Procedures for opening a bank account in Belgium
The process of creating a bank account in Belgium is rather more difficult than acquiring your first Belgian waffle, which does not need a lot of work on your part. If you want to make Belgium your permanent home, you will be required to establish a bank account there. Continue reading for an in-depth, step-by-step walkthrough of the procedure.
What information do I need to know about bank accounts in Belgium?
Depending on where you are in Belgium, a checking account, or a current account, may be referred to by a different name. In the Dutch-speaking part of Belgium, they name it Zichtrekening. In the French-speaking part of Belgium, they call it compte bancaire. In the German-speaking part of Belgium, they call it girokonto.
The good news is that the majority of banks are eager to communicate with customers in English.
A regular bank account in Belgium will allow you to make deposits, withdrawals, and use internet banking services. It provides you with an International Bank Account Number (IBAN) and enables you to make free transfers of funds to and from other accounts held within the Single Euro Payment Area (SEPA).
Sadly, nothing in our world is completely free. Simply to “manage” your account, the majority of Belgian banks will charge you between €3 and €6 per month.
The growing trend toward a cashless society in Belgium has given plastic a significant amount of purchasing power.
The use of a debit card is commonplace, and the majority of financial institutions also make available credit cards. Select a debit card that is compatible with Apple Pay and Google Pay, and take into account the advantages of using a credit card for making purchases and withdrawing cash when traveling.
You might also seek for a bank that provides debit cards that are issued by suppliers that are widely recognized, such as Mastercard or Visa.
If you already have a bank account in another SEPA nation, you should still open one in Belgium as a best practice. Your ability to set up direct debit transactions for your income, utilities, and rent in Belgium is ensured by having a bank account in that country.
If you ever decide to go for a mortgage, having this information on hand might make the application process simpler.
Do I meet the requirements to establish a bank account in Belgium?
You are eligible to establish a bank account in Belgium if you are at least 18 years old, can prove both your identity and residence, and have proof of both. When it comes to opening a bank account in Belgium, a foreign national’s residency or economic ties to the nation are the two most important requirements.
The use of an address in a country other than Belgium is permitted at several banks in Belgium. For some, having a valid ID and an email address is all that is required. The majority of banks provide foreigners with easy access to bank accounts.
In order to create a bank account in Belgium, what documentation do I need?
When you want to create a bank account in Belgium, you won’t be required to fill out a mountain of paperwork as you would be in other SEPA nations. It is sufficient to provide either a passport or another form of identification in addition to proof of residence.
Naturally, offering supporting papers such as an income statement is never going to do anybody any harm. The following items are required to be kept on hand at all times:
a valid national identifier or passport
Documentation to verify your residence (utility bill or rental contract)
Is there not a single problem? Depending on the form of identification verification that your selected bank employs, you may need to bring your papers to a branch location, submit them online, or show them to a representative through video chat.
How does the procedure usually work? Is it possible to start a bank account online?
Because of its relaxed eligibility rules, opening a bank account in Belgium presents less challenges than doing so in many of the other SEPA nations. Having said that, each bank follows its own procedure, some of which may be more challenging than others.
The majority of them allow you to establish an account online, so you won’t even have to go into a branch to get started. Be aware, however, that despite the advanced banking infrastructure in Belgium, many conventional banks that provide online services do not make all of their services accessible online.
This is something you should keep in mind. If the ability to do all of your banking activities digitally is really essential to you, your best choice is to use a mobile banking app.
Establishing a relationship with a conventional banking institution
In the flesh:
Determine whatever papers are needed by your bank, and then print them off.
Make an appointment with a bank location in your area, and bring all of the necessary paperwork with you.
Provide answers to various questions, and the clerk will check your identification.
Watch for your confirmation, card, and PIN, along with any other important documentation, to come in the mail.
- Turn on your account as well as your internet banking.
- Online:
- Check to see whether your financial institution lets you set up an account online.
- Pick the kind of account you wish to set up for yourself.
- Please fill out the application form.
- You may also choose to have the bank verify your identity through video by uploading copies of your identification papers and ID.
- Watch for your confirmation, card, and PIN, along with any other important documentation, to come in the mail.
- Turn on your account as well as your internet banking.
- establishing a banking relationship with an internet institution
- Please verify your email address or phone number.
- You may choose the sort of account you wish to have by downloading the mobile app of your bank.
- Completing the signup procedure is the last step.
- Complete in-app ID verification
- You have the option of either waiting for your physical card to come in the mail or creating a PIN and confirming receipt of your virtual card.
- A banking license can only be held by genuine financial institutions.
- You presumably have some prior knowledge of the word “fintech.” Banking services are provided by a dizzying array of fintech businesses today.
Some even provide you with an international bank account number (IBAN) and a debit card. However, might they be banks? There is a straightforward method to determine this: in order to legally operate as a bank, a business must first get a banking license.
The procedure for obtaining a banking license in Belgium
is considered to be rather severe. First, a prospective business must be able to demonstrate that it satisfies the standards that have been set by the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA).
The next step is for the application to get clearance from the European Central Bank (ECB). After that, it may apply for a license to do business in Belgium as a bank.
Why should we care about this?
If a corporation has a license, it is able to provide a wider range of banking services in addition to the fundamental ones, such as deposits and withdrawals. Features include overdraft and loans, for example.
Most crucially, having a banking license ensures that your personal information and financial assets, up to a maximum of 100,000 Euros, are covered by the deposit guarantee program in Belgium. N26 is the first licensed bank in Europe that was developed for the digital age. It already serves more than eight million members in 24 countries, and it is rapidly expanding.
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