How Do I Open a Bank Account in Luxembourg in 2021 on Favorable Terms?

Luxembourg has acquired a reputation as one of the financial centers of Europe. Its high banking standards attract businesses and individuals wishing to become clients of local banking institutions from all over the world. If you are interested in opening a Luxembourg bank account in 2021 on favorable terms, you would want to read the following article carefully!

The International Wealth experts will take you through the pre-approval procedure for opening a Luxembourg account with several banks so that you will be able to streamline the entire business registration process and gain full control over the timing and the situation. Please feel free to contact us using the form above this article’s title, and leave your email.

Account in Luxembourg

Many high net worth individuals wish to open an account with a Luxembourg bank as soon as they find out the favorable terms and conditions. Thanks to the enormous flow of wealthy customers, the small Grand Duchy of Luxembourg has become the richest country on the continent in terms of GDP per capita.

What Makes the Luxembourg Banks So Special?

It is of course mostly wealthy people who wish to open a Luxembourg bank account. They usually do it both for personal and corporate purposes. We should admit that banking services here are more expensive compared to other jurisdictions. But together with that, high net worth individuals receive a high level of service, and reliable protection of their assets and investments. 

Nowadays in Luxembourg, you should not count too much on old-fashioned bank secrecy policies, as Luxembourg became a party to the Automatic Exchange of Information for Tax Purposes (CRS). But a third party can gain access to the personal data of bank customers only with a local court order.

We have tried to organize all the advantages of opening an account in Luxembourg below:

  • High confidentiality of personal information. 
  • Numerous additional banking services for investors that include investment strategy, investment portfolio formation, a personal advisor.
  • Non-residents have the right to open an account with a Luxembourg bank, both personal and corporate.
  • Flexible pricing policy of banking services.

What Documents Do I Need to Provide to Open an Account in Luxembourg?

Potential customers intending to open a personal account with a Luxembourg bank should provide the following set of documents:

  • Passport;
  • Individual Tax Number;
  • Document that confirms your current residential address (rental agreement, utility bill etc).
  • Employment contract or proof of own business
  • Confirmation of the source of funds to be deposited in the account to be opened.

A letter of reference from your previous banker will give your application an additional advantage in the eyes of Luxembourg banks.

Residents of EU member states have higher chances of getting their applications approved.

Residents of third countries are subject to more thorough KYC, AML and BEPS checks since Europe is fighting corruption.

Corporate applicants must submit the following documents:

  • Number issued by the national register of companies.
  • Package of company incorporation documents (apostilled notarized copies).
  • Beneficial owners’ personal information, copies of their IDs.
  • Directors’ personal information, copies of their IDs.
  • Incorporation documents of the beneficial owner that is a legal entity, if necessary.
  • Description of the company’s core business.
  • Official confirmation of the sources of origin of the company’s funds.
  • Projected annual turnover on account.  

Can I Use Pre-Approval for the Successful Opening of a Bank Account in Luxembourg?

European banks often reject applications of non-residents for opening a corporate account especially if they try to undergo the whole procedure remotely, or to open an account with a Luxembourg bank for their offshore company. We are not trying to say that the potential customer will absolutely be rejected, but the risk of it remains high.

Bank officers check the applications and maintain very high standards. No misprints or inconsistencies are allowed.

It takes time and financial expenses to collect all the necessary documents and submit the application to a banking institution. In order to save time and reduce the risk of rejection, we would advise you to use our Pre-Approval Service.

Basically, scanned documents (photos, copies) are emailed to an officer of the selected bank. It is possible to send digital applications to several banking institutions at once. Having checked all the papers, the bank will issue a pre-approval. Pre-approval should take only a few days. And above all, the cost of Pre-Approval is several times lower than the cost of standard submission of application for opening the account with a Luxembourg bank since only digital copies are submitted.

That way, the potential customer may optimize the use of time, and financial costs. If no Pre-Approval is granted, it takes less time to find it out, so you can immediately submit a digital application to another banking institution. 

A certain risk of rejection still exists even after the Pre-Approval was obtained from a Luxembourg bank by the applicant. But this risk is significantly lower and is mostly related to the errors made in the documents and the applicant’s behavior.

The Pre-Approval may be of use both for opening an account in Luxembourg remotely and for visiting the bank in person. Obtaining a Pre-Approval upon the bank’s reviewing of the digital application allows business persons to control their work schedule. They will receive recommendations on what additional documents to prepare and what should be amended before they come to the bank. All of this greatly increases the chances for a positive final decision.

Thanks to their experience in Pre-Approval Procedures with many foreign banking institutions, the International Wealth experts know the banks’ requirements in advance, and are able to help you prepare the documents properly, correct any possible errors and inaccuracies. Should you wish to open an account with a Luxembourg bank, please do not hesitate to request our consultation at the email indicated at the end of the article.

How Can I Open a Bank Account in Luxembourg for My Offshore Company?

Every year opening an offshore company account with a foreign bank is becoming more and more complicated. European banking institutions often warn their potential customers at the first meeting that they do not work with offshore jurisdictions, or are ready to open an account only in a single particular currency.

But opening an offshore company account with a Luxembourg bank looks promising. Yet there are also many unknown factors to bypass. Sometimes a deposit of several hundred thousand euro is required.

Such a task has so many unknown variables that it is rather risky to act on your own. You can count on the support of our experienced experts. Giving up the idea of opening an account with a Luxembourg bank because of the above mentioned complexities wouldn’t be smart.

Opening an account in Luxembourg means asset protection, predictability and legal stability, and full control over the financial flows of your business.

Our professionals will be able to find the right way to resolve the matter and open an account with a Luxembourg bank for the customer. Please feel free to contact us by phone, the numbers are listed in the website header. 

What Luxembourg Banks Should I Consider?

In terms of data protection, experts compare Luxembourg banks to banking institutions of Switzerland. Their reputation is quite high. Here is an overview of certain Luxembourg banks worthy of attention.

Banque Internationale à Luxembourg

  • The institution was founded three centuries ago.
  • It is one of the largest banks in Luxembourg.
  • Accounts can be opened remotely.
  • In order to speed up the process, one has to be present in person at the meeting with the banker.
  • Corporate accounts can be opened in 10 days given that once provides a detailed description of the company’s business.
  • Cards, investment products, letters of credit are available to corporate clients. 
  • Non-residents get a full package of services, as do locals.
  • Advantageous rates for banking services. 

Banque de Luxembourg

  • The bank is specializing in savings accounts.
  • Application processing time is up to 2 weeks.

Novo Banco Luxembourg

  • Part of the bank’s shares is owned by a state fund.
  • The bank requires an English translation of all submitted documents ,and a detailed description of the company’s business.
  • Application processing time is up to 3 weeks.
  • The bank does not require any initial deposit. The minimum account balance is 250 euro.
  • Monthly maintenance fee is 50 euro.

RCB Bank Ltd

  • The bank is specializing in settlement accounts.
  • Application processing time is up to 2 weeks.

East-West United Bank

  • Most bank clients are non-residents.
  • The minimum account balance is 500,000 euro.

ING Bank

  • The bank specializes in working with holding structures.
  • Private clients mostly open savings accounts.
  • The minimum balance size is 1 million euro.

What Is the Best Way to Open an Account with a Luxembourg Bank?

In order to open a Luxembourg bank account in the most favorable way, you should definitely use the services of professional intermediaries. Our partner is an experienced law firm in Luxembourg. Our customers can count on professional legal assistance and knowledge of all the peculiarities related to the local banking sector.

Bankers are primarily interested in the solvency of non-residents wishing to open an account with a Luxembourg bank. One should be prepared to present their legal sources of income and demonstrate sufficient financial standing.

Take advantage of our free advice on choosing a bank account in Luxembourg by clicking here. Ask our experts about the lowest deposits, and what Luxembourg banks accept innovative businesses, start-ups and IT companies.  Please email us at info@offshore-pro.info and you will get a prompt response.

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