Portugal Basic Bank Account: Your €5.22 Legal Right Explained

What Is a Basic Bank Account in Portugal?

A basic bank account (conta de serviços mínimos bancários) is a legally mandated payment account that all Portuguese banks must offer to EU legal residents. Under EU Directive 2014/92/EU and Portuguese law, these accounts provide essential banking services at a maximum annual cost of €5.22 for 2025.

This fee represents exactly 1% of Portugal's Social Support Index (Indexante dos Apoios Sociais), which stands at €522.50 for 2025. The basic account delivers the same core banking services as standard current accounts that typically cost €60-84 annually, making it possible to save €55-79 every year.

Despite being mandatory since the EU Directive's 2016 implementation, basic accounts remain largely unknown in English-language expatriate resources. Most banks don't actively promote these accounts, preferring customers choose standard fee-bearing products instead.

Your Legal Right to a Basic Account

EU Directive 2014/92/EU Article 16 creates an enforceable right for all legal residents in EU Member States to access basic payment accounts. Portugal transposed this directive through Decreto-Lei 27-C/2000, as amended by Law 44/2020, establishing clear obligations for Portuguese banks.

Every Portuguese bank must offer basic accounts to:

• Anyone legally residing in any EU Member State
• Individuals without an existing payment account in Portugal
• People who cannot obtain standard accounts due to financial circumstances

The directive explicitly prohibits discrimination based on nationality, residence location within the EU, employment status, income level, or credit history. These protections supersede individual bank policies or internal risk assessments.

Services Included in Basic Accounts

Basic payment accounts provide comprehensive banking services covering all essential financial transactions:

Account Operations:

• Account opening, maintenance, and closure
• Deposit of funds at bank counters or through electronic means
• Cash withdrawals throughout the EU (including at ATMs)

Payment Services:

• Direct debit transactions within the EU
• Credit transfers within the EU (including standing orders)
• Payment card transactions (debit card with Multibanco/SEPA network access)

Digital Banking:

• Online banking access where the bank offers digital services
• Mobile banking applications (if available at the institution)
• Electronic statements and transaction notifications

The services are identical to those provided with standard current accounts. The only difference lies in the annual fee cap of €5.22 versus the €60-84 typical for standard accounts.

What Banks Cannot Legally Refuse

EU Directive 2014/92/EU Article 15 and 16 establish strict limits on when banks can refuse basic account applications. Banks cannot deny access based on:

Prohibited Refusal Grounds:

• Your nationality (if you're an EU citizen or legal resident)
• Your residence location (whether in Portugal or another EU country)
• Unemployment or lack of regular employment
• Low income or absence of income
• Poor credit history or previous financial difficulties
• Lack of a Portuguese address (EU addresses are acceptable)

Limited Permitted Refusals:

Banks may only refuse basic accounts in four specific circumstances:

1. Duplicate Account: You already hold a payment account in Portugal allowing similar services
2. AML Violations: Suspicion of money laundering or terrorist financing under Law 83/2017
3. False Information: Providing knowingly false or incomplete identification information
4. Security Prohibitions: Subject to national security or public policy restrictions

Even in these cases, banks must provide written justification citing the specific legal grounds for refusal within 10 working days of your application.

How to Request a Basic Bank Account

Requesting a basic account follows a straightforward process, though you may need to be assertive about your legal rights.

Required Documentation:

• Valid passport or EU national ID card
• Portuguese NIF (tax identification number)
• Proof of address (can be from any EU country for EU residents)

Application Process:

1. Visit any Portuguese bank branch during business hours
2. Request specifically a "conta de serviços mínimos bancários" (basic bank account)
3. Reference EU Directive 2014/92/EU if staff seem unfamiliar with the product
4. Provide required identification documents (passport, NIF, address proof)
5. Receive written confirmation of acceptance or refusal within 10 working days

Many bank staff are unfamiliar with basic accounts because they're rarely requested. Don't be discouraged if frontline staff initially claim these accounts don't exist or aren't available. Politely insist on speaking with a manager and reference the legal obligation under Decreto-Lei 27-C/2000.

What to Say:

"I would like to open a conta de serviços mínimos bancários under EU Directive 2014/92/EU. This is a basic payment account with a maximum annual fee of €5.22, which all Portuguese banks are legally required to offer to EU legal residents."

Timeline and Decision Requirements

Portuguese banks must follow specific timelines when processing basic account applications, with legal obligations enforced by Banco de Portugal.

10 Working Days: Maximum period for banks to decide on your application
Same Day to 3 Days: Typical actual processing time once application complete
Immediate: Account opening decision if all documents are in order

If a bank refuses your application, they must provide:

• Written notification of the refusal
• Specific legal grounds justifying the denial
• Information about your right to complaint procedures
• Contact details for Banco de Portugal's complaint system

Failure to decide within 10 working days or provide written refusal grounds constitutes a violation of banking regulations, giving you grounds for immediate complaint to Banco de Portugal.

Cost Comparison: Basic vs Standard Accounts

Understanding the cost difference between basic and standard accounts reveals the significant savings available:

For most expatriates using accounts for salary deposits, bill payments, and basic transactions, the €5.22 basic account provides everything needed. The €55-79 annual savings represents meaningful money that can be better spent on other aspects of Portuguese life.

When Banks Violate Your Rights

If a bank refuses to open a basic account using illegal grounds (unemployment, income level, EU residence location), you have powerful enforcement mechanisms available.

Immediate Actions:

1. Request written refusal with specific legal justification
2. Ask for manager escalation if frontline staff make blanket denials
3. Reference EU Directive 2014/92/EU Article 16 explicitly in your conversation
4. Document everything including dates, staff names, and exact reasons given

If Illegal Refusal Continues:

File a formal complaint using Portugal's mandatory complaint mechanisms. Banks face significant penalties for violating basic account regulations, including fines up to €5 million for individuals or 10% of annual turnover for institutions.

Common Problems and Solutions

Problem: Bank staff claim basic accounts don't exist or "aren't available"

Solution: Request to speak with a manager and cite Decreto-Lei 27-C/2000. All Portuguese banks are legally required to offer these accounts. The product exists even if staff training is inadequate.

Legal Basis: EU Directive 2014/92/EU Article 16 creates mandatory obligation for all banks

Problem: Bank requires proof of Portuguese address when you have EU address

Solution: Cite EU Directive 2014/92/EU Article 15 which prohibits discrimination based on residence location within the EU. Your address proof from any EU country is acceptable.

Legal Basis: Non-discrimination provisions explicitly protect EU residents regardless of which member state they live in

Problem: Bank claims you need employment or minimum income

Solution: These requirements are explicitly illegal for basic accounts under EU Directive 2014/92/EU Article 16. Banks cannot consider employment status or income level when evaluating basic account applications.

Legal Basis: Directive specifically prohibits refusals based on "financial situation"

Problem: Bank sets minimum balance requirements or initial deposits

Solution: Basic accounts cannot have minimum balance requirements. This represents an illegal barrier to access. File a complaint if the bank insists.

Legal Basis: Fee structure is capped at €5.22 annually with no additional charges permitted

Problem: Bank takes longer than 10 working days to decide

Solution: File an immediate complaint to Banco de Portugal. The 10-day timeline is legally mandatory, not discretionary.

Legal Basis: Decreto-Lei 56/2021 establishes timeline obligations with penalties for violations

Enforcement: How to File Complaints

When banks violate your basic account rights, Portugal provides systematic complaint mechanisms with enforceable timelines.

Level 1: Livro de Reclamações (Complaints Book)

Every bank branch must maintain both physical and digital complaint books. Filing a complaint automatically notifies the institution and requires a written response within 15 days.

• Physical Book: Request "Livro de Reclamações" at any branch
• Digital Version: Access through the bank's website or national portal
• Automatic Notification: Institution receives immediate alert of complaint
• 15-Day Response: Bank must respond in writing to your complaint

Level 2: Direct Banco de Portugal Complaint

If the Livro de Reclamações response is unsatisfactory, or if you prefer direct regulatory action, file a complaint with Portugal's central bank:

• Online Portal:
• Timeline: 30-day investigation period
• Powers: Banco de Portugal can order corrections, investigate practices, impose fines
• Penalties: Up to €5 million for individuals, 10% turnover for institutions

What to Include in Complaints:

• Your identification and contact information
• Specific bank and branch details
• Timeline of events with dates
• Documentation of illegal refusal grounds
• Reference to violated provisions (EU Directive 2014/92/EU Article 16)

Switching from Standard to Basic Accounts

If you currently have a standard account paying €60-84 annually, you can switch to a basic account and save €55-79 every year.

Switching Process:

1. Visit your current bank and request account downgrade to basic account
2. Reference your legal right under EU Directive 2014/92/EU
3. Maintain existing services - direct debits, standing orders, and cards continue
4. Update annual fee to €5.22 maximum

Banks sometimes resist downgrades because they lose fee revenue. If your bank claims downgrades aren't possible, this represents an illegal barrier. You have the right to close your standard account and open a basic account either at the same bank or a competitor.

Account Closure Rights:

Under Banco de Portugal regulations, you can close standard accounts without penalties or fees. Banks cannot impose notice periods or closure charges when you're exercising your right to switch to a basic account.

Basic Accounts vs Digital Banks

Digital banks like Revolut, N26, and ActivoBank offer fee-free or low-cost alternatives that may seem more attractive than €5.22 basic accounts. Understanding the differences helps you choose the right option.

Basic Account Advantages:

• Guaranteed EU legal right (cannot be refused if you qualify)
• Available at all Portuguese banks (universal access)
• Full branch network access for in-person services
• Portuguese Deposit Guarantee Fund protection (€100,000)

Digital Bank Advantages:

• Often €0 annual fees for basic tiers
• Superior mobile apps and digital features
• Multi-currency capabilities for international users
• Faster remote opening process

Consider Basic Accounts If:

• You want guaranteed legal right to account access
• You prefer in-person banking options
• You've been refused by digital banks
• You want Portuguese deposit protection without EU passport risks

Consider Digital Banks If:

• You're comfortable with mobile-only banking
• You need multi-currency features
• You prioritize €0 fees over €5.22 annual cost
• You can successfully complete remote video verification

Both options provide legitimate banking access. The basic account represents your legal fallback if other options aren't available or don't suit your needs.

Basic Accounts 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.

If You Hold EU Residence Permit:

• Full basic account rights apply
• Banks cannot refuse based on non-EU nationality
• Your legal residence in an EU country is what matters

If You're on Long-Stay Visa (D7, D8, etc.):

• Basic account access technically applies during legal stay
• Some banks may require proof of pending residence application
• Practice varies by institution - enforcement less clear

If You're Non-EU Without EU Residence:

• EU Directive protections don't apply
• Standard non-resident account rules govern
• Basic accounts may not be available

The key factor is legal residence status in an EU Member State, not passport nationality. If you legally reside in Portugal or another EU country, basic account rights apply regardless of where your passport was issued.

Next Steps After Opening Your Basic Account

Once you've successfully opened a basic account at €5.22 annually, several actions optimize your Portuguese banking experience:

Immediate Setup:

• Activate your payment card when it arrives (3-5 business days)
• Set up online banking access for convenient management
• Configure any direct debits for utilities, rent, or other recurring payments
• Familiarize yourself with Multibanco ATM network (free withdrawals)

Ongoing Optimization:

• Use SEPA transfers for EU payments (standard fee applies but much cheaper than international)
• Consider opening a digital bank account for international features if needed
• Monitor your annual fee - it should never exceed €5.22
• Request fee breakdowns annually to verify charges comply with legal caps

Account Maintenance:

• Update your address with the bank if you move
• Keep your NIF current if you change tax representative
• Review statements regularly for any unauthorized fees
• Report any fee increases above €5.22 immediately to Banco de Portugal

Frequently Asked Questions

Can I have both a basic account and a standard account?

No. EU Directive 2014/92/EU specifies that basic accounts are for individuals who don't hold a payment account allowing similar services in Portugal. If you already have a standard account, you must close it before opening a basic account (or downgrade your existing account).

What happens if I move to another EU country?

Your basic account remains valid as long as you maintain legal residence in any EU Member State. Portugal cannot close your account simply because you moved to Spain, France, or another EU country. Update your address with the bank and continue using the account normally.

Can banks charge extra fees beyond the €5.22?

No. The €5.22 maximum is comprehensive and covers all services included in basic accounts. Banks cannot add transaction fees, card fees, or other charges. If you see additional fees, file an immediate complaint as this violates the law.

Do I need a Portuguese address to open a basic account?

No. EU Directive 2014/92/EU Article 15 prohibits discrimination based on residence location within the EU. You can provide an address from any EU country. Banks cannot require a Portuguese address as a condition for opening basic accounts.

What if I'm unemployed or have no income?

Your employment status and income level are explicitly prohibited consideration factors under EU Directive 2014/92/EU Article 16. Banks cannot refuse basic accounts due to unemployment or lack of income. This is one of the directive's core protections.

Can I use the account for my business?

Basic accounts are designed for personal consumer use, not business transactions. If you need business banking, you'll require a commercial account with different terms. However, receiving freelance income or pension payments into a personal basic account is acceptable.

What if multiple banks refuse my application?

If you meet the eligibility criteria (legal EU residence, no existing similar account) and multiple banks refuse you, file complaints against each institution with Banco de Portugal. Systematic refusals without legal grounds represent serious regulatory violations warranting investigation.