Best bank account in Spain for expats

When selecting an account type, factors such as fees, interest rates, accessibility and account requirements should be considered. With a diverse banking landscape including private, international, cooperative and online banks, expatriates above the age of 18, regardless of residency status, can open accounts in Spain. It’s advisable to opt for reputable institutions like Banco Santander, BBVA, CaixaBank or Banco Sabadell, known for their solid reputations, comprehensive services, multilingual customer service and accessibility.

Understanding Spanish banking for expats

In Spain, there are two main types of banks: “Bancos” and “Cajas”. While there are approximately 50 Bancos and 120 Cajas across the country, they differ in ownership and focus. Cajas de Ahorros, or simply “Cajas”, are state-owned savings banks that emphasise savings deposits and local community investment. They often bear the name of the Spanish region they operate in and prioritise local social projects. Bancos, on the other hand, are privately owned institutions typically co-owned by shareholders. They are commonly named after their founders and may offer a wider range of services.

The current bank account is assigned an identifying number or IBAN code that makes it unique.The 24-digit IBAN code means the following:

The first two letters identify the country, in this case Spain (ES), and are followed by two control digits (DC) used to validate the entire IBAN.

The next four digits identify the financial institution and are assigned by the Bank of Spain.

The following four numbers are the office code where the contract was formalised. They identify the office in a specific city and postal address.

The next two digits are control digits, an algorithm that validates the bank account. It is calculated based on the bank code, branch code and account number.

Common types of accounts, each tailored to different financial needs and goals, include:

Current/checking account (cuenta corriente): ideal for everyday banking activities, although interest rates are typically low for accounts in credit.

Savings account (cuenta de ahorro): offers higher interest rates but may have limited services or access to funds.

Deposit account (cuenta de depósito): provides higher interest rates but lacks day-to-day banking capabilities.

Interesting read Spanish Property Solicitors 

Opening your expat bank account

Spanish banks offer different types of bank accounts that serve various purposes. Current/checking accounts are  Ideal for everyday banking needs, though interest rates for credit balances are typically low. Savings accounts offer higher interest rates but have limited services and/or restricted access to funds, especially on short notice. Deposit accounts provide higher interest rates but lack day-to-day banking capabilities.

While all banks provide basic services to clients regardless of residency, some are more expat-friendly than others, with varying requirements.

To open a bank account in Spain, you generally need:

Valid passport or national identity card (for EU citizens)

Proof of address in Spain (e.g., recent utility bill)

NIE number (for foreigners)

Proof of employment status

Residents also need to obtain tax residency certification from the Spanish Tax Authorities, and civil residency documentation from the police station (TIE CARD).

The documentation required for opening a bank account will vary depending on the internal policies of each banking institution and they often differ.

• ATM Usage Fee: Typically, you won’t face an extra charge for ATM transactions within your bank’s network. However, utilizing ATMs outside your bank’s network may incur fees. The exact fee amount will typically be displayed on the ATM screen, allowing you to decide whether to proceed with the transaction.
• Transfer Fee: Banks may levy charges for specific types of transfers, particularly those outside the SEPA area, urgent transfers, or those conducted at the bank counter. These fees may also apply to transfers of significant amounts. The European Union will put an end to these practices through a regulation by which banks will have to ensure that all transfers are received within a maximum period of 10 seconds without charging an additional amount compared to conventional transfers.
• Overdraft Fee: If you attempt to pay a bill without sufficient funds in your account, your bank may cover the payment, resulting in an overdraft.
• Debit and Credit Card Charges: Additional banking products, often tied to accounts, may incur fees when used. These charges can usually be avoided by meeting certain criteria, but it’s best to confirm requirements with your bank.
• In-Person Transaction Fee: For online accounts, transactions conducted in person may be subject to fees. Determine which activities can be performed in-office and which ones can be done independently to avoid unnecessary charges.

Interesting read Mortgage in Spain for expats

Before choosing a bank or opening an account, ensure they meet your needs. Consult with bank representatives, seek input from family and friends and review online feedback and the bank’s website. Here are some FAQs to guide your decision-making: