Spanish banks in Spain don’t have a good reputation among Expats. Your first challenge will be to find a bank that accepts you as a new client, and if the bank gives you a chance, be prepared to resist the high pressure of buying insurance, opening multiple accounts, and adding services to your account for a chance of winning a coffee machine.
Once you succeed in opening an account, you can still expect turbulence along the way, such as exorbitant bank fees, frozen accounts, pending income source verification, etc… I’ve been a local bank customer in Spain for over 25 years. Every two years, I still need an in-person meeting with my banker to show my ID and tax return and answer many questions about my professional activity.
If you prefer avoiding talking to a banker and are okay with only online banking, Revolut, Wise, and N26 are for you. They Offer low or no-fee services and present a significantly user-friendly choice, accommodating most of your financial needs in Spain.
So why open an account with a traditional bank? Simply because those online financial entities don’t give you access to
- Bizum: A convenient method for transferring money via mobile phone numbers. Artisans.., medical practitioners, and friends widely use Bizum for swift, fast transactions.
- Taxes: A Spanish bank account is essential for fulfilling tax obligations in the country once you become a tax resident.
- WISE doesn’t provide you with a Spanish IBAN, preventing direct utility debits.
- Other Services: Local banks still play a vital role in providing traditional services like home loans, business loans, and various financial solutions.
While online banks offer an attractive alternative, a local Spanish bank account is advantageous for specific services and financial obligations, ensuring a comprehensive and convenient financial experience in Spain.
