Opening a personal account in Europe: current opportunities

Given the current realities, more and more Ukrainian citizens are starting to think about opening a personal account in European banks. This may be due to various factors: financial security, the need to diversify assets, and the need to gain access to international services. At the same time, a collision with the European banking system often reveals many unexpected barriers: from rather strict customer verification procedures (KYC/AML) to specific requirements for documents and the presence of a connection with the country of service.

In this article, we will consider what difficulties Ukrainian citizens often face when opening an account in the EU, what solutions and alternatives exist, and also give practical advice that will help you prepare and go through this procedure as efficiently as possible.

Problems of opening an account for Ukrainian citizens in the EU

Opening a personal account in EU banks for Ukrainian citizens is a process that is often accompanied by a number of difficulties and additional requirements. On the one hand, the financial system of the European Union is distinguished by reliability and modernity, on the other hand, banks have introduced strict standards for checking new clients, especially when it comes to foreigners. Below, we suggest considering the main issues that you should pay attention to before applying for opening a personal European account:

1) Enhanced KYC/AML requirements. After the money laundering scandals that occurred in the European banking sector in 2017–2018, regulatory control in the context of conducting a thorough check of new clients has only intensified. The applicant must provide the bank not only with standard documents, but also explain in detail the purpose of opening an account, where the funds originate, how they will be circulated, and which country it is connected to. Banks require complete transparency – often it is necessary to show contracts, declarations, business or real estate documents that confirm the legality and purpose of the movement of funds. Applicants who do not have official employment in the country of the bank are considered especially carefully. As a result, the process of opening an account can become lengthy and complicated, as banks seek to minimise any risks associated with opaque finances.

2) Verification of the presence of substance (real presence). One of the main reasons for refusal to open an account for citizens of Ukraine in the EU is the so-called “substance” verification, i.e. the requirement to confirm a real, rather than formal, connection with the country of service. In recent years, European banks have increasingly focused on this criterion, since it is extremely important for them to make sure that the client really has a valid reason to open an account in this country, and is not acting for another purpose, for example, to minimise control by regulators.

For example, to open a personal account in a Spanish bank, it is necessary to provide a foreigner identification number (NIE) among the documents; in Poland, the vast majority of banks request a PESEL or a residence card. To open a personal account in an Estonian bank, it will be necessary to prove a clear and unambiguous connection with Estonia by providing, for example, a rental agreement, an employment contract with a local employer, or a certificate of enrollment at an Estonian university.

3) Bureaucratic procedure. To open a personal account in a European bank, the applicant needs to collect a significant package of documents, carefully fill out bank forms, and also undergo a personal or remote interview with a representative of the financial institution. Depending on the internal policy of the selected bank, the entire process can be delayed and last from several weeks to several months. In addition, banks have the right to request additional documents or explanations at any stage (including at the stage of transactions). Because of this, a large number of people who try to resolve the issue on their own (without external legal support) face significant difficulties and bureaucratic barriers.

4) Lack of a unified approach between banks. Each bank in the EU in particular and in Europe in general has its own verification standards and policy for working with non-residents. That is, what works in one bank may not be possible in another. In this regard, the lack of a unified procedure complicates planning: even with the same package of documents, you can get different solutions.

Overview of banks for opening a personal account in Europe for non-residents

If you are considering opening a personal checking or savings account in a classic European bank, it is worth knowing about the main opportunities, conditions, and specifics of the modern banking sector in Europe.

– Banks in Austria: Austrian banks are traditionally considered one of the most reliable and convenient for international clients. At the same time, most banks in Austria are focused primarily on the investment activities of clients, so the decision to open a current account is made depending on the specific case through additional coordination with the bank. Also, to open an account, a minimum deposit is required, which is determined by the bank after analyzing the client’s case.

Additionally, Austrian banks offer both the possibility of remote account opening and the need to visit the bank to complete the onboarding procedure.

– Banks in Cyprus: Cypriot banks have traditionally remained popular among foreign clients due to convenient online banking, as well as a flexible approach to opening accounts for non-residents. The country’s largest banks, in particular Bank of Cyprus, allow opening an account without the need to visit Cyprus, but on condition that bank forms are signed at the bank’s representative office in another country (for example, in Kyiv), which greatly simplifies the procedure for citizens of Ukraine who are unable to personally arrive in Cyprus.

– Swiss banks: Although Switzerland is not a member of the EU, it has separate bilateral agreements with the EU that allow it to participate in the single market and the Schengen area without being a member of the European Union. Switzerland’s political neutrality, the Swiss franc as the most stable currency in the world, federal laws regarding confidentiality and banking secrecy are all things that set Swiss banks apart from others.

Among the most famous Swiss banks that work with private clients from abroad, we can highlight, for example, Credit Suisse, CIM Bank Switzerland, Kaleido Privatbank. These banks offer savings and investment accounts with the possibility of servicing foreigners and convenient online banking. At the same time, a feature of Swiss banks is the mandatory minimum deposit requirement and thorough compliance check of the client.

– Andorran banks: Andorra, like Switzerland, is not a member of the EU, but at the same time is a generally recognized European banking jurisdiction, which is the best option for opening personal accounts for clients to store funds. Well-known Andorran banks have a differentiated approach to the account opening process: for example, the process of obtaining details at Mora Banc is completely remote, while Andbank requires the personal presence of the client, and Caixa Bank S.A. uses a mixed approach: by agreement, an account can be opened online, but within 3 months you must come to the bank branch for identification, otherwise the account will be canceled.

– Banks in Montenegro: The banking sector in Montenegro operates on market terms and is fully privatized, and one of the features of the banking sector in Montenegro is that the euro currency is used, although Montenegro is not even part of the eurozone.

The most popular options for Montenegrin banks for opening a personal account for non-residents include Zapad Banka, Universal Capital Bank AD Podgorica and Adriatic Bank. Thus, Zapad Banka offers accounts in euros and US dollars and the ability to open an account even without a physical presence in the country (depending on the case). Universal Capital Bank AD Podgorica is distinguished by fast service and modern online banking, convenient for non-residents. Adriatic Bank also accepts clients from abroad, offers multi-currency accounts and a personalized approach to each client, but often requires a more extensive package of documents.

An alternative to traditional bank accounts

It should be noted that today it is possible to open a personal account in Europe not only through traditional banks. In recent years, many neobanks and payment systems have appeared that allow opening accounts remotely via the Internet, without bureaucracy and long checks. For citizens of Ukraine, such services can become a convenient alternative to a traditional bank account.

For example, the Lithuanian payment system Paysera is very popular among Ukrainian freelancers and entrepreneurs, because it allows opening accounts with a Lithuanian IBAN for citizens of Ukraine remotely.

Another popular option among citizens of Ukraine living in the EU is Revolut, as one of the most popular fintech services that provides a multi-currency account with an IBAN. However, to successfully complete the onboarding procedure in the specified payment system, you must provide a document confirming residence in the EU or EEA (for example, a receipt for payment of utility bills).

Another popular platform is Payoneer, an international payment system that can be an optimal option for freelancers, as it allows you to receive payments from foreign customers, use multi-currency accounts, and conveniently withdraw funds to a bank card. Payoneer is especially popular among those who work with foreign marketplaces, IT companies, or freelance platforms, as the service offers a convenient interface and account opening without complicated procedures, provided that all documents are provided.

It is important to note that although opening a personal account in a payment system significantly simplifies access to financial services, they are still subject to general financial monitoring rules and have their own limitations and requirements. To avoid unforeseen difficulties at various stages of account opening, we recommend that you seek advice from specialists who have experience in supporting such procedures, if necessary.

Practical tips for successfully opening an account in the EU:

1) Collect a full package of documents. In order to avoid delays and unnecessary questions from the bank, we advise you to collect and prepare all documents in advance before submitting the application, including:

• A valid international passport (sometimes with an indication of a current visa or a mark of legal stay in the country, if any).
• Proof of residence address (this can be a utility bill, a rental agreement, a bank statement). If you do not have a European address, indicate your Ukrainian address, but be prepared to explain to the bank the reason for opening an account abroad.
• Financial documents confirming the source of funds. For example, statements from your bank account (usually for the last 6-12 months), a certificate of income from your place of work or a tax return. If you work remotely or as a freelancer, prepare statements from international payment systems (PayPal, Payoneer) or copies of contracts with customers.
• In addition, some banks may require translations of documents into the local language or additional legalisation of documents, such as affixing an apostille. It is better to order such services in advance to avoid delays at the final stage.

2) Pass verification with confidence. Remote account opening usually involves video verification: You talk to a bank representative, show your passport, and answer a few clarifying questions. To prepare for this stage and avoid common mistakes, we recommend that you read our detailed article on passing bank verification — it discusses typical requirements, scenarios, and practical tips for successfully passing identification.

3) Assess your resources: time, budget, travel options. Consider whether you will be able to visit the country if necessary to be present in person at the bank. In some countries, this is a prerequisite. Also consider fees: banks may charge higher rates for non-residents, require a minimum balance in the account, or charge a one-time fee for opening an account.

4) Seek professional help. If you do not want to waste time on bureaucratic details or encounter difficulties in preparing documents, contact professionals. Law firms and banking support experts will help you choose the best bank, prepare all the necessary documents in accordance with the requirements of the chosen jurisdiction, and also provide full support – from the first consultation to obtaining account details. By contacting such specialists, you significantly increase your chances of a positive result and minimize the possible risks of refusal by the bank.