insurance

Additionally, if you are banking in a European Union country, your bank will have a deposit guarantee. This is backed by the European Central Bank (the ECB). And while deposit guarantees aren’t an indicator of a bank’s quality or financial health, they do provide an extra layer of insurance. Thanks to the ECB, your deposits in an EU insured bank are guaranteed up to €100,000.

Keep in mind that, in case an Emergency, the system relies on a “bail-in” procedure. This means that, in case of insolvency, some account holders may have to contribute to the bank’s recapitalization. However, this should not apply to retail clients with deposits below the €100,000 threshold. While there have been very few cases of bail-in since Europe introduced this rule, it is fair to assume that the risks are higher with smaller banks.

Crypto Banking

While this is a relatively new phenomenon, certain banks in Europe have become more open to the acceptance of cryptocurrencies. This even includes banks in some of the more established banking hubs. This includes such places as Liechtenstein and Switzerland. Both of which have good crypto banking options.

In such instances, as long as you can provide the supporting documentation (as described in our premium report, The Ultimate Guide to Crypto Banking), certain European banks are willing to accept crypto-related businesses, allow withdrawals from cryptocurrency exchanges, and accept clients with crypto as a source of wealth.

But regardless of the specific benefits that you’re looking to achieve when you open a bank account in Europe as a non-resident, you need to know how to open the account.

What Other Factors Should I Consider Before Banking in Europe?

No matter where you open a bank account, you always need to make sure that the bank and the services they provide match what you’re looking for.

Not doing this can result in high maintenance fees, expensive transfer fees, and even additional costs when you close the account.

Like banking anywhere, some banks in Europe will set a limit on monthly transfers. And they might have specific parameters you need to meet to avoid fees.

Such parameters may include a minimum opening deposit requirement. But they can also include a minimum balance requirement after the account is open. Often, depositing a certain amount of money each month can also be required. And in certain instances, they may also require investing in certain bank products or accessing financial products like mortgages.

Before applying to any bank, make sure that you can actually meet the bank’s opening requirements. This means you need to be able to afford their fees. And you will need to be able to deposit the required amounts. There’s nothing worse than going through a long application process at a bank that never would have accepted you in the first place.

Ready to Open an Offshore Bank Account?

If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.

GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…

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+ Expert insights on which banks to choose & why

+ Plus, FULL access to our entire suite of account opening tools and intelligence!

And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.

Use this link to see how GlobalBanks Insider can help you successfully open accounts.