Bank account registration in Portugal: Easy!

Do you want to live in Portugal? Do you want to start an internship or try to work there? An account can make your everyday life easier if the answer is positive. EU residents are not obliged to do it. But there are moments when it can be very convenient if you have a local bank account. If you are not from the EU, it is also essential to open bank account in Portugal.

Why is it useful? Let’s take a look.

• An EU regulation now eliminates most transfer fees between banks for intra-European transactions. Nevertheless, your Portugal employer may be concerned about transferring your salary to an account from another country.
• You can utilize the account to avoid fees your native bank may possibly charge for diverse payments and cash withdrawals abroad.
• Having an account, you avoid any conflicts with a Portuguese employer who pays your salary by bank transfer.
• You can pay electricity, gas, or water bills online by credit card.
• Internet providers usually want direct debit authorization. However, you can only withdraw money from domestic accounts. That’s why an account makes it much easier for you to conclude a contract. The same applies to a telephone line or a mobile phone contract if you do not want to use a prepaid mobile phone. This is often available together with the Internet in a complete package.
• If you earn money in Portugal – whether from self-employment with a business registered in Portugal or as an employee – sooner or later, you will face the necessity of paying taxes there. This is also much easier with a bank account in Portugal.

What institution to select

About half of the more than 60 banks registered in Portugal are branches of foreign banks. There are plenty of world-famous financial groups that have branches in almost all major cities.

However, in this case, you should not give preference to “familiar brands”: such institutions may have their own corporate restrictions regarding foreigners. In addition, maintaining an account in such banks, usually, is more expensive. As for security, all local banks are subject to European compulsory deposit insurance legislation.

About ten years ago, as a result of the financial crisis, several large financial institutions of the country went bankrupt, but this did not affect the well-being of the majority of depositors. In the event of bankruptcy, the National Bank of Portugal, acting as a guarantor, pays in full amounts up to 100,000 euros. Holders of larger deposits can only count on partial compensation. But there are several dozen banking groups operating in the country, so you can diversify this risk by opening several accounts.

It is difficult to recommend any particular Portuguese bank: they are all equally loyal to foreigners. The exception is Caixa Geral de Depósitos: this is the country’s oldest bank and has a state bank status, so additional documents may be required to open an account, and the process will take longer.

If you wish to open an account, a deposit is usually required to perform it. It is not “frozen”: you can use this money as soon as the account is activated. As a rule, the minimum sum of money you will have to pay is in the range of 200-500 euros. But there are pleasant exceptions. The absolute champion in terms of the size of the initial deposit is Millennium BCP. In this institution, in order to open an account, it is enough to deposit 50 euros. 100 euros require BPI and Banco CTT.