With its family-friendly culture, relatively low costs, and lengthy, hot summers, Portugal is a popular destination for expats seeking a superior quality of life. Cities are characterized by a lively ambiance, while rural areas offer a tranquil respite from the hustle and bustle of urban life.
One of the initial steps you should take when relocating to Portugal for retirement, employment, or to establish a business is to establish a local bank account. This is an essential stage in the process of settling in, but it can be challenging for expats who are attempting to navigate a new system. Our guide will assist you in the process of establishing a bank account in Portugal.
Opening a bank account in Portugal as a non-resident possible?
Individuals who are not currently residing in Portugal are eligible to establish a bank account. However, if you have not yet relocated to the country and do not possess an address, you may discover that you are restricted to non-resident bank accounts. These accounts may be subject to additional limitations than those of typical residents.¹
What’s the process of opening a bank account in Portugal?
Obtaining a Portuguese Número de Identificação Fiscal (NIF) number is the initial step required to establish a new bank account. Using your passport and evidence of address, you may submit an application for this at the Portuguese tax authority. Your NIF is utilized for a variety of purposes, including the establishment of a new bank account, the acquisition of a phone contract, and the payment of taxes.
It is possible to register for an account at a local branch of your preferred bank after obtaining your NIF. It is advisable to inquire whether the branch has any English-speaking staff prior to your visit, particularly if your Portuguese is somewhat sluggish. Or, you may bring along a Portuguese-speaking acquaintance or interpreter.
You are required to submit the necessary supporting documents with your application. We will review the documents you require shortly. Your new account could be created in as little as 30 minutes, provided that no items are missing; however, the exact time frame will vary depending on the bank. It may occasionally require a few days to receive any debit or credit cards associated with the account via the postal system.
What documents do I need to open a bank account in Portugal?
The documents that are necessary for the establishment of a bank account in Portugal may differ from one bank to another. However, in general, the following documentation is required to be prepared:
- A current, legitimate passport serves as evidence of identity.
- Proof of address is required for resident accounts in Portugal and for non-resident accounts in other countries.
- A recent pay receipt or proof of employment
- Documents verifying your Portuguese NIF number
- Additional documentation that pertains to the specific account type, such as confirmation of enrollment if you are applying for a student account
A minimum deposit may also be required by certain institutions to establish an account. Additionally, if the account is a resident account, you may be required to submit a residency or citizenship card.
Can I open a Portuguese bank account online?
Certain institutions in Portugal necessitate that you visit a branch in person; however, it is feasible to establish an account online. For instance, the Santander Account can be opened entirely online using Mundo 123 on a computer or mobile device.³. Additionally, Novo Banco offers a variety of bank accounts and packaged accounts that can be opened online.
You may also establish an account with a mobile bank. This can typically be accomplished in a matter of minutes by utilizing an application on your smartphone to submit any necessary documentation via a photo or scan. In a moment, we will examine the mobile institutions that are currently operational in Portugal.
Can I open a bank account in Portugal from the UK?
As we have observed, numerous banks in Portugal will take applications from non-residents and customers who wish to apply online. This simplifies the process for expatriates to establish their banking in Portugal prior to their relocation.
Therefore, if you are currently in the United Kingdom and are preparing for your significant relocation, you should be able to locate and establish a Portuguese bank account. It is possible that the account will be classified as a non-resident account with certain restrictions and conditions. For instance, the Novo Banco NB Account 100% Gold RE⁵ is a non-resident account that is intended for individuals without a Portuguese address. However, you have the option to upgrade your account or switch institutions upon your arrival in Portugal.
If you are uncertain about which banks accept customers from overseas, it may be beneficial to contact your shortlist of preferred banks and inquire about their application process.
Which bank in Portugal is best for my needs?
Portugal’s financial system is highly sophisticated, offering a wide range of local and international banks. In reality, there are more than 150 banks to select from, including global brands like Barclays, Santander, Citibank, Deutsche Bank, and BNP Paribas.
As an expatriate relocating to Portugal, it is crucial to examine a few of your primary banking options:
Santander
Santander, a global banking behemoth, has a Portuguese operation with more than 600 branches⁷. This operation provides a selection of accounts and promotions that are available worldwide. Switching to their local business in Portugal may be simpler if you already have an account with them.
Santander provides the following services and merchandise in Portugal:
- Current accounts, such as the Santander Account with Mundo 123, are a popular choice.
- Foreign currency accounts
- Debit, credit, and prepaid cards
- Savings accounts
- Investment funds
- Insurance products
- Mortgages, car credit, and personal loans
- Online and mobile banking.
Novo Banco
Novo Banco, which is headquartered in Lisbon and has approximately 387 branches in Portugal, provides a comprehensive selection of products to both residents and non-residents. If you are not a Portuguese speaker, you will need to use your browser’s translation function or ask an acquaintance to assist you in navigating the website, as all content is in Portuguese.
Novo Banco provides an extensive selection of products and services, such as:
- Current and package accounts, including NB 100% and NB 360º
- Non-resident and new resident accounts, such as the NB Golden Key account, which comes with perks⁹ such as health insurance and discounts to help you settle into life in Portugal
- Savings accounts
- Personal loans and mortgages
- Investment products
- Debit, credit, and prepaid cards
- Insurance
- Online and mobile banking.
Caixa Geral de Depósitos (CGD)
CGD is one of the largest institutions in Portugal, with a staggering 948 branches throughout the country. It provides a diverse selection of products, including asset management, specialized credit, and commercial and investment banking. However, CGD also provides products and services for retail consumers, such as:
- Current accounts, including a Minimum Banking Services Account and Conta Extracto account
- Foreign currency account
- Savings deposits accounts
- Investment and pension funds
- Personal, car, and housing loans
- Digital payments, such as Apple Pay, credit, debit, and prepaid cards
- Insurance
- Online banking.
Millennium BCP
Millennium BCP, one of the major private banks in Portugal, has approximately 478 branches in Portugal and a total of 1,380 branches worldwide. In Portugal alone, it provides nearly one million customers with a variety of retail banking services, such as:
- Current accounts, including its popular Millennium Account
- Savings and investment products
- A huge selection of debit, credit, and prepaid cards
- Personal and mortgage loans
- Insurance
- Online and mobile banking.
It is also beneficial to mention that the Millennium BCP website is available in both Portuguese and English, which should facilitate the process of locating the information that UK expatriates require.
Other banks worth mentioning
There are numerous banks in Portugal’s impressive banking sector, and the aforementioned are merely a few of the options available. Here are a few additional viable alternatives to consider as a prospective Portuguese resident:
- Banco CTT
- Banco Best
- Barclays
- Abanca
- Citibank
- Deutsche Bank.
Banking fees in Portugal
Ensure that you thoroughly review the terms and conditions of any bank account you open, regardless of its location. This is particularly crucial when establishing an account in a new location, as the banking fees and charges may differ significantly from those you are accustomed to.
There are a few fees to be aware of in Portugal. Let us examine the primary expenses and expenses.
Account maintenance fee
The majority of current accounts in Portugal are available for free to establish and use. However, the bank may require a minimum deposit, typically ranging from €100 to approximately €250¹¹. But certain accounts, particularly those that offer additional services and benefits, do incur a monthly fee, which may range from €2.50 to €7.50 per month.
ATM fees⁶
In certain countries, there may be a fee associated with using an ATM that is not owned by your bank. The positive news is that this is not the case in Portugal. The majority of the country’s primary institutions are affiliated with the Multibanco service, which is a nationwide network of ATMs. Therefore, it is advisable to verify that you will not be charged for withdrawing currency using your Portuguese debit card; however, it is always advisable to do so.
International transfer fees
The cost of sending and receiving money to other countries using your Portuguese bank account can be high, as the majority of banks impose international transfer fees.
Depending on the quantity and the destination, you can anticipate paying between €15 and €30 per transfer, although the exact amount may differ from bank to bank. Additionally, you may incur currency conversion fees and receive an exchange rate that is unfavorable as a result of a markup that is imposed on top. This is the method by which banks worldwide generate revenue.