Top Banks in Portugal: Best options for expats

Moving comes with a lot of challenges to face. In addition to packing up all your belongings, arranging transportation, and finding a place to live, there are plenty of other practical issues to consider. Many of these may seem small, but they’re actually quite important for settling into your new home. Today, we want to help you address one that’s particularly important: managing your finances. To do so, we’ll take a look at the different types of banks in Portugal for expats and what they offer.

Finding out which banks are best equipped to help foreigners and what their account conditions are will make managing your money much easier. You’ll save on fees, get integrated into the country’s financial system, speed up daily tasks, and have more time to focus on much more enjoyable things, like exploring all that Portugal has to offer.

Why open a bank account in Portugal?

First of all, is it really necessary to open a bank account in Portugal? Isn’t it enough to just use the one I have in my home country? Technically, your current account would be fine. However, opening one in your new country will bring you several benefits, especially if you plan to stay long-term or make Portugal your permanent home. It’ll save you time, money, and spare you from some potential headaches.

On the one hand, you’ll avoid the fees banks charge for using your card or withdrawing cash from ATMs. These fees can be pretty high when using a card from a different country. While they might be manageable in small amounts, if you’re living in Portugal, they could add up to a pretty substantial sum over the year.

On the other hand, having a local bank account will make it easier to set up essential payments, like rent, utilities, or taxes you’ll need to pay as a foreigner in Portugal. Plus, if you plan to stay for a while, it’s almost essential for accessing local financial products, such as loans, insurance, or savings plans.

Do you work or plan to receive income in Portugal? If so, a local bank account is not only useful but necessary for managing your salary and complying with tax regulations. If you’re coming from outside the eurozone, having an account in euros will save you from the currency conversion fees typically charged by foreign banks.

Requirements to open a bank account in Portugal

Although it might seem like a hassle to find a bank that suits your needs, having an account in Portugal will make your life much easier and help you save money. So, can just anyone open an account? Technically, yes, but there are certain requirements. While each bank may have slightly different conditions (and they can vary depending on the type of account), these are the main requirements you’ll typically come across:

1. Valid identity document: You’ll need to provide an official document to prove your identity. If you’re an EU citizen, your passport or national ID will work. For those coming from outside the EU, a passport is required. If you plan to stay long-term, you may also need to get a Tax Identification Number (NIF).
2. Proof of address in Portugal: Most banks will ask for a document to confirm your address in the country. Accepted documents can include utility bills (such as water or electricity) and a rental contract.
3. Proof of income or economic activity:  While not all banks ask for it, some may request proof of your income or economic activity. This could include a work contract, a recent payslip, or an acceptance letter from an educational institution.
4. Minimum initial deposit: Some bank accounts in Portugal require an initial deposit to activate them. The amount can vary depending on the bank and the type of account, but it’s usually a small sum.
5. Tax Identification Number (NIF): You’ll need an NIF, which is crucial for handling financial matters. You can easily get one at the Portuguese tax office (Serviço de Finanças). In some cases, the bank may even assist you with this.
6. Digital processes and applications: Recently, banking in Portugal, like in other developed countries, has made significant digital strides. It’s now possible to open accounts online through banking apps. If you choose a digital bank, all you’ll need to do is scan your ID and fill out a few forms on your phone.

Types of banks with services for expats in Portugal

Now that the benefits of opening a bank account in Portugal are clear, along with the general requirements, the next question is: where should you do it? There are different types of banks not just in Portugal, but around the world. In addition to international banks, there are local and digital ones. Let’s take a look at how they work and the advantages they offer for expats or long-term travelers. Understanding the differences will help you make a better decision for managing your finances.

Neobanks or digital banks

Neobanks are fully digital banks with no physical branches. Everything, from opening the account to managing your transactions, is done online. All you need to manage your money with a neobank is their mobile app and your Holafly eSIM (or a stable connection). Their minimalist, tech-driven approach is ideal for those who value convenience and want to avoid unnecessary paperwork.

Why choose a neobank in Portugal?

• Opening an account is fully digital. Whether you’re in Portugal or anywhere else, all you need is a device with an internet connection to get started.
• The fees are generally lower than those at traditional banks, meaning you’ll save on maintenance charges and international transfer fees.
• The apps from these banks are great for managing your finances. They offer tools like expense tracking, personalized budgets, and real-time alerts that make it easier to stay on top of your money.

Some popular options:

• Revolut: Great for frequent travelers, with commission-free currency exchange and options such as virtual cards for secure online payments.
• N26: Ideal for expats, integrates advanced features such as international transfers with Wise and clear financial reporting.
• Wise: Although not a bank as such, it is an excellent option for financial transfers between countries and manages balances in different currencies.

Local banks

Portuguese traditional banks are the best choice if you want to fully integrate into the country’s financial system. In addition to offering financial products tailored to the local market, they have a wide network of branches and ATMs.

Why choose a local bank?

• Financial advisors have a deep understanding of the Portuguese system and can assist you with specific matters like mortgages, health insurance for foreigners in Europe, or savings products.
• Bank accounts typically give you access to the Multibanco network, one of the most comprehensive in Europe. You’ll be able to make transfers, pay bills, and manage basic services.
• They offer products designed for residents.

Examples of local banks in Portugal:

• Caixa Geral de Depósitos (CGD): Portugal’s state-owned bank. With a solid reputation, it is perfect for those looking for reliability and access to basic services.
• ActivoBank: Millennium BCP subsidiary, is known for its commission-free accounts and simple processes, perfect for young foreigners or digital nomads.
• BPI: Offers a good combination of digital services and physical branches, with multilingual support and expat-specific options.

International banks

If you handle finances in several countries or prefer dealing with a bank you already know, international bank branches in Portugal are a great option. They blend global experience with services designed for the Portuguese market.

Why choose an international bank?

• They allow you to handle several currencies in a single account, perfect if you work with different currencies or receive income from abroad.
• They offer fast and cheap international transfers, with better conditions than local banks.
• They have specialized advisors for international clients, who can guide you on issues such as taxation or cross-border investments.

Outstanding examples:

• Santander Totta: One of the most popular options among foreigners due to its network of branches and multilingual customer service.
• Deutsche Bank: Perfect for those looking for sophisticated options such as multi-currency accounts and estate planning.
• BBVA: Offers competitive financial products and easy-to-use digital platforms for foreigners.

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Top 5 banks in Portugal for expats

There are countless options when it comes to opening a bank account in Portugal. In fact, over 150 banking institutions operate in the country today. To help you find the best one for your needs, we’ve put together a list of the top five banks in Portugal for foreigners. We’ve considered factors like the company’s reputation, reviews from other expats, and the fees and account options designed for foreigners.

Caixa Geral de Depósitos (CGD): Perfect for residents and international students

Caixa Geral de Depósitos (CGD) is the largest state-owned bank in Portugal, known for its stability and security. With over 1,000 branches and 3,000 ATMs across the country, it makes accessing your finances easy, no matter where you are. It’s an ideal option for foreigners looking for a reliable institution. Its financial products are designed to meet basic needs and offer more comprehensive solutions as you go.

CGD is also praised for its customer service. You can visit their branches in person from Monday to Friday, between 8:30 AM and 3:00 PM. They also provide phone support in both Portuguese and English.

CGD accounts for foreigners

1. Base Account

• Features: Designed to cover everyday needs. Includes debit card and access to the entire Multibanco network.
• Fees: 4,20 euros ($4.50) per month, depending on services contracted.
• Opening requirements: Valid passport and, occasionally, Tax Identification Number (NIF).

2. University Account

• Features: Aimed at students under 26. It has no commissions and offers exclusive benefits.
• Fees: Free of charge.
• Opening requirements: ID document and proof of enrollment in a Portuguese educational institution.

Millennium BCP: Perfect for long-term professionals and expats

Millennium BCP is one of the largest private banks in Portugal, known for its mix of advanced digital services and in-person support. With over 600 branches and full access to the Multibanco network, it’s ideal for those looking to settle in Portugal long-term and in need of comprehensive financial options.

It provides customer support in both Portuguese and English. Branches are open from Monday to Friday, between 9:00 AM and 4:00 PM. 

Millennium BCP accounts for foreigners

1. Classic Account

• Features: A standard current account, with debit card and basic services.
• Fees: Free if you have a direct deposit of at least 500 euros ($535) per month; otherwise, 7 euros ($7.50).
• Opening requirements: ID card and Tax Identification Number (NIF).

2. Prestige Account

• Features: Intended for customers seeking customized products, such as mortgages, financial advice or investment accounts.
• Fees: 12,50 euros ($13.35) per month.
• Opening requirements: Identity document and NIF.

Banco Santander Totta: Perfect for international and multicultural operations

Banco Santander Totta blends Santander’s global expertise with a local approach in Portugal. It’s a great option for those who need to manage international transfers, work with multiple currencies, or access a global network of branches. Their banking app is user-friendly and makes transactions fast and secure.

With more than 500 branches and complete access to the Multibanco network, it provides broad coverage across the country. Customer service is available in multiple languages, including English. Banco Santander Totta branches are open Monday to Friday, from 8:30 AM to 3:00 PM.

Santander Totta accounts for foreigners

1. World Account

• Features: Intended to facilitate international transactions and transfers in different currencies.
• Fees: 8 euros ($8.55) per month.
• Opening requirements: Valid identity document and declaration of non-residence.

2. 123 Account

• Features: Includes benefits such as discounts on basic services and refund of commissions on some payments.
• Fees: 7 euros ($7.50) per month.
• Opening requirements: Valid passport and NIF.

ActivoBank: Perfect for digital nomads and young residents

ActivoBank, a subsidiary of Millennium BCP, is a digital bank tailored for those who prioritize simplicity and want to avoid extra fees. It’s an excellent choice for digital nomads and young expats in Portugal who prefer a hassle-free banking experience with no paperwork or hidden charges. While it doesn’t have its own branches, customers can still access Millennium BCP’s network of ATMs and offices for essential transactions like cash withdrawals or in-person assistance.

ActivoBank’s biggest advantage is its user-friendly app. With a modern and intuitive interface, it allows you to make transfers, track transactions, and manage your account in real-time. Available in Portuguese and other languages, it’s perfect for those who prefer handling their finances on the go.

Although customer support is mainly online, you can also contact the bank by phone from Monday to Friday, between 8:00 AM and 8:00 PM.

ActivoBank accounts for foreigners

1. Digital Account

• Features: Account with no maintenance fees, with free transfers in euros and debit card included.
• Fees: Free for standard transactions.
• Opening requirements: Valid passport and, in some cases, proof of residence in Portugal.

Revolut: Perfect for frequent travelers and digital nomads

Revolut is a digital neobank that has become one of the top choices for those who value flexibility and low fees. You can open an account in minutes through their app, without needing to visit a physical branch. This makes it a perfect option for frequent travelers and digital nomads looking to manage their money efficiently.

Revolut’s app is highly praised for its ease of use and allows you to handle multiple currencies, make international transfers at the real exchange rate, and keep track of your expenses in real time. While it doesn’t have its own ATMs, it’s compatible with major networks in Portugal.

Revolut accounts for foreigners

1. Standard Account

• Features: No maintenance fee, with access to multiple currencies and international transfers at real exchange rate.
• Fees: Free of charge.
• Opening requirements: Valid ID and proof of residence.

2. Premium Account

• Features: Includes benefits such as extended limits on cash withdrawals, travel insurance and priority attention.
• Fees: 7,99 euros ($8.55) per month.
• Opening requirements: Same as Standard Account.

What is the best bank for expats in Portugal?

By now, you’ve probably noticed that each bank approaches the needs of foreigners in Portugal in its own way. Some prioritize lowering fees, while others offer plans tailored to expats. Before making your decision, take a look at this comparison chart we’ve put together. It will give you a clearer view of the differences.

There’s no one-size-fits-all answer when it comes to the best bank for expats in Portugal. It all depends on your needs and preferences. For example, ActivoBank is great for digital nomads and younger residents thanks to its fee-free services and digital approach. If you’re looking for a broad ATM network and the option of in-person assistance, Caixa Geral de Depósitos might be a better choice. And if you want to easily manage international finances, Santander Totta is a solid option.

Steps to open a bank account in Portugal

Have you chosen a bank? Now it’s time to get started. While the process may seem daunting at first, it’s actually simpler than it appears. Here are the steps you’ll need to follow at some of the best banks in Portugal for expats.

1. Define the type of account you need

The first step is to decide which type of account best suits your needs. In Portugal, the most common options are:

• Resident account: If you plan to stay for an extended period of time or have a Tax Identification Number (NIF), this is the best option.
• Non-resident account: If you don’t have formal residency in Portugal, some banks offer this flexible option. Keep in mind that they may ask for a non-residence declaration, which you can obtain at a tax office.

2. Choose the right bank

Each bank has its own features suited to different needs. If you value in-person service, Caixa Geral de Depósitos or Santander Totta are great options thanks to their extensive branch networks. If you prefer a digital approach, banks like ActivoBank or Revolut provide fast and straightforward processes.

3. Gather the necessary documents

Although requirements vary from bank to bank, you will generally need the following:

• Valid identity document: Passport or European identity card.
• NIF (Tax Identification Number): Required for resident accounts and some non-resident accounts.
• Proof of address in Portugal: Rental contract, utility bill or letter from your company.
• Proof of income: Paycheck, employment contract, tax return.

4. Make the request

With traditional banks like Millennium BCP or Caixa Geral de Depósitos, you’ll need to visit a branch during their working hours (typically Monday to Friday, from 9:00 AM to 3:00 PM). However, if you choose a neobank like Revolut, you can complete the entire process online through the app, anytime.

5. Make the initial deposit

Some banks may ask for a small initial deposit to open an account. For example, Millennium BCP could require a deposit of 25 euros ($26.70) or more, depending on the account type. Neobanks like ActivoBank generally don’t have this requirement.

6. Set up your services

Once your account is activated, adjust the settings according to your needs:

• Request your debit or credit card: Essential for payments and cash withdrawals.
• Set up international transfers: Perfect if you send money outside Portugal.
• Activate automatic direct debits: Useful for paying bills, rent or utilities.

7. Familiarize yourself with the commissions and the ATM network

Certain banks in Portugal, such as Caixa Geral de Depósitos, offer fee-free withdrawals at their Multibanco network. Make sure to check the conditions to avoid unnecessary charges when using ATMs from other banks.

If you follow these steps, opening a bank account in Portugal will be a smooth and straightforward process. Remember that each bank has its own details, so feel free to ask an advisor if you have any specific questions.

Frequently asked questions about banks in Portugal for expats

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