Banking in Spain
Spain's banking system is modern and well-developed, but opening an account as a newcomer can be bureaucratic. The key is having your NIE (tax ID number).
Opening a Bank Account
Required documents (typical):
- Valid passport
- NIE (Número de Identidad de Extranjero) - tax ID
- Proof of address (rental contract, utility bill, empadronamiento)
- Residence permit or visa
- Proof of income (sometimes)
Without NIE:
- Very difficult at traditional banks
- N26, Revolut, Wise work without NIE (limited services)
- Some banks accept passport temporarily
- Digital nomad visa holders: may be easier
Major Spanish Banks
| Bank | Pros | Cons |
|---|---|---|
| BBVA | Modern app, English support | Fees can be high |
| Santander | Large network, international | Customer service varies |
| CaixaBank | Most branches, good local presence | Less English support |
| Bankinter | Good for expats, English service | Fewer branches |
| Sabadell | Popular in Catalunya | Limited English |
Online/Digital Banks
N26 (German neobank):
- No NIE required initially
- Free account
- Great app
- English support
- Good for getting started
Revolut:
- Multi-currency accounts
- No NIE initially needed
- Good exchange rates
- Limited Spanish banking features
Wise (formerly TransferWise):
- Excellent for international transfers
- Multi-currency
- Not a full Spanish bank
Banking Fees
Monthly fees: €0-20 depending on account type
- Often waived with minimum balance or direct deposit
- Basic accounts: Free or €3-5/month
- Premium accounts: €10-20/month (additional benefits)
ATM withdrawals: Free at own bank, €0.50-2 at others
Transfers: Free within Spain (SEPA), €0-5 international
Card fees: Usually free
Credit vs Debit Culture
Spain is debit-centric:
- Credit cards less common than US/UK
- Most people use debit cards
- Building credit history less relevant
- Mortgages based on income, not credit score
Credit cards:
- Available but require income proof
- Lower limits than US
- Pay-in-full each month common
- Interest rates high (15-25%) if carrying balance
International Transfers
Receiving money in Spain:
- SWIFT transfers: €10-30 fees typical
- Wise, Revolut: Much cheaper (€3-10)
- SEPA transfers (from EU): Free
Sending money abroad:
- Bank transfers: Expensive (2-4% + fees)
- Wise: Best rates (0.5-1%)
- Revolut, N26: Also competitive
Tax Obligations
Tax residency: 183+ days in Spain = tax resident
Report worldwide income: If tax resident
Form 720: Report foreign assets >€50,000 (controversial requirement)
Modelo 100: Annual income tax return
Useful Financial Services
Bizum: Mobile payment app
- Peer-to-peer transfers
- Instant and free
- Linked to Spanish bank account
- Widely used in Spain
Direct debits: Common for recurring payments
- Rent, utilities, phone bills
- Called "domiciliación bancaria"
- Easy to set up
Getting a Spanish Debit/Credit Card
Process:
- Open bank account
- Receive debit card (usually free)
- Credit card (if desired, income verification)
- PIN set up
Card networks: Visa and Mastercard dominant
Contactless: Widely accepted
Apple Pay/Google Pay: Increasingly common
Financial Tips for Expats
First month:
- Use Revolut/N26/Wise until you get NIE
- Open Spanish account ASAP after NIE
- Set up direct debits for rent, utilities
Long-term:
- Keep one account in home country
- Use Wise for international transfers
- Understand tax residency implications
- Consider hiring gestoría for tax filing (€200-500/year)
Pro Tips
- •Get NIE before trying to open account at traditional bank
- •Use N26 or Revolut to bridge the gap until you have NIE
- •Wise best for international transfers—avoid bank wire fees
- •Set up direct debits (Bizum) for rent and utilities—standard in Spain
- •Most transactions are debit-based; credit culture much less developed than US
Have questions about banking & finance in Spain?