How to Open a Foreign Currency Account in the Netherlands

Businesses in the Netherlands that trade internationally often receive payments in US dollars, British pounds, Swiss francs, or other currencies while managing their main operating expenses in euros. Converting every payment into euros immediately can increase transaction costs and expose the business to exchange-rate fluctuations.

That’s why most companies operating in the Netherlands open a foreign currency account for managing and improving visibility into foreign currency cash flow.  With a foreign bank account, businesses can hold, receive, and send money in currencies other than the euro. Instead of converting every incoming payment automatically, a company can retain funds in the original currency and use them to pay overseas suppliers or exchange them when needed.

However, selecting an account requires more than comparing monthly fees.

Businesses should consider supported currencies, exchange rates, transfer costs, account eligibility, regulatory protection, and how well the account fits their existing banking and accounting processes. This guide explains how to open a foreign currency account in the Netherlands, the documents businesses may need, and how to choose an appropriate solution for international transactions.

Who Should Open a Foreign Currency Account in the Netherlands?

• Opening a foreign currency account in the Netherlands is not ideal for every Dutch business involved in foreign currency exchange. This business decision should be driven by how frequently you receive or pay money in other currencies. Here are some businesses that benefit the most from opening a foreign currency account in the Netherlands.

• Importers and exporters

• International service providers

• E-commerce businesses

• Companies with overseas suppliers

• Dutch subsidiaries of international groups

• Businesses with recurring foreign currency expenses

For businesses involved in occasional foreign payments, opening a standard business account with foreign payment capabilities may be sufficient. A dedicated foreign currency or multi-currency account becomes more useful when international transactions are frequent or material to your cash flow.

Steps To Open a Foreign Currency Account in the Netherlands

For businesses operating in the Netherlands, the process of opening a foreign currency account depends on your business structure, the financial institution, and whether you are an established Dutch company or a foreign entrepreneur setting up operations.

Step 1: Business Registration

Before applying for foreign currency, a business must establish which type of business account your company needs. If you have registered as a Dutch BV or NV, then a Dutch business bank account is required for company finances. Sole proprietors and partnerships should also check the provider’s terms and the applicable requirements for their structure.

In general, you will need a registered business and a KVK number to open a Dutch business account.

Step 2: Determine Which Currencies You Need

After establishing which type of business account your company needs. It’s time to make a list of the currencies your business regularly receives, holds, and pays. Review your previous transactions and expected future payments to identify which currencies are genuinely necessary. Don’t make the mistake of selecting an account solely because it advertises support for many currencies. Confirm that it supports the currencies, payment methods, and receiving details your business requires.

Step 3: Compare Banks and Multi-Currency Providers

Firms operating in the Netherlands have the ability to compare foreign currency services offered by conventional banks as well as those offered by companies specialized in international transactions. Conventional banks will be able to offer foreign currency accounts that come as a supplement to the business banking services.

The available services differ by provider, business type, and eligibility. When comparing options, look beyond the headline subscription fee. Check incoming payment charges, outgoing transfer fees, currency conversion margins, monthly account costs, payment limits, and charges imposed by intermediary banks. Further, confirm which legal entity provides the service and how your funds are protected.

Step 4: Prepare Your Application Documents

Before establishing an account in foreign currency in the Netherlands, the bank undertakes customer due diligence procedures. The documentation required will vary according to your structure, ownership, residence, and activities. These are some of the commonly used forms for applications:

• Valid identification for directors, owners, and relevant account signatories.

• A KVK registration extract or other evidence of business registration.

• Proof of residential or business address.

• Details of the company’s ultimate beneficial owners (UBOs).

• Articles of association and shareholder information for a BV.

• Information about the company’s business activities and expected transactions.

• Details of the countries where the company operates or expects to send and receive payments.

• Evidence of the source of funds or capital, where requested.

Step 5: Complete Verification and Account Approval

After you submit your application, the provider will review the submission and seek further clarifications and/or documentation. The review may include verification of your firm’s ownership, business activities, revenue generation, payments, and the countries with which you conduct business.

Please ensure that the data you have provided is consistent with your registration record and business plan. Ambiguities in your business structure or incomplete data may lead to delays. Do not assume that the account will automatically be approved.

How to Choose the Right Foreign Currency Account for Your Business

Once you know your foreign currency requirements, it's time to choose the right foreign currency account for your business. For businesses operating in the Netherlands, you need to compare the available accounts based on how your business operates.

1. Compare Exchange Rates

For businesses operating in the Netherlands, the providers may offer different exchange rates and charge conversion fees. As a business owner, you need to compare the final amount the recipient receives or the amount your business must pay, rather than relying solely on advertised rates.

2. Check Local Receiving Details

Whereas some providers of foreign currency accounts offer you with local payment instructions for a particular currency, others depend on bank transfers internationally. If your customers are anticipating local payment instructions, then you have to verify whether the account is capable of doing so and the fees involved.

3. Review Transfer Limits and Processing Times

If you have any business needs involving sizable transactions, urgent supplier invoices, and business transfers in the Netherlands, there could be certain limitations involved. Verify if the account is suitable for the size of transactions you expect to conduct.

4. Assess Security and Fund Protection

It is necessary to know in advance whether your account is going to be opened in the bank, in payment / e-money institution, or any other regulated financial institution before opening a foreign currency account. In terms of the deposit guarantee scheme of banks, all eligible deposits held in any of the participating banks are guaranteed up to an amount of €100,000 per person per bank. However, this does not automatically apply to all payment/e-money institutions.

On the other hand, some non-bank providers are required to safeguard customer funds under a different regulatory framework, which is not the same as deposit guarantee protection. Read the provider’s terms and check the applicable protection arrangements before holding significant operating balances.

5. Consider Accounting and Payment Integration

Make sure that your account integrates with your company’s accounting and bookkeeping processes. Ensure that the transactions can be exported or integrated into your accounting software, that the statements display the base currency and the process involved in converting them to other currencies, and that the payment references are retained. This will minimize the workload for your company, especially if you have dealings in multiple currencies.

How to Manage Currency Risk After Opening the Account

Having a foreign currency account will give your business more options, but it does not eliminate the exchange rate risk for your company. In case your business earns revenues in US dollars and is reporting earnings in euros, then any fluctuations in the dollar may influence your revenue in euros.

Consider a business that expects to receive $50,000 in three months. If the dollar weakens against the euro before payment, the company may receive less euro-equivalent value than originally expected. You can manage this risk through several approaches.

• Match income and expenses in the same currency

• Include currency clauses in contracts

• Plan conversions around cash-flow needs

• Consider hedging instruments

• Monitor foreign currency balances

Open a Foreign Currency Account With Support From FirmNL

If you are running or setting up business in the Netherlands, you must know about the currency that your business is using, how often the money is exchanged, the form of payments that your suppliers accept, and the charges that may impact the overall transaction cost.

FirmNL supports businesses with company setup, business banking assistance, international payments and foreign exchange support, alongside related tax and accounting services. Whether you are establishing a Dutch company or improving the way an existing business handles international payments, we can help you understand your requirements and explore suitable options.

Need help arranging business banking or managing international currency payments? Contact us to discuss your company’s requirements.

Frequently Asked Questions

1. Can a foreign company open a foreign currency account in the Netherlands?

The overseas firm can possibly set up an appropriate business or foreign currency account according to the criteria set by the financial institution concerning eligibility, ownership, operations, and registration of the firm. Other documents could include identification, registration, addresses, and sources of funds.

2. What is the difference between a foreign currency account and a Dutch business bank account?

The business bank account in the Netherlands is meant to take care of a company’s daily financial transactions in most cases involving euros. A foreign currency account enables the company to keep or make transactions using other currencies besides the euro.

3. Which documents are required to open a Dutch business foreign currency account?

Some standard conditions include a valid ID, registration information about the business, proof of address, UBO documentation, and corporate papers when needed. The provider may also ask for a business plan, volume of transactions, trading nations, and funding source information.

4. Can a foreign currency account help reduce international payment costs?

It can minimize the currency exchange process for a firm that consistently receives and makes payments using the same currency. The benefit is dependent on the costs involved in account maintenance, margin, transfer fees, and the nature of the transactions of the business.

5. Does a foreign currency account eliminate exchange-rate risk?

No. While the account gives the firm greater flexibility regarding when to convert its balance, the foreign currency could be strengthened or weakened against the euro. Organizations with substantial exposure could look at cash flow management, matching foreign currency income and expenses, among other options.

6. Is money in a multi-currency business account protected by deposit guarantee?

The protection available is dependent on the nature of the legal entity offering the service and the regulation surrounding the financial product. Bank deposits that qualify for coverage will normally be protected under the relevant deposit guarantee scheme up to a limit of €100,000 per depositor per bank. Deposits made in electronic money institutions may fall under the safeguarding scheme rather than the deposit guarantee scheme.

‍