When thinking about moving to Europe, if you don’t have one already, you will want to put the task of getting a European bank account at the top of your list. You can make it easy by selecting one of the major European banks or going for something more niche such as the emerging neo-banks, which are digital-only. It is not hard to get, but it’ll take a little bit of time to satisfy the bureaucratic process.
European bank accounts, credit cards and getting organized financially
When living in Europe the most important thing to know is that you will need a European bank account or at least some type of account that gives you an IBAN number. You will need your account to be active to make rent payments and pay for Internet service, cable and utilities, and to receive money from employers or whomever.
IBAN stands for International Bank Account Number and every bank account in the European Union, as well as some other countries, has one. Your IBAN is unique to your account, and so you will get to know it very well.
Now, the tricky part. Different banks in different countries have different rules. For example, major banks in the Netherlands have different policies regarding the BSN, or the citizen sevice number, your personal number you use in dealing with the Dutch government. Think of it like a Social Security number in the United States.
ABN Amro allows you to open accounts before you have your BSN, then submit the number later. Rabobank does not.
In the meantime, if you are staying at a hotel or other venue, you can use your credit card for most major transactions. However, it is always helpful to have some Euros and the ability to get more money from your current bank via an ATM. And be aware that in some countries such as the Netherlands, you cannot use a credit card to make purchases at supermarkets. So, you’ll need a debit card first thing ….
The tricky part as you are making the move is avoiding unnecessary fees and not getting gouged by a poor exchange rate when changing/transferring money.
IBAN numbers and bank acconts at home and abroad
When I lived in Germany, I got a bank account with an IBAN number, which was how I received my salary and paid my bills. My landlady also required an IBAN number for me to pay monthly rent. Naturally, I kept a bank account in the United Statees for access to dollars when stateside or for emergency access in Germany. But no matter what you do you will probably feel screwed when changing from one currency to another, from dollars or pounds or kroner to Euros, or vice versa during your currency transactions. So as much as you can find out in advance about the fees and exchange rates, the better off you will be.
Revolut
One of my expat friends in Italy suggested I sign up for a Revolut account. He has two Revolut accounts, one for Euros, which he uses in Italy, linked to an Italian address, and one for dollars, linked to a U.S. address.
You can use your Revolut account, for which you will receive a physical credit card, to “move your money freely between currencies and countries.” Revolut offers personal accounts, business accounts and even accounts for those under 18 years old. It’s kind of like a credit card-bank account and more all in one, which allows you to spend and save money, send and receive money, and move your money around between different currencies.
When moving money from an account in the United Kingdom, there is no fee to move from GBP (pounds) to euros. When moving from an account in the United States, USD (dollars) to Euros, there is a $3 fee. Then of course you have to consider the exchange rate. Revolut says their rate (including any fees) is currently 0.12 percent less than the European Central Bank (ECB) rate. “This comparison rate is typically one of the best available,” according to their website.
I have heard that other services do transfers for a better rate, but since Revolut also lets you run investment accounts, some people like to have one institution to handle many financial functions.
To get an account, you will need to do the following:
• Download the app.
• Sign up, which is free, but be prepared to provide all your info: your phone number, address, identity and residency information, as well as a video of your image and recording of your voice for legal obligations, etc.
There are, of course, many competitors in the financial-services space including:
• N26, the Berlin-based neo-bank.
• Stockholm-based Klarna.
• Amsterdam-based Bunq.
You can see a full list with details here.
More moving and financial advice
Moving is always a big deal. My advice is to keep as many elements the same as you can and then add the particulars of what you need, such as a new bank account or credit card. Another one of my Dispatches Europe’s colleagues, Lane Henry, wrote about the importance of having a financial plan.
Lane noted:
As an expat, you will most likely be operating in different currencies, at least for a while. Do you plan to keep bank accounts in your home country? Will you be withdrawing money from ATMs or transferring money abroad?
For more on how you can prepare before moving abroad, check out Lane’s post. These are all important things to consider when relocating.
Fees and exchanges rates
Finally, I hate withdrawing money in a foreign land and getting slapped with extra fees and a poor exchange rate. It always feels like a double whammy. When using your credit card, you can also find out in advance what the fees, if any, will be, and if it is better to pay in the local currency or not. I typically pay in the local currency.
Good luck and have fun.
(Author’s note: This post is for informational purposes only and does not constitute financial advice. Please consult a qualified financial professional for guidance specific to your situation.)
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Read more about expat finances here in Dispatches’ archives.
Mary Porcella is a Europhile who has lived in Germany, Norway, Italy, and the U.S. She is a writer, editor, and photographer. She loves seeing new places, returning to old haunts, and meeting up with family and friends. As of today, her travels have taken her to 20 European countries, and she hopes to visit the rest.
