Step-by-step: Setting up a bank account as an expat in Czechia

Something as apparently simple as setting up a bank account can make a big difference to your quality of life in Czechia. Choosing a bank that suits your needs and circumstances – and that, if possible, provides services in your own language – prevents complications while giving you more control over your money.

Setting up an account is usually easy for expats – but it still pays to do your homework. Making sure you have all the documentation needed is key, and it’s good to know that some banks are more “expat-friendly” than others.

An example is UniCredit Bank, which is unique in Czechia in hosting an International Clients Center at its headquarters on Prague’s Náměstí Republiky. Expats.cz asked UniCredit bank’s Eva Grulichová, an expert in banking for foreigners in Czechia, about the do’s and don’ts of setting up an account as an expat.

The requirements for setting up a bank account depend on your nationality, with third-country nationals facing a different situation to EU citizens.

“All foreigners need to show their relation to Czechia, the reason why they are here,” Eva Grulichová says. “EU citizens simply need their ID card or passport, while a non-EU foreigner needs to show a residence permit or visa lasting for at least 90 days.”

Besides a residence permit, non-EU nationals are required to show a work contract, confirmation of study, or signed lease agreement as proof of their long-term status living in Czechia. 

“People coming from countries that are on the sanctions list, such as Russia, Iran or Syria, might still open a bank account with us, but there is a longer approval process to comply with all the regulations,” she adds.

According to Grulichová, requirements are standardized across all Czech banks. “Banks are obliged by law to know about their customers to prevent criminal acts,” she explains.

Banking is a highly regulated industry, which makes it no surprise that official documentation must always be in Czech.

“However, at UniCredit bank, we really focus on going through the contract sentence-by-sentence with clients to explain the document, make notes for them and point out all key information, such as account numbers and payment limits in cash or online,” Eva Grulichová says.  

UniCredit Bank’s focus on expat clients means information about optional extras such as investment products is provided fully in English. Grulichová points out that with complex topics such as investment, “it’s important to have the documentation in English to prevent misunderstandings.”

“Expats should visit one of our branches or our International Client Center to discuss these products,” she says. “They are becoming more popular, especially among foreigners, who tend to be more familiar with investing than Czechs.”

At UniCredit Bank, as well as other banks in Czechia, online and mobile banking services are available in English, significantly easing everyday banking activities for expat account holders.

“The difference is in the quality of banks’ applications – what clients can do through their online or mobile banking, and what they have to go to a physical bank branch for. With UniCredit Bank, expats can use an accessible, user-friendly app in English,” Eva Grulichová says.

“Often, expats want an account in Czech Crowns, but also another currency too,” Eva Grulichová points out. “They may have regular payments in their home country and as such want to keep some part of their money in their local currency.” 

Popular foreign currencies include the Euro and US Dollar, while UniCredit bank also provides accounts in Swiss Francs, Japanese Yen, Pound Sterling or other currencies, enabling advantageous exchange rates when transferring money between accounts.

Other common requests among expat clients include premium cards allowing higher payment limits, travel insurance included with their account, or credit cards, which, according to Grulichová, are “more popular among foreign clients. Czechs are less comfortable with incurring debts for everyday payments.”

“Sometimes, it isn’t straightforward for foreigners to get a credit card at the start of their time in Czechia,” she adds. “A little patience is needed; people often don’t understand why they can’t get a credit card immediately. For banks, it’s due to the risk; foreigners could leave the country at any time, and there is no way to recoup money from such accounts internationally. As a result, getting a credit card can take up to three months, requiring three monthly salaries as evidence of income.”

For Eva Grulichová, the level of service provided by UniCredit Bank specifically tailored for foreigners at the bank’s International Clients Center (ICC) is a key advantage.

“The added value is in the fact that at any moment, expat clients can speak with someone at our ICC in English, or even in their home language. This is a huge advantage, as there is no other specialized banking center for foreigners in Czechia.”

UniCredit Bank’s ICC consists of seven expert bankers providing a full suite of services in five languages: English, German, French, Italian and Russian.

“While you’ll be able to open an account anywhere in the country with ease with UniCredit Bank, the ICC really comes into play if you encounter any issues which need to be resolved. In such circumstances, expats must be sure that they are well understood. At our ICC, they can be sure of receiving the right expert service to solve their issue.”

Disclaimer: Trading financial instruments carries risks. Always ensure that you understand these risks before trading.