Yes, but the bank will ask more questions than it would for a local resident

An American can open a bank account in Europe, but you will face extra scrutiny and paperwork that European citizens do not. Banks in Europe are required by law to verify who you are and where your money comes from — a process called Know Your Customer (KYC) compliance. For a non-resident American, this means providing more documents, proving your address, and sometimes explaining your reason for opening the account.

The difficulty varies sharply by country and by bank. Some European banks actively court American expats and remote workers. Others refuse to open accounts for Americans at all, because the compliance cost is high and the account size is often small. A few countries — notably Portugal, Spain, and the Netherlands — have made it relatively straightforward. Others, like Germany and France, can be slower and more demanding.

The single largest barrier is not the bank itself but US tax law. The US taxes citizens on worldwide income, and banks worldwide must report American account holders to the IRS under a law called FATCA (Foreign Account Tax Compliance Act). This reporting requirement makes American customers expensive for banks to manage, and many have simply stopped taking them.

Key Takeaways

  • You will need a valid passport, proof of US address, and often proof of income or employment to open an account as an American in Europe.
  • Some countries and banks refuse American customers entirely because of FATCA reporting requirements and compliance costs.
  • Portugal, Spain, and the Netherlands tend to be more welcoming to American account holders than Germany, France, or the UK.
  • You may be asked to explain the source of your funds and the purpose of the account, and the bank may take weeks or months to decide.
  • Opening an account in person is faster and more likely to succeed than applying online from the US.

Which countries and banks will take American customers

Portugal has become the easiest entry point for Americans. Banks like Banco Santander, Caixa Geral de Depósitos, and smaller digital banks such as Revolut and Wise (formerly TransferWise) will open accounts for Americans, especially if you are relocating or have a Portuguese tax ID number. The process typically takes one to two weeks if you apply in person with a passport and proof of address.

Spain is similarly accessible. Banco Santander, BBVA, and CaixaBank all serve American customers, though you may need a Spanish tax ID (NIE) and proof of residence. Digital banks operating across Europe — Revolut, Wise, N26, and Bunq — are often faster because they do not require in-person visits and have streamlined their American customer onboarding.

The Netherlands and Belgium are middle ground. ING and ABN AMRO will open accounts for Americans, but the process is slower and the documentation requirements are stricter. You will typically need proof of employment, a letter from your employer, and sometimes a reference from another bank.

Germany, France, and the UK are the hardest. Many major banks — Deutsche Bank, BNP Paribas, Barclays — have stopped accepting American customers or require you to already be a resident with a German or French tax ID. Smaller regional banks sometimes will, but you should expect to be turned down multiple times.

What documents you will need to bring or send

Start with a valid US passport. This is non-negotiable. The bank will scan or photocopy it and verify it with the US State Department if needed.

Proof of address is the second requirement. A European bank will not accept a US address alone — you need to show where you currently live or plan to live in Europe. This can be a lease, a utility bill, a property deed, or a letter from your employer confirming your address. If you do not yet have a European address, some banks will accept a temporary address (a hotel, Airbnb, or friend's address) with a letter explaining your situation.

Proof of income or employment is often required. Bring a recent employment letter from your employer (in English or translated), recent pay stubs, or a copy of your tax return. If you are self-employed or a freelancer, bring bank statements showing regular deposits, invoices, or a business registration document.

Some banks will ask for a reference from another bank — proof that you have held an account elsewhere and managed it responsibly. If you have a US bank account, a letter from that bank stating your account is in good standing can help.

Finally, be prepared to explain the source of your funds and the purpose of the account. Write a brief statement: "I am relocating to [country] for work" or "I am an American expat managing my European expenses." Banks use this to satisfy their anti-money-laundering obligations.

Digital banks versus traditional banks: speed and likelihood

Digital banks — Revolut, Wise, N26, Bunq, and Starling — are significantly faster and more likely to accept you. Most can open an account in 24 to 48 hours using only your passport, a photo of yourself, and proof of address. They operate across multiple European countries and have built their compliance systems to handle international customers, including Americans.

The trade-off is that digital banks often have lower transaction limits, smaller ATM networks, and fewer in-person services. Revolut and Wise are strong for international transfers and multi-currency accounts. N26 and Bunq offer more traditional banking features. All of them report to the IRS under FATCA, so you will still have US tax obligations.

Traditional banks — Santander, BBVA, ING, ABN AMRO — are slower (two to six weeks) and more demanding, but they offer full banking services, higher transaction limits, and physical branches. If you plan to stay in Europe long-term and need a mortgage or business account later, a traditional bank relationship is more valuable. But you will need to apply in person or work with a relocation service.

The FATCA reporting requirement and what it means for your taxes

FATCA requires all banks outside the US to report accounts held by American citizens to the IRS. This is not optional, and it applies to every account you open in Europe, whether the bank is large or small, digital or traditional.

What the bank reports: your name, address, account number, account balance (usually reported annually on June 30), and the total deposits and withdrawals for the year. The IRS uses this to cross-check your tax return and ensure you are reporting foreign income.

What this means for you: you must report the account to the US government, even if you have no income from it. If your account balance exceeds $10,000 at any point during the year, you must file an additional form called an FBAR (Foreign Bank Account Report) with the US Treasury by April 15 of the following year. If you have multiple accounts totaling over $10,000, you file one FBAR listing all of them.

Failure to file an FBAR carries steep penalties — up to $10,000 per account per year, or 50% of the account balance, whichever is larger. The IRS has been aggressive about enforcing this, especially for accounts that were not reported.

If you earn income in Europe (salary, freelance work, rental income), you will owe US taxes on it as well as European taxes. You may be able to claim a foreign earned income exclusion or a foreign tax credit to avoid double taxation, but you must file a US return regardless.

Opening an account in person versus online

In-person applications are faster and more likely to succeed. When you walk into a branch with your passport and documents, the bank can verify everything on the spot and make a decision within days. This is especially true for digital banks with physical locations (Revolut has offices in several European cities) and for traditional banks in countries like Portugal and Spain.

Online applications from the US are slower and riskier. The bank cannot verify your identity in real time, so they will ask for notarized documents, certified translations, or video verification. The process can take four to eight weeks, and the bank may still reject you if they cannot confirm your address or employment.

If you are not yet in Europe, consider timing your account opening for shortly after you arrive. Bring your passport, a temporary address (even an Airbnb), and your employment letter. Most banks will open an account within a week once you are physically present.

What to do if a bank refuses you

If a traditional bank turns you down, try a digital bank next. If digital banks also refuse, it is usually because your passport has expired, your address cannot be verified, or your employment cannot be confirmed. Fix those issues first.

Some Americans use a relocation service or immigration lawyer to open an account. These services charge $200 to $500 but handle the paperwork and sometimes have relationships with banks that speed up the process. This is worth considering if you are moving to a difficult country like Germany or France.

Another option is to open an account with a US bank that has European branches — Citibank and Bank of America both have offices in major European cities. You can sometimes transfer your US account or open a new one at the European branch, which is faster than starting from scratch with a local bank. However, these accounts still fall under FATCA and may have higher fees.

Frequently Asked Questions

Do I need a European tax ID to open a bank account?

Not always, but it helps. Portugal and Spain will open accounts without one, though you may need to get one later for tax purposes. Germany and France often require a tax ID (NIE in Spain, NIF in Portugal, Steueridentifikationsnummer in Germany) before opening an account. Ask the bank before you apply.

Can I open an account if I do not have a European address yet?

Yes, but it is harder. Use a temporary address — an Airbnb, hotel, or friend's address — and bring a letter explaining that you are relocating. Digital banks are more flexible with this than traditional banks. Once you have a permanent address, update it with the bank.

Will opening a European bank account affect my US credit score?

No. US credit bureaus do not track foreign accounts, and European banks do not report to US credit agencies. Your European account will not appear on your US credit report and will not help or hurt your US credit score.

What happens if I move back to the US after opening a European account?

You can keep the account open as long as you want, but you must continue to report it to the IRS if the balance exceeds $10,000. Some banks will close your account if you move back to the US and no longer have a European address, so check your account terms. You can transfer the money back to a US account before closing it.

Is it cheaper to use a digital bank or a traditional bank?

Digital banks are usually cheaper for transfers and currency exchange. Wise and Revolut offer the best exchange rates for international transfers. Traditional banks charge higher fees for international transactions but offer more services. If you only need to transfer money occasionally, a digital bank is cheaper. If you need a full range of banking services, a traditional bank is worth the extra cost.