Banking

Steps

1. Choose your bank; for a basic account, go to one of the four designated banks (BIL also offers it voluntarily).
2. Present your identity document and your address; the bank will apply its anti-money-laundering checks.
3. Receive the reply within 10 working days at most; a refusal must be notified to you immediately with its precise reason (except for reasons of national security or the fight against money laundering), and the bank must tell you the complaints procedure and your right to refer the matter to the CSSF.
4. In case of an unjustified refusal, complain to the bank, then refer the matter to the CSSF (the financial regulator).
5. For a mortgage, prepare your proof of income and your down payment, and compare offers (APR and standardised European information sheet).

Documents

• Valid identity document or passport.
• Proof of address (in Luxembourg or in another EU country).
• For a loan: employment contract, payslips, sale agreement, savings statements.

Costs and timelines

• Basic account: opening, management, deposits, cash withdrawals in the EU, transfers, standing orders, direct debits and card payments (including online) in the EU. The maximum amount of fees is not indicated on the CSSF page: the bank must give you a fee information document before opening, then, at least once a year and free of charge, a statement of the fees charged to your account.
• Timeline: 10 working days at most after a complete application.
• Transfers in euros within the EU: no more expensive than a national transfer.
• Mortgage (loan-to-value ratio, since 1 January 2021): 100% for a first-time buyer of their main residence; 90% for the main residence of other buyers (banks may exceed this for 15% of these loans, never beyond 100%); 80% for other properties, including buy-to-let.

Common pitfalls

• Already having a Luxembourg account: the bank may then refuse the basic account, if that account already lets you use the same services (unless you declare that it is going to be closed).
• Believing that a Luxembourg account is compulsory to be paid. According to Your Europe, an account located in another EU country cannot be refused for SEPA transfers or direct debits (bills, taxes, tax refunds, benefits) if the other party accepts national accounts; the page does not cite salary, so ask your employer for confirmation.
• Underestimating the down payment: even at 100% loan-to-value, registration duties (7%, reduced by the Bëllegen Akt) and notary fees still have to be financed.
• Cross-border workers: a loan for a home outside Luxembourg follows the rules and practices of the country where the property is located; CSSF regulation 20-08 covers loans relating to residential properties located in Luxembourg (article 1 of the CSSF consolidated text, which incorporates the temporary adaptations of CSSF regulation 24-10 valid until 30 June 2025 unless extended; the 2025 version published as CSSF regulation 25-01 could not be re-read).

What changes by country of origin

• EU residents: right to the basic account, whatever their country of residence in the EU.
• Swiss and British nationals (Scots included): the right to the basic account concerns consumers legally resident in the EU; once settled in Luxembourg, they benefit from it like other residents.