Do You Need a Spanish Bank Account?
Sponsored by BCN Business Services.
Opening a bank account in Spain is not compulsory but it is virtually unavoidable. Theoretically, you can manage your finances from an overseas account and pay with your Visa, Master Card or American Express credit cards, but many aspects of life in Spain are difficult to manage without a local bank account.
Paying utilities, getting a mortgage, paying taxes and making social security contributions are virtually impossible without a Spanish bank account. Additionally, most foreign credit cards charge a commission fee for every payment realized within the Spanish territory.
So, if you are here for the long term and want to invest or set up a business, you need a Spanish bank account. Modern international internet banks like ING, Revolut and N26 can be an alternative, but for the moment they do not have a license to represent the Spanish administration, so functionality for business use is limited and not recommended (yet).
Resident or Non-Resident Account?
Opening a bank account is easy, it doesn’t matter if you are a resident in Spain or not. The procedure for nonresidents is a bit longer, but both are relatively straightforward. You just need to go to the bank, present the required documents, and you will instantly have your account operative.
It is important to consider that bank accounts for residents are more flexible and can offer better conditions than those for non-residents. Nevertheless, if you are not planning to stay permanently in Spain, a non-resident bank account will be enough for you. No matter which you choose, you can always switch from one type to the other. You just need no notify the bank and bring the required paperwork, and the change will be done.
There is no minimum deposit to open a euro (€) account, which makes the process even simpler. Nevertheless, for other currencies there may be a minimum deposit required, so, make sure you check it out beforehand.
If you are a non-resident and not physically able to come and sign the papers, BCN Business Services (BCNBS) can prepare a power of attorney and open the bank account for you remotely. BCNBC can also request a Spanish tax ID number on your behalf and open the bank account with this number.
How to Open a Bank Account in Spain as a Resident
The best option is to go to the bank yourself. Bear in mind that not all the personnel will speak English there, so try booking an appointment with someone who does. BCNBS has relationships with banks that have English speaking operators and can both make introductions and to accompany you to the bank if needed.
This is also important for later, as having access to a real person that understands your language and needs, and that can help cut through the bureaucracy can be crucial. For opening the bank account, you only need to bring your resident ID, but it is also recommended to bring your passport, padró d'habitant certificate, a utilities invoice with your name and address on it and property deed or rental contract just in case.
Some banks will also request proof of employment status. Valid documents include: pay slips, tax returns or government letters confirming that you are unemployed or receiving financial support. You should bear in mind that all the documents you submit must be translated into Spanish and notarized with the Hague Apostille.
If you are opening a bank account for a company, bear in mind that the bank will require information from all the shareholders of the company and that the account will not be activated until you present them with the registered estatuts (deed of constitution) and the declaration of start of operations. If the shareholders are foreign individuals or companies, sworn translations and an apostille will be necessary.
How to Open a Bank Account in Spain as a Non-Resident
The process is the same as for residents, but with an extra step: you will be required to submit a non-resident certificate. To obtain this document, you have two different options:
Go to Dirección General Policía with your passport and a copy and ask for a non-resident certificate. You will be able to pick it up after 10 days. Once you have obtained this document you will then be able to go to your chosen bank with your passport and have your account open. The account will be operative immediately.
Go to the bank and bring your passport. The bank will sign an authorization to request the certificate on your behalf, but with an associated cost of €15, and the account will not be operative until the bank receives that certificate.
Be patient, the procedure for both residents and non-residents is long. Be prepared to sign a bunch of papers—in duplicate. The process is still very manual and paper based in most Spanish banks.
Bank Commissions
In general, you will find that banking costs in Spain are higher than in other European countries. Nevertheless, the exact costs will depend and vary from bank to bank, so do your research and compare conditions.
There are a number of bank charges that are not always clear, so you should ask explicitly for detailed information to make sure what you will be charged for. These can include opening charges, maintenance fees, ATM withdrawal fees, transfer fees (national and international) and exchange rate fees.
Often there are different levels of fees and benefits depending on the number of other services you contract with the bank like salary deposits, insurance, pension plans, etc. It is also still quite common for a bank to offer you some towels or pots and pans if you open an account but that is not what you should be looking at.
Make sure to check your bank statements and establish a personal relationship with the manager of the bank office that is handling your account. It is not unusual for extra charges to magically appear, and in those cases only a call to the office manager will get them removed.
What Are the Best Banks in Spain?
There are no good banks in Spain. Period. All of them have bureaucratic structures, none are proactive, they are very conservative in terms of credit, their websites are confusing and difficult to navigate and helplines are usually completely useless.
Still, because they are licensed by the Spanish authorities to handle fiscal and social security operations, it is advisable to open an account here if you are living in Spain long term.
The four biggest Banks are BBVA, Banco Santander, CaixaBank and Banco Sabadell. Banco Santander and BBVA are the most international ones.
BCN Business Services has collaboration agreements with them in place and will be glad to guide you to the most beneficial solution for your needs.
BCN Business Services is an English-speaking consultancy firm providing complete services to foreign entrepreneurs in Spain. Areas of expertise include immigration, registration, company formation, accounting, taxes, personnel administration, real estate, insurance and related legal issues. You can learn more at bcnbs.com and follow on LinkedIn.
Sponsored by BCN Business Services.
