Banking in Spain: A Complete Guide
Spain hosts a considerable community of English-speaking expats, and numerous Spanish banks provide services tailored to foreigners, with account opening and management procedures that are simpler than in many other European nations. This comprehensive guide covers all essential aspects of banking in Spain, including the following:
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 2019, the exchange rate stood at 1.12 against the British pound and 0.88 against the US dollar. 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.
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.
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.
Daily withdrawal limits at Spanish ATMs typically hover around €300. When using foreign debit, credit, or cash cards, you may incur withdrawal fees ranging from approximately 50 cents to €3 per transaction.
Banking in Spain
Types of Banks in Spain
National Banks
Spain features several large national banks (bancos), including those operating internationally. Major banks in expat-populated areas typically offer English-speaking services designed for expatriates. Standard operating hours for Spanish banks are 8:30 AM to 2:30 PM.
The principal Spanish banks include:
- Banco de Sabadell
- Banco Santander
- Bankia
- BBVA
- Caixabank
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.
International Banks
Several renowned multinational banks maintain branches in major Spanish cities and towns. These banks follow similar operating hours as Spanish banks and typically offer various expat-friendly services. Some of the largest international banks in Spain include:
- Barclays
- Citibank
- Deutsche Bank
- HSBC
- ING
Online Banks
Spanish residents can also opt for online or mobile banking providers offering enhanced account access and low-cost services. Available online banks in Spain include:
- N26
- Revolut
Banking Services in Spain
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 expatriates, including international money transfer options and non-resident accounts
Opening a Bank Account in Spain
You can open an account with most major Spanish banks either before relocating or after arriving. To open an account before moving, you must do so as a non-resident and establish a non-resident account, which may require a certificate of non-residency.
Additional required documents include proof of identity (such as a passport), proof of address, and your Spanish NIE number if you're a resident. Accounts are typically opened within five working days, with bank cards issued within two weeks.
Payment methods you can use in Spain
Cash
While alternative payment methods are widely available and used, cash remains the most common form of payment in Spain. Some smaller businesses, particularly in rural areas, still only accept cash. Cash is predominantly used for small transactions under €10-15.
Checks
While most Spanish businesses still accept checks, they're rarely used, and banks no longer issue checkbooks as a standard payment method.
Debit Cards
Debit cards are popular in Spain, with approximately 85% of the population carrying at least one debit or credit card. Around 43% of online payments in Spain were made using debit or credit cards in 2018.
Visa and Mastercard are the most common debit cards in Spain. Most stores accept them using chip and PIN technology. Contactless payments are becoming increasingly common, though currently limited to €20 per transaction. You'll typically receive a debit card when opening a Spanish bank account.
Credit Cards
Credit cards are more popular than debit cards in Spain. According to Banco de España, nearly 50 million credit cards were in circulation in Spain in 2017, compared to nearly 26 million debit cards.
Visa is the most widely used credit card in Spain, followed by Mastercard and American Express.
Most Spanish banks offer credit cards with their accounts. You can apply when opening an account or anytime afterward. Alternatively, you can order cards directly from Visa or Mastercard but must link them to a current account. Credit cards typically come with spending limits and periodic payment requirements (usually monthly or quarterly).
Most banks charge fees for credit cards (such as annual fees), though some offer free cards with certain account types.
Direct Debits and Standing Orders
Direct debits (domiciliación de recibos) and standing orders (domiciliación de pago) are commonly used in Spain for bill payments like utilities and municipal taxes.
Though similar, standing orders instruct your bank to pay a fixed amount to another account, while direct debits authorize another party to withdraw regular (often varying) payments from your account.
Setting up direct debits or standing orders in Spain is straightforward and usually free. Under Spanish law, you have 30 days to cancel any direct debit by contacting your bank.
Online and Mobile Payments
Online and mobile payments are gaining momentum in Spain, with most banks and providers offering digital payment services and mobile apps. PayPal was the most popular online payment method in Spain in 2017.
With smartphone usage projected to reach nearly 73% of the population by 2021, mobile payments will likely continue growing in popularity. Popular mobile payment providers in Spain include Bizum, Apple Pay, Samsung Pay, and Google Pay.
International Money Transfers
You can transfer money to overseas accounts from Spanish banks if you have the recipient's IBAN (International Bank Account Number) and BIC (Bank Identifier Code), though this may incur fees from both banks. Countries within the EU/EFTA can make SEPA (Single Euro Payment Area) transfers, which are easier, faster, and cheaper. SEPA transfers typically take 1-2 working days, while international transfers outside the EU usually take 3-5 days.
For international money transfers, alternatives that might be more economical and convenient include:
- Atlantic Money
- CurrencyFair
- Wise
Bank Fees in Spain
Most Spanish current accounts incur annual fees of approximately €15-20, though it's worth comparing options as some banks offer special deals and cheaper accounts for students or pensioners. Other banking costs vary between providers, so it's advisable to check fees upfront and request a fee schedule before opening an account if not already provided.
Debit cards typically cost around €12-15 annually, while credit card fees range from free to over €30 per year plus APRC (annual percentage rate charge). Costs for loans and mortgages usually depend on the APRC, with potential additional charges.
International money transfers typically cost €3-15 for amounts under €50,000. Larger transfers may cost €30 or more. ATM use at major international banks is usually free, though foreign cards or foreign currency withdrawals may incur charges (typically under €3).
Some Spanish banks, especially smaller local institutions, may charge other customers for using their ATMs. Select the English language option if you're uncertain about the transaction.
Offshore Banking in Spain
Expatriates 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.
Offshore bank accounts are established outside the account holder's country of residence and typically offer distinct advantages such as expanded cross-border services and reduced taxation on funds.
Payment Security and Fraud Prevention
Banking fraud is an increasing concern in the digital era. Consequently, Spanish banks continuously enhance their security features, with many mobile accounts now offering identification recognition and card-blocking capabilities. In 2018, the most common online frauds in Spain involved invitations to suspicious websites and phishing emails.
To protect your money from fraud:
- Never click on email links to bank websites; always type the complete website address in your browser
- Never share sensitive information via email or telephone
- Only make online payments through secure platforms
- Never enter your PIN on any website
- Never store personal data on mobile devices
Lost or Stolen Bank Cards
If your bank or credit card is lost or stolen in Spain:
- Contact your bank or card provider immediately (most have 24-hour helplines for such emergencies)
- Call 902 102 112 to report the incident to an English-speaking helpline, then ratify the report at a local police station within 48 hours
Complaint Procedures
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. If this proves unsatisfactory, you can contact Banco de España, which regulates banking in Spain. Information, contact details, and online forms are available on the bank's website.
Banking Alternatives
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.
