Why Is It Difficult to Open a Bank Account in Paris for Expats and American Citizens?
Opening a bank account in Paris as an expat or an American citizen can be complex due to bureaucracy and FATCA regulations. Discover the best solutions.
Why Is Opening a Bank Account in Paris Difficult for Expats?
French banks are known for their strict bureaucracy and attachment to supporting documents. As an expat, you must prove your stable residence in France, which can be challenging if you’ve just arrived. You will experience what we call the chicken-or-the-egg paradox.
Additionally, some banks hesitate to open accounts for non-residents due to strict anti-money laundering regulations.
Why Do American Citizens Struggle with French Banking?
American citizens face additional difficulties due to U.S. tax regulations, particularly the Foreign Account Tax Compliance Act (FATCA). This law requires foreign banks to report accounts held by American citizens to the IRS. As a result, many French banks prefer to avoid opening accounts for Americans to sidestep complex administrative procedures and potential penalties.
From experience I know that Société Générale refused new American or Franco American clients as well as LCL and many others traditionnal banks. If you have an acquaintance you can succeed but it more the exception than the rule.
What Documents Are Required to Open a Bank Account in France?
If you manage to find a bank willing to accept you, here are the documents generally required:
- A form of identification (passport or residence permit)
- Proof of address (electricity bill, rental contract, etc.)
- Proof of income or employment certificate (sometimes required)
- A French phone number(mobile)
- For Americans: A W-9 form and possibly a FATCA compliance declaration
Best Banks for Expats and American Citizens in Paris
Paris is full of traditional banks and online banks, but not all are suitable for expats, and even fewer for American citizens. Here are some options:
- Traditional banks: like BNP Paribas, accept American clients but with heavier procedures, till recently all expats opened their bank account with HSBC as it was very easy but they closed 2 years ago all the commercial bank agencies in Europe.
- Online banks and neobanks: Revolut, N26, and Boursorama are more flexible, but some still refuse American citizens due to FATCA regulations.
- I often recommend to my clients Wise you can get an Euroean (Belgium) IBAN than will make your life easier.
However please note that some institutional bodies and some private organisations refuse IBANs from neobanks.
I wouldn’t advise anyone to have all their money in this kind of establishment, but it’s very practical when you travel a lot because you don’t pay exorbitant transaction fees, only the exchange rate and a very small commission on the exchange rate. But if you decide to stay for longer than a year, I’d recommend opening an account with a traditional bank or a European online bank. To do this, you’ll need a stable address in France.
PS: MyParisTouch can help you to connect you with BNP Paribas and get you in touch with companies that can help you to transfer money from foreign country to France with a very competitive rate. Don’t hesitate to contacgt me.
Expat Banking Tips in France
- If your French isn’t fluent, opt for a bank with English-speaking services in Paris it may be easier than in a small town or in the suburbs. BNP Paribas has international brench.
- Don’t be surprised by banking fees in France – check monthly costs and international transaction fees.
- You may have to pay 10 to 15€ per month for your visa card most of the time with online banking the banking fees are much cheaper and the visa card maybe free of chargess
The French bank system is very different than the US. in Frence you have usually a debit card not so often a credit card. That explain why you are paying banking fees it is their way to get monney for their services. At the end of the year the cost maybe less expensive than the one you pay in the US when using your credit card for all your purchases.
In France many people are paying a lot only by cash especially for small amount like at the bakery and you hav eto know that many merchants have a limit for the CB use (Carte Bancaire) of 10 or 15€. Not so often in Paris but more frequent outside Paris and big cities.
Opening a bank account in France can feel like an obstacle course, especially if you’re an American citizen. But with patience, good preparation, and the right contacts, you’ll find a suitable solution.
Need help navigating French bureaucracy? Contact us for expert assistance! 💳🥖
If you want to have detailes ifnormation about renting a flat in Paris/ France I recommend you this blogpost;