Bank Account in Spain

Anyone, whether a resident or not, may open a bank account in Spain. At the same time, the purposes of opening can be completely different: for receipt of the salary or pension on the account, for linking to the account of utility bills and a contract phone, for payment from the account of taxes in Spain (for example, an annual real estate tax IBI, transport tax or income tax for non-residents IRNR, for purchase in a mortgage of real estate in Spain, etc.). In some cases, Spain may also be required for businessmen and investors who intend to conduct entrepreneurial activity. You can learn more about this from the page Investments in Spain.

It would seem that a type of service in such demand should be easily and quickly offered by every commercial bank in Spain without exception. In reality, the situation in the field has turned out to be absolutely different: the majority of the banks are unwilling to meet foreign customers, especially citizens of non-EU countries.

This has been the case since the years when the country emerged from the crisis and has seen incredibly tough requirements imposed on the citizens of third countries. And there is a reason for that:

First, banks have taken a lesson from an avalanche-like situation of foreigners not repaying mortgage loans; secondly, to follow the European anti-money laundering policy is a virtue, with banks being quite conscientious about it. All this led to the fact that each client was considered literally under a magnifying glass, and the number of refusals to open an account increased.

Documents for Opening a Bank Account in Spain

In order not to fail, and in order to open an account, it is necessary to stock up with documents confirming the source of income. Residents of Spain use for these purposes “nomins” (payroll sheets), employment contracts, tax returns, etc.

Spanish banks require from non-residents to submit:

• References from work,
• Declarations of 2-personal income tax,
• From entrepreneurs – 3-personal income tax.

It would be good to call the bank’s manager in advance and find out the demands put to paperwork. For some banks, it is enough just to have a simple translation into Spanish, while others may require only a sworn one, and others – mandatory apostille for all documents. The bank also can ask for an account statement opened in the country of permanent residence, indicating the movement of funds over the past 6–12 months.

Therefore, if you’re going to purchase real estate in Spain, it would be much better to entrust the opening of a bank account in Spain to a real estate agent who accompanies you. Delegate this procedure to professionals in order to save time on finding a bank willing to open an account for a non-resident.

At the time of opening an account, the financial documents listed by us will be required; in the future—once a year or every two years—to confirm the legality of the received income. Late submission of documents may lead to blocking of the account, and this is an unpleasant situation because it will not allow you to replenish the balance until the issue with the documents is fully resolved.

Non-residents of Spain, apart from submitting financial documents, are also required annually to confirm the status of a tax non-resident. The application form can be obtained either from the bank itself or downloaded from its website.

Besides the financial documents, when opening a bank account in Spain, you will have to submit the following:

• For residents – a plastic card of a TIE resident;
• For non-residents – valid passport and NIE certificate, being the identification number of a foreigner;
• For students – a plastic card of a student.

If you want to open a bank account in Spain for the purchase of real estate, you will definitely be asked for a reserve or deposit agreement, and after the transaction is completed – a notarized bill of sale.

Quite a number of the Spanish banks are with an option to open an account online; that is how BBVA bank functions, for example. The bank account opens independently online via its website, and all the documents necessary are sent to the bank by courier.

There are also quite a few banks in Spain that are 99% online. For infrequent operations requiring the personal presence of clients, single offices in large cities are supported. That is how OpenBank works, for example, which is part of the Santander Bank group. One significant “but”: such banks work only with the residents of Spain and do not take non-resident foreigners for service.

Principles of Operation of Spanish Banks

The interesting feature of the work of Spanish banks is that there is no uniform policy and uniform requirements for foreign clients and their documents. One and the same issue can be solved in different ways, not only in different banks but even in two neighbouring branches of the same bank.

The position of the management of each particular department and the internal policy of working with foreigners play an important role here. Since there is a constant rotation of employees in the Spanish banking system, even yesterday a branch loyal to foreigners may cease to be such today, and vice versa.

So what is to be paid attention to when choosing a bank? Convenience of location, terms of service, the amount of commission, staff speaking English—what is sometimes even Russian—the ability to assign a client to a personal manager are key points.

As practice shows, small regional banks are the most loyal to foreign clients, and the most absurd demands are usually made by foreign banks: for example, Barclays and Halifax. Of course, if you are buying a bank property with a mortgage, there is no choice – you will have to open a bank account in Spain at the seller’s bank. In all other cases, the client retains the freedom of choice.

Be sure to visit the bank’s website and, if possible in demo mode, the client’s personal account. Spain has taken the path of reducing the physical offices of commercial banks. Most banks cut staff, close offices, or merge them, and with great diligence transfer the maximum work to online rails. As most operations today can be made using a personal account, it is important that the interface is user-friendly and understandable for the user, and also that the site works in English at least.

Since September of this year, Spanish commercial banks have introduced one more stage of user verification and online operations, which is performed by sending SMS messages with a code to the user’s telephone. In advance, all customers were strongly recommended to obtain Spanish telephone numbers and attach them to the account.

Opening a bank account in Spain, you should be ready for the fact that the bank will impose related services in the form of life insurance, property, car. And if, when applying for a mortgage, banks are strictly forbidden to put pressure on a potential borrower and impose secondary financial products, then with a simple account opening, they are free to make any demands.

The necessity of buying insurance might be obligatory: without purchasing it, you cannot open the account in this very bank. Not to say—sometimes banks can offer quite decent insurance conditions for which it makes sense to pay.

How to Top Up and Open a Bank Account in Spain Later On

There are several ways of topping up an account in a Spanish bank:

1. Transfer money from a foreign bank,
2. Make a bank transfer from an account opened in another commercial bank in Spain,
3. Deposit money into the account through the cashier,
4. Get a salary, pension, or some benefit on the account,
5. Enrich the balance through an ATM.

However, not all of these methods are available to every client.

Usually, non-residents are required to replenish their account only by bank transfer. Moreover, this transfer must be made from the client’s personal account from the country of his fiscal residence. Only in exceptional cases, the bank can agree to take the money through the cashier, while the amount will be limited to several thousand euros per year.

Another case of an exception may be the compensation payment for insurance, for example, automobile insurance. Even here, you will have to warn the bank about what amount of your payments is expected to avoid blocking your account or the refusal of the payment.

It will further be necessary to stipulate that, in the case of opening an account by a student, transfer from his/her parents is possible, probably with the submission of relevant financial documents from them.

Business Bank Account in Spain

The opening of a business account in Spain may be considered a very important step for entrepreneurs who want to extend their business in this developed economy, rich business infrastructure country. In this article, we will look at the key steps and benefits of opening a business account in Spain.

Benefits of Opening a Business Account in Spain

• Best Access to European Markets: Because Spain is part of the European Union, it may offer your business expansion access to an enormous number of European markets.
• Business Convenience: Banks in Spain have online services for various financial facilities for ease of management and timely fulfillment of payables.
• Favourable Business Climate: Spain is cherished for its favorable business climate; thus, it encourages entrepreneurship and, consequently, investment in the same manner.
• Innovative Solutions: The banking sector in Spain is in search of innovative technologies that can enable access to sophisticated financial instruments and services.

Steps to Opening a Business Account in Spain

Opening a business account in Spain is the key to doing successful business in the country. Choosing a bank shall be done on the basis of reputation, terms of service, and type of services provided to make an optimum choice for your business.

Personal Bank Account in Spain

One of the important tasks for any person living or working in Spain is setting up a personal bank account. You will then find it easier to handle most of your financial transactions. Benefits and key steps involved in opening a personal bank account in Spain is the topic we shall discuss herein.

Benefits of Opening a Personal Bank Account

• Convenience and Accessibility: From online banking through mobile apps, a variety of services are offered by Spanish banks for personal customers, making sure your account is as accessible and easy to use as possible.
• International Opportunities: Opening a personal bank account in Spain is an entrée into the international financial marketplace; one will thereby be introduced to the convenience of international transactions in money transfers and foreign exchange.
• Security and Reliability: The Spanish banking system is highly reliable and protects customer money to a high level; therefore, it is safe for your money.
• Personalized Solution: Banks in Spain offer a number of personal account types and tailored financial solutions according to your needs and goals.

Steps to Follow in Opening a Personal Bank Account in Spain

It is common knowledge that creating a personal account in any Spanish bank provides comfortable, trustworthy, safe, and convenient support to conduct personal matters of finances. Choosing a bank, you have to take care about the reputation of this organization, terms of service, and the scope of services for the most proper selection of options according to your needs.