Neobank N26 gives customers in France local IBAN numbers

The German bank hopes money transfers will become easier - but it will change how customers declare their account on tax returns

N26 clients have had German IBAN numbers (starting with DE), which N26 says can cause issues
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German neobank N26 says its 2.5 million customers in France will be given local IBAN accounts, which in some cases will make it easier to send and receive payments.

It also means clients will no longer have to declare to France that they hold overseas accounts.

An IBAN is an International Bank Account Number.

Problems moving money within the Sepa zone are still common

N26 clients have had German numbers (starting with DE), which N26 says can cause issues.

Inability to make or receive a transfer within the Sepa zone (EU, EEA, Switzerland and UK) breaks EU law but N26 says it is still common.

The company’s manager for France said: “This sometimes creates unnecessary friction for customers, who might struggle to deposit their salaries or pay for utilities if they do not have a local IBAN.”

N26 hopes the move will encourage clients to use it as their main bank account.

Read more: Do second home owners in France need a French bank account?

Affects foreign bank account status on tax declaration

All new customers in France will receive an FR IBAN, while existing customers will be moved to one in due course, probably during this year.

Note that existing clients will have to declare they have closed a foreign account as part of their next French tax declaration, using form 3916.

Read more: Income declarations in France: Key points on overseas bank accounts

Protected and regulated by France

Other neobanks founded abroad but now offering FR IBANs include Revolut and Bunq.

Like N26, these are also full ‘bank’ accounts, so must, under EU law, guarantee to safeguard at least €100,000 of funds in the case of any issues, which is not the case for all online financial services.

Being French-based also means they are regulated directly by France’s ACPR, as opposed to foreign banking regulators.

N26 and Revolut support the acceptmyiban.org campaign, which promises to pass on examples of ‘IBAN discrimination’ to the European Com­mis­sion.

Note, however, it is legal for EU banks to charge ‘international’ fees to receive funds from outside the EU, even from Sepa states.

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