Understanding Local Accounts in Spain
Did you know that Spain has over 50 major banks offering various services, including accounts designed explicitly for non-residents? Whether you’re one of the 1.5 million expats living in Spain or a frequent traveller, having a local account can save you up to 70% on transaction fees annually. Managing your finances in Spain doesn’t have to be complicated. From daily transactions to cost savings, opening a local account ensures you can navigate the Spanish banking system with ease. In this blog post, we will learn everything about local accounts in Spain, including their benefits and requirements, as well as how to open one.
Benefits of Having a Local Account in Spain
Convenience for Daily Transactions
Managing your daily expenses becomes much easier with a local account. You can pay utility bills, rent, or purchase without worrying about exchange rates or international fees. Most local accounts allow you to set up direct debits for regular payments, saving you the hassle of manual transfers.
Another benefit is access to local ATMs. With a local account, you avoid the high fees often charged for withdrawing money with a foreign card. Whether you are withdrawing cash, checking your balance, or transferring funds, local ATMs make the process simple and accessible.
Cost Savings
A local account significantly reduces the cost of handling money in Spain. You can make domestic payments at no extra cost instead of paying hefty international bank transfer fees or suffering from poor exchange rates. Banks often provide free or low-cost transfers within Spain, ensuring you can move money without added expenses.
Simplified Financial Management
With a local account, managing your finances becomes straightforward. Employers can deposit salaries directly into your account, and you can easily set up direct debits for recurring payments. Many banks also offer budgeting tools and mobile apps to help you monitor your expenses and savings.
Who Can Open a Local Account in Spain?
Residents
Spanish residents have full access to local banking services. If you’re a citizen or hold a residency permit, you can easily open a resident account. These accounts typically come with additional perks, such as savings options, loans, and credit cards.
Non-residents
Non-residents can also open local accounts tailored to their needs. These accounts allow you to manage funds in Spain without requiring full residency. Non-resident accounts are ideal for property owners, frequent travellers, or those conducting business in Spain. While they may have slightly higher fees, they provide essential banking services to those living abroad.
Major Banks Offering Local Accounts in Spain
- Banco Santander: One of Spain’s largest and most trusted banks, offering accounts tailored for both residents and non-residents. Its vast network of branches and ATMs provides comprehensive banking services, including savings accounts, mortgages, and investment products.
- BBVA: Renowned for its user-friendly digital banking solutions, making it a favourite among expats and tech-savvy individuals. It offers accounts for residents and non-residents, competitive fees, and a robust mobile banking app for seamless financial management.
- CaixaBank: Caters to a diverse clientele with accounts for residents, non-residents, and young professionals. Known for its extensive ATM network and innovative financial products, it also offers personalised banking services and various insurance options to meet customer needs.
- Banco Sabadell: Ideal for expats, offering accounts explicitly designed for non-residents. Its customer service, multilingual support, and flexibility in handling international transactions stand out. It also offers mortgages and savings plans for residents and property buyers.
- Bankinter: Recognised for its innovation and competitive offerings. It provides accounts suitable for both residents and non-residents. It specialises in financial planning, investment services, and mortgages, with tailored banking solutions for businesses and personal customers alike.
- Openbank: A digital subsidiary of Banco Santander, provides online accounts with low fees and convenient digital features. It appeals to those who prefer remote banking, offering 24/7 access to financial services, multi-currency options, and no-fee international transfers.
- N26: A German-based digital bank operating in Spain. It offers modern banking solutions through its mobile-first platform. It provides multi-currency accounts, real-time notifications, and budgeting tools, making it an excellent choice for expats and frequent travellers.
- Revolut: A fintech company offering multi-currency accounts and competitive exchange rates. It is ideal for those frequently transacting internationally, and it offers added features like cryptocurrency trading, mobile budgeting tools, and travel insurance for a comprehensive banking experience.
- Abanca: A regional bank in Spain known for its community-focused approach and tailored services. It offers accounts for residents and non-residents, savings plans, loans, and investment options, catering to those in northwest Spain.
- ING España: The Spanish branch of the Dutch multinational ING, which specialises in online banking. It offers fee-free accounts, savings plans, and easy-to-use digital platforms, appealing to individuals who prioritise convenience and low-maintenance banking solutions.
Documents Required to Open a Local Account in Spain
Opening a local account in Spain requires specific documents to ensure compliance with banking regulations. These documents differ slightly for residents and non-residents.
For Residents
- Proof of identity: A valid passport or a national identity card is required to verify your identity. Your national ID card (DNI) is sufficient if you are a Spanish citizen. Non-Spanish residents need to provide their foreign passport or equivalent identification.
- NIE (Spanish Foreigner Identification Number): The NIE, or Número de Identificación de Extranjero, is crucial for any financial or legal transactions in Spain. It is a unique identification number issued to foreigners living in Spain, whether temporarily or permanently. This number is essential for opening a bank account, paying taxes, or buying property.
- Proof of address: Banks require proof of your current address in Spain to ensure your residency. Acceptable documents include recent utility bills (electricity, water, or gas), a rental agreement, or a property purchase deed. Ensure these documents are not over three months to avoid issues during verification.
For Non-residents
- Proof of identity: A valid passport is required to verify your identity. Non-residents must ensure their passport is up to date and in good condition. Some banks may accept a national ID card if it includes sufficient details.
- Certificate of non-residency: Non-residents must obtain a certificate of non-residency to confirm their status in Spain. This certificate can be requested from a Spanish police station or a Spanish consulate in your home country. The process involves filling out a form, paying a small administrative fee, and providing your passport. Once issued, the certificate is valid for three months and must be submitted to the bank.
- Additional documents: Depending on the bank and your circumstances, you may need to provide extra documentation:
- Proof of income: Some banks require recent payslips or proof of income to assess your financial status.
- Employment status: If you are employed, a letter from your employer or a copy of your work contract may be necessary.
- Tax details: Certain banks may ask for your tax identification number or a tax residency certificate to meet compliance regulations.
Simple Steps to Open a Local Account in Spain
- Choose the right bank: Spain offers various banks, each catering to different customer needs. Popular banks include Banco Santander, BBVA, CaixaBank, and Banco Sabadell. Compare their account types, fees, and services to suit your requirements best.
- Online vs in-person application: Some banks provide online account opening services, which can be convenient for tech-savvy users. However, many still require an in-person visit for document verification, especially for non-residents. Visiting a local branch ensures you meet all the requirements and get personalised assistance.
- Submit documents: Once you’ve chosen a bank, gather and submit the required documents. Ensure they are up-to-date and meet the bank’s criteria. Missing or incomplete documents can delay the process.
- Account Activation: After you submit your documents, the bank will review your application. Account activation can take several hours to several days, depending on the bank. Once activated, you’ll receive your account details and debit card.
Typical Duration for Each Step
| Step | Estimated Time Required |
|---|---|
| Choose the right bank | 1-2 days |
| Gather required documents | 1-2 weeks |
| Schedule an appointment | 1-3 days |
| Submit documents | 1 day |
| Account activation | 3-7 days |
| Receive account details and debit card | 1-2 weeks |
Please note that these time frames are approximate and can vary depending on the bank’s procedures and your circumstances.
Standard Banking Fees for Local Accounts
- Account maintenance fees: Many Spanish banks charge a monthly maintenance fee, depending on the account type. Some accounts waive these fees if you meet certain conditions, such as maintaining a minimum balance or setting up direct debits.
- ATM withdrawal fees: Using non-network ATMs may incur additional charges. Local accounts typically provide free access to their ATM network, but withdrawing from other banks’ ATMs can result in fees.
- International transaction fees: You may face currency conversion charges and transfer fees if you use your local account for international payments or withdrawals. Check your bank’s terms to avoid unexpected costs.
Unique Options for Non-residents and Expats
Multi-currency Accounts
Some Spanish banks offer multi-currency accounts, ideal for individuals who frequently deal with international transactions. These accounts allow you to hold multiple currencies and reduce conversion fees.
Banks Offering Tailored Expat Services
Several banks cater specifically to expats, providing English-speaking staff and simplified account opening processes. They may also offer additional services such as international transfer facilities, dedicated account managers, and mobile banking in multiple languages.
Comparison Table Highlighting Key Features of Several Prominent Banks in Spain
| Bank | Account Type | Monthly Maintenance Fee | ATM Withdrawal Fees | International Transaction Fees | Notable Features |
|---|---|---|---|---|---|
| Banco Santander | Standard Account | €12 | Free at Santander ATMs; €2 at others | 3% of the transaction amount | Extensive branch network; offers both resident and non-resident accounts |
| BBVA | Online Account | €0 | Free at BBVA ATMs; €1.87 at others | 3% of transaction amount | Robust mobile banking app; no maintenance fee for online accounts |
| CaixaBank | Day-to-Day Account | €15 | Free at CaixaBank ATMs; €2 at others | 3.95% of transaction amount | Wide ATM network; personalized banking services |
| Banco Sabadell | Expansion Account | €0 (if conditions met) | Free at Sabadell ATMs; €1.80 at others | 3% of the transaction amount | Multilingual support; tailored services for ex-pats |
| Bankinter | Payroll Account | €0 (if conditions met) | Free at Bankinter ATMs; €1.50 at others | 3% of the transaction amount | Competitive interest rates; specialized in financial planning |
| Openbank | Current Account | €0 | Free at Santander ATMs; €0.99 at others | 1.5% of transaction amount | Fully digital banking; 24/7 customer service |
| N26 | Standard Account | €0 | Free up to 3 withdrawals/month; €2 after that | 1.7% of transaction amount | Mobile-first platform; real-time notifications |
| Revolut | Standard Account | €0 | Free up to €200/month; 2% thereafter | 0% up to €1,000/month; 0.5% thereafter | Multi-currency accounts; cryptocurrency trading options |
| Abanca | Basic Account | €0 (if conditions met) | Free at Abanca ATMs; €1.95 at others | 3% of the transaction amount | Community-focused services; tailored regional offerings |
| ING España | No-Fee Account | €0 | Free at ING & partner ATMs; €2 at others | 3% of the transaction amount | User-friendly online platform; no maintenance fees |
Tips for Managing a Local Account in Spain
- Budgeting tools: Many Spanish banks offer apps and online tools to help you track your spending and savings. Use these features to set financial goals and stick to a budget.
- Understanding banking terms: Spanish banking jargon can be confusing for non-native speakers. Familiarise yourself with key terms such as “domiciliación bancaria” (direct debit) and “comisiones” (fees) to avoid misunderstandings.
- Maintaining a positive account balance: Overdraft fees can be expensive, so ensure you keep your account in the black and monitor your transactions regularly to avoid unexpected charges.
Alternative Solutions to Local Accounts
Digital Banks
Digital banks like N26 and Revolut provide a modern alternative to traditional banking. These banks offer features such as no-fee international transfers, multi-currency accounts, and intuitive mobile apps. However, they may offer a partial range of services local banks provide.
International Accounts
An international account may be more suitable if you frequently travel or conduct business across borders. These accounts are designed for global transactions and often have additional perks like higher transaction limits and currency flexibility.
FAQs
Can a non-resident have a bank account in Spain?
Yes, non-residents can open a bank account in Spain. Depending on the bank’s requirements, they must provide a valid passport, non-residency certificate, and sometimes proof of income or tax details.
What is the local payment method in Spain?
Spain primarily uses debit and credit cards, bank transfers, and direct debits for payments. Mobile payment apps like Bizum are also popular for convenient, real-time transfers.
What is the local form of money in Spain?
The official currency in Spain is the Euro (€). It is used for all transactions, including cash payments, online purchases, and banking services nationwide.
What is the format of account numbers in Spain? Does Spain use IBAN or SWIFT?
Spain uses IBAN for domestic and international transactions. An IBAN in Spain starts with “ES,” followed by a two-digit control and 20-digit account numbers. SWIFT codes are also used for international transfers.
What are the two types of banks in Spain?
Spain has commercial banks, like Santander and BBVA, which cater to personal and business banking needs, and savings banks, such as CaixaBank, which focus more on regional and community banking.
