New European rules are set to complicate banking for US expats living there.
From January 11, 2027, banks based outside the European Economic Area—the 27 EU member states plus Iceland, Liechtenstein, and Norway—will no longer be allowed to provide core banking services to EEA citizens and residents. Those activities include taking deposits, lending, and issuing guarantees. (Accounts created before July 11, 2026, remain legal.)
Under the new rules, banks located outside the EU can only provide services to EEA residents by opening European branches.
For example, let’s say you’re living in Spain on a retiree visa. Based on your Internet profile, you surf across an advert for UMB Bank of Dubuque, Iowa. You click on the link that says, “tell me more,” and end up opening an account.
Although the law allows EU residents to open accounts with foreign banks without having been solicited by the bank, the fact that a UMB Bank popped up during your browsing means that technically, the bank initiated the relationship.
Boom. UMB bank of Dubuque is now in violation of European Union law.
The new rules aren’t aimed at banking clients, so opening a savings account at UMB Bank isn’t going get you into trouble. But as more non-European banks become familiar with the rules, they’ll start rejecting Europe-based clients… even if they are citizens of the bank’s home country.
Of course, as an American, you may already struggle to get banking services abroad because of FATCA—the Foreign Account Tax Compliance Act. That law imposes severe penalties on any non-US bank providing services to US clients without complying with a raft of reporting rules. That makes US clients risky.
I’m surprised it’s taken the EU this long to introduce a rule like this. After all, US tax law has long punished Americans who buy certain types of investment products in Europe, like mutual funds. Those laws are designed to protect US financial industry interests, pure and simple. Why shouldn’t Europe do the same? That seems to be the way of the world these days.
So, let’s say you’re an American or Canadian living in Europe and you want to have a bank account with an institution somewhere else. What can you do?
First, if you already have banking relationships with non-European institutions, keep them. You may not be able to reopen them if you close them.
Second, if you do decide to open an account with a non-European institution, make sure you carefully document the fact that they didn’t approach you with an offer, you approached them. That may seem like proving a negative, but it requires the foreign bank submit affidavits swearing they didn’t advertise to you.
Third, stick with banks that already have licensed EU branches or subsidiaries.
I can help with that. I’m constantly looking for opportunities for Americans who want to open accounts in Europe. Although FATCA remains an issue, some banks are still willing to open an account for you if you ask nicely (or have a big opening deposit). Most of the agencies to whom I refer clients of my consultation service help with opening bank accounts as well as immigration matters. And if you are planning to purchase a property in Europe, it should be possible to open an account to help manage it.
The bottom is that navigating banking once you live in Europe is becoming more difficult. Fortunately, I’m here to help.
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