Opening a bank account in Spain as a foreigner or expat can be a surprisingly complex process. Traditional banks in Spain often come with high fees, complicated requirements, and long waiting times. Meanwhile, online banks are gaining popularity among newcomers thanks to their simplicity and low cost.

This guide covers everything you need to know about expat-friendly banking options in Spain, including the pros and cons of traditional banks and modern online alternatives.

​Challenges of Opening a Traditional Bank Account in Spain

For many expats, the very first hurdle is finding a Spanish bank that will accept you as a new client. Unlike in other countries, Spanish financial institutions tend to request detailed documentation and may even reject your application if you are not a permanent resident or if your income source is considered “unusual.”

Common Obstacles Expats Face

• High or unexpected fees for everyday services
• Requests for in-person meetings and paperwork renewals every 1–2 years
• Pressure to buy additional financial products, such as life or home insurance
• Frozen accounts pending proof of income or tax returns
• Limited English support in smaller, local branches

I’ve personally been a customer of a major bank in Spain for over 25 years. Despite that history, every two years I still need to meet my bank manager face to face to show my ID, tax declaration, and explain details of my professional activity.

Online Banks in Spain: A Modern Alternative

If you want to avoid the bureaucracy and in-person meetings, online banks and fintechs are often a better choice. For expats and digital nomads, banks like Revolut, Wise, and N26 provide easy-to-use apps, multi-currency accounts, and low or zero fees for daily banking operations.

Key Benefits of Online Banks

• Account opening takes minutes without visiting a branch
• No pressure to buy extra products or services
• Apps in English and other languages, ideal for international users
• Low fees on foreign exchange and international money transfers
• Transparent costs, no hidden charges

These options are excellent for managing daily spending, paying by card, or transferring money abroad. However, online-only banks also have important limitations when living long-term in Spain.

Why Traditional Spanish Banks Still Matter

Even if online banks feel more convenient, a local Spanish bank account is still necessary for many essential financial tasks.

Access to Bizum

Bizum is one of Spain’s most widely used payment systems. It allows instant transfers using just a phone number, and is often used for splitting bills, paying small service providers like electricians or doctors, or sending money to friends. But Bizum is only available through traditional Spanish banks.

Taxes and Residency Obligations

If you become a tax resident in Spain, a Spanish IBAN is crucial. Without it, you will face difficulties when filing taxes or setting up automatic direct debits for utilities like electricity, water, gas, or internet. For example, Wise does not currently provide a Spanish IBAN, which can be a major limitation.

Loans, Credit, and Mortgages

When it comes to long-term financial needs, such as buying real estate, applying for a business loan, or obtaining a personal credit line, only traditional banks in Spain can provide these products. Online banks generally limit themselves to basic current accounts and debit cards.

Local Trust and Recognition

In many cases, landlords, employers, and government offices prefer (or require) a Spanish bank account. Having one can make your everyday transactions smoother and help avoid misunderstandings.

Best Setup for Expats in Spain

Instead of choosing only one option, many expats find that a combination of online and traditional banking offers the best balance.

• Use an online bank account (Revolut, Wise, N26) for daily spending, travel, and international transfers with low fees.
• Maintain a Spanish traditional bank account for Bizum, tax payments, utility bills, and access to loans and mortgages.

This hybrid approach allows you to enjoy the easy, low-cost experience of online banks while still meeting the financial obligations that require a local Spanish account.

Final Thoughts

While opening a bank account in Spain as an expat can feel like navigating unnecessary bureaucracy, planning ahead will save you time and frustration. Think carefully about your needs—daily spending and transfers versus taxes, loans, and local recognition—and choose the mix of accounts that best fits your situation.

With the right setup, you can take advantage of both worlds: the convenience of online banking and the security of a traditional Spanish bank.