New Rules for Foreign Banks in the EU Starting in 2027

Updates to European banking legislation will affect millions of EU residents who use the services of foreign financial institutions. The new CRD VI requirements establish a clear framework for cross-border services and provide for several exceptions that are worth knowing about in advance. Learn more about the EU rules for foreign banks starting in 2027 and how they will affect account holders

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Starting January 11, 2027, the European Union will implement changes to the terms of service for customers of banks operating outside the EU. These changes stem from the Sixth Capital Requirements Directive (CRD VI)—Directive (EU) 2024/1619, adopted in January 2024—and will directly affect people residing in the EU who hold accounts at foreign financial institutions. ImiDaily reports on this.

What exactly is changing, who is affected by the restrictions, whether there will be an exception for existing accounts, and what options remain for EU residents—we’ll cover all of this in the article below.

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The essence of the new CRD VI requirements for non-EU banks

According to Article 21c of CRD VI, banks based outside the European Union will no longer be able to provide basic banking services to EU resident clients on a cross-border basis. To continue serving such clients, a foreign institution must obtain authorization and open a licensed branch in the member state where the client resides.

The regulation applies to the entire European Economic Area: the 27 EU member states, as well as Iceland, Liechtenstein, and Norway. Each country has the right to set stricter requirements than the minimum standards stipulated by the directive.

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Which banking services are subject to these restrictions?

The directive classifies three categories of activities as core banking services:

• accepting deposits and other repayable funds;
• lending, including consumer loans and mortgages;
• providing guarantees and commitments.

The requirement to open a branch applies to all institutions outside the EU without exception, regardless of the type of legal entity. A hypothetical bank in Singapore, Dubai, or Panama City that plans to accept deposits from EU residents after the specified deadline must first obtain the appropriate license in the client’s country of residence.

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Who Is Affected by the New Requirements: The Residency Criterion

The directive covers clients who “have their permanent residence or are present” within the EU. Citizenship plays no role here—what matters is the individual’s actual residency.

In practice, the distinction is as follows:

• A German citizen with tax residency in Uruguay is not subject to the new restrictions;
• a Brazilian citizen residing in Lisbon is subject to them.

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Implementation Deadlines and Transposition in EU Countries

Member states had until January 10, 2026, to transpose the provisions of the directive into national law. Only five countries met this deadline: the Czech Republic, Denmark, Hungary, Italy, and Slovenia. Due to non-compliance, the European Commission launched infringement proceedings against the other 22 countries in March 2026.

Some countries subsequently caught up—in particular, France published the relevant decree in April 2026. At the same time, Cyprus and Luxembourg, according to available information, are still working on draft documents.

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In what cases do the rules not apply?

CRD VI provides for four exceptions that mitigate the impact of the new requirements:

1. Customer outreach—an EU resident who contacts a non-EU bank solely on their own initiative may be served by the institution without the bank opening a branch. The interpretation of this exception is narrow: a bank is not permitted to market or advertise its services in the EU and then claim that the client approached the bank on their own initiative.
2. Grandfathering—agreements entered into before July 11, 2026, remain valid and enforceable. An account opened before this date is not subject to the new restrictions.
3. Intra-group transactions—these are not subject to the restrictions.
4. Services provided by EU banks themselves—are also exempt from regulation.

The practical risk for individual customers is shifting to the commercial sphere. Many institutions outside the EU may conclude that verifying each EU-resident applicant for compliance with the back-to-business criterion is not worth the regulatory risks and will refuse to open accounts altogether.

Read also: Europe’s Most Amazing Natural Sites. 15 Locations for Future Travels.

What should account holders at non-EU banks do?

EU residents who already have accounts at foreign institutions or plan to open them should consider the following steps:

• Leave existing agreements unchanged—significant updates to the terms or renegotiation may be classified as entering into a new agreement under the new rules;
• if opening an account at a foreign institution is necessary—keep in mind that the burden of proof for demonstrating that the account was opened without solicitation lies with the bank, and therefore many compliance departments would rather deny a client than defend such a situation;
• Choose institutions that already have licensed branches or subsidiaries in the EU or have officially announced plans to open them by January 2027.

Another scenario some clients are considering is changing their country of residence.

Since the restrictions are tied to residency rather than citizenship, moving to a jurisdiction outside the EU removes an individual from the scope of the directive.

Remember! Planning a move to another country requires evaluating many factors: entry rules, residency requirements, taxation, and financial services. The migration guide from the Visit World portal contains the necessary information regarding visa requirements, documents, and the legalization process in your chosen jurisdiction.

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