How to Open a Bank Account in Portugal

Why You Need a Bank Account

While it is technically possible to survive in Portugal without a local bank account, it makes everything harder. Here is why you need one:

• Salary payments — Most employers pay salaries by bank transfer. They require a Portuguese IBAN.
• Rent payments — Landlords generally expect monthly bank transfers.
• Utility bills — Electricity, water, gas, and internet are easiest to manage with direct debit (debito direto) from a Portuguese account.
• Tax obligations — Tax refunds and social security payments go to your Portuguese bank account.
• Building financial history — A bank account with regular activity helps establish your financial record in Portugal, useful for future loans or credit.

Documents Required

To open a bank account in Portugal, you generally need:

• NIF (Numero de Identificacao Fiscal) — This is the single most important document. No bank will open an account without it. See our NIF guide.
• Valid passport or identity document
• Proof of address — Rental contract, utility bill, or official correspondence at your Portuguese address. Some banks accept a hotel reservation or temporary address for initial account opening.
• Proof of income or employment — Employment contract, pay slips, or a declaration of self-employment. Some banks may accept bank statements from your home country.

Major Banks in Portugal

Portugal has several large banks with branch networks across the country. The main ones include:

• Caixa Geral de Depositos (CGD) — The state-owned bank and the largest in Portugal. Extensive branch network, including in smaller towns. Often the default for government-related payments.
• Millennium BCP — One of the largest private banks. Wide branch coverage and well-known online platform.
• Novo Banco — Major private bank with branches nationwide.
• Santander Portugal — Part of the international Santander group.
• BPI — Large bank now part of the CaixaBank group.
• ActivoBank — A digital-first bank owned by Millennium BCP. Known for competitive account terms. Check their website for current fee schedules and account features, as these are updated regularly.

The Account Opening Process

1. Choose a bank — Research fees, branch locations near your home or work, and online banking capabilities. Ask community members for recommendations.
2. Schedule an appointment or walk in — Some branches accept walk-ins, others require appointments. Call ahead to confirm.
3. Bring all documents — NIF, passport, proof of address, and proof of income.
4. Fill in the application — The bank representative will guide you through the forms. The process is usually in Portuguese, but staff at larger branches in Lisbon and Porto may speak English.
5. Initial deposit — Some banks require a minimum opening deposit. The amount varies by bank and account type — ask when scheduling your appointment.
6. Receive your details — You will receive your IBAN (International Bank Account Number), which starts with "PT50". Your debit card typically arrives by post within a few days to two weeks.
7. Activate online banking — Set up the bank's app and online portal. You will need this for transfers, checking your balance, and managing direct debits.

Online vs In-Person

Most traditional Portuguese banks still prefer in-person account opening, especially for non-Portuguese nationals. The branch visit allows the bank to verify your identity and documents directly.

Some banks offer partial online applications where you start the process online and complete it at a branch. A few digital-first banks (see below) allow fully remote account opening.

Digital and Neo Banks

In addition to traditional banks, several digital banking options are available in Portugal:

• ActivoBank — A Portuguese digital bank with competitive terms. Check their website for the current account opening process, as it may require a Millennium BCP branch visit.
• Revolut, N26, Wise — European neo-banks that work in Portugal. These can be useful as secondary accounts for international transfers and currency conversion, but may not be accepted for all Portuguese administrative purposes (e.g., some government payments require a Portuguese IBAN).
• Moey! — A Portuguese digital bank. Check their website for current availability, features, and account requirements, as digital banking products change frequently.

Sending Money Internationally

Many Asian immigrants need to send money to family in their home country. Options include:

• Bank wire transfers (transferencia internacional) — Available at any bank but often come with high fees and unfavourable exchange rates.
• Wise (formerly TransferWise) — Online platform that typically offers better exchange rates and lower fees than traditional banks. Widely used by immigrants.
• Revolut — Allows currency exchange and international transfers through the app.
• Western Union / MoneyGram — Available at physical locations across Portugal. Convenient for cash pick-up at the receiving end, but fees can be high.
• Remittance services specific to your home country — Some services specialize in transfers to specific countries (India, Pakistan, Bangladesh, China, Philippines, etc.) and may offer competitive rates.

Always compare fees and exchange rates before sending money. The cheapest option depends on the destination country, amount, and how the recipient collects the money.

Practical Tips

• Open your account early — Do this soon after getting your NIF. You will need the bank account for rent, utilities, and salary.
• Ask about the conta de serviços mínimos — Portuguese banks are required by Banco de Portugal regulation to offer a basic bank account (conta de serviços mínimos bancários) with capped fees. This account includes essential services such as a debit card, direct debits, and transfers. Ask any bank about this option — they are obliged to provide it.
• Set up MB Way — MB Way is Portugal's most popular mobile payment system. It works like Apple Pay but is linked directly to your Portuguese bank account. You will use it for splitting bills, paying in shops, and online purchases.
• Keep your address updated — If you move, update your address with the bank. Your debit card, PIN letters, and statements are sent by post.
• Use the e-Fatura system — Link your NIF to your bank card so purchases are automatically registered for tax deductions. Check on the Portal das Financas.
• Monitor for fees — Check your statements regularly. If unexpected fees appear, ask the bank to explain them. You can switch banks if fees become unreasonable.

Common Mistakes to Avoid

• Trying to open an account without a NIF — This will not work. Get the NIF first.
• Not comparing banks — Fee differences can add up to hundreds of euros per year. Spend time comparing before choosing.
• Ignoring the fee schedule — Ask for the precario (fee schedule) and read it. Some accounts charge for things you might not expect — paper statements, in-branch transactions, even SMS notifications.
• Using only your home country bank — Relying on foreign cards means ATM fees, poor exchange rates, and the inability to set up direct debits or receive a Portuguese salary.
• Not setting up MB Way — Many Portuguese payments, from restaurants to online shops to peer-to-peer transfers, use MB Way. Set it up as soon as your card arrives.

Frequently Asked Questions

Can I open a bank account as a tourist?

Some banks allow non-residents to open accounts, but the process is more complicated and may require a fiscal representative. It is generally easier once you have a Portuguese address and residency documentation.

How long does it take?

The branch visit typically takes 30-60 minutes. Your IBAN is usually available immediately or within a day. The physical debit card arrives by post, usually within one to two weeks.

Can I open a joint account?

Yes. Both account holders need to provide their own NIF, identification, and proof of address. Both must be present at the branch (or sign the necessary forms).

What is an IBAN?

IBAN stands for International Bank Account Number. Portuguese IBANs start with "PT50" followed by 23 digits. You will give your IBAN to your employer, landlord, and anyone who needs to transfer money to you. It is also used for SEPA (Single Euro Payments Area) transfers across Europe.

What if the bank refuses to open my account?

Banks can refuse account applications, but they must provide a reason. If you believe you have been unfairly refused, you can file a complaint with Banco de Portugal. Try another bank — policies and requirements differ between institutions.