home > Money & Banking

Managing Money in Spain

Opening a Spanish bank account

It's easy to open a bank account in Spain, and there are many banks to choose from: Santander, La Caixa, Caixa Catalunya, BBVA, Banesto, etc. However, most of the banks that I visited didn’t have anyone who spoke English, although I originally managed to open an account with my basic Spanish at Caixa Catalunya.

To open a non-resident’s account all you need is your passport, or your NIE and photo ID. If you are a resident you can open a resident’s account and you will need your resident's permit (la tarjeta de residencia).

It's also worth remembering that when ever you use a credit card in Spain you will need some form of photographic identity (passport or driving licence).

I recommend that you open a bank account on one of your visits to Spain before you move. I didn’t, and had to wait for money to be sent from England after I had arrived.

When opening a Spanish account, you will be asked for your address in Spain and a contact telephone number. My original choice was Caixa Catalunya, it seemed most appropriate for living in Barcelona. However, I found Caixa Catalunya expensive to use and with a high annual fee for their credit card. Many transactions had to be done by visiting the local branch which usually meant standing in long queues, so I eventually closed this account and moved to ING Direct.

I've learnt that the Caixas (a Catalan word – Cajas in Spanish) tend to be expensive and that the Bancos are more reasonable.

Ing Direct – Free Spanish Banking Online

If you speak Spanish, my recommendation is to open an account with Ing Direct – you can do this very easily online if you know some basic Spanish (there is no English language version of their Spanish banking website). Ing Direct have no bank charges, you get 5% interest for the first 6 months, and you can do all your money transactions and view balances etc. online - www.ingdirect.es. They also have a 24 hour help line (Spanish only) which offers a great service.

They have two main options, a cuenta naranja which is a current account but needs to be connected to an existing account at another bank. You can open this very easily online and transfer money between the two accounts and therefore do any transactions needed online from the cuenta naranja, thus avoiding queues and charges in local branches.

The second option is a cuenta nomina, which is an independent current account, however this can only be set up and used if you pay your salary into the account. I have both accounts and am very happy with Ing Direct.

Banco Halifax Hispania – Virtually Free Banking in Spain in English

Halifax in Spain offers customers banking in English. If you have or set up a bank account with the Halifax in the UK too, it's FREE to transfer money between your Halifax UK account (and certain Bank of Scotland accounts) and your Spanish Halifax bank account.

Halifax offer a current account, an Xtra account and savings and deposit accounts as well as a children's savings account. I think the account that will most interest expatriates will be their Xtra Account.

Halifax Xtra Account

The Halifax Xtra account offers free banking, although there is a small annual fee of €25 and a minimum opening balance of €600 required. However, this account comes with many useful extras (as the name suggests). It comes with a Visa Electron card which you can use to withdraw money free of charge at most ATMs, a cheque book, guaranteed bank cheques and free direct debits. It's available to non-residents and residents.

All banking services in English

One of the best features is that Halifax have English speaking staff in their branches, including Barcelona; there is a free online service in English and they have 24 hour telephone banking in English too. Once you are an account holder with the Halifax Xtra Account you also become a member of the Halifax Club. Members of the Halifax Club can access a wide range of services designed to make your life as an expat as easy as possible. These services include:

• Professional Services: Halifax will find you professional services or tradesmen in Spain if you need them. So, if you have an urgent need for a plumber, for example, you can ring the Halifax Club and they will locate one for you.
  
  
• Utility Registration and Cancellation Service: Halifax will set up your direct debits (or cancel them) for your utility services.
  
  
• Card Cancellation Service: If your credit cards are stolen, Halifax will cancel them for you and arrange for new ones to be issued.
  
  
• Translation Service: Phone the translation service to get an immediate translation over the phone.
  
  
• Agency and Legal Services: You can access solicitor if you need one for any legal issues or for buying property.
  
  
• Medical Services: Information on your nearest clinics and will find medical consultants for you.

Other services include: a 24 hour information service, special rates on car rental, travel agency service, discount on the golf Call & Play card, taxi arranging service, flower ordering service, and discounts of up to 20% on local food products such as wines and cheeses.

How to open a Halifax Xtra Account

You can complete an application form online for the Halifax Xtra Account or by visiting one of the Halifax branches – the Barcelona branch is in the Torre MAPFRE in Port Olympic. Halifax state that you need to show your passport, your certificate of residency (if you're a resident) and if you're a non-resident you need to complete a Non-residence Declaration Form which are available at all Spanish branches.

If your Spanish is limited or non-existent Halifax offer an extremely good service, and for only €25 a year you have free banking with access to a host of services all in English. www.halifax.es

Other Halifax Services – Insurance & Mortgages in Spain

Again these are great services if you don't speak Spanish as you can access home insurance, car insurance and life insurance in English. Halifax offer mortgages in Spain and they will help you with all the legal requirements necessary for purchasing your house or flat in English.

Spain Solutions Current Account from Barclays

Barclays also offers a current account with free transfers from any Barclays account in the UK, but it's more expensive than the Halifax at €84 euros per year, although you can pay quarterly to reduce the fee slightly to €80 per year.

There are over 600 Barclays banks in Spain, with several in Barcelona, where you can speak to someone in English. You can apply online to open an account and you will receive a pack in the post. Once you've completed all the necessary Barclay's paperwork you need to go to a Barclay's branch in the UK or Spain to finalise the opening of the account.

The Spain Solutions Current Account comes with free receipts of international transfers, debit card, cheque book, English Language banking service, online banking in English and free tax and financial advice. Barclays also has a set of member services such as Home Assistance and translations. www.barclays.es

Moving Money to Spain

Moving money directly from your bank account to a Spanish bank account can incur large fees. You will be charged a commission on the exchange rate of Pounds Sterling to Euros, and also an administration charge, which can be very hefty – anything from £25 to £45 pounds and upwards.

Money transfer companies

There are several companies who will transfer money internationally for a smaller administration fee (see right-hand column for a list). You have to register first – if you are in the UK this is much easier, so best to do it before you leave.

These companies charge a lower fee, but sometimes don't give such a good exchange rate, so obtain a few quotes before making a choice. Some companies will only move large amounts of money, but if you are moving money on a regular basis, point this out as they will probably want to do business with you.

I have an account with Cahoot, and have moved money directly from Cahoot to my account in Spain and I was charged £25 per transaction. This compares to £27 that I was charged by a money transfer company. The process was also quicker from Cahoot as the money went direct from one account to another. With the money transfer companies, your money goes from your account, to their account and then to Spain (although the process is usually quite quick). Cahoot did tell me that my Spanish bank may charge me for the transfer but this didn't happen.

PayPal

This is one of the cheapest ways to move money. By using PayPal you can transfer money to anyone with an email address.

You can't send money to yourself, so you need a trusted partner or friend to set up a PayPal account linked with a Spanish credit card or bank account.

Pay money into your PayPal account using a bank account or credit card; send the money to your friend's PayPal account, who can then transfer it into their connected bank account in Spain, or simply leave it in your Paypal account and use it when needed by paying directly for items using PayPal.

PayPal's fees are very reasonable and you can view them online at: www.paypal.com. If you prefer to set up a Spanish PayPal account visit www.paypal.com/es.

Let me know what you think about this page. Please rate it! Thanks.