Do you plan on going to Europe in a nearest future? Or do you just want to manage finances for your business in Europe? Then you definitely gonna need to open a European business account that you can use for all your transaction in Europe such as sending and receiving money from your clients in the European territory.
Europe is a very huge continent with plenty of culture and holding a bank account in any of its great countries can really be a great kickstart for managing finances online safely.
The demand in European personal and business bank accounts have increased since we find many people moving into European countries and it is not to forget non-residents that will want to hold a European business account if they plan in receiving money from their clients in Europe. This will increase the trust their clients have for them. This is best way for digital nomads to easily manage their finances remotely and safely.
Most residents of the African continent will want to hold both a US bank account and a European bank account (personal and business) so as to facilitate purchases and online transactions on sites that accepts payments in the US and European local currencies. So for that, they gonna need an online bank account that supports the currency.
Another great way of managing finances in any of these continents is with instant virtual debit/credit card. Today, we find many banks that offer online bank accounts with instant virtual debit card that you can start using immediately on any site in the world and even with mobile wallets and serve as free us and European bank accounts for PayPal verification.
Both European personal and business bank accounts have some links with SEPA since most European banks offer banking solutions in SEPA countries Zone list. This is a great advantage for non-residents to enjoy the benefits of holding a European-SEPA linked bank account.
All that said, in this article, we will show you how to open a European business bank account online from the best online European banks for both residents and non-residents.
What Does it Mean to Open an Online Business Bank Account In Europe?
Holding a European business bank account can mean a lot. Whether you opened it at a local branch or at a bank online platform, you still get to enjoy the same benefits of it.
A European business bank Account will let you operate financial activities in the Single Euro Payment Area (SEPA) Zone. If you are a digital nomad and want to better receive payments from your clients in Europe, then holding this business European-SEPA bank account can be a huge kickstart.
Most online banks such as Wise, N26, Revolut let you open a European business bank account as a non-resident. Which means, no matter the country you might be located in, you can open a European business bank account with just some easy steps.
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However, every bank will have its requirements which will require you to do some paperwork and apply for an account. If you want to hold a business account, you will be asked to provide some additional information concerning your business.
If you take a critical look at the best banks that offer virtual bank accounts in the world, you will see that each of them have specific requirements and different paperwork to be made in order to hold a bank account with them.
Benefits of Holding an Online Business Bank Account in Europe
Holding an online business bank account in Europe will expose you to many benefits, of which some of them are listed below:
- Makes it easy to access collections and payments. This is ideal for online sellers and freelancers
- Makes it easy to access funds
- You can easily transact in foreign currencies like Euro
- Reduces administration and costs
- Covers the business against fluctuations in exchange rates
With an online business bank account Europe, you can easily track your business expenses, bank from anywhere and make tax returns and invoicing.
One of the easiest ways to establish your business in Europe is via the Estonian E-residency program. Anyone in the world can apply for this and set up a new business in Europe.
Opening a Business Account Online in Europe
Virtual banks such as Wise, Revolut, N26, and Bunq let you open a business bank account in Europe. With these banks, you will benefit of low-cost transfers in EUR denominations.
You can get local account details, dedicated IBAN, low-cost money transfers when you perform transactions with European business bank accounts that are issued from Wise.
You won't be required to provide a physical European address or to visit a bank branch when opening a European business bank account.
Requirements for Opening a Business Bank Account in Europe
Each bank be it in Europe or any other continent will have its requirements to hold a bank account with them. For business bank accounts, the requirements may be extended as they will require you to provide some information regarding your business. However, below are some of the requirements that you will need to provide to hold a business bank account in Europe:
- Your business should have a physical address in the EU
- Register your business in any of the EU countries
- Have a Tax Identification Number in any of the EU countries
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Some banks will require you to provide some other information such as credit checks and some more open European business bank account. Some of the additional documents required to hold a business bank account in Europe are as follows:
- An ID photo
- Physical address
- Tax ID
- Introduction letter by a trusted bank
Easiest Bank to Open a Bank Account in Europe:
Portugal is the easiest bank to open a bank account online in Europe. Thanks to the little regulations set by the Country, both residents and non residents can open a European bank account (business and personal) online with no complicated restrictions.
Best Banks to Open a Business Bank Account in Europe Online
There are many banks in Europe that can let you open a business bank account. But as a non resident, you will likely want to open a business bank account online. The virtual banks below will let you open a European business bank account online both as a resident or as a non resident:
1. Revolut Business Account
Revolut is a London-based digital financial institution that is known of offering online banking solutions to most residents and non residents of Europe and US for some couple of years now. You probably felt on the name Revolut when ever you search to get instant virtual debit cards or free US and European virtual bank accounts.
Asides from personal accounts, Revolut offers online business bank accounts in Europe which lets non residents to hold an account with them. So if you were planning in settling a business in Europe, then Revolut is the great financial institution to open an online European business bank account. However, this will require your business to be registered in any of the European Economic Area (EEA) member states and Switzerland.
Revolut has 2 main types of business accounts which are; the Freelancer business bank account and the Corporate business bank account. The online freelancer bank account is designed for people who own their business at their name freelancers, sole proprietor and self -employed professionals.
On the other hand the European Corporate accounts are ideal for companies with more than one employee. Companies eligible for a Revolut Corporate account are Private Limited Companies (LTD), Partnerships, Public Limited Partnerships (PLC), Unlimited Companies, and Limited Liability Companies (LLC).
Revolut business account comes with features like multiple currencies that can hold and exchange 28 currencies. You can also open two local accounts in GBP and EUR. You can create free instant virtual cards for online transactions. As such, Revolut serves as online bank account with instant virtual debit card. Revolut business account has other features like expense management, bulk payments and payroll management. Revolut business account has four plans; Free plan, Grow plan for £25, Scale for £100 and Enterprise plan.
2. Wise International Business Bank Account
Wise formally known as Transferwise is a London-based digital bank that has been serving banking solutions for the past years and till date. Wise lets non residents of the US open a US bank account as non residents just as Revolut does.
Wise based in London equally lets you open a European personal bank account online. Their business bank account is called the international business bank account which can send and receive money practically from and to any part of the world.
Wise business bank account is a multicurrency account that enables businesses to make batch payments to 1,000 people, make cheap international money transfers, pay employees, purchase inventories, pay invoice and integrate QuickBooks and Xero. The account comes with a Business MasterCard in select countries. The Wise business banking account can receive and hold more than 55 currencies and get local bank details in 10 currencies.
Wise for e-Commerce Businesses is a multicurrency account that allows your business to withdraw money from eBay, Shopify, Amazon, Stripe, etc. With this business account for online retailers, you will be able to receive USD, CAD, GBP, EUR, SGD, AUD, NZD, and TRY for free.
Wise Multi-User Access (MUA) features allows you to invite your team members to your Wise business account and give them different levels of access to your business account such as viewer, employee, preparer, payer, and admin. The Wise business debit card can be used internationally to pay business expenses and spend online or in-store without foreign transaction fees.
3. Monese Business Account
Monese is another fintech UK based financial institution that provides financial solutions (bank accounts and bank cards) to those in need of the service.
Monese Business Account is a mobile money account for your UK-registered company. It is easy to open a Monese business account. The Monese bank account lets you track your business finances, receive money, make payments and create invoices using a single app. The business account charges £9.95 monthly fees.
The account comes with a Monese business card (Mastercard). You get six free ATM withdrawals every month while exchange rates have a 0.5% currency markup. You can create up-to 10 pots thanks to its pot feature.. Your business can send to more than 30 countries while any incoming international transfers to your business account are free.
4. N26 Business Bank Account
Being a Berlin, Germany Bank, N26 has been offering banking solutions for all residents of Europe as well as non-residents. Asides from helping you open a European personal bank account, N26 lets you open an European business bank account in some few and easy steps. N26 offers German IBAN and you can open an account in all the EEA countries. It is open to freelancers and self-employed, but not corporations. You also get 0.1% cashback on all card purchases.
N26 Offers a free virtual Mastercard debit card that you can use for your online transactions together with your European online bank account you hold with them.
N26 business banking account offers 5 free AM withdrawals every month, no foreign transaction costs and free payments in any currency. You can use N26 to bank from anywhere 24/7 and get easier tax returns and invoicing. However, you need to be a resident of the N26 supported countries. If you are a non European resident and your country isn't supported, you can join the N26 waiting list to get notified when their services get extended and put available in your country or area. N26 is one of the easiest business bank account to open online in Europe.
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5. Bunq Business Bank Account
Bunq is another fintech financial institution offering European multicurrency business bank account. At the moment, they support only a few number of currencies such as dollars, pounds, Swiss franc, Poland złoty and Bulgarian levin. You need to be permanently residing in Europe in the country where your business is registered. The business account costs €9.99 per month and €119.88 per year.
Key features include auto VAT calculation, instant payments, bulk payments, integrations with accounting software such as Xero and QuickBooks. You can also scan, tag, or archive receipts within the app. You will also be issued with physical and virtual cards that are support by either MasterCard or Maestro Card and a travel debit card.
6. DynaPay Business Bank Account
DynaPay Ltd provides European business accounts with multi-currency IBANs for payments in 38 currencies, SWIFT and SEPA transfers and TARGET2 payment scheme. It is also widely used as a payment processor for low and medium risk merchants.
Applying for a DynaPay bank account will let you a 3-month trial period of the account with no monthly fee. This offer is valid for DynaPay Basic tariff.
DynaPay’s business bank account is ideal for European micro and macro businesses involved in international and cross-border activities such as international companies with multiple branches, companies with subcontractors abroad, shipping and forwarding companies, import/export companies, wholesalers, distributors and even small businesses with international activities.
So, if you a a kind of international digital business nomad, then DynaPay is the choice for you.
7. Penta Business Bank Account
Penta Bank is a German virtual business bank account with a German IBAN, BIC, SEPA and corporate debit cards. The business account is designed for startups, freelancers, SMEs, AG, GmbH, GbR, KG and UG.
Some of the benefits of Penta business accounts are fee-free Stripe processing of the first transaction volume up to €40,000, €5,000 discount for startups on Amazon Web Services (AWS) and integration of accounting tools such as DATEV, Lexoffice, Debitoor and Billomat.
8. Fyrst Business Bank Account
Fyrst bank is a German fintech digital bank that has been providing online banking solutions to many individuals in Europe. They equally offer business banking solutions with IBAN that are ideal to founders, freelancers and self employed. It is a product of the Deutsche Bank AG.
The Fyrst business bank account offers Visa business cards, integration of bookkeeping and order processing, overdraft facility, insurance, instant payment in SEPA region, and DATEV interface for tax consultants, auditors or lawyers.
9. Kontist Business Bank Account
Kontist is a German-based fintech bank that offers business bank account for the self employed, freelancers, small business owners and sole traders. If your business is a legal entity (GmbH, UG, and GbR, etc.), you cannot open Kontist business account. The account comes with a German IBAN, free and unlimited SEPA transfers and direct debit, Kontist Visa debit card (both virtual card and physical car).
Some of the best features that this bank have to offer are; real-time tax estimation, which means For each transaction, Kontist calculates the income and sales tax due and automatically sets aside these reserves in virtual sub-accounts, free invoicing tool, and a smart bookkeeping software for self-employed and businesses.
10. Payoneer Business Bank Account
If you have been a frequent searcher of free US banks for non residents, then you must have noticed that most results will include Payoneer. Payoneer has been an online banking solution for many non residents that want to hold a US bank account. These bank accounts can be linked to PayPal and used as free US virtual banks for PayPal verification. However, for sometime now, PayPal rejects any bank account or PayPal originating from this provider.
Payoneer has not only served as banking solutions in the USA territory but also in Europe. Payoneer allows everyone both residents and non residents to open a European bank account online. They also allow those having an established business to open a European business bank account to manage their finances online regarding their business.
With a Payoneer business bank account, you can send and receive money, pay contractors and remote employees, accept multi-currency payments on your online store and even apply for a working capital.
Moreover, Payoneer helps businesses to easily pay VAT directly from their account, which saves small businesses plenty of money annually in fees and foreign exchange rates and assist in their quick growth.
Who Can Open a European Business Bank Account?
Each banks has its specific expectation it hopes every new member should have to open a European bank account be it online or traditionally at a bank branch. Obviously, online banks won't demand much paperwork from you but some requirements we mentioned above will be needed.
You can open a European business bank account as a;
- Digital nomad, freelancer or ex-pat
- Non-EU and offshore company
- International business
- Business with European customers
Single Euro Payment Area (SEPA)
SEPA stands for Single European Payment Area and it has 28 member states of the European Union innovated in January 2008. Some of the member states include Switzerland, Iceland, Norway, Andorra, Liechtenstein, Monaco, San Francisco. SEPA has made it very easy to do business within Europe and customers can make cashless payments using debit and credit cards.
Benefits of SEPA
- SEPA offers a reduced cost.
- There is coverage of all of Europe through a single bank account.
- It provides a simplified system for financial processing.
- The system provides competition in the open market; thus, it encourages economic growth.
- It maintains low operational expenditures.
- SEPA increases efficiency.
Final Thoughts on How to Open a Business Bank Account in Europe
If you plan on residing in Europe, then you will definitely need a European bank account. If you are a freelancer or an established business in the European territory, you will need a European business bank account to receive payments from your customers. You can open a business bank account in Europe online or at a traditional bank branch.
Opening a bank account online can be even the best way to hold a bank account in Europe since these online banks won't require much of paperwork from you and the process can be straight and simple. However, before going in for any bank, check their terms and condition to see what is required from by the bank to hold an account with them. Also, consider checking their monthly fees and transfer fees they charge if it will suit you and if it does, go in for the bank.
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