Banking abroad: a short guide for expats

Most of us can hardly remember a time when having a bank account was optional. Nowadays, we wouldn’t dream of stashing our hard-earned cash in a physical space, praying it stays safe. Having an account in a well-trusted bank is a no-brainer, and the way banking has evolved over the years has made our lives significantly easier.

When you move abroad for work, and unless your contract – and therefore, your stay – is short-term, your employer will require that you have an account with a local bank, where your paychecks will be deposited.

Having a local bank account might make sense for other reasons, too. Should you choose to use your home account abroad, your bank will charge you the same rate for payments in euro across the EU as it does for equivalent national transactions. However, they might charge you a currency conversion fee for card transactions in EU currencies other than euro. So, if you are moving to a non-euro area Member State, opening a local bank account will ensure you don’t waste money on such fees.

Finally, having a local account will help you establish credit history in the new country, which will come in handy if in the future you decide to request a loan or secure a mortgage. Moreover, it will allow you to take advantage of online paying systems unique to each country, for example iDEAL in the Netherlands, to which you would not have access with a non-local account.

Opening an account in your new country of residence – a checklist

Ahead of your move, contact your current bank to see whether they have branches abroad and/or offer international account services. Many big financial institutions offer solutions for international banking (e.g. HSBC, CitiGroup, Barclays). If you already have an account at a bank with a global presence, you might be able to skip many of the bureaucratic steps that accompany the acquisition of a new account.
Which bank to choose? In most cases, the bank through which you will be receiving your salary will be predetermined by your employer. If you are free to choose, consider the following: whether the bank has a branch at a location convenient to you, as you might have to make in-person visits when you first arrive; a wide ATM network; a straightforward online banking system; and dedicated customer support.
When you contact the bank of your choice, inquire about what documents you will need to open a new account. Rules on this may vary across countries; in Greece, for example, local regulations mandate that to open a bank account with a Greek bank, you need proof of identity, income and tax details, address and occupation. A EURES Adviser will guide you on what types of rules apply in your new country.

Keeping your home country account open

Even if you are certain that you will not return in the foreseeable future, it might be a good idea to keep your current account running, if only for some time post-move. Reasons include remaining a tax resident in your home country which might involve bank transactions, sums you are due from a former employer which might take months to process, as well as keeping a local account to use as a visitor, for convenience.

If you decide to keep your home country bank account, make sure you notify the bank about your new address, for the better protection of your sensitive information. Also, try to make minor transactions via that account every now and then, to avoid it becoming blocked because of inactivity.

EURES Advisers are always available to assist you in the process of moving abroad, from answering employment-related questions to providing practical guidance on day-to-day living in a new country, such as finding a home.

Related links:

Your Europe - Bank accounts in the EU

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