Luxembourg was considered for a long period of time the “financial capital” of Europe due to its developed financial industry. However, a few years back the Grand Duchy has started promoting other industries with a great development potential, which has determined investors interested in pursuing other business ventures than financial ones to set up companies here in domains like research and development or innovation. This has also led to the development of Luxembourg’s workforce. In order to work or carry out a business in Luxembourg, one will need to open a bank account, which is why local and foreign banks operating here have adjusted to offer optimum conditions for foreign citizens living here.
Luxembourg banks offer several choices for foreign citizens deciding to open bank accounts here. Those living here or working for a Luxembourg company may open current or savings bank accounts. Compared to other countries where current accounts are by far the most popular, savings accounts in Luxembourg can be an appropriate choice as the small country offers certain tax exemptions for certain incomes kept in a savings account.
Our lawyers in Luxembourg can offer more information on all types of bank accounts available with local institutions.
Luxembourg banks have relaxed requirements for those seeking to open bank accounts in the Grand Duchy. Foreign citizens will only need their passport and proof of their residential address in order to open a bank account in Luxembourg. For those working here, the bank may request for a letter from the company stating their employment status. Foreign investors starting businesses in Luxembourg will also be required to set up corporate bank accounts in order to deposit the share capital upon the incorporation.
The procedure for opening the Luxembourg bank account implies going to the bank in person, or submitting the required documents online. For the online procedure, the applicant must have a valid e-mail address.
For more information on the available types of bank accounts and assistance in setting up any of them, do not hesitate to contact our law firm in Luxembourg.
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