Your Legal Rights vs Bank Policies
Understanding the distinction between legal requirements and bank policies is fundamental to successfully navigating Portuguese banking as an expatriate. Many banks present their internal policies as if they were laws, creating unnecessary barriers that you can legally challenge.
Legal Requirements:
- Mandated by EU Directives, Portuguese law, or Banco de Portugal regulations
- Apply uniformly across all banks
- Violations subject to regulatory penalties
- Cannot be waived or negotiated
- Enforceable through complaint mechanisms
Bank Policies:
- Internal risk management decisions
- Vary between institutions and even between branches
- Not backed by legal authority
- Subject to negotiation or challenge
- Often exceed legal minimums
When a bank claims "we require proof of employment" or "you must have a Portuguese address," they're often presenting discretionary policy as legal obligation. Your rights under EU Directive 2014/92/EU supersede these internal policies, particularly for basic payment accounts.
EU Directive 2014/92/EU: Your Legal Foundation
EU Directive 2014/92/EU on the comparability of fees related to payment accounts, payment account switching, and access to payment accounts with basic features provides the legal foundation for expatriate banking rights in Portugal.
Key Provisions:
Article 15 - Non-Discrimination on Residence:
Member States shall ensure that consumers legally residing in the European Union are not discriminated against on grounds of their nationality or place of residence when applying for or accessing a payment account within the Union.
Article 16 - Access to Basic Payment Accounts:
Member States shall ensure that consumers legally residing in the Union have the right to open and use a basic payment account. Credit institutions may refuse to open a basic payment account only in specific cases laid down by Member States.
Portugal transposed this directive through Decreto-Lei 27-C/2000, as amended by Law 44/2020, creating enforceable domestic law. These protections apply to all Portuguese banks without exception - no institution can claim exemption from EU Directive obligations.
What Banks Cannot Legally Refuse
EU Directive 2014/92/EU Article 16 and Portuguese implementing legislation establish strict limits on when banks can deny account access, particularly for basic payment accounts.
Explicitly Prohibited Discrimination Grounds:
Nationality Within EU
Banks cannot refuse accounts based on your citizenship if you hold nationality from any EU Member State. A French citizen has identical rights to a Portuguese citizen. A German national cannot be treated differently than a Spanish national.
This protection extends to all EU citizens regardless of which EU country they reside in. A Polish citizen living in Portugal has the same banking access rights as a Polish citizen living in Poland applying for a Portuguese account.
Residence Location Within EU
Banks cannot require Portuguese residence addresses from EU residents. If you legally reside in France, Spain, Germany, or any EU Member State, Portuguese banks must accept your EU address as valid proof of residence.
This provision is frequently violated. Banks routinely claim "you need a Portuguese address to open an account," but this requirement is explicitly illegal under Article 15 for EU residents. Your rental contract from Berlin or utility bill from Amsterdam is legally sufficient.
Employment Status
Unemployment cannot be grounds for refusing basic payment accounts. Banks cannot require:
- Proof of employment
- Employment contracts
- Salary statements
- Business registration documentation
The directive specifically protects unemployed individuals, recognizing that banking access is essential regardless of employment situation. Requiring employment documentation for basic accounts violates Article 16.
Income Level or Financial Situation
Banks cannot consider your income, wealth, or financial circumstances when evaluating basic payment account applications. They cannot require:
- Minimum income thresholds
- Proof of regular income
- Asset declarations
- Credit history checks
Your financial situation is explicitly protected information that banks cannot use as refusal grounds for basic accounts. Whether you earn €500 or €5,000 monthly is irrelevant to your legal right to banking access.
Credit History
Poor credit history, previous bankruptcies, or financial difficulties cannot justify refusing basic payment accounts. Banks cannot:
- Check credit reports for basic account applications
- Refuse based on previous defaults
- Consider past banking problems at other institutions
- Require explanations of financial history
Basic accounts exist precisely to provide banking access to those who might not qualify for standard accounts due to credit issues.
Minimum Deposits or Balance Requirements
Banks cannot impose:
- Initial deposit minimums for account opening
- Ongoing minimum balance requirements
- Balance thresholds to avoid fees (beyond the €5.22 annual maximum)
These requirements create financial barriers that violate the directive's accessibility principles.
What Banks CAN Legally Refuse
While protections are strong, banks retain limited grounds for refusing accounts. Understanding these helps you distinguish legitimate refusals from illegal discrimination.
Four Permitted Refusal Grounds:
1. Duplicate Account Prohibition
If you already hold a payment account in Portugal that allows similar services, banks can refuse additional basic accounts. The directive ensures everyone has banking access, not multiple redundant accounts.
Exception: You can close your existing account and open a basic account elsewhere. You can also hold a basic account at one bank and standard accounts at others, since they provide different service levels.
2. Money Laundering / Terrorist Financing
Under Law 83/2017 implementing EU Anti-Money Laundering Directives, banks can refuse if they reasonably suspect:
- Money laundering activity
- Terrorist financing
- Sanctions violations
- Criminal proceeds
Important: Legitimate suspicion requires specific evidence. Banks cannot use vague "risk" concerns or nationality-based profiling as AML justifications. If refused for AML reasons, request written explanation of specific concerns.
3. False or Incomplete Information
Knowingly providing false identification or deliberately omitting required information justifies refusal. This includes:
- Presenting falsified identification documents
- Providing false address information
- Omitting required tax identification numbers
- Misrepresenting identity
Standard: Inadvertent errors don't justify refusal. Banks must allow you to correct innocent mistakes before refusing service.
4. National Security or Public Policy Restrictions
If you're subject to EU sanctions, national security prohibitions, or court orders restricting financial access, banks may refuse service.
This ground is rarely applicable to ordinary expatriates and typically involves serious criminal proceedings or international sanctions.
Required Documentation: Legal vs Discretionary
Understanding which documents banks can legally require versus those they request as policy helps you challenge unnecessary requirements.
Legally Required Documents (All Accounts):
- Valid identification (passport or EU national ID card)
- Portuguese NIF (tax identification number)
- Proof of address (can be from any EU country for EU residents)
Cannot Be Required for Basic Payment Accounts:
- Proof of employment or income
- Bank statements from other institutions
- Credit reports or financial history
- Minimum initial deposits
- Portuguese address proof (EU addresses sufficient for EU residents)
May Be Required for Standard Accounts (Bank Discretion):
- Employment documentation
- Income verification
- Initial deposit minimums
- Additional identification
If a bank requires discretionary documentation for standard accounts but you don't have it, request a basic payment account instead. They cannot refuse the basic account due to lacking discretionary documentation.
Enforcement: The Livro de Reclamações System
Portugal's Livro de Reclamações (Complaints Book) provides powerful enforcement for banking rights violations. Understanding this system is essential for challenging illegal refusals.
What Is the Livro de Reclamações?
Every Portuguese business, including banks, must maintain both physical and digital complaint books. Filing a complaint automatically notifies regulatory authorities and requires institutional response.
Two Formats:
Physical Book:
- Available at every bank branch (by legal requirement)
- Request: "Pode dar-me o Livro de Reclamações, por favor?"
- Three-part carbon copy (you keep one copy)
- Bank must provide immediately - refusal is additional violation
Digital Version:
- Access through bank websites or national portal (livroreclamacoes.pt)
- Same legal effect as physical book
- Often more convenient for documentation
- Immediate regulatory notification
Timeline and Obligations:
15 Days: Maximum period for institution to respond to your complaint
Written Response Required: Bank must provide detailed written explanation
Automatic Notification: Complaint automatically sent to relevant regulatory authority
No Dismissal: Bank cannot refuse to accept complaint or claim issue is "not their problem"
What to Include in Complaint:
- Your identification: Name, address, contact information
- Specific violation: Which banking right was violated (e.g., "Refused basic account due to unemployment, violating EU Directive 2014/92/EU Article 16")
- Timeline: When you applied, when refused, dates of conversations
- Documentation: What documents you provided, what they requested
- Bank staff involved: Names if available, branch location
- Resolution sought: What you want (account opening, fee refund, etc.)
Template Language:
"I applied for a basic payment account on [date] at [branch location]. I was refused on grounds of [unemployment/lack of Portuguese address/low income]. This refusal violates EU Directive 2014/92/EU Article 16, which prohibits refusing basic accounts based on [employment status/residence location/financial situation]. I have the legal right to a basic payment account as an EU legal resident. I request immediate account opening in compliance with Portuguese law."
Direct Banco de Portugal Complaints
If the Livro de Reclamações response is unsatisfactory, or for serious systematic violations, file complaints directly with Portugal's central bank.
When to Use Direct Complaints:
- Livro de Reclamações response denies your legal rights
- Bank fails to respond within 15 days to Livro complaint
- Systematic discrimination (pattern of illegal refusals)
- Seeking regulatory investigation and penalties
- Bank continues violating rights after Livro complaint
How to File:
Online Portal
Physical Mail: Banco de Portugal, Departamento de Supervisão de Conduta, Av. Almirante Reis 71, 1150-012 Lisboa
Email: clientebancario@bportugal.pt
Investigation Process:
30 Days: Standard investigation timeline
Formal Powers: Banco de Portugal can order corrections, demand explanations, impose penalties
Potential Outcomes: Account opening orders, fee refunds, institutional sanctions, systemic policy changes
Powers of Banco de Portugal:
- Order banks to open accounts they illegally refused
- Impose corrective measures on institutional policies
- Conduct formal proceedings investigating violations
- Levy fines up to €5 million (individuals) or 10% annual turnover (institutions)
- Publish violations publicly
Penalty Framework: What Banks Risk
Understanding potential penalties helps you assess how seriously banks should take your rights assertions.
Individual Violations:
Fines up to €5 million for individual instances of discrimination or rights violations
Institutional Violations:
Fines up to 10% of annual turnover for systematic violations or severe discrimination patterns
Additional Consequences:
- Mandatory corrective orders requiring policy changes
- Public disclosure of violations
- Reputational damage in regulated industry
- Increased regulatory scrutiny of other practices
- Potential license restrictions for severe violations
These penalties are not theoretical. Banco de Portugal regularly investigates and sanctions institutions for consumer protection violations, though specific penalty data is not always published.
Common Violations and How to Challenge Them
Understanding frequent illegal practices helps you identify and challenge violations effectively.
Violation: Bank claims "we don't offer basic accounts" or staff unfamiliar with product
Challenge: Reference Decreto-Lei 27-C/2000 and EU Directive 2014/92/EU Article 16. All Portuguese banks are legally required to offer basic accounts. Request manager escalation. If still refused, file Livro de Reclamações citing mandatory offering requirement.
Legal Basis: EU Directive 2014/92/EU Article 16 creates non-waivable obligation to offer basic accounts
Violation: Bank requires Portuguese address when you have EU address
Challenge: Cite EU Directive 2014/92/EU Article 15 prohibiting discrimination based on residence location within EU. Your French, German, Spanish, etc. address is legally sufficient. If bank insists, file complaint stating this violates non-discrimination provisions.
Legal Basis: Article 15 explicitly protects EU residents regardless of which member state
Violation: Bank demands proof of employment or income for basic account
Challenge: State that employment and income documentation cannot be required for basic accounts under Article 16. These accounts exist specifically for those without regular income. File Livro de Reclamações if bank refuses to process application without income proof.
Legal Basis: Article 16 protects right regardless of financial situation
Violation: Bank sets minimum deposit requirements for basic account opening
Challenge: Basic accounts cannot have deposit minimums - this creates financial barrier violating accessibility principles. Reference €5.22 annual maximum fee cap which prohibits additional requirements. File complaint if bank insists.
Legal Basis: Fee structure capped at €5.22 with no additional charges permitted
Violation: Bank takes longer than 10 working days to decide on application
Challenge: Decreto-Lei 56/2021 establishes 10-working-day maximum for account decisions. File immediate Livro de Reclamações complaint citing timeline violation. Banco de Portugal takes timeline violations seriously.
Legal Basis: Regulatory timeline is mandatory, not discretionary
Violation: Bank refuses application without written justification
Challenge: Banks must provide written refusal grounds citing specific legal basis. Verbal refusals are insufficient. Request written refusal with legal justification. If refused, file complaint stating bank failed to provide required written explanation.
Legal Basis: Consumer protection regulations require written refusal with legal grounds
Rights for Non-EU Citizens
While EU Directive 2014/92/EU specifically protects EU citizens and legal residents, the practical application for non-EU nationals varies based on residence status.
If You Hold EU Residence Permit:
- Full Directive protections apply
- Banks cannot discriminate based on non-EU passport nationality
- Your legal residence in an EU Member State is what matters
- Same enforcement mechanisms available
If You're on Long-Stay Visa (D7, D8, Golden Visa):
- Some Directive protections apply during legal stay
- Portuguese law extends basic account access to legal residents broadly
- Banks may require additional documentation verifying residence status
- Enforcement less clear but complaint mechanisms still available
If You're Non-EU Without EU Residence:
- EU Directive protections don't directly apply
- Standard non-resident account rules govern
- Banks have more discretion in documentation requirements
- Can still challenge arbitrary or discriminatory practices through Banco de Portugal
The key factor is legal residence status in an EU Member State, not passport nationality. Third-country nationals with EU residence permits have stronger protections than EU citizens without established residence.
Practical Tips for Asserting Your Rights
Successfully exercising banking rights requires strategic approach and documentation.
Before Applying:
- Prepare all required documents (passport, NIF, EU address proof)
- Know which account type you're requesting (basic vs standard)
- Research bank's basic account offerings if possible
- Bring printed copies of relevant regulations if needed
During Application:
- State explicitly: "I am applying for a basic payment account"
- Reference EU Directive 2014/92/EU if staff seem unfamiliar
- Request manager escalation if frontline staff refuse
- Take notes: staff names, date, time, specific refusal grounds stated
- Don't leave without written refusal if denied
If Refused:
- Request written refusal with specific legal grounds
- Ask for Livro de Reclamações immediately
- Document everything: dates, names, exact reasons given
- File complaint within days while details are fresh
- Keep copies of all documentation
Language to Use:
"Under EU Directive 2014/92/EU Article 16, I have the legal right to a basic payment account as an EU legal resident. [Bank policy you're challenging] violates this directive's non-discrimination provisions. I request compliance with EU and Portuguese law."
Stay Calm and Professional:
- Assertive but not aggressive
- Reference laws and regulations, not emotions
- Document everything systematically
- Use complaint mechanisms rather than arguing
- Banks respond to regulatory risk, not argumentation
When to Seek Legal Assistance
Most banking rights issues can be resolved through complaint mechanisms, but some situations warrant legal consultation.
Consider Legal Assistance If:
- Multiple banks refuse basic accounts without legal grounds
- Banco de Portugal investigation doesn't resolve issue
- Bank continues violations after regulatory orders
- You suspect discrimination requires court action
- Financial damages from illegal refusal are significant
Resources:
- Portuguese consumer protection associations (DECO)
- Immigration law firms with financial access expertise
- EU consumer rights organizations
- Legal aid if income qualifies
Most expatriates successfully assert banking rights through Livro de Reclamações and Banco de Portugal complaints without requiring legal action. The enforcement mechanisms are designed for consumer self-service.
Frequently Asked Questions
What if the bank claims they don't have to follow EU Directives?
All Portuguese banks must comply with EU Directives. Portugal is an EU Member State, and Directive 2014/92/EU was transposed into Portuguese law through Decreto-Lei 27-C/2000. No bank can claim exemption. File immediate Livro de Reclamações complaint if bank makes this claim.
Can I file complaints in English?
Yes. While Portuguese is helpful, Banco de Portugal's complaint portal accepts English submissions. Livro de Reclamações complaints can be filed in English, though Portuguese language complaints may receive faster processing. Many banks have English-speaking staff who can assist.
How long do complaint processes typically take?
Livro de Reclamações responses are required within 15 days. Banco de Portugal investigations typically conclude within 30 days but can take longer for complex cases. Many banks resolve issues within days once formal complaints are filed to avoid regulatory escalation.
Will filing complaints damage my relationship with the bank?
Banks are accustomed to complaint processes as part of regulated industry operations. Filing legitimate complaints about rights violations won't prevent account opening or future banking relationships. In fact, banks often resolve issues quickly to avoid regulatory penalties.
What if I've already opened an account but was charged illegally?
You can file complaints about fee violations or discriminatory practices even after account opening. Request fee refunds through Livro de Reclamações. If charged more than €5.22 annually for a basic account, this violates fee caps and warrants complaint.
Can banks close my account if I file complaints?
Banks cannot retaliate against legitimate complaints by closing accounts. Account closure requires legal justification. Retaliatory closure would constitute additional violation subject to penalties. Document the timeline if closure follows complaint filing.
Do I need a lawyer to file complaints?
No. The Livro de Reclamações and Banco de Portugal complaint systems are designed for consumer self-service. Complaints are straightforward forms requiring factual information about violations. Legal assistance is rarely necessary for standard banking rights issues.