Complete Guide to Business Banking for EU Companies
Compare top business banking solutions for your EU company. Multi-currency accounts, low FX fees, API integration, and step-by-step setup guides.
Choosing the right business bank account is one of the most important decisions you'll make when setting up your EU company. The wrong choice can cost you thousands in unnecessary fees, limit your ability to accept international payments, and create accounting headaches that waste hours each month.
For modern EU businesses—especially those run by e-residents, digital nomads, and remote-first founders—traditional banks are often a poor fit. They charge high monthly fees, offer terrible foreign exchange rates, lack multi-currency support, and require physical branches for basic tasks. Fortunately, a new generation of fintech banking solutions has emerged that's specifically designed for international, location-independent businesses.
This guide will help you choose the right business banking solution for your needs. We'll compare the top providers, explain key features like multi-currency accounts and FX fee optimization, walk you through the account opening process, and show you how to connect your bank account to your accounting software for seamless financial management.
Whether you're a freelancer receiving payments in multiple currencies, an agency managing team expenses across countries, or a SaaS founder collecting subscription revenue globally, you'll find the banking setup that matches your business model.
What You Need from a Business Bank
Your clients pay in different currencies—USD, EUR, GBP. You need local bank details in each currency to avoid expensive SWIFT transfers and intermediary bank fees. Hold multiple currencies and convert only when rates are favorable.
Traditional banks hide 3-5% markup in exchange rates. Modern fintech providers offer transparent fees (0.35-1%) using mid-market rates. On $100k annual revenue, this saves you $3,000-4,000 per year.
Manual transaction entry is a time sink. Your business bank should integrate with Xolo, QuickBooks, or your accounting platform via API. Automatic transaction sync saves hours every month and eliminates human error.
Pay contractors globally, refund customers, or move money between accounts. You need fast (1-2 day) international transfers with transparent fees. Avoid traditional banks that take 5-7 days and charge hidden fees.
As your business grows, you'll need team member access to company accounts, virtual or physical debit cards for employees, and spending controls. Choose a provider that scales with your team.
Physical and virtual debit cards connected to your business account for subscriptions, software purchases, and travel expenses. All transactions automatically appear in your accounting system for easy expense tracking.
Top Business Banking Options
The most popular choice for Estonian e-residents and EU digital businesses. Multi-currency accounts with local bank details in 10+ currencies.
Pros
- Free to open, no monthly fees (pay-as-you-go)
- Local bank details in EUR, USD, GBP, AUD, NZD, CAD, and more
- Transparent FX fees: 0.35-1% at mid-market rates
- Built-in Xolo integration for automatic accounting sync
- Physical and virtual debit cards available
- Fast international transfers (usually 1-2 days)
- Excellent API for custom integrations
- Regulated in EU, UK, US, and other countries
Cons
- Not a traditional bank (electronic money institution)
- No business loans or credit lines
- Some clients unfamiliar with Wise may be hesitant
- Occasional account reviews for compliance (rare but can delay access)
Best For
Freelancers, consultants, agencies, and SaaS businesses receiving payments in multiple currencies. Perfect for Estonian e-residents using Xolo for accounting.
Pricing: Free account • 0.35-1% FX fees • €0.50-2 international transfers
All-in-one business account with banking, expense management, and team cards. Good for teams needing spending controls.
Pros
- Free plan available with basic features
- 30+ currencies with local bank details
- Team expense cards with spending limits and controls
- Built-in expense management and receipt capture
- Instant internal transfers between Revolut accounts
- Crypto support (buy/hold/exchange)
- Modern mobile app with great UX
Cons
- Free plan has monthly limits on currency exchange and transfers
- Premium features require paid plans (€25-100/month)
- FX fees higher than Wise (0.5-1.5% depending on plan)
- Customer support can be slow for free plan users
- Less accounting software integrations than Wise
Best For
Growing teams needing multiple expense cards, spending controls, and built-in expense management. Good for agencies and companies with 5+ team members.
Pricing: Free plan (limited) • €25-100/month for premium plans
Popular for marketplace sellers, freelancers on platforms (Upwork, Fiverr), and e-commerce businesses.
Pros
- Free to open and maintain (no monthly fees)
- Excellent for receiving payments from marketplaces (Amazon, Upwork, etc.)
- Local receiving accounts in USD, EUR, GBP, JPY, AUD
- Direct integration with major e-commerce platforms
- Prepaid Mastercard for withdrawals and purchases
- Mass payout features for paying contractors
Cons
- High FX fees (up to 2% above mid-market rate)
- Withdrawal fees to bank accounts ($1.50-3 per withdrawal)
- Limited accounting software integrations
- Interface feels outdated compared to Wise/Revolut
- Customer support can be slow
Best For
Freelancers working on platforms like Upwork or Fiverr, e-commerce sellers on Amazon/eBay, and businesses that need marketplace payment integrations. Not ideal as primary business account due to high fees.
Pricing: Free account • Up to 2% FX fees • $1.50-3 withdrawal fees
German-based mobile bank focused on EUR banking with clean UX and basic features. Limited multi-currency support.
Pros
- Free business account (€0/month basic plan)
- German IBAN (some clients prefer this over Wise/Revolut)
- Excellent mobile app with clean design
- Fast account opening (same day approval common)
- SEPA transfers included (free EUR transfers in EU)
- Business debit card included
Cons
- Limited to EUR—no real multi-currency support
- High FX fees (1.7% markup on exchanges)
- Limited accounting software integrations
- Not available in all EU countries
- No API access on free plan
- Basic features compared to Wise/Revolut
Best For
EU-only businesses that primarily deal in EUR and need a German IBAN. Good as a backup or secondary account, but not recommended as primary account for international businesses due to poor FX rates.
Pricing: Free basic plan • €4.90-16.90/month premium plans
Our Recommendation
For most EU companies, especially Estonian e-residents and digital nomads, Wise Business is the best choice. It offers the lowest fees, best multi-currency support, and seamless integration with Xolo accounting.
Consider adding Revolut Business as a secondary account once your team grows beyond 5 people, or if you need advanced expense management features. Avoid using Payoneer or N26 as your primary account unless you have specific needs (marketplace payments, German IBAN preference).
How to Open a Business Account
Step-by-step guide for opening Wise Business (most popular choice). The process for other providers is similar.
Before starting your application, prepare these documents. Xolo provides most of these automatically when they register your business.
- Company registration certificate (from Xolo or Business Register)
- Company registration number (Estonian registry code)
- Proof of business address (registered address in Estonia)
- Director's passport or government-issued ID
- Director's proof of residential address (utility bill, bank statement)
- Business activity description (what your company does)
Pro Tip:
If you're using Xolo, download your company registration certificate directly from your Xolo dashboard. They also provide your business address documentation automatically.
Visit Wise Business and click "Open a Business Account." The signup process takes about 10 minutes.
- Enter your email address and create a strong password
- Select your business type: "Company" (not sole proprietor)
- Choose your country of incorporation: Estonia (or your EU country)
- Enter your company registration number and legal name
- Provide company address (use your registered Estonian address)
- Enter director details: full name, date of birth, nationality
- Describe your business activities in detail (be specific—this helps with approval)
- Answer questions about expected transaction volumes and countries you'll work with
Wise will ask you to upload documents to verify your company and identity. This is a regulatory requirement.
- Company registration certificate (PDF from Xolo or Business Register)
- Proof of company address (official document showing registered address)
- Director's ID: Upload passport or national ID (both sides)
- Proof of director's address: Upload utility bill or bank statement (dated within last 3 months)
Important:
Make sure all uploaded documents are clear, in focus, and show all corners of the document. Poor quality scans lead to rejection and delays.
Wise will review your application and documents. Most applications are approved within 1-2 business days. You'll receive an email notification when your account is approved.
During verification, Wise may ask additional questions about:
- Your business model and how you make money
- Your clients and their locations
- Expected transaction volumes per month
- Source of initial funding for the account
Answer these questions honestly and with detail. Vague answers lead to delays or rejection.
Once approved, log into your Wise Business dashboard and activate the currencies you need. For each currency, you'll get local bank details.
Recommended currencies to activate:
- EUR - European banking, main account currency
- USD - American clients (get US ACH routing + account number)
- GBP - British clients (get UK sort code + account number)
- AUD - Australian clients (get Australian account details)
- CAD - Canadian clients (if you work with Canada)
Fund your account by making your first transfer from a personal bank account in your name. Wise requires this to verify you control the account. Transfer at least €20-50 to fully activate your account.
Next Steps:
Add your Wise bank details to invoices (use appropriate currency for each client), order a physical Wise business debit card (€5 one-time fee), and connect Wise to Xolo for automatic accounting sync (see Section 5).
Managing Multi-Currency Accounts
Smart strategies to minimize FX fees and optimize your multi-currency banking setup.
Don't convert automatically. Hold payments in the original currency and convert only when you need the money or when exchange rates are favorable.
Smart Strategy:
- • Receive USD payments in USD balance (no conversion)
- • Wait until EUR/USD rate is favorable before converting
- • Use Wise's "auto-convert" feature to set target exchange rates
- • Pay USD expenses directly from USD balance (saves double conversion)
The key to minimizing FX fees is to avoid converting currencies whenever possible. Use local bank details for each currency.
Wrong Way (Expensive):
US client sends $10,000 to your EUR IBAN → Their bank converts USD to EUR at 3% markup → You receive €9,200 instead of €9,500 → Lost €300
Right Way (Cheap):
US client sends $10,000 to your US bank details (ACH) → Money arrives in your USD balance (no conversion) → Convert at Wise's 0.41% fee when ready → Receive €9,461 → Saved €261
Decide which currencies to hold long-term vs convert immediately based on your business needs and FX risk tolerance.
Hold Long-Term:
- • Currencies you regularly pay expenses in (e.g., USD for software)
- • Stable currencies where you expect repeat income
- • Building reserves for future business investments
Convert Quickly:
- • Volatile currencies where FX risk is high
- • One-time payments in currencies you don't use
- • Money you need to withdraw for personal expenses
Multi-currency accounting has tax implications. Work with your accountant (or use Xolo's guidance) to handle this correctly.
Key Tax Considerations:
- • Revenue is recorded at the exchange rate on the invoice date, not payment date
- • FX gains/losses when converting currencies may be taxable or deductible
- • Keep records of all exchange rates used for conversions
- • Xolo automatically handles multi-currency accounting for Estonian companies
For Estonian e-residents using Xolo: Your Xolo accountant handles all multi-currency tax reporting automatically when you connect Wise to Xolo. No manual work required.
Connecting to Accounting Software
Automate your bookkeeping by connecting your business bank account to Xolo or other accounting software.
Xolo has built-in integration with Wise Business. All transactions automatically sync to your Xolo dashboard for seamless expense tracking and tax reporting.
Setup Steps:
- Log into your Xolo dashboard
- Navigate to Settings → Integrations → Bank Connections
- Click "Connect Wise Business"
- Authorize Xolo to access your Wise account (secure OAuth connection)
- Select which Wise currencies you want to sync (recommend: all of them)
- Transactions from the past 90 days will import automatically
What Syncs:
- • All incoming payments (automatically matched to invoices)
- • All outgoing payments and expenses (ready to categorize)
- • Currency conversions (tracked for FX gain/loss reporting)
- • Card transactions (if using Wise debit card for expenses)
Wise offers a powerful API for custom integrations. Use this if you're building custom financial dashboards or integrating with tools beyond Xolo.
What You Can Do:
- Fetch transaction history programmatically
- Get real-time balance updates for all currencies
- Initiate transfers via API (great for paying contractors automatically)
- Subscribe to webhooks for instant transaction notifications
- Get exchange rate quotes and execute conversions
Getting Started:
- Visit Wise API Documentation
- Create API tokens in your Wise Business dashboard (Settings → API tokens)
- Test with sandbox environment before using production data
- Implement OAuth 2.0 for secure, long-term access
Connecting your bank account to Xolo or accounting software saves time and reduces errors.
Time Savings
Eliminate 2-4 hours per month of manual transaction entry and reconciliation.
Error Reduction
Automatic sync eliminates typos, mismatched dates, and missing transactions.
Real-Time Visibility
See your current financial position instantly without waiting for manual updates.
Tax Compliance
Automatic categorization and reports ensure you're always ready for tax filings.
If you use accounting software other than Xolo, Wise supports integrations with popular platforms.
Supported Accounting Software:
- Xero - Full bank feed integration
- QuickBooks Online - Transaction import via CSV or API
- FreeAgent - Direct connection available
- Wave - Manual CSV import (free accounting software)
- Custom software - Use Wise API for direct integration
Most integrations work similarly to Xolo: connect once, authorize access, and transactions sync automatically going forward.
Frequently Asked Questions
All information verified as of October 2025. Prices and features subject to change. Always verify current pricing with providers.
