Payment Guides

Sending and receiving payments from Luxembourg

21 March 2023
Find out everything you need to know about sending and receiving payments from Luxembourg.
Sending and receiving payments from Luxembourg

The Grand Duchy of Luxembourg may not cover a lot of territory, but it’s one of the most affluent nations in the world. Over the decades, it has developed a strong reputation as a centre of financial services.

It’s a centre of innovation, too, securing the top spot on the European Innovation Scoreboard (2021) and being named the best environment worldwide for startups (2019).

Whether you’re looking to capitalise on the growing e-commerce opportunities in Luxembourg or find an EU base for a new business, you’ll probably need to transfer money from the UK to Luxembourg at some point.

In this guide, we'll provide an overview of sending and receiving payments in Luxembourg including the different transfer options available, how long they take and how much they’re likely to cost – a great starting point for your business.

Global transfers in Luxembourg

Luxembourg was a pioneer of open financial and economic borders when it formed the Benelux Economic Union along with Belgium and the Netherlands in 1958, setting a precedent for the EU.

That forward-looking attitude continues today with global companies, startups, and institutions like The Payments Association EU, choosing to base themselves in Luxembourg. As a result, the country has some of the most sophisticated financial infrastructure in the world.

Its consumers are driving demand for digital innovation. 99% of individuals in Luxembourg use the internet and 96% of people who shop online have made cross-border purchases. Bank transfers account for 51% of online transactions, so the financial apparatus to support this growing trend is key in the consumer space.


Luxembourg is a hub for financial services. As such, it implements forward-thinking policies designed to make international transfers easier. For example:

  • Luxembourg is a member of the EU’s Single Euro Payments Area (SEPA). Through this network, transfers to other SEPA countries work just the same as transfers to domestic accounts.

  • Luxembourg also has access to the SEPA Instant Credit scheme (SCT Inst) where pan-European transfers can be made in seconds – 24 hours a day, 365 days a year.

The limit on SCT Inst transactions is now €100,000 which supports businesses looking to be agile when making high-value payments. The scheme’s immediacy also helps businesses manage their cashflow more efficiently.

Countries eligible for payments

You can send and receive payments in Luxembourg to most countries around the world. 

As well as SEPA, Luxembourg is also part of the Society for Worldwide Interbank Financial Telecommunications (SWIFT). This network enables financial transactions between 190 countries.

The specific countries you can transfer money to depends on which service you use – we'll look at the different options available later in this guide. But if we take 3S Money as an example, you can make and receive payments from more than 190 countries.

It’s worth bearing in mind that you may not be able to send money to certain countries due to political circumstances. Before attempting a payment, always check that your payment provider supports transfers to your intended country.


Since 2002, the official currency of Luxembourg has been the Euro. Before adopting the Euro, the Luxembourg Franc was in continuous use for almost 150 years, with the Belgian Franc and Prussian Thaler also considered legal tender during the late 18th century.

It’s possible to transfer money in many different currencies in Luxembourg, depending on your needs. At 3S Money, we always recommend sending your transfer in the local currency of the destination country.

The exact currencies available for your transfer will depend on the provider you use, but 3S Money offers 65+ different currencies (with fair and sustainable FX rates).

Using a local Luxembourg IBAN (International Bank Account Number) enables effortless EUR transfers. Issued by 3S Money in your business name, it allows non-residents to send and collect high-value payments in Luxembourg without opening a local bank account.

Payment types

To make a transfer from the UK to Luxembourg, you’ll need to fund it – and there are various options. Most providers accept corporate and personal credit cards, debit cards, bank transfers, direct debits, and even e-wallet services like Apple and Google Pay.

If you use a credit or debit card, there may be additional fees (e.g., a cash advance fee). Be sure to factor this in when working out the total cost of your transfer.

Different ways to send payments to Luxembourg

Depending on your needs and how your business operates, there are various ways to transfer money from the UK to Luxembourg. We’ll now look at each of these in more detail.

Your bank

You can ask your bank to transfer the funds. This is a popular choice for businesses and individuals as it’s often the easiest and most convenient. But it can also be expensive:

  • Banks usually charge a fee to arrange and process money transfers (for UK banks, this varies from £20-£40).

  • Some banks may also charge a percentage of the total amount you’re transferring (as much as 3-4%).

  • Banks may use their own foreign exchange (FX) rates which could cost you 5-7% more.

All banks are different, so check the terms of your business account to see exactly what your bank’s international transfer charges are. If they charge a lot, consider an alternative. Speaking of which...

Online banks or Electronic Money Institutions (EMIs)

Electronic Money Institutions offer many of the same financial products and services as traditional banks, but they operate differently. For one thing, they don’t have branches you can walk into. 3S Money, for instance, is an EMI.

More and more businesses, especially international companies, are using EMIs like us to manage their financial operations, including transferring money. Here are a few reasons why:

  • Savings: EMIs offer lower fees and more competitive FX rates than traditional brick-and-mortar banks.

  • Simplicity: All your business transactions are accessible in one easy-to-use platform.

  • Scale: Your business can grow quicker with greater access to multiple countries and currencies.

The alternative banking solutions offered by EMIs are attractive because they enable business to make payments in different countries without the need to hold local bank accounts. Find out more about EMIs here.

Wire transfer

Wire transfers are another option for transferring money to Luxembourg. Providers like Western Union Business Solution, Travelex and Moneycorp are well-known examples. As with other services, there are pros and cons to this type of transfer., such as:

  • You can choose how the money is received. Many services offer bank transfers, eWallet delivery, or cash pickup from a physical location.

  • If you want a faster transfer, you’ll probably pay significantly more.

  • These services often add a currency exchange rate markup which means either the sender must pay more, or the recipient receives less. Either way, the provider pockets a healthy profit.

  • Wire transfers can be less secure and harder to trace. For peace of mind, always check that your payment provider is licenced and regulated. With 3S Money, every payment is globally safeguarded and protected whatever the value.

Sending payments to Luxembourg: step-by-step

A 3S Money International Business Account enables you to send money in 65+ currencies to 190+ countries, including Luxembourg. Here’s how:

1. Open a 3S Money International Business Account

Once approved, get a local Luxembourg IBAN in your business name – it's just like having a bank account in Luxembourg.

2. Enter the transfer details

Add the recipient’s name and their account details, then choose the currency and country.

3. Send your money

Receive an alert when the transfer is complete (usually in under two hours).

Receiving money from Luxembourg: step-by-step

A 3S Money International Business Account enables you to send money in 65+ currencies to 190+ countries, including Luxembourg. Here’s how:

1. Open a 3S Money International Business Account

Benefit from one easy-to-use platform for all your international payments.

2. Give customers your account details

Get a local Luxembourg IBAN in your business name to collect cross-border payments – it's just like having a bank account in Luxembourg.

3. Receive your money

See the payment arrive in your account (usually in under two hours).

How long do money transfers to Luxembourg take?

The answer is: it depends. Exactly how long depends on the type of transfer and the system(s) your provider uses.

  • If your bank uses the SEPA network, most payments are processed instantly.

  • EMIs, such as 3S Money, can also deliver most transfers to Luxembourg instantly (a 3S Money International Business Account also allows you to manage global transfers easily from one online platform).

  • Transfers using the SWIFT network can take up to four working days to reach the recipient.

  • Wire transfers vary in speed, depending on the provider and product. Some offer cash pick-ups or mobile wallet options where the money is available within minutes. Bank transfers typically arrive the next day.

Remember, if you send a payment over a weekend or public holiday, expect your money to take longer to reach its destination. This is because transfers to Luxembourg are usually only processed on business days. All these factors will affect how long your transfer takes. For more precise timing, check with your provider.

How much money can I transfer online to Luxembourg?

In principle, there’s no limit to how much you can transfer. However, some providers cap the amount you can send in a single transaction. So, if you want to transfer a large amount, you may have to do multiple transfers.

3S Money doesn’t impose transaction limits. Once you’ve been approved for an International Business Account, you can transfer high-value payments with ease from Luxembourg to 190+ countries around the world.

Transferring large amounts

If your provider does impose a cap, watch out for multiple transfer fees. If you send payments regularly in this way, to pay supplier invoices, for example, the costs could mount up.

When transferring large amounts, consider the following:

  • Some providers cap the amount you can send in a single transfer, so you may have to do several.

  • There may be a limit on the number of transfers you can make in any 30-day period.

  • Larger amounts can take longer to process.

Your provider may enquire about large transfers. This is considered best practice and is also an important part of how institutions that are regulated meet their obligations. Learn more about who 3S Money is regulated by.

How much does it cost to transfer money to Luxembourg?

We mentioned earlier how international transfers via traditional banks can be a costly way to send money. Let’s look in more detail at the fees you might pay:

Transfer costs

  • Outgoing transfer fee: You’ll most likely be charged a flat fee for sending an international transfer. For UK banks, this varies between £20 and £40. 3S Money charges just $1 (or your local equivalent) per transfer, regardless of how much you send.

  • Incoming transfer fee: Most UK banks charge around £7.50 for receiving payments from international bank accounts. 3S Money charges £0.00.

  • Initiation fee: Some banks might charge you a fee if you request the transfer over the phone or in person rather than online. Expect this to be around £20. 3S Money doesn’t charge initiation fees.

  • Commission: Banks might also charge a fee based on a percentage of the total amount you transfer. For UK banks, this is currently around 3-4%. 3S Money charges just $1 per transfer (or your local equivalent) regardless of how much you send.

Exchange rates

  • Markups: The exchange rate you can find on Google or see on the news is called the “mid-market” rate. Banks apply their own exchange rates to international transfers which means you’ll pay more – and they keep the difference.

3S Money offers fair and sustainable FX rates that are up to 5x lower than traditional banks.

Tips for transferring money to Luxembourg

Keeping costs to a minimum is key to efficient international business operations. 

Fortunately, alternative banking solutions (like 3S Money) are here to save you time and money when completing international transfers to countries like Luxembourg.

We’ve covered a lot in this article, so here are some tips and main takeaways to consider:

  • Even minor delays to payments can be a big issue for small businesses, so plan to make sure your transfer arrives on time.

  • Where possible, avoid lots of small transfers. The fees and charges add up.

  • With 3S Money, you don’t need to worry about high fees or delays because you’ll have access to a local Luxembourg IBAN.

  • Check the latest GBP/EUR exchange rate and compare it to your provider’s. You may have to do some digging to find this number.

  • Ensure that your chosen provider is regulated by an independent body. 3S Money is regulated by the CSSF and uses safeguarding to protect 100% of your funds. Other schemes such as the FSCS only cover up to £80,000 – so you have greater peace of mind with 3S Money.

There’s a better way for international businesses to manage their money

Ready to start making and receiving payments to and from Luxembourg with a local IBAN?

3S Money’s International Business Account offers global payment solutions for businesses looking to operate in multiple countries – all from one easy-to-use account.

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