Opening a bank account in Luxembourg

About to move your family to Luxembourg? Coming here for your studies or about to start a new job here as a cross-border worker? Welcome! One of the things you will need to sort out is opening a bank account in Luxembourg. The good news is that this is a quick and straightforward process at most Luxembourg banks.

How to open a bank account in Luxembourg

There are a good many banks in Luxembourg: whether you choose a retail bank, private bank, online bank or neobank, it’s up to you to decide which is the best bank for you. Whether you want to open an account, or are looking for some specific services, many of these institutions have banking packages to match your situation and profile.

If your financial requirements are both private and professional, the major banks offer entrepreneurs a competent contact person who can provide an overall response to all of their needs. You will have to work out what suits you best!

Who can open a current account?

Firstly, if you aren’t resident in Luxembourg, some rules and conditions apply to opening a bank account here, in addition to being over 18 and having legal capacity. If you live in the European Union, you are legally entitled to open an account in Luxembourg. If you live outside of the European Union, your situation requires closer consideration. In particular, certain restrictions may apply to US residents or citizens. In any event, check with the bank of your choice whether you are eligible to open an account.

More generally, whether you are a cross-border or ex-pat employee, a student, or if you have another link to Luxembourg, one of the country’s well-known banks can help you to open an account and find out more about all of the advantages of daily banking in Luxembourg.

At some banks you can open your account entirely online.

Where and when can you open an account?

There are several options available to you to open your new bank account. You can either open your account in a branch, or you can start the process online and finalise it in a branch. You can also carry out all of the account opening procedures directly using your smartphone or tablet with the apps that some banks offer for a fully digital service.

You can even use such an app to open an account before your arrival, providing you have all the necessary documents, in particular, an employment contract or a student attendance certificate.

How to apply to open a bank account

Before applying to open a bank account, you must get all the required documents together. You will need your ID card (national ID card or passport) and your tax identification number (TIN) – also called you tax number or tax reference number.

• In Luxembourg, this number appears on your social security card.
• In France, your numéro d’identification fiscale appears on your income tax assessment or income tax return.
• In Belgium, it is called the Numéro National, and in Germany the Identifikationsnummer.

You can find detailed instructions regarding the TIN in individual European countries on the website of the European Commission. You will also need justification of your home address (such as a gas, water or electricity bill) and, depending on the individual bank, a student attendance certificate, a recent payslip or your employment contract if it was signed less than three months ago.

If you wish to open a joint account, each account holder will need to supply the requisite documents to your chosen bank.

Why open an account in Luxembourg?

Obviously there’s a practical advantage to having a Luxembourg account if you live or work here, but the full range of banking products and services available in Luxembourg are also worth considering.

Some tax products enable cross-border workers to reduce their taxable base, allowing them to easily plan for their children’s futures or paying for their education, for example. In addition, the know-how on offer in the Luxembourg financial centre regarding wealth and investment management needs no introduction.

Banks in Luxembourg participate in the automatic exchange of banking information to combat tax evasion.

Lastly, it’s worth remembering that as part of fiscal transparency measures, banks in Luxembourg participate in the automatic exchange of banking information to combat tax evasion. So you must remember to declare your Luxembourg bank account to the tax authorities in your country of residence.

If you are planning to move to Luxembourg in the near future, opening a bank account is just one of the things you will need to sort out. To find out more about what is required, have a look at the Seven steps to becoming an expat in Luxembourg and the infographic on the checklist of required procedures.