Open a European Bank Account for Non-Residents and US Citizens (Even Online From Abroad)

Whether you've just arrived in Europe or are planning to move there soon (for university, work, family, or anything else), one of the things you'll need to get in order is a local bank account. Navigating the European banking landscape can seem daunting, especially for non-residents.

Fortunately, the process should be fairly straightforward, even for non-residents, and you'll likely be able to open a bank account online in the EU without much issue. In this guide, we will walk through the European banking system, how to open a bank account in the EU/EEA for non-residents, and provide some of the best options to efficiently open accounts online.

Most newcomers and non-residents in the European Union find trouble opening bank accounts with traditional banks in Europe because you'll often need to show proof of legal EU residency. It's also challenging if you've landed in the EU to live with relatives, where you may not have any bills or rental contracts in your name.

In general, there are three common paths to open a European bank account. The best option for you to choose will depend on your residency status as well as your needs and preferences:

1. High-street banks: This path requires proof of residency or citizenship in the country that you live in. This option is also open to non-residents who make significant investments or who manage legally established businesses in the European Economic Area. It's also best for those who need extensive banking services, such as loans or lines of credit, and don't mind the fees.
2. Online banks: Although the application is more straightforward than at high-street banks, this path still requires proof of EU/EEA residence. It's best for those who want low-cost, digital banking services and don't mind slightly less banking coverage.
3. Multi-currency accounts: This path provides an EU IBAN account without proof of address and is ideal for those wanting to open a European account online from abroad.

Without further ado, let's explore each of these paths in detail below:

Overview of Banking in Europe

Markus Spiske on Unsplash

The European banking landscape can be best understood by examining the composition and regulation of the European Economic Area (EEA).

The EEA encompasses 30 countries, which include the 27 member states of the European Union (EU) along with Iceland, Liechtenstein, and Norway. These EEA countries enjoy broad access to the EU single market, which is, in part, a territory without internal borders or other regulatory obstacles for the purposes of maintaining the free movement of goods and services. Despite having limited say in the decision-making processes and restrictions on certain goods, the three EEA countries are still key players in the single market.

Switzerland, while not an official EEA member, still enjoys a large degree of access to the single market through various one-to-one trade agreements with individual countries.

European Banking Regulators

The European Banking Authority (EBA) serves the EU banking sector, working to maintain financial stability and safeguard the integrity, efficiency, and orderly functioning of the banking system. However, countries like Iceland, Norway, Liechtenstein, and Switzerland, being non-EU members, rely on their own governmental banking and financial regulators to do the same. Similarly, the UK's financial industry falls under the regulation of the Financial Conduct Authority (FCA).

Currencies Across Europe

In terms of currency, the Euro (EUR) is the commonly accepted currency across the EU. Non-EU members like Norway, Iceland, and Liechtenstein use their own currencies: the Krona, Krone, and Franc, respectively, as does Switzerland with its Swiss Franc. The UK uses the Pound.

Despite this divergence in currency, the Single Euro Payments Area (SEPA) works to streamline cross border transfers within the bloc. SEPA, an EU initiative, simplifies bank transfers denominated in Euro, establishing a unified banking system across the region. This allows even non-Euro countries to execute non-cash Euro transactions, facilitating direct deposits, salaries, and payments throughout the Eurozone with ease.

Rise of European Online Banking

A prominent trend in the European banking sector is the steady decrease in the number of physical branches. This arguably stems from the soaring popularity of online and mobile banking, giving customers the freedom to conduct banking operations from the comfort of their homes, or anywhere in the world.

Path 1: Open a European High-Street Bank Account

One of the most traditional methods to open a bank account in the European Union is to visit a high-street branch, which include major players like HSBC, BNP Paribas, Credit Agricole, Santander, Barclays, and UBS. However, each country within the EU/EEA has major national and regional banks that cater accessible personal accounts to residents of that country too.

Essential Documentation for Opening a European Bank Account

To successfully open an account with a high-street bank in the EU, you'll need to provide:

1. a valid form of identification;
2. proof of legal EU residency;
3. proof of residential address in the country.

For EU citizens, the process is usually straightforward and can often be completed online for added convenience.

A Unique Solution: Spain's Banking System

However, Spain provides an alternative path to banking in the EU. Unique among its European counterparts, Spain offers non-residents the opportunity to open bank accounts as long as they can present an NIE (Foreigner Identification Number). This process typically requires you to visit a local branch in person. Banks such as Santander offer accounts for non-residents.

If this route interests you, we recommend delving into our in-depth guide on the topic for more details and a step-by-step walkthrough.

Banking at Home With a Euro Account

A third, albeit less common, procedure to open a Euro-denominated account is via a high-street bank in your home country. Prominent multinational banks such as HSBC offer accounts in euros, widening the scope for banking in Europe. However, it's worth noting that these accounts often come with requirements such as high minimum balance, recurring monthly fees, and transaction costs for currency conversion.

Weighing these options with your specific banking needs in mind will help you make the optimal choice when opening a European high-street bank account as a non-resident.

Path 2: Open an Account With a European Online Bank (EEA & UK Residents)

Online banks, also known as "challenger banks" or "neobanks", are gaining popularity in the finance world. These can be either traditional banks operating online or companies specialising in financial technology. Unlike typical brick-and-mortar banks, these online institutions do not have physical branches but often offer more limited financial services. Nevertheless, they provide these services at almost no cost to you through easy-to-use web or mobile platforms.

Two well-regarded online banks are N26 and Starling Bank. Both are fully licensed by the competent authorities and operate exclusively through the internet. N26 is based in Germany and is open to residents in the EU as well as the EEA and Switzerland. It is unique for being one of the first online banks to run a loan program. Starling Bank, a UK bank, offers services only to UK residents. It provides a free UK account and additionally offers free Euro accounts, which allow customers to spend euros in the Eurozone using the Starling Bank debit card.

Let's survey some of the banking options available to residents and non-residents:

N26 — Best Free Current Account in the EU/EEA

Arguably the best-known mobile bank, N26 is a widely-used and much-loved German online bank with around seven million customers across the EU. N26 is also partnered with Wise's money transfer service, allowing in-app international money transfers at some of the best exchange rates on the market. Because of its complete current account offering, we recommend N26 to just about anybody interested in low-cost banking.

This option is available if you have residency in European Union countries or Iceland, Liechtenstein, Norway, or Switzerland.

• Account name: N26 Standard
• Account details: German IBAN
• Licensing: Bank
• Account maintenance: €0 /month
• Noteworthy features: Instant social payments, overdraft facilities, cash deposits, credit, insurance
• Availability: 22 European countries
• More info: See our full N26 review or visit the website.

Starling Bank — Best EUR Account for UK Residents

Starling Bank is a fully authorised bank in the UK that's well known for its fee-free current account. In fact, because this account is entirely free and gives you access to an impressively complete range of financial services, we think Starling offers the best online bank in the UK — one we recommend as a complete replacement for an account at a high-street bank.

• Account name: Personal Account
• Account details: UK sort code, EU IBAN
• Licensing: Bank
• Account maintenance: £0 /month
• Int'l transfer cost: 0.5% - 3% (depending on the currency)
• Int'l card payment cost: 0%
• Proof of UK residence required: Yes
• More info: See our full Starling Bank review or visit the website.

Yuh: Best Swiss Franc Account

Yuh is a Swiss neobank that's backed by Swissquote and PostFinance. It offers a Swiss franc (CHF) IBAN account and multi-currency functionality that allows you to hold in-app balanced in up to 13 other currencies, including EUR, USD, and GBP. Yuh also offers 'projects', which you can use to put money aside into dedicated account-like spaces to be saved for short-, medium-, and even long-term goals (with CHF, EUR, and USD balances all accruing interest).

Because it's available in Switzerland and for residents if Switzerland's neighbouring EU/EEA countries, we think it's the best CHF account in Europe and an excellent way to hold a balance in Swiss francs if that's something you find helpful.

• Account name: Yuh
• Account details: Swiss IBAN
• Licensing: Bank subsidiary
• Total cost: €0 per month.
• Noteworthy features: CHF bank account details, multi-currency balances.
• Availability: 6 European countries
• More info: See our full Yuh review or go to the website.

Path 3: Open a Multi-Currency Account as a Non-Resident

If you're a non-resident in Europe but need European banking details, online multi-currency accounts are an accessible solution. These accounts are not traditional banks but rather fintech companies, formally known as Electronic Money Institutions (EMIs). As their primary goal is to provide cost-effective global money transfers and currency exchanges, they often also include additional features such as a debit card, multi-currency account balances, and even foreign bank details.

Wise — Open a European Account as an American

Wise is a notable multi-currency account option that provides a Belgian IBAN, which is accepted throughout the Eurozone for SEPA transactions, direct deposits, and local ATM withdrawals. You don't need proof of residency in the Europe, but you'll need proof of residency in the either the EU/EEA, US, UK, Singapore, Japan, Australia, or New Zealand to access their services.

In addition to getting local account details for the EU, you'll get account details in the US, UK, Australia, New Zealand, Singapore, Romania, Canada, Turkey, and Hungary too. You can hold, exchange, and top-up up to 56 currencies and access those currencies at merchants with a travel debit card. Access to Wise's powerful international money transfer service right from your account balance.

• Account name: Multi-Currency Account
• Account details: Belgian IBAN and 9 others
• Licensing: Payment Institution
• Account maintenance: €0 /month.
• Noteworthy features: International money transfers, multiple account details, multi-currency balances, virtual debit cards.
• Availability: See all countries
• More info: See our full Wise Account review or visit the website.

Revolut — GBP and EUR Account For Eligible Residents

Revolut is a fully-fledged bank (licensed by the Bank of Lithuania and offering deposit insurance and products such as loans and credit cards) in parts of the EU, including France, Italy, Portugal, Estonia, Greece, Latvia, Romania, and a few others.

For non-residents of the EU, however, Revolut can only offer services as a holder of an e-money institution license. It does offer a Euro account with an EU IBAN to residents of the UK and EU/EEA. While Revolut's Euro account is not available in as many countries as Wise's accounts are, it is favoured for its travel insurance perks, low-cost international transfers, and competitive exchange rates.

• Account names: Standard, Plus, Premium, Metal, Ultra
• Monthly fee: Varies by plan (€0.00, €2.99, €8.99, €15.99, €50.00)
• Int'l transfer cost: 0.5% - 1.5%
• Int'l card payment cost: 0%
• Euro account availability: UK, EU, EEA residency
• More info: See our full Revolut review or visit the website.

Affordable Money Transfer to Your European Bank Account

When it comes to sending money abroad, traditional banks usually never provide the most cost-effective solution. Here is a breakdown of the standard fees levied by banks:

• Transfer fees: Traditional banks can add high fixed service fees to your transactions, sometimes reaching up to 20 to 50 euros per transfer.
• Exchange rate margins: Additionally, they may apply less favourable exchange rates. This is known as an exchange rate margin, where banks profit from the gap between the market rate and the rate they offer.
• Correspondent bank fees: In some scenarios, banks using the SWIFT network for international transfers might even impose correspondent bank fees. These are charges from intermediary banks involved in facilitating the transfer.

Best Money Transfer Services to European Bank Accounts

Luckily, online money transfer services provide a more affordable alternative. They specialise in international transfers, offering lower fees, stronger exchange rates, and no correspondent bank fees. According to the data from Monito from July 2022 to July 2023, the top six services for sending money to Euro accounts were the following:

1. Wise;
2. CurrencyFair;
3. Global66;
4. TransferGo;
5. Skrill;
6. Remitly.

Although we highly recommend these providers, rates can fluctuate, and the optimal service often depends on your location and your recipient's location. That's why we recommend using Monito's live comparison engine before you make your transfer. Compare rates and fees across various platforms, and choose the most cost-effective provider for your next international money transfer.

Recap: What Are the Best Online Bank Accounts in Europe?

To conclude, let's recap the main recommendations we explored in this non-resident banking guide:

• N26: Best overall Euro account for EEA and Swiss residents.
• Starling Bank: Best Euro account for UK residents.
• Yuh: Best CHF and Euro account for Swiss residents.
• Wise: Best Euro account for non-EU/EEA residents.
• Revolut: Multi-currency account runner-up for EEA and UK residents.

See our guide on the best online-only banks in Europe for more.

References Used In This Guide

1. European Banking Authority (EBA). European Union. Accessed 26 July 2023.
2. Banking industry in Europe - statistics & facts. Statista. Accessed 26 July 2023.
3. European Economic Area (EEA) Agreement. European Commission. Accessed 26 July 2023.
4. Single Euro Payments Area. Wikipedia. Accessed 26 July 2023.
5. Pricing. Revolut. Accessed 26 July 2023.