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

Planning a move to sunny Portugal to explore exciting career opportunities? If so, setting up a bank account should be at the top of your to-do list!

Opening a bank account in Portugal simplifies receiving payments and managing daily expenses. Additionally, if you’re pursuing a visa such as the D7, having a Portuguese bank account is essential for your application to be approved.

While the process may seem daunting, there’s no need to stress! Thousands of expats have successfully opened Portuguese bank accounts, and you can too. By following the tips in this guide, you’ll streamline the process, freeing up time to meet new friends, explore your community, and learn Portuguese.

Types of bank accounts in Portugal

Opening a bank account is a crucial step toward embracing your life as an expat in Portugal. Yet, it’s important to note that not all bank accounts provide the same advantages. Choose wisely to maximize your experience!

Here are three main types of bank accounts offered by Portuguese financial institutions:

• Current Account: A standard checking account that enables card payments and cash withdrawals from ATMs.
• **Instant-Access Savings Account:** A flexible savings account that permits withdrawals at any time, typically offering lower interest rates.
• Time-Deposit Savings Account: A savings account that requires you to maintain your funds for a fixed term of six months, one year, or longer.

Numerous banks provide “junior” accounts designed specifically for children, allowing you to save money for their future while teaching them essential financial management skills.

Documents you need to open a bank account in Portugal

Most Portuguese banks ask for the following documents to open a new account:

• Your passport
• Proof of your address in Portugal (such as your lease or utility bill)
• Proof of employment and/or income
• NIF (Número de Identificação Fiscal, or value-added tax identification number)

Each bank has its own specific documentation requirements. For instance, while one institution may request your proof of income, another might also ask for your tax returns to complete the application process.

5 steps for opening a bank account in Portugal

Opening a new bank account is a crucial task when relocating to a different country. While the process can be a bit more complicated for expatriates, it’s still manageable for everyone. Here’s a straightforward step-by-step guide to help you navigate opening a bank account in Portugal.

1. Connect with other expats

Portugal boasts a vibrant expat community, making it a great resource for newcomers. Take advantage of the wealth of knowledge from those who have successfully navigated the account opening process—tap into their expertise to make your experience smoother and more informed.

If you’re looking to connect with fellow expats, Facebook groups such as Lisbon Digital Nomads & Expats and Americans & FriendsPT are excellent starting points, boasting tens of thousands of members. After your move to Portugal, consider using Meetup to discover local events where you can meet other expats. This resource is particularly valuable in less populated regions like Algarve or Alcácer do Sal, where expat communities may be smaller.

Exploring the experiences of fellow expats can equip you with valuable insights into the common challenges of opening a bank account in Portugal. Additionally, you’ll discover firsthand recommendations for local banks that excel in customer service.

2. Research your banking options in Portugal

Portugal offers a diverse array of banks, including both international and local options. When selecting the right bank for your needs, consider the following key factors:

• The cost of the monthly fee (also known as a maintenance fee)
• Number of branches and ATMs in your area
• Other banking services you might need, like separate accounts for your kids

Create a shortlist of your favorite options, but remain flexible. Some expats have encountered situations where bank employees deny account openings for non-residents, so it’s wise to keep an open mind as you explore your choices.

If you encounter this situation, don’t be discouraged! Explore other banks or branches to find one that will be able to assist you in opening an account. Keep trying until you find the right fit!

3. Get a Portuguese tax number (NIF)

The Portuguese NIF, or Número de Identificação Fiscal, is your essential tax identification number in Portugal. Comprising nine digits, this unique identifier is crucial for various activities, including opening a bank account, buying a home, and establishing your life in this beautiful country.

Non-residents have the option to obtain a Tax Identification Number (NIF) either in person at a tax office or through convenient online services such as Bordr. By using Bordr, you can secure your NIF effortlessly for a small fee, allowing you to navigate tax obligations with ease.

When applying in person, remember that you must bring your own fiscal representative—a Portuguese resident who acts on behalf of non-residents at the Serviço de Finanças (tax office). Many expats choose to hire lawyers for this role, with an average annual cost of around €200.

If you apply for an NIF through an online service, you’ll get fiscal representation as part of the package.

If you don’t have any tax liabilities or assets in Portugal, you can obtain a Número de Identificação Fiscal (NIF) without a fiscal representative. However, since having a bank account qualifies as an asset, it’s advisable to secure a fiscal representative right away to streamline the process.

4. Gather the necessary documents

To ensure a swift and efficient visit to the branch, gather printed copies of all your necessary documents beforehand. This preparation will help you complete your tasks more quickly.

To avoid unexpected surprises when applying for a loan, it’s essential to research the specific document requirements of each bank. For instance, one bank may request recent pay stubs to verify your income, while another might require a letter from your employer confirming your salary. Being informed can help streamline the process and ensure you have everything you need.

Ensure you allocate ample time to gather all necessary documents. Begin researching the documentation requirements at least two months prior to your arrival in Portugal to avoid any last-minute issues.

Again, Facebook groups for expats are a great source of up-to-date information, but always check with the bank directly.

5. Visit a local bank branch to open an account

The final step is to go to a branch and open your account.

To ensure a smooth account opening experience, aim to arrive early in the morning rather than at the end of the workday. Since the process can be time-consuming, arriving late may result in having to reschedule your visit if staff are unable to assist you.

To open a new account, you’ll need to make a minimum deposit, typically around €250. This initial amount helps the bank cover essential overhead costs associated with account setup.

Did you know that you can hire a relocation service to assist you in opening a bank account? This convenient option typically ranges from a few hundred euros. For instance, Bordr offers this service for $350 or €322.

Why not pick up some useful phrases in Portuguese? Being able to express that you want to open a new bank account and inquire if there’s someone available who speaks English can make your experience smoother and more enjoyable. It’s a small effort that can yield great benefits!

10 banks in Portugal to consider

Portugal boasts a diverse selection of more than 40 retail banks, offering you numerous options for your next financial service provider. This variety ensures that you can find the perfect match for your banking needs.

Since many of these banks necessitate an in-person visit to set up an account, it’s beneficial to familiarize yourself with some basic Portuguese phrases. This will help facilitate smoother communication during your visit.

While most expats often encounter at least one English-speaking bank employee, having a basic understanding of Portuguese can greatly enhance your experience. To make the process even smoother, consider inviting a local friend to accompany you for assistance with translation!

National banks in Portugal

Many expats choose to open an account with a Portuguese bank because these institutions offer extensive branch and ATM networks, making banking more convenient. Additionally, doing so helps create a stronger connection to their new home in Portugal.

1. Caixa Geral de Depósitos

Caixa Geral de Depósitos (CGB) stands out as one of Portugal’s major banks, with branches conveniently located throughout the nation. They offer a diverse range of banking solutions, featuring six distinct types of bank accounts to cater to various financial needs.

The “basic account” is available to residents and non-residents. CGB also offers savings, investments, property, and insurance products.

2. Millennium BCP

Millennium BCP provides a comprehensive range of financial services, including loans, real estate options, insurance products, as well as debit and credit cards. Additionally, customers can choose from various investment and savings accounts. The bank features four distinct types of accounts to cater to diverse financial needs:

• Basic
• Minimum services
• Junior
• Millennium Account

This bank is a favorite choice for UK expats, thanks to its London office that makes opening an account convenient and straightforward.

3. ActivoBank

ActivoBank is a unique digital bank based in Portugal that stands out from its competitors by maintaining a limited number of physical branches. In addition to its digital services, the bank provides a comprehensive range of financial products, including loans, insurance, savings and investment accounts, as well as credit and debit cards, making it a versatile choice for customers seeking modern banking solutions.

Their Simple Account is fee-free and can be opened online. However, you need a residency card to sign up.

Other types of accounts include:

• Junior
• Minimum services
• Premium
• Plus

The premium and plus accounts come with insurance, salary advances, and other extra financial products.

4. Banco CTT

Banco CTT is the banking division of the Portuguese postal company, CTT.

They offer the following types of accounts:

• Basic
• Junior
• Current
• Minimum services

At Banco CTT, you can also get a credit card, apply for a loan, and get home or life insurance.

International banks in Portugal

If your bank operates in Portugal, it may be beneficial to continue using their services rather than switching to a local bank. This can provide you with familiarity and convenience while managing your finances abroad.

1. BBVA

BBVA is a Spanish multinational bank. In addition to bank accounts, BBVA offers credit, insurance, savings, and investment products.

You can choose between the following bank accounts:

• Basic
• Minimum services
• Junior account
• Maisblue (for people between the ages of 18 and 29)
• Checking account
• Accounts for retirees (over the age of 59)
• Salary domiciliation account (over €1,500)

2. Santander

Santander, a prominent Spanish multinational bank, provides a range of financial services in Portugal that mirror those offered by many of its competitors. Customers can access various products, including loans, insurance, and savings accounts, tailored to meet their financial needs.

If you open a bank account with Santander, you can choose between:

• Minimum services
• Stream account (children up to the age of 17)
• Stream account (adults between the ages of 18 and 30)
• Mundo 123 (current account)

Online banks in Portugal

Online banks, often referred to as “neobanks,” operate entirely in the digital realm. This allows you to easily open an account and handle all your financial activities directly from your smartphone.

When applying for a visa that mandates a Portuguese bank account, it’s important to note that online banks won’t suffice; you must open an account with a traditional Portuguese banking institution. However, you can still utilize a neobank as a supplementary account to manage your finances.

1. N26

N26 is a German digital bank. They have over 8 million customers worldwide and are available in 24 markets.

With N26, you can easily open a deposit account that includes a virtual card for convenient online transactions. If you prefer a physical card, you can obtain one for just €10.

2. Revolut

Revolut, a UK-based neobank, offers a range of financial services through five distinct plans. These options cater to different needs, starting with a free Standard plan and going up to the premium Ultra plan at €55 per month.

The Standard plan features a bank account, a virtual card, and a savings account, making it a versatile choice for managing your finances. If you’re looking to share an account with a partner, Revolut stands out as a top option, as neither N26 nor Wise provides this capability.

3. Wise

Wise has gained a strong reputation as a leading money transfer service, but it offers even more. You can open a Wise bank account that supports transactions in 40 different currencies, making it a versatile choice for international banking. Additionally, Wise provides both digital and physical cards for easy access to your funds. To help you manage your finances effectively, Wise features a unique “jars” system, allowing you to organize and separate your savings effortlessly.

Learn Portuguese to feel at home in Portugal

Having a fundamental grasp of Portuguese can significantly simplify the process of opening a bank account in Portugal and help you manage your finances more effectively. Additionally, it boosts your confidence as you explore and engage with daily life in this vibrant European nation.

Whether you’re just able to say “Bom dia” or have a few Portuguese words under your belt, LingualNeeds is here to connect you with online Portuguese tutors to accelerate your learning. You can easily filter tutors based on pricing, availability, and their country of origin. If you’re planning to move to Portugal, it’s beneficial to learn from a native Portuguese speaker to master the local accent and dialect effectively.

After signing up, you’ll enjoy a complimentary trial lesson with your tutor, lasting either 25 or 50 minutes. If the session doesn’t meet your expectations, you can easily switch to a different tutor at no additional cost. Once you find the right match, your tutor will tailor a personalized learning plan that fits your schedule, ensuring you get the most out of every lesson.