How to Open a Bank Account in Spain & Best Banks for Expats

Nebeus Team -

Whether you're relocating for work, savouring retirement in a sun-soaked paradise, or simply following your heart to the land of flamenco and paella, Spain has remained an irresistible destination for expats. Yet, as you embark on your Spanish adventure, some crucial questions arise: How do you navigate the financial landscape of this enchanting land and secure your foothold in the world of Spanish banks?

Opening a bank account in Spain may seem like a bureaucratic maze at first, but fear not! In this comprehensive guide, we will unveil the secrets to effortlessly establishing your financial presence in Spain while exploring some of the best banks tailor-made for expats and non residents seeking to join the spanish banking system.

Can foreigners open a bank account in Spain?

Spain has a welcoming approach to expats, non-residents, and visitors when it comes to banking. Whether you live in Spain as an expatriate or a non-resident property owner, it is possible to open various types of bank accounts to meet your specific needs. Spain is home to some of the best banks, such as the well-known Banco Santander, the BBVA bank, and a range of convenient online banks and payment accounts such as Nebeus.

The benefits of opening a bank account in Spain

As a non-resident in Spain, opening a bank account can definitely offer several benefits. Here are some of the advantages of having your bank account in Spain; bear in mind that this is not an exhaustive list, but it highlights key advantages:

Financial Convenience: Having a local bank account in Spain makes it easier to manage your day-to-day financial transactions, from paying bills to receiving payments and conducting money transfers. If you live or work in Spain, a Euro-denominated account is the way to go in order to eliminate the need for currency conversion and to simplify local financial transactions. Ultimately, the choice is yours, as it depends on your lifestyle and whether you require a multi-currency account for international money transfers. If it suits your financial needs and preferences, then it's certainly a viable option to consider.

Property Ownership: For property owners in Spain, it's essential to have a local bank account for managing mortgage payments, property taxes, and maintenance costs.

Salary Deposits: If you're employed in Spain, most employers require a local bank account with a debit card for salary deposits, ensuring prompt access to your earnings, even if you have non-residency status.

Financial Stability: Spanish banks are renowned for their financial stability and reliability, providing security for your assets when you have a bank account. Also, Spanish banks adhere to strict regulations and security measures, ensuring the safety of your funds.

Credit History: Establishing a credit history in Spain through a local resident account can be advantageous for obtaining credit cards, loans, or financing. While having a resident account is often the preferred route to secure a debit card, it's worth noting that some Spanish banks may issue debit cards to non-residents as well, provided you meet their identification requirements and criteria. This debit card will be essential for managing your finances efficiently and building your creditworthiness in Spain.

Bear in mind that the specific benefits of having a Spanish bank account may vary depending on your individual circumstances and the Spanish bank you choose, so it’s advisable to explore your options and select the one that aligns best with your needs.

Factors in choosing the best banks for expats in Spain

Choosing the best bank in Spain is a deeply personal journey. To simplify this decision-making process, consider the services you'll frequently rely on, the bank's accessibility in relation to your home, workplace, or frequented spots, and their fee structure. When assessing fees, keep an eye out for account maintenance fees, ATM withdrawal charges, foreign transaction costs, and any other potential expenses impacting your banking experience in Spain.

Equally vital is the quality of their online and mobile banking platforms. A user-friendly digital interface can streamline your financial management, making it a boon for those with busy lives or a preference for online transactions and multiple bank accounts.

What do I need to open a bank account in Spain?

Opening a bank account in Spain is not a complicated process. In general, the time it takes to open a bank account, once the documents required by the bank have been delivered, is from 2 to 7 business days. If you need to open a bank account in Spain, you need to provide documents such as:

Identification: To have a bank account in Spain, you need to provide valid identification, such as your passport, a residence permit, the national identity document (DNI), if applicable.

Spanish Tax Identification Number (NIE): If you are a non-resident or foreigner without a Spanish NIE, you may need to obtain one before opening a bank account. This number is required for tax and legal purposes. The NIE application can be submitted at various locations, including the General Directorate of Police, the Civil Guard, the Foreigners Office, or your local police station. The application process accommodates both in-person submissions and representation by a legal proxy. However, some banks will grant you the possibility to open an account with a passport. At Nebeus, you can open a payments account with just that, making it easier before you get all the documentation.

Proof of Address: In Spain, banks may require proof of your address as a prerequisite to have a bank account. This could be in the form of a utility bill, rental agreement, or official correspondence that includes your name and Spanish address. At Nebeus, you can use your geolocation to validate that you are in the country.

Proof of Income: To open a bank account in Spain, you may need to provide proof of income, as some Spanish banks may request it, especially if you plan to open specific types of accounts or apply for credit products. This can include pay stubs, employment contracts, or other income documentation.

Bank-Specific Forms: Each bank may have its unique application forms and requirements, so it's a good idea to check with the specific bank you intend to open your bank account with.

Minimum Deposit: Some banks in Spain may require an initial minimum deposit to open certain types of accounts. Be sure to inquire about this when choosing your bank.

Keep in mind that the exact requirements can vary from one bank to another and may depend on factors such as your residency status and the type of account you wish to open in Spain.

You may also need to visit a bank branch in person to complete the account opening process, especially if you're looking to open an account as a non-resident. Check with the bank whether this is necessary or if you can initiate the process online or by phone.

Spain offers a variety of banks to open an account with, and several are popular among those who live in Spain for their services and expat-friendly features. Here are some popular Spanish banks that tend to be favored by residents:

Santander: Banco Santander, often regarded as one of the best banks in Spain, is one of the country's largest and most well-known financial institutions. With a strong international presence, it has established itself as one of the best banks for those seeking to open an account in Spain, including non-residents.

For expats in Spain, Banco Santander provides a wide array of banking services that cater to your specific needs. This includes comprehensive support for multiple languages, and specialized accounts designed to address the financial requirements of expatriates.

BBVA: Together with Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA) is considered one of the best banks in Spain and boasts a significant global presence. BBVA is renowned for its user-friendly online banking platforms and a wide range of international services, making it a top choice to open a bank account in Spain.

For expatriates seeking a reliable banking partner in Spain, the online banking system of BBVA ensures convenience and accessibility. Additionally, the international services of BBVA cater to the needs of a diverse clientele, further solidifying its reputation as one of the top banks for expats in Spain.

  1. CaixaBank: Among banks in Spain, CaixaBank is one of the leading Spanish banks and is known for its extensive branch and ATM network, making it convenient for customers to access their accounts and conduct transactions throughout the country. They provide a variety of accounts and services suitable for expatriates.
  2. Sabadell: Banco Sabadell is often appreciated for its customer service and expat-focused products. This bank offers accounts and services designed to meet the needs of newcomers and expats in Spain, as well as individuals looking for convenient banking options to connect with their home country.
  3. ING Direct Spain: ING Direct is a well-regarded online bank in Spain, known for its transparent fee structure and user-friendly online banking platform. It's a popular choice for expats who prefer to have online banking.
  4. N26: N26 is one of the online banks that has gained popularity among expats and travelers in Spain. It offers a mobile app-based banking experience with a focus on simplicity and convenience.
  5. Openbank: Openbank, a subsidiary of Banco Santander Group, provides online banking services with a wide range of financial products. Expats looking only for online banks often consider Openbank.
  6. Banco Popular: Banco Popular, part of the Banco Santander Group, offers services that cater to both residents and non-residents, making it a convenient option for expats.
  7. Nebeus: although Nebeus is not a bank, it offers payment accounts for European residents just like a traditional bank, providing IBAN and Sort Code accounts with a debit card. It has the benefit of being connected to a Crypto account with a crypto debit card, in case they decide to spend in digital currency.

Is Santander a good bank for expats?

Banco Santander indeed stands out as one of the best banks for expats in Spain, renowned for its tailored solutions to ease their transition. It offers support in multiple languages, expat-specific accounts, and personalized guidance to assist newcomers in navigating the Spanish banking system.

However, suitability varies based on individual circumstances. It's essential to compare Banco Santander's services, account types, fees, and branch-specific customer service with other options for expats in Spain. Consider visiting a local Santander branch or speaking with a representative for a personalized assessment to open a bank account as a non-resident in Spain.

Another enticing choice for those seeking modern banking alternatives is Nebeus. While not a traditional bank, Nebeus is an innovative online banking alternative that caters to the evolving needs of modern expatriates.

With Nebeus, you gain the freedom to select the money account that aligns seamlessly with your individual needs. Experience the convenience of unlimited bank transfers and payments, rapid transfers between your money and digital asset accounts, and access to both Irish IBAN accounts and UK Sort Code accounts – all effortlessly managed online. This versatility empowers you to shape a banking experience that not only suits but enhances your unique financial journey as a modern expat in Spain and around the world.

What is the difference between a resident and non-resident bank account in Spain?

In Spain, the classification of a bank account as resident or non-resident can be dependent on both the tax and legal status of the bank account holder, which includes factors such as the individual's tax residency and the amount of time spent in Spain. Here's a more detailed breakdown of the key differences between resident and non-resident bank accounts in Spain, considering both tax and time spent in the country:

Resident Bank Account:

  • For individuals considered tax residents in Spain.
  • Subject to Spanish income tax on worldwide income.
  • Generally, the account holders spend more than 183 days in Spain.
  • Can be held in a multi-currency format.
  • Typically, no specific transaction limitations.
  • Can be used for everyday banking needs such as receiving salaries, paying bills, and managing finances in Spain.

Non-Resident Bank Account:

  • Designed for individuals not meeting the criteria for Spanish tax residency.
  • Taxed only on income generated within Spain.
  • Typically used by individuals who spend fewer than 183 days in Spain.
  • Often limited to holding funds in euros.
  • May have restrictions on the maximum account balance.
  • Commonly used for specific financial interests in Spain, like managing property rental income or investments.

Is there free banking in Spain for non-residents?

While it is accurate that there are some banks that do provide accounts with low operational costs for non-residents, it is important to note that the majority of financial institutions in Spain typically levy various operating expenses, as well as charges for the opening and closure of such bank accounts.

In Spain, banking entities are obligated to extend the provision of a completely cost-free basic bank account to individuals who find themselves in vulnerable situations or are at risk of financial exclusion.

Keep in mind that while some basic services may be free, additional services such as international wire transfers, currency exchange services, or multi-currency account options may still incur fees.

Also, the availability of free banking or low-cost accounts may vary from one Spanish bank to another, so it's a good idea to compare the offerings of different banks to find the one that best suits your needs as a non-resident in Spain.

In addition to traditional banking options, foreigners in Spain also have the alternative of online banking. Many banks in Spain, as well as online banks, offer online banking services that allow you to manage your accounts, make transactions, and access a wide range of financial services from the comfort of your home or wherever you have internet access. Online banking can often provide cost-effective solutions, as it typically involves fewer overhead expenses for the bank, which can translate to lower fees and better rates for customers.

One notable online banking option worth exploring in Spain is Nebeus. Nebeus offers a range of banking services to cater to different needs. Their Standard Money Account is completely free, providing an excellent choice for those looking for a cost-effective banking solution.

For those interested in more advanced features, Nebeus also offers the Hodler and Whale accounts, which come with additional services and benefits for a reasonable charge. Moreover, Nebeus stands out by providing seamless connectivity to cryptocurrency services, allowing users to effortlessly manage their digital assets. We even offer a crypto card, making it easy for customers to access their cryptocurrency holdings and use them for everyday transactions. With Nebeus, online banking in Spain and worldwide becomes not only convenient but also a gateway to the world of cryptocurrency.

International money transfers in Spain

It is possible to send money quickly and even with low commissions in Spain. You can make international money transfers through various methods and financial institutions.

Most major banks in Spain offer international money transfer services. You can visit your bank branch or use online banking to initiate a wire transfer to an overseas bank account. Keep in mind that banks may charge fees for these services, and exchange rates may not be as favorable as those offered by specialized currency exchange providers.

However, with Nebeus, you can easily send money around the world while saving on exchange rates and fees. What makes Nebeus stand out is that it also lets you use cryptocurrencies to send money abroad. In addition to international transfers, Nebeus provides you with a crypto card, so you can use digital currencies for your everyday finances.

In Spain, there are also specialized money transfer companies and services, such as Western Union, MoneyGram, and TransferWise (now known as Wise), which allow you to send money internationally. These services often offer competitive exchange rates and may have lower fees compared to traditional banks.

You can sign up for a Nebeus account to open an IBAN account.

La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.