How to Open a Bank Account in Portugal

As an expat in Portugal, having a local bank account simplifies managing finances, paying bills, and receiving income. While the process is generally straightforward, understanding the required documents and the types of accounts available will help you get set up smoothly. This guide walks you through opening a bank account in Portugal as an expat.

1. Why Open a Portuguese Bank Account?

While you can use a foreign bank account in Portugal, opening a local account offers advantages:

• Direct Debits: Paying rent, utilities, and other recurring bills is easier with a Portuguese account.
• Fee Savings: Foreign accounts can incur currency exchange fees and transaction charges.
• Receiving Income: Many employers require a local account for salary deposits.
• Visa and Residency Requirements: Some visas may require proof of funds in a Portuguese account.

2. Types of Bank Accounts for Expats

In Portugal, expats generally have two main options for bank accounts:

A. Resident Bank AccountFor expats with residency status in Portugal, a resident bank account provides comprehensive banking services, including direct debits and international transfers. You'll need a NIF (Número de Identificação Fiscal), or Portuguese tax number, for this type of account.

B. Non-Resident Bank AccountExpats who do not have Portuguese residency can open a non-resident account, which may require additional paperwork but does not need a NIF. Non-resident accounts are useful for property management or financial transactions in Portugal without needing a residency permit.

3. Required Documents

Here's what you'll need to open a bank account in Portugal:

• NIF (Tax Number): Required for resident accounts, the NIF can be obtained through a tax office in Portugal or a consulate abroad.
• Valid Passport or ID: A copy of your passport (or national ID for EU citizens) is essential for both resident and non-resident accounts.
• Proof of Address: Utility bills or a rental agreement can serve as proof of address, either in Portugal or your home country.
• Proof of Income or Employment: Some banks request proof of income, especially if you are applying for credit services.
• Non-Residency Certificate: Required if you are opening a non-resident account.

Tip: Specific requirements may vary, so it's advisable to confirm with your chosen bank.

4. Step-by-Step Guide to Opening a Bank Account in Portugal

A. Choose a BankPortugal offers a range of traditional and online banks. Some popular options include:

• Caixa Geral de Depósitos: Portugal's largest bank, with branches throughout the country.
• Millennium BCP: Known for expat-friendly services and English-speaking staff.
• Novo Banco: Offers a variety of account options and online banking.
• ActivoBank: An online bank with minimal fees, ideal for digital-savvy users.
• Revolut and N26: International online banks popular for their low fees and ease of use.

B. Visit a Branch or Apply OnlineDepending on the bank, you can either apply online or visit a local branch. Online banks like ActivoBank, N26, and Revolut offer fully digital application processes, while traditional banks may require an in-person visit for document verification.

C. Submit Your DocumentsDuring the application, submit the required documents (passport, NIF, proof of address). Bring both originals and photocopies, especially for in-branch visits.

D. Set Up Your AccountOnce your documents are approved, you can:

• Choose your account type (checking, savings, etc.).
• Set up online banking, which most Portuguese banks offer through apps or online portals.
• Request a debit card (usually provided with the account).

Note: A credit card may require proof of income or financial stability.

E. Fund Your AccountAn initial deposit is generally required to activate your account. Minimum amounts vary between banks, typically ranging from €50 to €250.

F. Register for Direct DebitsSet up direct debits for rent, utilities, and other recurring payments for convenience. Most banks assist with this service.

5. Bank Fees and Charges

Understanding potential fees is crucial when choosing a Portuguese bank account. Here are common charges to consider:

• Monthly Maintenance Fee: Many banks charge a monthly fee (between €5 and €15), which may be waived if you maintain a minimum balance or have a regular deposit.
• ATM Fees: Withdrawals from your bank's ATMs are usually free, but using another bank's ATM may incur fees.
• Transfer Fees: Domestic transfers are often free, while international transfers typically incur charges.
• Card Fees: Some banks charge annual fees for debit or credit cards; others offer them for free depending on the account type.

6. Tips for Expats

• Compare Options: Each bank has unique fees, account types, and services, so review your options carefully.
• Opt for Digital Banks: If you prefer online management, consider ActivoBank, N26, or Revolut for lower fees and convenient digital banking.
• Use International Accounts: For frequent international transfers, platforms like Revolut or Wise can help save on exchange fees.

7. Closing an Account

Closing a Portuguese bank account is straightforward. Visit your bank branch or, if available, close it online. Make sure all transactions are settled, withdraw any remaining balance, and request a written confirmation.

Conclusion

Opening a bank account in Portugal as an expat is essential for managing your financial life in the country. With the right preparation and bank choice, you can streamline the process and enjoy the convenience of local banking for everything from receiving income to paying bills. A Portuguese bank account will make your time in the country more manageable and efficient, whether you go with a traditional bank or a digital option.