You’ve fallen in love with the picturesque landscapes and charming streets of Portugal, and want to spend more time or invest in the country. But now you face the daunting task of navigating the Portuguese banking system to conduct your financial activities.
This scenario is all too common for many foreign individuals. Choosing the right bank is a crucial step that can significantly impact your experience in the country, regardless of your specific situation.
We are here to provide detailed information about the best banks in Portugal for foreigners. We’ll cover the Portuguese banking system, the services banks offer, mortgage details, and the factors to consider when choosing.
Our goal is to equip you with the knowledge needed to make an informed decision, ensuring your experience in Portugal is seamless and satisfying.
Best Bank in Portugal: An Overview of the Portuguese Banking System
The banking system plays a vital role in supporting Portugal’s financial infrastructure.
Portuguese banks and the banking system are overseen by Portugal’s Central Bank (Banco de Portugal) and the European Central Bank to ensure adherence to EU financial regulations and overall stability.
In Portugal, the banking sector – with more than 150 banks operating – comprises a mix of private national retail banks, cooperative banks, and international banks, offering diverse financial services to individuals, businesses, and investors.
In addition to traditional banks, Portugal is seeing a rise in digital and mobile banks, providing innovative online services. These banks offer access to various financial services and benefits, similar to those available worldwide.
Some of the common services offered by Portuguese banks are:
- Receive income in checking accounts
- Payments or personal banking
- ATM withdrawals
- Transfers
- Savings accounts
- Investment banking services
- Loan and credit card services
- Mortgage services
- Foreign currency account
- Safety deposit boxes
- Insurance (home, car, life, health)
- Private and Business banking
- Digital and online banking
- Direct debits
Bank fees
As with any other service, banks charge fees to sustain their activity. Bank fees in Portugal may vary based on the specific bank, your account type, and required services. Here’s an overview:
Bank accounts maintenance fees: The majority of banks in Portugal impose a monthly maintenance fee, typically ranging from 5€ to 15€. Nevertheless, numerous banks provide accounts without fees, particularly for standard checking or savings, and for individuals under 30 years old.
Debit and credit card fees: Banks might also impose yearly fees for credit and debit cards. Moreover, there could be additional fees for replacing cards, re-issuing cards, or using cards in foreign countries.
Transaction fees: There may be charges associated with certain transactions, such as using ATMs from a different bank, making transfers to other banks, or utilizing international wire transfer services.
Foreign currency exchange fees: Financial institutions may impose foreign exchange rates when conducting international transactions or exchanging currency. For transactions involving amounts lower than €50,000, the bank charges are under €15. For larger sums, the fees increase by approximately €30.
Loan and mortgage fees: When obtaining a loan or mortgage, it’s important to be aware that there could be additional costs linked to the submission, handling, and management of the loan.
Account security and Banking fraud
Portugal’s banking system is robust, with stringent regulations to ensure customer security. The security of bank accounts and the prevention of banking fraud are priorities that align with broader European efforts to enhance financial security.
To give you some context, the European Central Bank (ECB) reports a notable decline in card fraud across Europe, including Portugal, thanks to stringent security measures and technological advancements. Initiatives like the Second Payment Services Directive (PSD2) have been pivotal, mandating strong customer authentication and improving transaction security. According to the ECB, these measures have significantly reduced the incidence of fraud, reflecting a safer banking environment overall.
Additionally, the European Payments Council (EPC) highlights the shift towards more secure non-cash payment methods, which have further bolstered fraud prevention. This trend is evidenced by the increased adoption of secure payment technologies, contributing to a safer financial ecosystem.
Of course, as with banking with another nation, it’s important to adhere to fundamental banking security measures, such as refraining from entering your PIN online, avoiding the disclosure of sensitive or confidential information over the Internet or phone, and exclusively making online payments through secure and reputable platforms.
Best Portuguese Banks for Foreigners
Now, let’s talk about a few specific banks, the ones considered the best banks in Portugal, according to the market data and the national and international opinion.
Santander Totta
Santander Totta is the Portuguese subsidiary of the large Spanish banking group Banco Santander, a leading bank known for its comprehensive banking services and extensive branch network.
In 2016 and 2019, Santander Totta was acknowledged as the Safest Bank in Portugal by Global Finance showcasing its stability and security within the financial industry. In 2020, it received the ‘Best Bank in Portugal 2020’ and the ‘Best Investment Bank’ awards, by Euromoney.
Santander offers clients the opportunity to open personal and business accounts, as well as provides solutions including insurance, savings accounts, loans, and investment funds.
Millennium BCP
Millennium BCP is the largest private financial institution in Portugal. Established in 1985, the bank has a long-standing presence in Portugal and has international investment banking operations known as Millennium BCP Investment Banking.
Millennium BCP offers a wide array of products and services, including investment funds, financial and health insurance, retirement savings, personal loans, mortgage loans, personal accounts, credit cards, and more.
The bank also has a robust online presence, offering a website and mobile app with features that enable customers to manage their accounts, conduct transactions, and access various banking services through digital platforms.
In 2022, Millennium BCP was honored at the 11th Euronext Lisbon Awards with two prizes, in the “Local Market Member in Equity” and “Growing Structured Finance” categories.
Caixa Geral de Depósitos
Caixa Geral de Depósitos (CGD) is the largest state-owned bank in Portugal, with a long history dating back to 1876. It is a universal bank, offering a wide range of financial services to individuals, businesses, and the government.
CGD offers a comprehensive suite of banking products and services, such as personal banking, business banking, and government banking.
CGD has the largest branch network in Portugal, with over 800 branches across the country. They also have a strong online presence with a website and mobile app that allow customers to bank from anywhere and even won the award for Best Home Banking Site in 2023.
Additionally, CGD is a financially sound institution with a strong capital base and a solid track record of profitability.
It is also committed to social responsibility and has several initiatives in place to support the communities it serves.
Novo Banco
Novo Banco is a major retail and commercial bank in Portugal, founded in 2014 following the resolution of Banco Espírito Santo. It is the fourth-largest bank in Portugal by assets and has a significant presence in the Azores Islands.
Novo Banco offers a wide range of financial products and services for individuals, businesses, and institutional clients, including, personal banking, business banking, private banking (Wealth management and investment advisory services for high-net-worth individuals), and investment banking (corporate finance, mergers and acquisitions, and debt and equity underwriting services).
Novo Banco has a network of over 200 branches across Portugal, and also offers online and mobile banking services.
Novo Banco has received numerous awards and recognitions for its products, services, and customer satisfaction, including, Best Trade Finance Provider in Portugal (2021), Best Performer in Digital Retail Banking in Portugal (2022), and Best Innovation in Retail Banking award (2023).
Banco BPI
Banco BPI is a major Portuguese bank founded in 1881. It has a strong presence in retail, corporate, and investment banking. BPI is known for its innovative products and services, as well as its strong customer focus.
BPI offers a wide range of financial products and services for individuals, businesses, and institutional clients, including, personal banking, business banking, private banking, and investment banking.
BPI has a network of over 190 branches across Portugal, with a strong presence in major cities and towns. They also offer online and mobile banking services.
BPI is a well-capitalized bank with a strong track record of profitability. It has received numerous awards and recognitions for its products, services, and customer satisfaction, including, “Innovation in the delivery of financial products”, by the Financial Innovation Awards in 2016. In 2024, BPI won five awards at Euromoney’s Global Private Banking Awards – Best Domestic Private Bank in Portugal, Portugal’s Best for High Net Worth, Portugal’s Best for Digital Solutions, Portugal’s Best for Next-Gen, and Portugal’s Best for Sustainability.
Banco Montepio
Banco Montepio is a unique financial institution in Portugal with a rich history dating back to 1844.
Unlike most for-profit banks, Banco Montepio is a mutualist institution. This means it’s owned by its members rather than shareholders. This structure allows them to focus on social well-being alongside financial performance. They prioritize serving the needs of local communities and social enterprises, alongside traditional banking services.
Their primary focus is on retail banking, offering products and services to individual customers, micro-enterprises, small and medium-sized enterprises (SMEs), and social economy institutions.
The Bank offers a wide range of personal and business banking products, including, checking and savings accounts, credit cards, loans (personal, mortgage), investment products, business accounts, and loans.
Banco Montepio has a well-established branch network across Portugal, particularly strong in smaller towns and rural areas. They also offer online and mobile banking services.
Banco Montepio was distinguished in 2024, with the Five Stars title in the Banking – Sustainability category.
International Banks Operating in Portugal
Several international banks provide services in Portugal, often offering familiar services and stability for expatriates.
- Spanish: ABANCA, BBVA
- British: Barclays
- French: BNP Paribas, Credit Agricole
- German: Deutsche Bank
- American: Citibank
- Brazilian: Banco do Brasil
- Chinese: Bank of China
These banks can be advantageous if you already have an account with them in your home country, facilitating easier international banking and transfers.
The Best Digital Banks in Portugal
Activo Bank: Renowned for excellent online and mobile banking services, with low fees and no minimum balance requirements.
Openbank: Offers comprehensive digital banking solutions and competitive savings accounts.
N26: A mobile-first bank with a user-friendly app, ideal for international travelers and expats.
Revolut: Popular for its multi-currency accounts and low-cost international transfers.
Investment Banks in Portugal
These banks cater to those interested in investment opportunities and wealth management in Portugal.
Banco Best: Offers a range of investment products and advisory services.
Banco Invest: Specializes in wealth management and investment advisory.
Banco BIG: Provides comprehensive investment banking services.
Banco Carregosa: Known for private banking and wealth management.
Banco Finantia: Focuses on investment banking and corporate finance.
Criteria for Choosing the Best Bank for Foreigners
When selecting a bank in Portugal as a foreigner, prioritize factors that cater to your specific needs.
Check the availability of a physical branch network or online banking services.
- Research whether the bank offers accounts for non-residents and find out what documentation is required.
- Check for competitive exchange rates and fees, especially for international transactions.
- If you plan to stay long-term, look into investment options and mortgage products. CAFIMO can also help on that, do not hesitate to contact us to know more.
- Consider interest rates on savings and loans, account maintenance fees, transfer fees, and service fees.
- Make sure that the bank has English-speaking staff and dedicated foreign advisors for customer service.
- Evaluate the ease of international transfers and the availability of multi-currency accounts.
- Check how simple and quick the account opening process is.
- Evaluate mortgage options including terms, interest rates, and flexibility for non-residents.
- Consider the bank’s online banking platforms, security features, and the convenience of its branch network.
How to Open a Bank Account in Portugal
Once you have chosen the bank you want to open your account, you will have to gather some documentation.
One of those documents is Número de Identificação Fiscal which you will have to acquire. This is a unique identifier, similar to a social security number, and is issued by the Portuguese tax office.
In addition to being required to open a bank account, it is also essential for various everyday tasks, such as getting a phone subscription, enrolling in health insurance, and conducting financial transactions within the country.
You can obtain the NIF number through a Portuguese tax office or a representative (lawyer, financial advisor).
All the required documents you will have to gather are:
- Tax identification number (NIF);
- Proof of identity (Passport or ID card);
- Proof of address: A utility bill or rental agreement can serve as proof of your address in Portugal. For non-residents, proof of foreign address may be required, for foreign residents, a residence card;
- Phone Number: This may not be required and is dependent on the bank, but you will likely need a Portuguese phone number to receive SMS verification. Some banks also accept international phone numbers;
- Deposit: A minimum deposit of 250€-300€ in cash is common, although this will depend on the bank.
Once you have all the documents, you can open your account in one of two ways.
You can visit a branch or apply online. But bear in mind that some banks don’t allow online applications. The process is very simple. Whether at the branch or online, you will have to fill out an application form with your personal information and provide the required documents.
Once approved, you’ll receive your account details and may need to activate your online banking or debit card.
Opening a Bank Account for Mortgage Purposes
You may be researching the best banks in Portugal because you want to apply for a mortgage to buy a property in the country.
In that case, the process of opening a Portuguese bank account is similar with a few extras.
To start, you should put extra effort into the research to compare the mortgage rates and terms offered by the different banks.
Then, when it comes to documentation, you will also need to present employment proof and previous income statements, required to demonstrate your ability to repay the mortgage.
After submission, the process will be analyzed by the bank and once approved, you will finalize your bank account and potentially proceed with finalizing your mortgage application.
It’s important to say that, for a foreigner, that could be a few challenges. For instance, some banks might require proof of residency beyond just an address, such as a residence permit. The income verification can also require additional documentation to verify the income source, especially if employed outside Portugal.
When applying for a mortgage in Portugal, the financial history is an important metric the banks use to evaluate the case. Building a positive financial history in Portugal can be helpful.
Please bear in mind that this is a general guide, and specific requirements may vary depending on the bank and also on you’re specific situation.
It might be beneficial to consult a mortgage broker, to obtain detailed guidance. CAFIMO, as a mortgage specialist analyze the market to guarantee the best interest rates and financing conditions, fully adjusted to your situation. We can definitely help you and be by your side throughout the entire process. We make the process easy and transparent for you
Another Thing to Consider
While there might be some additional considerations for foreigners, opening a Portuguese bank account and obtaining a mortgage in Portugal is still achievable. By being proactive, and prepared, and choosing a foreigner-friendly bank, you can increase your chances of a smooth process.
As we mentioned earlier, it might be beneficial to consult CAFIMO as a leading mortgage broking company in Portugal.
A specialized intermediary saves you time and money. They negotiate the best mortgage rates in Portugal and credit conditions for you with several banks. Their experience and partnerships enable them to obtain conditions that only they can achieve. The specialist accompanies you from the beginning to the end of your process.
CAFIMO is the #1 mortgage broker partner in Portugal. Our well-established process has already allowed us to successfully help more than 1,000 Portuguese and foreign clients from all over the world in just 5 years.
From scouting out the best rates and the best bank in Portugal to help you open your bank account and apply for your mortgage, we have you covered throughout the entire process.
You can start by requesting our team a personalized simulation – without obligations.
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