How to open a business bank account in Spain

If you've set your sights on Spain as the new home for your new business, or if you're an entrepreneur looking to tap into Spain's vibrant startup scene, one of the initial steps you will need to take is to establish a banking relationship. Spain's financial ecosystem is connected to global markets, complete with a developed banking sector that provides an array of financial services for individuals and companies.

When starting a business in Spain as a foreigner opening a Spanish bank account is not just a formal requirement, but a practical one, offering a secure place to hold capital, pay goverment institutions, faciltiate transactions, and integrate into the Spanish financial system.

Understanding the Spanish banking landscape

Spain offers a diverse banking sector that is split mainly into two categories: bancos and cajas. Bancos are privately owned or publicly limited national banks which provide a broad spectrum of services and are typically more international. This makes them a potentially more straightforward option if you seek services in English and international functionality.

On the other hand, cajas (savings banks) are generally partly state-owned and focus on local services, and social projects, and may present more sustainable and ethical banking solutions. Being not-for-profit, cajas are more invested in personal savings and community welfare, potentially offering more favourable credit lines for local businesses.

Choosing between a banco and a caja depends largely on your business needs and personal preferences. For instance, if your business requires frequent international transactions and support in English, a banco might be preferable. However, for entrepreneurs focusing on local markets or social enterprises, a caja could align better with their ethos and needs. Don’t rush into making a decision, evaluate the advantages of each offering carefully and see which bank caters best to your needs in terms of costs and services.

Main banking institutions to consider in Spain:

1. Santander: Being the largest bank, Santander has a range from basic to international accounts.
2. Banco Sabadell: Favoured by expatriates for its translation services and an array of account options.
3. BBVA: Popular for its array of commission-free accounts and extensive digital banking facilities.
4. CaixaBank: a ‘Caja’ with a socially responsible universal banking model. They are the leading financial group in Spain and a major player in Europe.
5. International Banks: Examples are: Barclays, Citibank, Deutsche Bank, HSBC, and ING which offer traditional banking services with the ease of international access.

Setting up your bank account

For most people, setting up a personal bank account in Spain is relatively straightforward, whether you're a resident or a non-resident. However, entrepreneurs wanting to open a business bank account might find the process slightly more daunting due to additional requirements and bureaucratic hurdles.

If you can, opening an Spanish bank account in person is advisable. This approach minimises potential misunderstandings and allows you to establish a direct relationship with the branch staff, which can benefit future banking needs. However, if this is not possible, the digital era has simplified this considerably with online applications taking approximately 10 to 20 minutes, a convenience for international entrepreneurs.

Typically, you'll need the following documentation:

• A Certificate of no-name coincidence from the Central Mercantile Registry (Certificado negativo del Registro Mercantil Central), verifying the uniqueness of your company name.
• NIE (Foreigner Identification Number) for every director and shareholder of the company.
• Tax Identification Number
• Certificate of Incorporation for your business
• Articles of Association
• Proof of address, such as a utility bill or rental agreement.
• Identification documents (passport or ID card).
• Good Standing Certificate if available
• Latest financial report if available

Note that any documents not in Spanish may need to be translated and notarised, possibly requiring an Apostille for legality in Spain. It’s a worthy investment to ensure all paperwork is correctly prepared to avoid any issues during the account opening process.

Spanish banks are generally only open on weekdays from 08:30 am to 2 pm. Planning your visit early in the day can save you from the long queues and ensure that you get all the help you need.

Types of accounts in a Spanish bank

Spain's banking system caters to a wide audience with various account types:

• Business bank account: Used for daily financial requirements, tailored to specific needs of businesses.
• Savings bank account: Vary from basic to accounts linked with investment options.
• Digital bank account: Modern banking relies heavily on digital services, with many Spanish banks offering mobile banking applications for all banking needs.
• Foreign bank account: Specially designed for non-residents, these normally operate with euros, facilitating transactions across the European Union.
• Offshore bank account: Ideal for expatriates or those working between multiple countries, offshore accounts can offer tax benefits and international services.

Things to consider before opening a business bank account in Spain

There are numerous factors to keep in mind before choosing your financial institution:

• Corporate banking fees: Understand the costs involved in maintaining a corporate bank account.
• Internet banking services: A critical service for managing your finances remotely.
• International payment fees: This is fundamental if you are receiving funds from abroad or sending them
• Point-of-sale commissions: Pivotal if you plan to collect payments from a point of sale or online.
• Customer service: Access to English-speaking staff can be a significant advantage.
• Bank reputation: Choosing a bank with a strong standing in the market ensures reliability.
• Access to credit: In case your business requires financial leverage.
• Initial deposit: The opening of the account might necessitate an initial deposit, the amount of which can vary significantly based on the bank and type of account, ranging from a modest sum to several thousand euros.

Following the verification of your documents and the completion of the initial deposit, if required, the bank will then activate your account. This step marks the issuance of your account number, access to online banking, and other pertinent details. Always aim for clarity in terms of fee structures and the availability of international services if required. Additionally, ensuring good communication with your bank can facilitate smoother financial operations, significantly impacting your business growth and personal financial health in Spain.

Opening a corporate bank account in Spain as an entrepreneur might initially seem daunting, but with the right preparation and understanding of the local banking landscape, it can be a smooth and beneficial process. Whether opting for a large international bank or a smaller local entity, the key lies in aligning the bank's services with your personal and business financial needs. Remember, getting expert advice is invaluable in ensuring a hassle-free and compliant banking experience. If you feel you need advice in this area why not reach out to financial advisors in Spain today?