Residence permit
March 18, 2024
Reading Time: 5 min

The best banks for foreigners and how to open a bank account

Around 150 banks operate in Portugal, both local and international. They provide a wide range of services, such as opening bank accounts, getting loans and mortgages, investing and many others to individuals and legal entities.

Learn how the banking system in Portugal works, which banks are the best and how a foreigner can open an account.

All about banking in Portugal

Overview of the banking system in Portugal

The Portuguese banking system is controlled by the Central Bank of Portugal and the European Central Bank. This fact makes banks in Portugal meet high EU standards.

Services. Portuguese banks offer services to both citizens and foreigners. You can:

  • open different types of accounts;
  • take a loan or a mortgage;
  • make an investment;
  • get insurance;
  • use mobile banking. 

Most of these services are available for both individuals and businesses.

Currency. Portugal is a part of the European Union and the eurozone. For that reason, the country’s national currency is the euro. 

By default, all transactions are completed in euros. Yet, it is possible to open an account in foreign currency, such as:

  • US dollars, Canadian dollars, Australian dollars;
  • British pound sterlings;
  • Japanese yens;
  • Swiss francs;
  • and many others.

Fees and charges. Most Portuguese bank accounts require their owners to pay a monthly maintenance fee of around €5—7 a month. There are preferential tariffs and exemptions for some accounts, such as student ones.

There are also charges on some services, such as credit cards. The sum depends on the bank, the amount of money you’ve spent, card types, etc. The average credit card rate is 11—13%. 

The loan interest rate in Portugal is around 4%, and the mortgage one is 3,3% per annum.

Security. Portugal is a country with one of the lowest card fraud rates in the European Union. There are 0.009% of frauds by a transaction. Portuguese banks also ensure that users' data is protected and the provided services are strictly confidential.

Types of banks in Portugal

Over 150 banks, local and international, are operating in Portugal. They are linked to the Multibanco ATM system, which allows users to withdraw and transfer money, pay bills and perform other activities.

Local. Portugal has several private retail banks and one public retail bank — Caixa Geral de Depositos. Some of the most reliable Portuguese banks are Banco de Portugal, Millennium BCP, Novobanco, and Banco Santander Totta.

Portuguese banks usually work from 08:30 to 15:00 and are closed during weekends.

International. International banks are primarily located in big cities. They may have English-speaking staff and offer expat-friendly services. Among the largest foreign banks are German Deutsche Bank, French BNP Paribas, and American Citibank.

The working hours of international banks are usually the same as those of local banks.

Online. Portugal’s banking system offers digital banks that allow people to use all the services through smartphones and laptops: open personal and business accounts, get insurance and get and receive payments. 

Online banks usually don’t have offline offices, and all the services are conducted through the Internet or video calls. You can get virtual and physical cards. The latter is usually delivered to the home address.

The most popular digital banks are N26, Openbank and Revolut.

The most reliable Portuguese banks

The list of reliable Portuguese banks includes the largest institutions operating for several decades in Portugal and worldwide. Some have been awarded by leading financial magazines and organizations, such as the Global Finance magazine and the Euromoney magazine.

We highlight 5 local Portuguese and 3 international banks, branches of which are located in the country.

Banco de Portugal is the central bank of Portugal. It controls Portuguese banks and other financial institutions. However, it also provides services for individuals and businesses. The bank was opened in 1846, and now it operates all over the country.

Caixa Geral de Depositos is the only public bank in the country. It was founded in 1876 and now operates in Portugal and 23 other countries, such as the UK, Canada, and China. The bank offers banking services to individuals and legal entities.

Millennium BCP is one of the largest banks in Portugal. Its headquarters is in Porto, and the branches operate in Portugal and other countries. It offers retail, investment, and corporate banking. There is also a Prestige banking option for those who would like to have a personal manager and use products designed for your needs.

Novobanco is a private bank that has more than 350 branches across the country. In 2021 the Global Finance magazine praised the bank for brokerage services and trusted securities management.

Banco Santander Totta  is in the top-5 largest banks in Portugal and operates in Portugal, Spain, the UK and other countries. In 2022 it received the Euromoney Award for Excellence and was recognized as the best bank in Western Europe. It was also called the best bank in Portugal in 2022 by the Global Finance magazine.

Deutsche Bank is a German bank that has 9 branches in Portugal. It was established in 1870 and has operated in Portugal since 1978. Now it has 2 segments — Corporate and Investment Banks and offers its services to corporate and institutional clients. Among the services are cash management, foreign exchange, securities financing, etc.

BNP Paribas is a French bank with 2 branches in Porto and Lisbon. In 2021 and 2022, it was called the World’s Best Transactions Bank by the Global Finance magazine.

Citibank is an American bank founded in New York in 1812 and later became the First National City Bank of New York. It is present worldwide: besides North America, the branches are located in Europe, Asia, Latin America, and Africa. In 2022 the Global Finance magazine called Citibank the Best Cash Management Bank.

Types of bank accounts you can open

The two most common accounts you can open in Portuguese banks are current and deposit accounts.

A current account is a basic account that is used for everyday transactions. It usually comes with a debit card for making payments and withdrawing money. Such an account may have a maintenance fee and requirements on the minimum balance.

Banks offer different types of current accounts oriented on different groups of people: teens, students, seniors, etc. They usually have discounts, exemptions or other specific conditions.

A deposit account is used to keep money without withdrawing it for a long time. Credit and debit cards are usually not connected to the deposit account. 

During a certain period, a deposit accumulates interest. There can be restrictions on how much money and how often you can withdraw. 

After the account is closed, you can withdraw or transfer money with percentages to a new account.

How to open a bank account in Portugal

The first thing that needs to be done before opening a bank account is to become a country’s taxpayer and obtain an individual taxpayer number (NIF). A foreigner can get it with the help of a lawyer or law firm that acts as a representative. There are also online services that allow you to apply for NIF remotely.

Then you need to come to the Portuguese bank branch and submit a package of documents, which includes the following:

  • a passport or an ID card;
  • a residence permit card;
  • an employment contract, certificate of enrollment to the university, or pension certificate; 
  • a NIF.

To open a business bank account, you must provide the documents above and other papers concerning your business — for example, company registration documents and names and addresses of the owners and directors.

It is also possible to open a bank account online. It mainly applies to digital banks; however, some traditional ones also offer this service.

The process of opening a bank account can take around a month. However, online banks that operate worldwide significantly reduce the time. For example, it is possible to open an account in N26 bank in several minutes.

Portugal residence permit by opening a bank deposit

Opening a bank account and making a capital transfer is one of the investment options under the Portugal Golden Visa Program. The minimum sum is €1,500,000.

€1,500,000
Minimum investment under the capital transfer option

The investment must stay in the bank account until the investor gets citizenship or permanent residency, which takes around 6 years. Then the investment can be returned without interest.

To become a resident of Portugal, the investor must:

  • be over 18 years old;
  • have no criminal records or prosecutions;
  • have no debts;
  • be able to confirm the legality of the income;
  • have money for investment earned outside Portugal.

The investor can add their close family members to the application: a spouse, children and siblings under 26 years old, and parents.

In short: banking in Portugal

The Portuguese banking system is controlled by the Central Bank of Portugal and the European Central Bank. The card fraud level in Portugal is lower than in Europe in general.

Portuguese banks provide different services: opening bank accounts, loans, mortgages, investments and many others. Usually, banks don’t charge clients for opening an account; however, there might be a maintenance fee:  €5—7 per month. 

Interest rates on different services are:

  • 11—13% — for credit cards; 
  • around 4% — for loans; 
  • 3,3% — for mortgage.

Among the best local banks in Portugal are Caixa Geral de Depositos, Millennium BCP, Novobanco, and Banco Santander Totta. International banks also operate in the country. The most famous of them are Deutsche Bank, BNP Paribas and Citibank.

To open a bank account, you would need to obtain an individual taxpayer number. It can be done through a special representative. A bank account can be opened online in a digital bank.

A Portuguese residence permit can be obtained by opening a bank account and making a capital transfer. The minimum investment is €1,500,000.

Frequently Asked Questions

Which is the best bank in Portugal?

Among the best banks in Portugal are Banco de Portugal, Caixa Geral de Depositos, Millennium BCP, and Novobanco. They are also the largest banks in the country.

Which international banks are in Portugal?

There are plenty of international banks in Portugal. Some of them are BNP Paribas, Citibank, Deutsche Bank.

Can a foreigner open a bank account in Portugal?

Yes, a foreigner can open a bank account in Portugal. However, in most cases, the bank will require you to have a residence permit in the country.

Is banking free in Portugal?

It depends on the types of services you use. In general, opening a bank account and withdrawing or transferring money is free of charge. However, for some services, you might need to pay additional money: for example, for an international transaction.

Bank accounts also usually have maintenance fees that are around €5—7 per month.

Is it easy to open a bank account in Portugal?

It is easy to open a bank account in Portugal: you can do it in several days. The procedure is the following:

  1. Get a NIF number.
  2. Gather all the required documents. They are a passport or an ID card, a residence permit card, a proof of address in Portugal, such as a recent utility bill.
  3. Come to the local bank’s branch and submit documents.

If you want a card linked to the account, you can obtain it from the bank or receive it by email.

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Practical Guide
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The best banks for foreigners and how to open a bank account