Overview of Spain's Banking System
The banking system in Spain is fully integrated with international financial markets, offering a diverse range of banking options including private, state-owned, international, cooperative, and mobile banks.
Spain's banking industry, which experienced significant expansion in the early 2000s, has contracted since the 2008 housing crisis, with numerous regional savings banks either shutting down or consolidating with larger institutions.
Current statistics indicate that Spain has 141 banks (including approximately 80 foreign banks), 67 cooperative banks, and 19 savings banks. These institutions operate through more than 27,000 branches nationwide. Banco de España serves as both the central banking authority and national regulator for Spain's banking sector.
Currency Information
As a Eurozone member, Spain uses the euro (€). As of June 2025 the exchange rate is 1 EUR to 0.84 GBP or 1.14 USD. However, on June 2019, the exchange rate was 1 EUR to 1.12 GBP and 0.88 USD.
The euro comes in eight coin variants (1, 2, 5, 10, 20, and 50 cents, plus 1 and 2 euros) and seven banknote values (5, 10, 20, 50, 100, 200, and 500 euros). Many smaller establishments in Spain typically don't accept notes larger than €100.
Main Banks in Spain
Spain features several large national banks (bancos), including those operating internationally. Major banks in expat-populated areas typically offer English-speaking services designed for them. Standard operating hours for Spanish banks are 8:30 AM to 2:30 PM.
The principal Spanish banks include:
- Banco Santander
- BBVA
- Caixabank
- Banco de Sabadell
CaixaBank, Deutsche Bank, BBVA and Banco Santander are some of the most prominent international banks in Spain, recognised for their commitment to sustainability, innovation and open banking services.
For a free and convenient experience, consider opening an account with BBVA, N26, or Revolut. If you prefer a bank with physical branches and potential English support, Banco Sabadell or CaixaBank could be good choices. It's always advisable to research the specific offerings and requirements of each bank and compare them to your needs before making a decision.
Online Banks
In Spain, several alternatives to traditional banks offer competitive services, particularly for expats and those seeking digital banking solutions. Neobanks like N26, Revolut, and Bunq provide user-friendly online platforms and multi-currency accounts. For international money transfers, Wise is a popular and cost-effective option. Additionally, some traditional banks such as ING and Openbank have strong online offerings.
Online vs. In-Person:
Some banks, like BBVA, offer fully online account opening processes for non-residents, while others, like Sabadell, may require in-person visits for certain account types.
Fees:
While these banks offer free accounts, it's essential to review the specific terms and conditions, as some may have fees for specific services like ATM withdrawals or international transfers.
Regional Banks
Spain also has numerous smaller regional banks (cajas), primarily state-owned or cooperative institutions functioning mainly as savings banks. These banks generally offer a narrower range of services compared to bancos and are less likely to provide English-speaking assistance. Many smaller cajas have closed or merged with larger institutions since the 2008 financial crisis.
Spain has numerous local credit unions and cooperative savings banks (cajas) offering financial services at low costs, primarily catering to local populations, especially in rural communities. The EU banking website provides information on cooperative banks and specialized credit institutions currently operating in Spain.
Opening a Bank Account
Opening a bank account is one of the procedures that all foreigners must complete if they wish to have any kind of relationship in Spain, whether it be to buy or rent a home, for business reasons, studies, etc.
To do so, and before dealing with all the bureaucracy that this and many other procedures usually require, you must have an identification document, such as a passport, NIE or TIE. The method for opening a bank account will depend on the document you have and the conditions of each institution.
It is also possible to open a bank account in Spain without being a resident.
For non-residents in Spain:
If you are an EU citizen: you can open a bank account in Spain without being a resident, using your identity card from your country of origin or your passport (together with your CUE).
If you are not an EU citizen: you can open a bank account in Spain, but only if you have a passport (valid).
To facilitate the process, it is advisable to obtain a NIE (foreigner identification number).
If you are a resident in Spain:
If you are an EU citizen: you can open an account in Spain using your CUE (EU citizen registration certificate), together with your identity document from your country of origin or your passport.
If you are not an EU citizen: you can open a bank account in Spain using your TIE.
Banking Services
Services vary across different providers but generally include:
- Current accounts: Various options for day-to-day financial management, including credit and debit card facilities
- Loans and overdrafts: Lending options for vehicle purchases, home renovations, or payroll advances
- Mortgages: Variable and fixed-rate mortgage options for qualifying customers
- Savings and investments: Investment funds, pension plans, and stock exchange investments
- Insurance: Life insurance, home insurance, and health insurance options
- Digital and online banking: Remote finance management capabilities
- Mobile banking: Banking apps and mobile payment services
- Business banking: Accounting, borrowing, investment, and insurance options for businesses and self-employed individuals
- Expat services: English-speaking assistance and specialized packages for expats, including international money transfer options and non-resident accounts
ATMs in Spain
ATMs accepting major cards like Visa, Mastercard, and Maestro are readily available throughout Spanish cities and towns, though they're less common in rural areas. Most machines also accept American Express cards.
Financial institutions place limits on daily ATM withdrawals to protect customer accounts from fraudulent activity. Daily ATM withdrawal limits are usually somewhere between €300 to €1,000, but can vary depending on the institution. You can raise your daily withdrawal and purchase limits by contacting your bank.
For less common cards, it's advisable to verify availability with your provider before traveling to Spain. You can locate the nearest ATM using locators provided by Visa, Mastercard, Maestro, American Express, and Discover.
Bank Fees
In Spain, bank fees vary by institution and account type, but generally, monthly maintenance fees for basic current accounts can range from €0 to €15, with some banks offering fee-free options or waiving fees based on account activity or other conditions.
Typical Bank Fees in Spain:
- Account Maintenance Fees: Many banks in Spain charge a monthly or quarterly fee for maintaining a current account.
- Debit/Credit Card Fees: Fees can apply for the issuance and maintenance of debit and credit cards.
- ATM Fees: Spanish banks may charge fees for using ATMs, especially for withdrawals at ATMs of other banks or for foreign cards.
- Transaction Fees: Fees can be incurred for transfers, both within the same bank and to other banks, and for receiving payments.
- Overdraft Fees: Overdraft fees are charged when an account is overdrawn.
- Other Fees: Other potential fees include those for returned payments, wire transfers, and account management services.
How to Avoid Fees:
- Open a fee-free account: Look for banks that offer accounts with no monthly maintenance fees.
- Meet account requirements: Some banks waive fees if you meet certain criteria, such as having a minimum balance, receiving direct deposits, or using online banking.
- Use your bank's ATMs: Avoid ATM fees by using your bank's ATMs or ATMs within the same network.
- Manage your account online: Many banks offer free online banking services, which can help you avoid some fees associated with physical branches.
- Shop around: Compare fees from different banks to find the best option for your needs.
Corporate banking in Spain
Corporate banking in Spain is primarily offered by large, well-established banks with a strong international presence, such as Banco Santander, BBVA, and CaixaBank. These banks provide a range of services tailored to the needs of businesses, from SMEs to large corporations, including financing, transaction banking, and investment solutions. Several international banks like BNP Paribas, HSBC, and Barclays also operate in the Spanish market, offering specialized services for cross-border transactions and international investments.
If you're frequently outside Spain, then you're going to need a good online banking service. Most banks now offer online banking in English, as well as customer support in English. Note that the Bank of Spain requires your signature to clear an incoming transfer of over 12,500 euros, so make sure you either work near a branch office or that your bank accepts a signature by fax. Some bank branches focus on companies; others focus on personal banking. Finding someone knowledgeable in the branch you choose can make all the difference in whether that money you've wired to your Spanish account arrives quickly and smoothly or gets tied up for weeks.
Since the EU instituted the Single Euro Payments Area (SEPA), which transformed Spain's 16-digit bank account number to the 20-digit IBAN numbers beginning with "ES", direct debits from Spanish banks can now be charged to banks in the rest of the EU. This includes VAT payments to the Spanish tax office. This means that the new "borderless" bank accounts created in the EU by fintechs such as Wise, Payoneer, and Azimo can also be used to pay the Spanish tax office.
A sample Spanish IBAN is ES12-1234-12-1234567890, where:
- The first 4 digits consist of Spain's "ES" country code and 2 digits for control check.
- The next 4 digits identify the bank. For example, "0182" is BBVA. See list of bank identifiers in Spain
- The next 2 digits are Spain's internal control check.
- The last 10 digits are the account number.
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Checks are not used often in Spain. Bank transfers are easy. If you charge clients on a periodic basis, ask your bank for software to do this automatically. Your bank will also have a platform to automate payments to your employees.
The credit card terminal to charge your customers is called a TPV (Terminal punto de venta) in Spanish. Spanish banks will often charge an annual fee or monthly fee for use of a TPV, plus around a 2.75% charge on each sale, but of course, this should also be negotiated. Depending on how much you use it, you should get this down to at least 1.5%.
Banks that do not follow the Anti-Money Laundering AML directives (Ley de prevención de blanqueo de capitales) may be hit with large fines, so it has become harder for foreigners to open bank accounts in Spain. Nonresident entities, even large multinationals, that have had a bank account open for years may also receive notification from their bank to either have the company owner come in person to sign or their bank account will be closed.
Understand that banks are under pressure from AML laws on one side that make it a bank's responsibility if they receive dinero negro, and competition on the other side from "fintechs" (who may not yet have all the regulations of a bank). The Spanish bank must understand your business. If you have to open an insurance account to keep your banker happy, then maybe it's worth it.
Why was the SWIFT/BIC code system created?
When it comes to SWIFT and BIC codes, things can get a little confusing—so let’s lay out a simple definition. In short, SWIFT is the name of the overall messaging system, and BIC is the code used for the system—or the ‘Bank Identifier Code’. Both terms are used interchangeably to describe the code, or even the system.
SWIFT codes (also known as BIC codes) ensure safe and speedy international payments through the SWIFT system. When making an overseas transaction, a SWIFT code is used to verify the identity of the banks or financial institutions. This safety measure helps ensure that funds are sent to the correct account.Between 8 and 11 characters long, each character of a SWIFT or BIC code provides specific details that can be validated, such as the bank, the country of origin, or the branch location. Once the bank is authenticated, a quick and secure overseas payment can be made.
The Society for Worldwide Interbank Financial Telecommunication (or SWIFT) system was created to provide a standardized and secure way of sending international payments. SWIFT is essentially a messaging network that allows different banks to send and receive information electronically. Thanks to its standardized format, SWIFT helps to avoid confusion between banks in different countries, making payments simpler and faster with less room for error.
Wherever you are in the world, if you need to send or receive funds overseas through your bank, the SWIFT code of the recipient is usually required. Without this code, the transaction will likely not go through.
Understanding BIC code formats
Consisting of both numbers and letters, your BIC code has 8 characters—or possibly 11 if the branch location is included.The first 4 letters of the code indicate the financial institution unique to your banking service provider—to make it simple, this may be the initials of the bank’s name! Next is a 2-letter country code, such as ‘FR’ for France or ‘DE’ for Germany, and a 2 character location code that indicates the bank’s head office. The last 3 digits, if they’re provided, refer to the specific branch that your bank account is associated with.
How do you find your SWIFT/BIC code?
To locate your SWIFT/BIC code, check any paper or digital banking statements, or look at your account details on your online banking profile. You can also search for your BIC code using a digital SWIFT/BIC search tool by providing your country and bank location data.
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How to complain about a bank in Spain?
If you're dissatisfied with your Spanish bank's service, first attempt to resolve the issue through the bank's customer service or complaints department. You should make the complaint in writing at the bank where you have a complaint. Giving the bank a period of time to answer. If you need to go further you take the claim to the Bank of Spain which regulates banking in Spain.
After receiving a complaint, entities must respond within:
- 15 working days, if the complaint relates to payment services (current accounts, cards, transfers, direct debit bills, etc.).
- 1 month for customers that are consumers.
- 2 months for non-consumers, regardless of their complaint.
When can I make a complain to the Banco de España?
Users can turn to the Banco de España if the entity does not accept the complaint, if it partially or wholly rejects the complaint or if it does not respond by the deadline.
Offshore Banking in Spain
Offshore banking, also known as overseas banking, involves opening and maintaining bank accounts in a foreign country, typically one with a stable banking system, favorable tax laws, or specialized services.
Expats in Spain might find that opening an international offshore account best suits their financial needs. Offshore accounts are particularly beneficial for those working abroad, splitting time between multiple countries, or frequently transferring money internationally.
These accounts can be used for various purposes, including:
- Financial diversification:
Spreading your assets across different jurisdictions can reduce risk. - Asset protection:
Offshore accounts can provide a layer of security for your assets, particularly in countries with strong legal systems. - Currency diversification:
Holding accounts in multiple currencies can help manage exchange rate risks. - International business:
Offshore accounts facilitate transactions for businesses operating in multiple countries. - Tax optimization:
While not for tax evasion, offshore accounts can offer legitimate ways to manage your tax obligations, potentially through treaties or exemption.
Offshore banking is utilized by a variety of individuals and businesses, including:
- Expats:
Individuals living and working abroad often use offshore accounts for convenience and financial management. - International business owners:
Businesses with operations in multiple countries may use offshore accounts for international transactions and currency management. - High-net-worth individuals:
Those seeking to protect and manage significant assets often utilize offshore banking for diversification and privacy. - Entrepreneurs:
Individuals starting and scaling businesses globally may find offshore banking advantageous.
Important considerations:
- Legality:
Offshore banking is legal when conducted in compliance with relevant regulations and tax laws. - Tax implications:
You are generally required to report your offshore accounts and any associated income to your home country's tax authorities. - Jurisdiction risk:
The safety and stability of offshore jurisdictions can vary, so it's crucial to assess the political and economic stability of the location. - Compliance:
Be aware of the specific regulations and reporting requirements of your home country and the offshore jurisdiction.
Using your offshore account
Offshore banking undoubtedly offers potential benefits for individuals and businesses seeking financial diversification, asset protection, and international financial management. However, it's essential to understand the legal and tax implications and choose reputable and stable jurisdictions for your accounts.
Many people use offshore banking because it makes it easier for them to bank and manage money between countries. Money transfers to and from offshore accounts are fairly straightforward and can usually be made in the currency of your choice, but fees vary, so check beforehand.
Offshore current accounts usually allow easy day-to-day access to funds. This means you can usually withdraw money at ATMs or make payments (in shops or online) using debit or credit cards. Again, check the fees, especially if you make transactions in a currency other than the one in which you hold the money.
Fraud and money laundering
Offshore banking has gained a somewhat unsavoury reputation over the years. This is not unjustified, as there have been many high-profile scandals. Just a few years ago, the Panama Papers leak revealed how wealthy individuals and companies around the world had used offshore accounts to evade tax, avoid scrutiny and commit fraud.
New measures are coming into place – at both national and international level – to clamp down on offshore banking fraud and make it more difficult for people to use overseas accounts as tax havens.
For example, the EU brought in a new Anti-Tax Avoidance Directive last year which included more stringent reporting requirements and measures to prevent businesses from moving profits to low-tax regions. This is in addition to a number of anti-money laundering legislative measures.
Unfortunately, these well-known cases have impacted on the reputation of offshore banking as a general concept. However, opening up an offshore account is a perfectly acceptable practice and can be done by anyone who wants to benefit from moving your finances abroad more easily.
What is not legal is to use an offshore account to carry out any of the following actions:
- evade taxes or avoid paying taxes on your income
- hide money that has not been declared to the relevant tax authorities
- withhold money that has been obtained through illegal practices
In Spain, it is regulated by Law 10/2010 of 28 April on the prevention of money laundering and terrorist financing.