Do I need a Spanish bank account to buy a property in Spain?

You are not legally required to open a Spanish bank account to buy a property in Spain. However, it is strongly recommended, especially if your income is not in euros. Expenses paid for your Spanish property, such as utility bills and taxes, will be payable in Spain in euros, meaning you will have to account for fluctuations in exchange rates. Also, you may have to pay commission charges to your bank in your home country for payments made in Spain.

If you buy a property with a mortgage in Spain, you will need a Spanish bank account to be able to set up the loan and make monthly repayments. Some insurance companies may not accept payment from a foreign bank account, so you should check whether this is the case when taking out a new policy.

Can I open a Spanish bank account if I don't live in Spain?

Even if you don't live in Spain, you can still open an account at a Spanish bank. You may wish to do so if, for example, you buy a holiday home in Spain but remain living in your country of origin.

To do so, you will need to present your national identification (ID) card if you have one, if you are from a European Union (EU) or European Economic Area (EEA) country. If you are a non-EU/EEA citizen, or your EU/EEA country does not issue ID cards with photographs, you must show your passport.

You will also need to obtain a Non-Resident Certificate, which most banks will be able to issue for you.

Your bank will then declare your income for tax purposes as a non-resident. You will need to make a non-resident tax declaration to the Spanish authorities every year.

It is easier, however, to open a bank account if you have a Foreigners' Identification Number (Número de Identidad de Extranjeros, or NIE). You will need a NIE to buy a property in Spain. You do not have to live in, or plan to live in Spain to get a NIE. To find out more about this essential document, you might like to read our article What is a NIE, why do I need one, and how do I get one?

What if I become resident in Spain after I have opened my bank account?

Once you have opened a bank account as a non-resident, you might later decide to live in Spain and acquire residence. If this happens, you should change your bank account status to that of a resident.

You should show your Foreigners' Identification Card (Tarjeta de Identidad de Extranjeros, or TIE) if you are a non-EU/EEA citizen, as proof you are resident in Spain. If you are an EU/EEA citizen, you should show your 'green certificate' or CUE – your certificate of registration as EU/EEA resident – along with your passport or national ID card from your home country. The latter is necessary, because your 'green certificate' will not have a photograph on it. This certificate does not serve as ID, only as proof you are resident in Spain.

What other documents might my bank in Spain need?

If your regular income is paid into your account in Spain, you will need to prove its origin, in accordance with EU money-laundering protection rules. This might be your pension documents from your home country, or your wage slip and employment contract if you are an employee. For self-employed persons, you will be asked to show your latest quarterly value-added tax (IVA) declaration and either your annual income tax declaration (Declaración de la Renta) or your most recent quarterly income tax returns.

Payments into your Spanish bank account of €2,000 or more must be accredited. Banks in Spain are obliged to inform the tax authorities of any payments received that exceed this sum.

How much does it cost to have a bank account in Spain?

Opening a bank account in Spain is usually free of charge, but nearly all banks charge commission for having an account. Bear in mind that you may even be charged commission for an account with no funds, or which is not used, so you may decide to close dormant accounts to avoid this.

For residents in Spain, banks are not allowed to charge more than €3 per month (€36 per year) on each account. For non-residents, commission may be higher. On average, non-resident bank accounts may cost between €140 and €196 per year.

Some banks offer commission-free accounts, especially if your wages or pension are paid into them monthly. Others offer reduced or zero commission for accounts with an average balance above a certain figure, usually around €3,000. You should find out details of different banks' offers before deciding where to place your funds.

Most banks charge an annual fee for having credit and debit cards. These are typically around €36 per card. Some charge a similar fee when they first issue a card. Your bank may charge you when they send you a replacement debit or credit card after your existing one expires, although some banks do not.

Paying a cheque into a Spanish bank normally attracts commission, and banks in Spain rarely issue cheque books. You can request a 'counter cheque' if you need one, which may attract a percentage in commission. In general, cheques are not used in Spain; payments made to companies or for taxes are by bank transfer.

Bank transfers normally take up to four working days, and involve a fee. This may be higher for immediate or next-day payment. In some cases, making a transfer to a person or company who has an account at the same bank as yours is free of charge. You can also transfer money between your own accounts at the same bank free of charge, and this process is usually instant.

Most transactions, other than simple withdrawals and payments, must be carried out at the branch of the bank where you first opened your account. If you later want to use a branch that's more conveniently located, such as near your workplace, you will need to arrange to change the branch you are registered with.

Which are the main banks in Spain?

The largest banks in Spain, which you will find in almost every town and village, are Banco Santander, BBVA, CaixaBank and Banco Sabadell, in that order.

These four account for around 70% of current and deposit account funds in Spain and all feature in the world's top 100 largest banks, according to the Spanish Banking Association (Asociación Española de Banca). Banco Santander is the third-largest bank in the EU, the largest in terms of share capital, and the 17th-largest in the world.

The top 11 largest banks in Spain, in descending order, after the above-mentioned four, are Bankinter, Unicaja Banco, Abanca, Kutxabank, BCC/Grupo Cajamar, Ibercaja Banco, and Banca March. Smaller banks may be regional-only, and include rural building societies (cajas rurales).

International banks with a presence in Spain, but which are not among the largest in the country, may also be found. These include HSBC España, ING España, Orange Bank España, and Deutsche Bank España. Now you know a bit more about bank accounts in Spain, you might like to read up on how to get a mortgage in Spain as a non-resident.