22 Jan 2025
Does moving to Portugal for work, retirement, or a new lifestyle require adapting to a new financial system? It's essential in many ways. However, opening a bank account as a foreigner in Portugal isn't feasible without some significant considerations.
A local bank account is essential for everyday expenses like rent, utility bills, and shopping. It also plays a key role in the legal and administrative processes of obtaining a visa or residency permit. Portugal’s banking system is modern, reliable, convenient online, and provides mobile banking options.
Bank account options in Portugal make managing finances easier for foreigners. Most banks in Portugal offer user-friendly digital solutions. You can easily handle transactions and maintain your finances from anywhere. Therefore, having a Portuguese bank account meets your financial needs smoothly and efficiently.
A local bank account is essential to living, working, or spending an extended period in Portugal. Here’s why it makes life much easier for expats:
A Portuguese bank account simplifies everyday payments. You can avoid heavy foreign transaction fees. Also, you'll not be required to convert currency constantly when paying for groceries, dining out, or shopping. It’s also more convenient for paying recurring bills like rent and utilities without global charges.
If you’re applying for a residency permit, you’ll likely need a Portuguese bank account to show financial stability. It’s common in requirements for a bank account in Portugal for many visa types, including the D7 visa for retirees and remote workers. Having your finances in place helps streamline the application process.
A local bank account is essential for large transactions as expats and banking in Portugal can support you. Sellers and agencies often require payments from a Portuguese IBAN. Therefore, managing loan or mortgage payments is easier if you finance the purchase.
Opening a bank account is the first step in building a local credit history. This can be a big help if you plan to apply for a loan, mortgage, or credit card in Portugal. Developing a financial relationship with a local Portuguese bank makes it easier to access these services.
Portugal’s Multibanco system is one of the most convenient ATM networks. You can use Multibanco to withdraw cash, pay bills, transfer money, and handle government-related payments. It’s a central part of daily life in Portugal and significantly simplifies financial tasks.
When opening a bank account in Portugal as a foreigner, you’ll have several options with various Portuguese banking services for foreigners. Here’s a breakdown of the main types of accounts and what they’re used for:
If you plan to live or work in Portugal, a current account is likely the one you’ll need. This type of account is perfect for everyday banking needs such as paying bills, receiving your salary, and shopping. Most expats open a current account because it’s convenient for online banking and Portugal’s Multibanco ATM network.
A savings account is an excellent option after fulfilling the requirements for bank accounts in Portugal. These accounts are designed for managing long-term savings and often come with interest-earning benefits. While they’re not used for daily transactions, they’re ideal for growing your money while keeping it accessible when needed.
If you don’t have residency in Portugal yet but still need to manage your finances locally, a non-resident account is a way to go. These bank account options in Portugal
are tailored for people living abroad who need to handle Portuguese transactions. It’s a convenient option for those in the process of moving to Portugal or owning property there.
A business account is specifically designed for professionals who need features like invoicing, payment solutions, and tools to manage business expenses. You can get this account as an expat, and banking in Portugal is feasible. These accounts are necessary if you’re running a business in Portugal or working as self-employed.
Opening a bank account as a foreigner in Portugal is a straightforward process, but you’ll need to gather the correct documents first. Here’s a simple guide to Portugal bank account requirements:
Your passport or national ID is essential to prove your identity so you can use bank account options in Portugal. Ensure it’s current and matches the name on any other documents you’re submitting.
The NIF is a must for foreigners who want to open a bank account and enjoy Portuguese bank services for foreigners. If you're not in Portugal, you can get it by visiting a local tax office (Finanças) or through a fiscal representative. It’s a small but significant step that you can’t skip.
To get Portuguese bank services for foreigners, you must show where you live. This could be a utility bill or rental agreement with your name on it for residents. If you’re a non-resident, proof of your address abroad, like a bank statement or utility bill, usually works fine.
Some banks might ask for proof of your income to confirm you have a steady financial source. This could be a pay slip, a tax return, or any other document showing your earnings. It’s not always required, but having it on hand is good.
If you’re applying for a resident account, you’ll likely need to provide your residency permit or visa to show you’re living legally in Portugal. Non-residents don’t usually need this, but check with requirements for bank accounts in Portugal.
Expats or foreigners can open bank accounts in Portugal but must follow some guidelines. Here are the essential steps to open a Portuguese bank account:
The first thing you need is a Portuguese tax identification number, NIF. Visit a Finanças or Portugal tax office with your passport and proof of address. If you’re outside Portugal, you can hire a fiscal representative to get it for you. This small but crucial step is required for almost all financial activities in Portugal, including opening a bank account.
Take some time to compare banks and find one that suits your needs. For this, you should look into fees and Portuguese banks with services in the English language and accessibility to branches and ATMs. Popular choices for expats include Caixa Geral de Depósitos, Millennium BCP, and ActivoBank. Each has its strengths, so it’s worth exploring their options.
You can decide how to apply for bank account options in Portugal. For in-person applications, bring all your documents to a nearby branch. Some banks might ask you to schedule an appointment, too. For online services, specific banks let you start the process online, but you may still need to visit a branch to verify your identity and finalize the application.
When you’re ready to apply, provide the required documents, including your NIF, a valid passport or national ID, and proof of address, such as a utility bill or rental agreement. Make sure everything is accurate to avoid delays.
After your application is approved, the bank will officially set up your account. They will provide you with an IBAN or International Bank Account Number, a debit card for transactions and ATM withdrawals, and online banking credentials.
Choosing the right bank in Portugal is essential to manage your finances easily. Finding the best banks is important when you know how to open a Portuguese bank account. Here are some of the best banks for foreigners, each offering unique benefits to suit different needs:
As a state-owned bank, CGD is one of Portugal’s most reliable bank options. It offers a wide range of services, including current and savings accounts. Also, it features one of the largest ATM networks in Portugal for easy access to cash. It's best for stability and comprehensive banking solutions.
Millennium BCP is also a favorite among expats for its excellent customer service. Many BCP branches have English-speaking staff to help foreigners navigate banking processes. This bank offers a user-friendly online banking platform for convenient account management.
ActivoBank is among the best banks for expats in Portugal if you prefer digital banking with minimal fees. Their banking strategy focuses on mobile and online banking to handle most transactions from your phone or computer. They have low maintenance fees as a budget-friendly option. It's an excellent choice for digital nomads to avoid unnecessary costs.
Santander Totta is part of the global Santander Group and offers various services. This banking system provides tailored solutions for expats with multi-currency accounts and easy international transfers. Moreover, it combines local expertise with global resources to become a trusted choice for international clients.
Novo Banco is another expat-friendly bank offering flexibility and convenience in Portugal. It’s also popular for its non-resident account options for foreigners who want to open an account. They offer competitive rates and services tailored to meet the needs of foreign clients. You can experience smooth banking without residency requirements.
Bank accounts in Portugal are generally affordable, but you must know the standard charges you might encounter. Here’s a breakdown to help you stay informed and avoid hidden surprises:
Most standard bank accounts have monthly maintenance fees ranging from €5 to €10. Some banks waive these fees if you meet certain conditions, like maintaining a minimum balance or setting up direct deposits. Digital banks like ActivoBank or N26 often have lower or no maintenance fees, making them great budget-friendly options for expats.
If you use the Multibanco ATM network, withdrawals are typically free with a Portuguese bank account. However, withdrawing cash from international ATMs or other networks may incur additional charges. So, it’s best to stick to Multibanco when possible.
Banks usually charge a currency exchange fee when you make transactions in a foreign currency. These fees vary by bank and transaction type. So it’s worth checking the rates, especially if you frequently travel or shop globally.
If your account goes into overdraft or you miss a payment, you could be charged additional fees. Overdraft fees are typically charged as a percentage of the overdrawn amount. However, late payment fees vary by bank. Always keep track of your balance and set up reminders for bill payments to avoid these costs.
Managing your finances in Portugal is much easier due to the rise of digital banks. Revolut, N26, and Wise are transforming how people handle their money, especially expats and frequent travelers.
While digital banks are incredibly convenient, they don’t completely replace traditional Portuguese bank accounts. Combining a digital bank with a traditional Portuguese bank account works best for most expats. Use your digital bank for low-cost international transactions and everyday spending, and rely on your local account for legal and financial requirements in Portugal.
Opening a bank account in Portugal can be straightforward, but there are a few common challenges that expats may face. Here are some helpful tips and things to watch out for:
Opening a bank account in Portugal is vital to managing your finances efficiently and comfortably. You can ensure a smooth banking experience by understanding Portuguese banking laws for non-residents and potential challenges. Your local bank account provides convenience and financial security for managing all expenses in Portugal.
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Yeah, you can. According to Portuguese banking laws for non-residents, many Portuguese banks offer bank accounts. To open your account, you’ll need your passport, a Portuguese NIF or Tax Identification Number, and proof of your address abroad.
You can get a Portuguese NIF by visiting a tax office or Finanças in Portugal. Bring your passport and proof of address. You can hire a fiscal representative to handle the process if you're not in Portugal.
Caixa Geral de Depósitos, Millennium BCP, ActivoBank, and Santander Totta are great foreign options. They’re known for offering expat-friendly services and sometimes have English-speaking staff.
The best banks for expats in Portugal let you open a bank account online. However, you might still need to visit a branch to verify your identity and submit documents.
Most banks charge €5–€10 per month for standard accounts. Digital banks like Revolut or N26 usually have lower fees or no fees for different types of accounts.
