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Whether you are doing business, investing in real estate in Portugal, getting interested, or moving to relocation, you will need to open a bank account there to conduct money. You will be surprised to find that the banking services in Portugal are very diverse and beyond the large banks where service is provided in English, there are private, regional, digital banks, and foreign accounts. That is, any action you can only think of – paying income tax and social security, paying a mortgage, loans, savings, investments, a mobile account, and managing foreign accounts, all can be done through the banking services in Portugal! A large proportion of those who use Portugal’s banking services choose the big banks. One of the disadvantages of this is the length of time it takes to open an account due to intra-organizational regulation of the banks, mainly due to the ban on money laundering. Opening a bank account can take about a month and a half and many are unaware of the existing alternatives of opening accounts quickly at smaller banks.
In this article based on A guide to banking in Portugal by Expatica website, we will tell you about the alternatives to the big banks, about all the types of banks that exist in Portugal, and the banking services they offer.
Find the services that are right for you as:
Get to know the banking system in Portugal
Portugal has a modern banking system that includes one of the most advanced inter-bank networks in the world through Multibanco. There are currently over 150 banks in Portugal. This includes a range of private national retail banks, public and cooperative banks, international banks, and newer mobile banks in Portugal.
Although the number of physical bank branches in Portugal is on the decline over the last decade, there are still around 36 branches per 100,000 of the population. That’s nearly three times the global average.
The majority of banks in Portugal belong to the Portuguese Banking Association. The central bank in Portugal is the Banco de Portugal, which also serves as the regulatory authority for Portuguese banks.
Banking services in Portugal
Most banks in Portugal offer a variety of services to individuals and businesses, including:
Current accounts: standard everyday accounts are available. These include tailored accounts for students or youth, as well as premium accounts with a wider range of credit card options.
Loans and overdrafts: accounts are available with an overdraft option. Most banks offer personal loans for purchases such as holidays, home improvements, or unforeseen expenses.
Mortgages: fixed and variable rate mortgages in Portugal can be taken out through the lending facilities of most Portuguese banks.
Savings and investments: these can range from high-interest savings and time deposit accounts to investment funds and Portuguese pension plans.
Insurance: insurance products include home insurance, car insurance, life insurance, and Portuguese health insurance.
Digital and online banking: all of the main banks in Portugal offer online banking, including 24/7 access to your account.
Mobile banking: for even greater convenience, you can download a Portuguese mobile banking app and bank using your mobile phone. There is also the option of opening an account with a mobile-only bank.
Business banking: most of these services are also available for businesses too. This is great news if you’re starting a business in Portugal.
Expat services: you can shop around with banks in Portugal to find the best services tailored towards expats and foreign residents.
If you already have Portuguese citizenship and you live in Israel or relocate / with residence visas in Portugal:
National private retail banks in Portugal
Portugal has many private high street banks that offer a range of current accounts. Some offer student accounts, non-resident accounts, as well as joint accounts. Larger banks in more populated cities will often have English-speaking staff.
Banks in Portugal are linked to the Multibanco ATM system where you can withdraw money, pay bills, top-up a Portuguese mobile phone, transfer money to other accounts, as well as paying Portuguese income tax and social security contributions in Portugal.
Standard banking hours in Portugal are 08:30 to 15:00; some locations are also open until 16:00. Some banks also open for a few hours on Saturdays, too.
A number of major private retail banks operate in Portugal, such as:
- Banco Best
- BancoBIC
- Banco BPI
- Millennium BCP
- Novobanco
- Santander Totta
Digital banks in Portugal
A number of online and mobile banks have emerged in recent years, allowing customers to open an account and bank using their mobile phones or laptops. Digital banks suitable for Portuguese residents include:
- bunq
- N26
- Revolut
Regional cooperative banks
If you don’t want to, or can’t, bank with a high-street bank, another option is to open an account with a regional cooperative bank. Credito Agricola, for example, operates 86 cooperative banks with over 700 branches across the country.
Cooperative banks have over 700,000 members in Portugal. Many offer similar services to retail banks, including current accounts, credit cards, loans, and mortgages.
To open a cooperative account with Credito Agricola, you need to provide a Portuguese citizen card. If you don’t have this, you’ll need a passport or valid identification, a Portuguese address, and a NIF number. You may also need to give proof of your economic status (e.g., employment, student, pensioner).
If you are in Portugal temporarily / on relocation terms
International banks in Portugal
There are a number of multinational banks in Portugal that you can find in larger urban areas. These banks have comparable opening hours to their Portuguese counterparts. Often, they offer a range of expat-friendly services. Some international banks in Portugal are:
- Abanca
- Barclays
- BBVA
- BNP Paribas
- Citibank
- Credit Agricole
- Deutsche Bank
Offshore banking in Portugal
Expats living in Portugal may find that opening an international offshore account is the best way to manage their finances. Having an offshore account is particularly helpful for anyone who works abroad, spends a lot of time in more than one country, or frequently transfers money between countries.
Offshore bank accounts are located outside the holder’s country of residence and usually offer distinct advantages such as a wider range of cross-border services and lower taxation on funds.
If you do not have Portuguese citizenship but you are investing in real estate / businesses in Portugal (also suitable for Portuguese citizens):
Investment banks in Portugal
- Banco Carregosa
- BiG (Banco de Investimento Global)
- Banco Finantia
- Banco Invest
We hope this information will help you in your economic conduct in Portugal.
Read here who should open a bank account in Portugal.
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