Top Banks in Portugal: A Complete Guide for 2024
The façade of a financial institution.
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Top 10 Banks in Portugal for Expats in 2024
Searching for the best banks Portugal has to offer? Our guide to the top 10 banks in Portugal for expats provides everything you need to choose the right bank. Whether you’re looking for traditional banking services, digital solutions, or international options, this article covers it all.
Key Takeaways
The Portuguese banking system is well-regulated and diverse, featuring major national, international, and digital banks that cater effectively to both residents and expats.
Opening a bank account in Portugal typically requires essential documents, and several banks now offer remote account opening options for increased convenience.
Expat-friendly banking services include competitive personal loan rates, advanced payment methods through the Multibanco network, and various options for secure international money transfers.
Overview of the Portuguese Banking System
The Portuguese banking system is robust and well-regulated, ensuring stability and efficiency for all its users. The primary regulatory authority is Banco de Portugal, which oversees most banks in the country alongside the country’s central bank and the European Central Bank. This dual oversight ensures that the banking environment remains secure and compliant with European standards.
Portugal’s banking landscape is diverse, encompassing traditional banks, digital banks, private national retail banks, and cooperative banks. This variety allows customers to choose from a broad range of services tailored to their needs. A standout feature of the Portuguese banking system is the Multibanco network, an advanced interbank system connecting ATMs and payment terminals nationwide for seamless transactions.
Portugal boasts approximately 32.8 bank branches per 100,000 residents, surpassing the global average in branch concentration. This accessibility, along with the integration of most banks into the Portuguese Banking Association, underscores the country’s dedication to a stable, customer-friendly banking environment.
Major National Banks in Portugal
Several major national banks in Portugal play a pivotal role in the financial sector. These institutions provide a wide range of services, from personal banking to corporate solutions, catering to both residents and expats. The largest private bank, including Millennium BCP and Novo Banco, is well-regarded for its comprehensive services and significant market presence.
These banks, along with Banco Português de Investimento (BPI), support various sectors through retail, private, and corporate banking services. Most Portuguese banks have extensive networks and diverse service portfolios, making them ideal for anyone looking to open a bank account in Portugal.
Caixa Geral de Depósitos (CGD)
Caixa Geral de Depósitos (CGD) is a cornerstone of the Portuguese banking system, established in 1876 and now state-owned. As the second-largest bank in Portugal, CGD offers a broad spectrum of services including corporate and consumer loans, mortgages, insurance, and investment funds.
With total assets amounting to 88.6 billion euros, CGD is a key player in both commercial and investment banking in Portugal. Its comprehensive service portfolio and long-standing reputation make it a reliable choice for expats seeking a stable banking partner.
Millennium BCP
Millennium BCP, officially known as Banco Comercial Português, is one of Portugal’s largest private banks, founded in 1985. The bank offers a wide range of services, including investments, financial and health insurance, retirement savings, personal loans, and mortgage loans.
In 2024, Millennium BCP was recognized as the Best Investment Bank in Portugal by Global Finance, underscoring its expertise in financial advisory for green and digital transitions. Its robust online banking platform, available in English, provides expats with a convenient and comprehensive banking experience.
Novo Banco
Novo Banco, established in 2014, has quickly become a significant player in the Portuguese banking sector with over 300 branches nationwide. The bank provides a variety of services. These include personal and business accounts, investment options, asset management, credit, loans, and insurance.
Novo Banco’s Golden Key Account is tailored specifically for expats, providing benefits like discounts on health insurance and access to an English-speaking account manager. Its modern digital banking solutions, including a user-friendly app, make managing finances easy and efficient for international clients.
Leading International Banks in Portugal
International banks have a strong presence in Portugal, offering services that cater specifically to the needs of the expat community. Major international banks such as Deutsche Bank, N26, Oney Bank, BNP Paribas, Citibank, and Bankinter provide a wide range of personal and corporate banking services.
These banks offer unique financial solutions, including foreign exchange services and low-cost international transfers, making them attractive options for expats. Their global reach and expertise in handling international clients ensure that international banks operate seamlessly for expats to manage their finances across borders.
Deutsche Bank
Deutsche Bank AG, originally from Germany, has established a significant presence in Portugal, offering specialized corporate and investment banking services. These services are tailored to international customers, ensuring expats receive optimal financial solutions.
Deutsche Bank’s expertise in investment banking makes it a top choice for those looking to manage their finances effectively in Portugal. Whether you’re seeking corporate banking services or investment opportunities, Deutsche Bank provides comprehensive support to meet your needs.
Santander Totta
Banco Santander Totta, based in Lisbon, is one of Portugal’s leading banks. Recognized as the best bank in Portugal in 2019 and the safest in 2016, it offers a wide range of personal and business accounts, along with retail, private, and corporate banking services.
Santander Totta’s robust services and commitment to security make it an excellent choice for expats. Whether you need a simple savings account or comprehensive corporate banking services, Santander Totta provides reliable and secure banking solutions.
Digital and Mobile Banks in Portugal
Digital and mobile banks have revolutionized Portugal’s banking landscape. These banks offer a range of online banking services, simplifying financial management for tech-savvy customers. Neobanks and mobile-only banks have gained popularity, offering cost-effective and convenient banking options.
Digital banks like Banco Best offer various account types, such as the Digital Account, Service+ Account, and Digital+ Account, allowing customers to choose the best option for their needs.
With their user-friendly platforms, digital banks are an excellent choice for expats looking for flexible and efficient banking solutions.
N26
N26 is a digital bank offering a streamlined banking experience tailored for modern users, including expats. The N26 app enables users to manage their finances easily, offering features like setting PINs, locking and unlocking cards, and implementing spending limits, all without fees.
Opening an N26 bank account takes about eight minutes, making it an efficient and hassle-free option for expats establishing their finances in Portugal.
With no-fee transactions and a user-friendly app, N26 is a top choice for those seeking a digital banking solution.
ActivoBank
ActivoBank, part of the Millennium BCP Group, targets tech-savvy customers with mobile banking features and a user-friendly online interface. Customers can choose between a Simple Account or a range of integrated Plans, offering flexibility for various banking needs.
With its mobile-first approach, ActivoBank offers a convenient banking experience, allowing customers to manage their finances anytime, anywhere. Integration with Millennium BCP ensures reliable and comprehensive banking services.
Opening a Bank Account in Portugal
Opening a portuguese bank account in Portugal is crucial for managing daily expenses and may be required for visa applications. Both residents and non-residents can open bank accounts, with many major Portuguese banks offering services to foreigners.
Residents can often open an account online, whereas non-residents typically need to visit the bank in person. The minimum deposit to open an account usually ranges from €250 to €300, ensuring accessibility for most expats.
Required Documents
Certain documents are required to open a bank account in Portugal. Ensure you have all the necessary paperwork ready. These include:
A Portuguese citizen card
Passport or valid ID
A Portuguese address
NIF (tax identification number)
Proof of economic status
Non-residents must also provide confirmation of income legality and their NIF number.
Obtaining a NIF is a crucial step in relocating to Portugal, as it is required for all financial transactions and legal affairs. You may also need to provide a work contract or company details to demonstrate income when opening an account.
Online Account Options
Many banks in Portugal allow remote account opening, making it convenient for expats to set up their finances before arriving. Some banks offer online services specifically for non-residents looking to open a current account, with the process typically taking no more than 20 minutes.
Online banking services offer benefits like easy access to account management and fewer physical visits to the bank. This makes them an attractive option for those who prefer a digital-first approach to banking.
Banking Services in Portugal
Standard banking operations in Portugal are facilitated by the Multibanco system, enabling activities like bill payments and fund transfers. Both national and international banks offer a wide range of financial services and benefits, catering to various needs.
Investment banking services, including advisory services, underwriting, and capital-raising solutions, are available for both local and international clients. Offshore accounts offer benefits like tax advantages and currency diversification, making them attractive for expats.
Personal Loans
Personal loans in Portugal have competitive interest rates, averaging around 3.9%, which is lower than the EU average. Online loans offer advantages like quick approvals and no need for in-person visits.
These loans can be used for various purposes, from home improvements to debt consolidation, providing financial flexibility for expats. The ease of obtaining a personal loan online makes it convenient for those needing quick funds.
Investment Banking Services
Investment banking services in Portugal cater to various client needs, offering loans, brokerage, and trust securities management. Deutsche Bank AG is a prominent provider, offering tailored financial solutions and access to international markets.
These services can be particularly beneficial for expats, providing opportunities for investment and financial growth. With support from experienced financial advisors, expats can navigate investment banking complexities confidently.
Payment Methods and Cards
Portugal’s payment system is highly advanced, with the Multibanco network connecting ATMs, payment terminals, and online services nationwide. Debit cards are the most frequently used cashless payment option, surpassing credit cards in popularity. An extensive network of around 11,000 ATMs ensures cash withdrawals and other transactions are accessible nationwide.
Most retail outlets in Portugal readily accept debit cards, making cashless transactions convenient and efficient for expats. The widespread use of Multibanco cards, which function as both debit and credit cards, provides flexibility and ease of use for all payments.
Debit and Credit Cards
Applying for debit and credit cards in Portugal is straightforward. Most retail outlets accept debit cards for transactions, and these cards are widely used for online payments, store purchases, and ATM withdrawals. Multibanco cards, equipped with chip-and-pin technology, offer enhanced security and can be used for both debit and credit transactions.
Most Portuguese debit cards have a maximum purchase limit of €50 without requiring a PIN code, adding convenience for small transactions. Good credit is typically required for those looking to apply for a credit card.
Online Payments
Portugal’s online payments landscape is burgeoning, with mobile payments growing at an impressive annual rate of 35%. Services like MB Way facilitate instant money transfers between users by entering the recipient’s phone number, making transactions quick and easy.
Security in online payments is paramount to protect users from fraud and unauthorized transactions. Expats should use secure payment platforms and avoid clicking on links in unsolicited emails to minimize the risk of banking fraud.
International Money Transfers
International money transfers are a crucial aspect of expat life. Banks in Portugal offer various services for international transfers, available through both branches and online banking platforms. While traditional banks may charge fees ranging from €20 to €30, online transfer services like Revolut and Wise often offer lower fees and faster transaction times.
For transfers under €50,000, fees are typically less than €15, while larger transfers may incur higher costs and require notification to the Portuguese Central Bank. Transfers usually take between three to five working days, with eurozone transfers being as quick as local ones.
Fees and Charges
Understanding the fees and charges associated with banking in Portugal is essential for managing your finances effectively. Monthly maintenance fees for bank accounts typically range from €4 to €8. Some banks may waive these fees if a minimum balance is maintained, and student accounts are often exempt from monthly service fees.
Using ATMs outside your bank’s network can incur additional transaction fees, so it’s advisable to be aware of your bank’s ATM network. Basic accounts, known as ‘conta de serviços mínimos bancários,’ have a maximum annual fee set at under €5, making them a cost-effective option for basic banking needs.
Security and Fraud Prevention
Portugal boasts one of the lowest rates of fraudulent activity in the EU, with a fraud activity rate per transaction of just 0.009%. To prevent online fraud, it’s crucial to use secure payment platforms and avoid clicking on links in unsolicited emails. If your bank card is lost or stolen, contacting your bank immediately can help prevent unauthorized transactions.
Establishing an offshore account can enhance financial privacy for expats, offering added security and peace of mind. These measures ensure that expats can manage their finances securely while living in Portugal.
Offshore Banking for Expats
Offshore banking provides numerous benefits for expats in Portugal, including reduced taxation on funds, which can enhance savings and investment opportunities. These accounts typically offer a wider range of cross-border services, facilitating international transactions and investments.
Managing finances across borders is made easier with offshore banking, allowing expats to handle their money efficiently and take advantage of tax benefits. This makes offshore banking a smart choice for those looking to optimize their financial management while living abroad.
Summary
In summary, Portugal offers a diverse and robust banking system that caters to the needs of expats. From major national banks like Millennium BCP and Novo Banco to international giants like Deutsche Bank and innovative digital banks like N26, there are plenty of options to choose from. Understanding the fees, services, and security measures in place will help you make informed decisions about your finances.
Whether you are looking to open a personal account, obtain a loan, or manage international transfers, Portugal’s banking system provides the necessary tools and support. Take the next step in your financial journey with confidence, knowing you have the information needed to navigate Portugal’s banking landscape effectively.
Frequently Asked Questions
Can non-residents open a bank account in Portugal?
Yes, non-residents can open bank accounts in Portugal, with many major banks providing tailored services for foreigners. This makes it accessible for those looking to manage their finances while in the country.
What documents are required to open a bank account in Portugal?
To open a bank account in Portugal, you need a valid identification document (passport, citizen card, or ID), proof of address, a NIF (tax identification number), and evidence of economic status. Non-residents must also provide confirmation of the legality of their income.
How long does it take to open an online bank account in Portugal?
You can expect to open an online bank account in Portugal in about 20 minutes. This process is usually straightforward and efficient.
What are the typical fees for maintaining a bank account in Portugal?
The typical monthly maintenance fees for bank accounts in Portugal range from €4 to €8, though some banks may waive these fees with a minimum balance or for student accounts. It's advisable to check with your bank for specific conditions.
Are there any benefits to offshore banking for expats in Portugal?
Offshore banking provides expats in Portugal with benefits such as reduced taxation, access to diverse cross-border services, and improved financial privacy. These advantages can significantly enhance your financial management while living abroad.
