How to Open a Bank Account in Spain

Guide for Expats in Spain

   Before Moving to Spain

   Housing in Spain

   Jobs in Spain

   Banking in Spain

   Health Care in Spain

   Communications in Spain

   Legal Issues in Spain

   Learning the Language in Spain

Guide for traveling in Spain

   Accommodation in Spain

   Transportation in Spain

   Safety in Spain

   Health Care for Tourists in Spain

   Emergency Numbers in Spain

   Other Useful Info

   Where to Buy Spanish Products

   Books on Spain

More on Spanish Banking
   Spanish Banking Vocabulary
   Popular Spanish Banks


See also: Madrid Restaurant Menus





Choosing the right bank account in Spain

Opening a Spanish bank account is easy, whether you’re legal or not. If you are from the EU or hold a valid work permit (and thus have a NIE), you can open a resident’s account. If you do not have European residency, you can open a non-resident’s account with your passport. There are a lot of banks to choose from, and deciding which to use can be mind-boggling. A few things to consider are:

1) Will I be transferring money to or from an overseas account?

Sending and receiving money between international bank accounts can be very expensive. While there are a number of international money transfer services (such as Western Union, MoneyGram, and Europhil) that don’t require you to have a bank account, the fees can be extremely high. You will see ads in Spain offering €6 fees for transferring money with one of these services – but it's often only when sending money to South America, Africa, or Eastern Europe, because there’s a lot of money being sent to and from these places. There are not a whole lot of people sending money to and from Spain and the U.S., Canada, or Australia. The fees are therefore much, much higher. Instead of €6, you may find yourself paying as much as €40 to send up to €1000.

International transfers through a Spanish bank account tend to carry lower fees – but every bank has a different fee structure. If sending or receiving international transfers is a priority for you, consider a bank that has special accounts for immigrants or low international transfer fees.

2) Will I be transferring money within Spain?

While you may be accustomed to paying rent by check in your home country, you’ll find that checks are not used much in Spain. Many Spanish banks charge €1.5 to €3 to cash a check, so most people pay their rent by either depositing cash directly into the landlord's bank account, giving the landlord cash, or paying by electronic transfer. If you have Internet at home, paying electronically can be a convenient option. However, this can add as much as €6 to your payment, depending on your bank. Some banks charge a flat fee for any transfer within Spain, some charge a lower fee for transfers between two accounts in the same bank, and some charge no fee for transfers within the same bank. So find out where your landlord does his or her banking, and if you want to pay by electric transfer, think about going with the same bank.

3) Does my employer pay me by check?

Most employers will pay you by direct deposit if you have a contract. However, if you are teaching English, you may work for an academy that pays by check (or cash, if you do not have your working papers). This was the case with my first teaching job. In order to avoid paying €3 to cash the check each month, I had to go to the academy’s specific branch to cash the check. Had I gone to a different branch of the same bank, I would have been charged about €1.5; at a different bank altogether, I would have been charged €3. If you don’t want to lose out every time your employer pays you, consider opening an account at the same bank as your employer and, if possible, the same branch. Then you can do all of your banking in one place without incurring extra fees.

4) Do they have English-speaking representatives?

This is only important if you don’t speak very good Spanish. Even if you speak minimal or no Spanish, you can open an account at a bank in Spain. However, if you have any problems, you’ll want to make sure you can communicate with your bank or they can communicate with you. For example, I once made an international transfer from Spain to the United States that didn’t go through. The money was returned to my Spanish account, but in the process of being transferred back and forth, I lost about €40 in fees. My Spanish was good enough to be able to make an official reclamación (complaint) and get my money back. My bank has no English-speaking representatives, and it’s unlikely I would have been able to get that money if I hadn’t spoken to them in Spanish.

5) Is there a branch near my home or office?

Spanish banking hours can be pretty frustrating. Most banks are open Monday to Friday from 8 a.m. to 2 p.m. Some have extended hours one day per week or partial hours on Saturdays. My bank is open weekdays until 6 p.m., which is an advantage, but it only has two branches in all of Madrid. If you think you’ll need to deal with your bank on a regular basis, consider opening an account at a branch near your home or office. If all you need is to withdraw cash from ATMs or cash stations, don’t worry – you can find them on almost any corner.

Additional information on Spanish banking and money matters

If you open a cuenta de no residente (non-resident’s account), the bank needs to verify your nonresidence status within 15 days (it’s no big deal, you just fill out a form). The reason for this is that resident accounts have a percentage of earned interest withheld for taxes; non-resident accounts do not. The bank should follow up with you every two years to make sure your status hasn’t changed. If you do acquire residence, you must notify the bank and switch to a resident’s account.

Watch out for little fees. Some banks charge you the postage on any correspondence sent to your home, some charge an annual fee for your debit card, some charge for checks, etc. If you can manage your accounts online, ask the bank about eliminating any paper correspondence.
There are two main networks of ATMs in Spain: 4B and Servired. If your bank belongs to 4B, for example, you should be able to use any other 4B bank’s cash machines for a reduced or no fee.
Since checks are not popular in Spain, you often have to pay utility bills at the banks as well. You can opt for domiciliación, whereby the charges are taken directly from your account each month, or you can go to any bank and deposit cash into the utility company’s account.
In case of a money emergency – such as having all of your money, bank cards, and credit cards stolen – your embassy in Spain should be able to have money wired over from family in your home country and may even be able to give you some emergency cash to cover necessities.

Add to del.icio.us | Digg this

© Copyright allthingsspain.net 2008 ~ privacy policy ~ contact ~ site map

Guide for Expats in Spain Before Moving to Spain Housing in Spain Jobs in Spain Banking in Spain Health Care in Spain Communications in Spain Legal Issues in Spain Learning the Language in Spain Guide for traveling in Spain Accommodation in Spain Transportation in Spain Safety in Spain Health Care for Tourists in Spain Emergency Numbers in Spain Other Useful Info Where to Buy Spanish Products Books on Spain More on Spanish Banking Spanish Banking Vocabulary Popular Spanish Banks See also: Madrid Restaurant Menus	Choosing the right bank account in Spain Opening a Spanish bank account is easy, whether you’re legal or not. If you are from the EU or hold a valid work permit (and thus have a NIE), you can open a resident’s account. If you do not have European residency, you can open a non-resident’s account with your passport. There are a lot of banks to choose from, and deciding which to use can be mind-boggling. A few things to consider are: 1) Will I be transferring money to or from an overseas account? Sending and receiving money between international bank accounts can be very expensive. While there are a number of international money transfer services (such as Western Union, MoneyGram, and Europhil) that don’t require you to have a bank account, the fees can be extremely high. You will see ads in Spain offering €6 fees for transferring money with one of these services – but it's often only when sending money to South America, Africa, or Eastern Europe, because there’s a lot of money being sent to and from these places. There are not a whole lot of people sending money to and from Spain and the U.S., Canada, or Australia. The fees are therefore much, much higher. Instead of €6, you may find yourself paying as much as €40 to send up to €1000. International transfers through a Spanish bank account tend to carry lower fees – but every bank has a different fee structure. If sending or receiving international transfers is a priority for you, consider a bank that has special accounts for immigrants or low international transfer fees. 2) Will I be transferring money within Spain? While you may be accustomed to paying rent by check in your home country, you’ll find that checks are not used much in Spain. Many Spanish banks charge €1.5 to €3 to cash a check, so most people pay their rent by either depositing cash directly into the landlord's bank account, giving the landlord cash, or paying by electronic transfer. If you have Internet at home, paying electronically can be a convenient option. However, this can add as much as €6 to your payment, depending on your bank. Some banks charge a flat fee for any transfer within Spain, some charge a lower fee for transfers between two accounts in the same bank, and some charge no fee for transfers within the same bank. So find out where your landlord does his or her banking, and if you want to pay by electric transfer, think about going with the same bank. 3) Does my employer pay me by check? Most employers will pay you by direct deposit if you have a contract. However, if you are teaching English, you may work for an academy that pays by check (or cash, if you do not have your working papers). This was the case with my first teaching job. In order to avoid paying €3 to cash the check each month, I had to go to the academy’s specific branch to cash the check. Had I gone to a different branch of the same bank, I would have been charged about €1.5; at a different bank altogether, I would have been charged €3. If you don’t want to lose out every time your employer pays you, consider opening an account at the same bank as your employer and, if possible, the same branch. Then you can do all of your banking in one place without incurring extra fees. 4) Do they have English-speaking representatives? This is only important if you don’t speak very good Spanish. Even if you speak minimal or no Spanish, you can open an account at a bank in Spain. However, if you have any problems, you’ll want to make sure you can communicate with your bank or they can communicate with you. For example, I once made an international transfer from Spain to the United States that didn’t go through. The money was returned to my Spanish account, but in the process of being transferred back and forth, I lost about €40 in fees. My Spanish was good enough to be able to make an official reclamación (complaint) and get my money back. My bank has no English-speaking representatives, and it’s unlikely I would have been able to get that money if I hadn’t spoken to them in Spanish. 5) Is there a branch near my home or office? Spanish banking hours can be pretty frustrating. Most banks are open Monday to Friday from 8 a.m. to 2 p.m. Some have extended hours one day per week or partial hours on Saturdays. My bank is open weekdays until 6 p.m., which is an advantage, but it only has two branches in all of Madrid. If you think you’ll need to deal with your bank on a regular basis, consider opening an account at a branch near your home or office. If all you need is to withdraw cash from ATMs or cash stations, don’t worry – you can find them on almost any corner.

	Additional information on Spanish banking and money matters If you open a cuenta de no residente (non-resident’s account), the bank needs to verify your nonresidence status within 15 days (it’s no big deal, you just fill out a form). The reason for this is that resident accounts have a percentage of earned interest withheld for taxes; non-resident accounts do not. The bank should follow up with you every two years to make sure your status hasn’t changed. If you do acquire residence, you must notify the bank and switch to a resident’s account. Watch out for little fees. Some banks charge you the postage on any correspondence sent to your home, some charge an annual fee for your debit card, some charge for checks, etc. If you can manage your accounts online, ask the bank about eliminating any paper correspondence. There are two main networks of ATMs in Spain: 4B and Servired. If your bank belongs to 4B, for example, you should be able to use any other 4B bank’s cash machines for a reduced or no fee. Since checks are not popular in Spain, you often have to pay utility bills at the banks as well. You can opt for domiciliación, whereby the charges are taken directly from your account each month, or you can go to any bank and deposit cash into the utility company’s account. In case of a money emergency – such as having all of your money, bank cards, and credit cards stolen – your embassy in Spain should be able to have money wired over from family in your home country and may even be able to give you some emergency cash to cover necessities. Add to del.icio.us \| Digg this
	© Copyright allthingsspain.net 2008 ~ privacy policy ~ contact ~ site map