non resident bank account in Europe

Non resident bank account Europe

Basics

it is very difficult to have a non resident bank account in Europe. Unfortunately, the documentation requirements are ever increasing and some banks even ask foreigners for credit and background checks. With B2B Pay you get a non-resident virtual bank account. You can accept payments from 35 EU countries and we route your money to your home country’s account the same day - in most markets - with 80% savings in fees.

Problem and
Solution

Problem

For many, international banking is time-consuming, frustrating, expensive. Without a non resident bank account in Europe, international payments can take almost a week. And due to the required mountain load of documentation it is fair to say that having a non resident bank account is a hassle.


Without B2B Pay, you:
  • Cannot get a non resident bank account in Europe
  • Cannot collect or send domestic wire transfers (SEPA payments)
  • Pay SWIFT fee of €30
  • Pay currency conversion cost of 3-6%
  • Cannot access local payment gateways
  • Suffer the frustration of bureaucratic banking processes
  • Cannot collect payments from marketplaces like Amazon
  • Take 2-5 days per transfer

Solution

Non resident bank accounts can be used to receive and make payments instantly. With a non resident bank account, you can centralise incoming and outgoing cash, which makes reconciliation easier. Your manual processes are reduced and the cost of operating the bank account itself is reduced because funds are routed directly to the master account rather than held in a VBA.


With B2B Pay, you:
  • Receive SEPA payments from 35 EU countries for free in 2-12 hours
  • Make SEPA payments to 35 EU countries
  • Save €30 SWIFT charges and +80% on FX
  • Take advantage of FX conversion automation
  • Use its IBAN to integrate with marketplaces and payment gateways
  • Access premium brokers to make global payments in 138 currencies
  • Get Instant notifications of incoming payments
  • Take advantage of online onboarding
Benefits

Non resident bank account

Quicker processes

Communication

Financial viability
Example

A global exporter from Brazil doesn’t yet have the volume to set up subsidiaries nor a non resident bank account in Europe, so it is forced to rely on wire transfers. These come with a 3% to 6% transaction fee and - almost certainly - delays. Neither the sender nor the receiver is kept up to date on the progress of the transaction. Non resident bank accounts are free to set up and have only a 1% transaction fee. Money arrives quickly, and both parties are notified at every stage of the process.

B2B Transfers are smarter with B2B Pay

With B2B Pay you get a free non resident bank account with your own IBAN number. You can use your non resident bank account to receive payments within Europe, bringing you closer to your customers. Payments to your non resident bank account will be sent to your domestic bank account for a fee of only 1% from the mid-market rate.

B2B Pay is able to offer this to you by coupling your business non resident bank account in Europe with the best rates for getting the money to your domestic bank account. Your customers - from any of the 35 countries of the SEPA zone - can make a simple local payment without the hassle of reference numbers to a business non resident bank account that is in your name.

European bank account for non residents

If you live in Europe, opening a European bank account is easy. All you need is a proof of address, a few phone bills and an ID card. But opening a bank account in Europe without residency is either very expensive or impossible. If you want to open a personal bank account your options are quite limited. Opening a corporate bank account is even harder and will cost a fortune in setup fees. The service we offer is perfect for those that don't need the full stack of banking services in Europe and merely want to collect money from your customers or clients.


Opening a personal free bank account in Europe

There are banks that will let you open an account if you're not a resident, but most will outright refuse you as a customer.


Opening a business bank account in Europe

It is possible to open up a European business account without a registered business in Europe. But only if you have enough transaction volume -- 10M€/year and up. Banks still require that you set up a subsidiary in their country, which is a pricy endeavour that involves lawyers, accountants, auditors, and bookkeeping. Even with the easiest EU banks, opening a corporate account it can take considerable time and money to get things setup properly.


Opening a non resident bank account

It is now possible to open up a European free nono resident bank account account without a registered business in Europe. Non resident bank accounts are much better than normal accounts: it is business banking without the hassle. You get a free IBAN that enables you to receive payments from all SEPA countries and instantly send it back to your home country's account.

Why is it so hard to get the service you want from traditional banks as a non-resident?

Many non-EU people only need a bank account in Europe for one or two specific services. However, banks will try to push packages to new clients including checking accounts, credit cards, global payment services, insurance, credit, etc.

Because of this service model and the subsequent requirements for risk management and compliance, applying for an account soon becomes a bureaucratic nightmare that takes a lot of effort and time. This is why a non resident bank account by B2B Pay is a great asset.

What is it like to have a non resident bank account in Europe?

With a nono resident bank account, you can get the exact service you need without the costs and complexity of dealing with a fully-fledged bank account. For example, if you just want to collect payments in Europe, you probably have little interest in sophisticated internet banking, bank statements, audit reports and a dozen other options.


What is a virtual bank?

A virtual bank is a bank without the hassle. It means that - generally speaking - a person can get an account in a few minutes and a phone call, avoiding a visit to a physical building and the signing of a mountain of paperwork. With a virtual bank, your funds and its infrastructure are safe because it is regulated the exact same way a normal bank is under the EU and national authorities. Even better, a virtual bank works with multiple banking networks simultaneously which means it is like having multiple banks in one. The best the world of banking has to offer today is a virtual non resident bank account with a free virtual IBAN.


A business without a virtual IBAN account is missing out

Looking at the market from this new perspective, B2B Pay recognises the need for a simpler way to do business in Europe. If you're a global exporter that doesn't yet have the volume to set up subsidiaries that meet the requirements to open a traditional bank account, you must rely on wire transfers from your importer. That means delays and a steep fee of 3% to 6% per transaction. With B2B Pay's virtual IBAN account you can receive payments in the EU, without the hassle or the costs.

With B2B Pay, you can open a nono resident bank account that provides exactly what you need from a bank account. No complex applications or compliance processes, no additional costs for services you don't need. A non resident bank account is that good for your business.

The B2B Pay non resident bank account with IBAN in Europe

B2B Pay is offering a simple solution: after a basic compliance check you will get your own European IBAN number. You can then benefit from free bank transfers from B2B importers from all 35 SEPA countries with a non resident bank account. B2B Pay instantly transfers the money to your domestic bank for a much better fee: up to 80% cheaper.

B2B Pay is very easy to set up and there are no maintenance fees.

After setting up your account you will receive your free IBAN account number. You can use it right away on your invoices and contracts with customers in the SEPA zone, which include all major European countries. You will get a notification when money has been transferred into your account.

Which countries can we do a B2B Transfer?

US nono resident bank account

For US companies that regularly export goods or services into Europe a B2B Pay IBAN number can save a lot of time and hassle. This includes non-profit organisations.


Non resident bank account India

Indian exporters can expect to save even more money and paperwork with a non resident bank account in Europe.


Non resident bank account UK

UK citizens that need a non resident bank account in Europe can get one with B2B Pay. Expect to save 80% on fees and no more paperwork.


Other countries

We are also working with customers in other countries, including Canada, Brazil, Indonesia and dozens of other countries in the world.

Full European bank account for non-resident companies

We get a lot of queries from companies who want a fully functioning online bank account in Europe but cant get one as their company is not located in the European Union or in the EEA area. We have done a lot of research on this topic both while building the B2B Pay Virtual Bank Account and also while trying to help out customers.

Getting a full online bank account in Europe

If you are not a European company its very hard and expensive to get an account in Europe.These are the "rules of thumb" for getting a non-resident bank account in Europe.

  • You can make large deposit of fund (around €100,000) into this account, or
  • you have monthly transactions of €50,000 plus coming into this account and willing to pay fees per transaction, or
  • you are willing to pay between €300-€700 monthly costs in account maintenance fees, or
  • you are very profitable and you have to have a European account and you don`t care about fees.

Just because you qualify for one doesnt mean you should get one. IN todays world there are plenty of options for basic banking services for example, if you need an account for paying wages in Europe, then there are alternatives which are lot cheaper. if you just need to collect payment you can use virtual accounts.

Why are accounts so expensive or require a large deposit?

For large Banks in Western Europe the compliance costs of maintaining overseas customers is very high and they consider it to be high risk, Its really not worth the hassle. Hence in order for them to justify opening you an account they want you to deposit large amounts of money as security and also see large cashflows (aka opportunity to make revenues on transaction costs). And this is if you are normal every day business. if you are in anything they consider to be high risk, no matter how much money you have, you will not be able to open an account.

Having said this, of course there are plenty of reasons you need a bank account in europe. For example you need to manage incoming and outbound payments. reduce risk by maintaining cash in europe or customer needs.

In this case here is a quick summary of your options. I have tried to categorise who you should consider approaching based on the type of providers:

Your options

Large Tier 1 West European Banks

Think Barclays, Rabobank, HSBC, Nordea, Santander, BNP Paribas, ABN AMRO etc.

General requirements: Low risk client with a long track record. Example manufacturers, IT companies, Import/export. you have enough capital to deposit large amounts of cash €100,000+. you will be generating a lot of fees for the bank. Example lot of international payments, millions flowing through your account, currency hednges. If you fall into this category you have a good change of getting an account.

Benefits: transaction fees will be lower on high volumes, good reputation, global expertise.

Second tier Banks (mostly located in the east part of EU)

Banks from the new members of the EU mostly in the eastern part have been innovating part and have been leveraging the free European union access to provide banking services to non-European customers who will not be able to get an account with one of the large Western Banks. These banks ar very good and offer the latest in technology but lack the international skills and the reputation of their Western counterparts. World finance is still run from Frankfurt , London, New York and Amsterdam.

General requirements. willing to pay high montly fees or have high turnover €50,000+ fees can be as high as 1% for incoming transactions but can be negotiated down based on volumes etc. they have a higher risk appetite. generally will accept customers from most countries around the world and most industries. the due diligence could be longer. ecommerce and online sellers are also welcome.

E-wallet providers

E-wallets providers cost less in account maintenance fees and also require less volume per month (10,000+) they generally charge higher fees per transaction to make up for this. but again if your volumes go up everything is negotiable.

Card Payment processors

If you are small or just starting out in Europe then this is the best way in. the fees per transaction are high but the setup costs and account maintenance fees are low. generally these guys build their technology over the mastercard or Visa payment platforms.

If you have any questions or suggestions regarding this article please drop us a message at neil@b2bpay.co.

  • Barclays
  • Techstars
  • Nestholma
  • Nordea
  • Tekes
b2b payments

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