Jean Galea

Best Commission-Free Banks in Spain (Updated 2019)

Updated (first published ) 114 Comments

Upon moving to Spain one of the first things you need to do is open a bank account. You will need it for several things, most importantly for paying your monthly rent. A foreign bank account is not that useful in Spain as many institutions rely on direct debits to a local account. For example, if you make a gym subscription, they will also need your bank details, and it has to be a local bank. Same thing if you have an iPhone and want to use the Spanish app store; you need a Spanish debit or credit card.

When I arrived in Spain, I had a list of criteria that I used to search for the best bank here. Let me share them with you:

  • Commission-free. I’m giving money to the bank and they will use it to gain money, I shouldn’t be paying them. If anything they should be compensating me for providing the capital.
  • Straightforward to open and operate. I didn’t want to jump through too many hoops to open a bank account, and I expect a modern web and mobile interface to operate on a daily basis.
  • English-speaking staff and multilingual website and contracts. Not so much of a deal-breaker as I’m fluent in Spanish, but it’s always a plus.
  • Stable and highly-regarded bank. I don’t want nasty surprises in the future, so let’s keep to the top banks and avoid going with the lesser known ones.

After spending many hours in online research, speaking to people and visiting bank branches, these were my shortlisted banks:

Before we delve into details about each of these banks and my top pick, I’d like to make a special note for those who will be transferring money from other countries. The most common cases are GBP and USD but this applies to any other non-Euro currency.

How to Save on Commission Fees When Converting Your Currency to Euro

The first thing you should know is that when you transfer money from a non-Euro based account in your home country to a Spanish bank account, there will be an automatic conversion from your currency into Euro, and while you might not notice it, you will be losing a lot of money due to the conversion rate applied by any Spanish bank, not to mention the fees they might apply on top of that.

Basically, every single day there is a reference exchange rate for every currency against each other currency. Every bank has the liberty to set their own exchange rates, however, so you might be getting a far worse rate than the reference rate.

The ideal scenario that we are looking for is zero commissions and an exchange rate that is as close as possible to the reference rate. In my experience no bank gives you this combination, we have to rely on third-party dedicated services to lower our costs.

The best company I can recommend for low transfer fees when converting currencies is CurrencyFair. I have a special deal for readers of this blog that will give you 3 free transfers via CurrencyFair.

Transfer money via CurrencyFair

I’ve saved thousands of euros in my transfers from USD to EUR and from EUR to GBP, for example when I need to invest in UK real estate.

Ok, now that you now know how to do currency exchanges the right way, let’s move on to Spanish banks. If you have any questions about currency exchange, leave a comment and I’ll try to help out.

N26 – Best Low Cost Bank in Spain for 2019

Unfortunately, I haven’t been very impressed by banking in Spain. It’s decent enough, don’t get me wrong, and most banks have very good online systems and apps, however, support and compliance can get very frustrating.

That is why I would recommend N26, a German bank with the very latest technology and an amazing mobile app through which you manage your account.

As of April 2019, N26 gives its Spanish users a Spanish IBAN account, so you will be able to use the bank for any direct debits as you would use other Spanish bank accounts.

Now that we have the option, I recommend opening an account with N26, which is a new breed of bank that is totally app-based. This is the future of banking, so they give you best in class digital facilities such as an app and website to go with it, while also helping you track your expenses.

Sign up with N26

Ing Direct

ING Direct used to be my favorite local bank, but as of April 2019, I would recommend N26 above ING Direct. They have a weird policy of letting all incoming transfers in, then suddenly asking for documentation about all incoming international transfers months later. It’s quite maddening because they typically don’t even know what they need, they just ask you for documentaion for everything, which of course can be incredibly time consuming to retrieve given that some transfers might have been done years ago.

The ING Direct website is in Spanish but they have nearly identical websites in other markets such as Ireland, where you’ll find all the information in English if you need it. They have the most straightforward process for opening an account. You basically apply for an account online and immediately get an account open with an IBAN number.

Next, a courier will come to your house within a few days to give you your debit card, and you will need to give him a copy of your identification documents (passport and NIE usually). Then you will need to make a transfer to your new account, and within 5 days the account will be active and ready for us.

This was the easiest bank opening process I’ve ever been through, and I appreciate the convenience of it all. The ING Direct web and mobile interface is great, and they have a good portfolio of related services such as Broker Naranja for investing in the stock market internationally.

They’re of course a well established Dutch multinational bank and they have subsidiaries in many countries. You can use the ING Direct mobile app to make payments without your debit/credit card in shops, and you can also send and receive money to/from friends with the Twyp Cash app, up to 1,000 Euro per year. Whenever you have any query, you can access their chat support online, and someone will attend you within seconds. Of course, they also have the traditional methods available (phone, email, post).

The current account SIN NOMINA is commission-free provided you keep a minimum balance of 2,000 Euro in the account. If you have a job in Spain, there is also the option of a CON NOMINA account, which means that you’ll have to deposit your monthly paycheck into the account for it to remain commission free. Personally, I think SIN NOMINA is more straightforward provided you keep those 2,000 Euros in it. I don’t link restrictions like domiciling my paycheck.

You can withdraw cash commission-free from more than 44,000 ATMs around the country:

  • BANCO POPULAR, BANCO PASTOR, BANCA MARCH and ING DIRECT: Any amount.
  • BANKIA y BANKINTER: From 90€.
  • Rest of banks outside Madrid: From 200€.

Finally, another great plus is that they charge no commissions for Euro transfers. They will also give you special discounts at certain shops and 3% cashback on fuel bought at Galp or Shell. All in all a great experience with this bank so far, apart from the ridiculous questioning of incoming transfers.

Bankia

Let’s move on to Bankia now. Bankia is a Spanish bank that was formed in December 2010, consolidating the operations of seven regional savings banks. It is now one of the top 5 largest Spanish banks. It has a somewhat rocky past and is currently recovering, but that shouldn’t put you off.

Their best offering at the moment is Cuenta ON, which gives you zero commissions, similar to ING Direct. In Bankia’s case, there is no minimum balance requirement. There are no commissions on outgoing or incoming Euro transfers either.

The most important requirement in order to keep this account commission free is that you conduct all operations online without visiting the branches. For example, if you want to make a transfer, you would do it online rather than visiting the branch and asking them to do it for you. Perfectly fine for me, as I find it way more comfortable doing everything online.

Bankia doesn’t have an online chat system, but you can ask for a callback for free, or use the contact form on their site to send in queries. ING Direct is better in this respect.

On the other hand, Bankia offers its website in English and Spanish (apart from Catalan and Valencian), so you can find all the information easily.

With Bankia, you can send or receive money from friends using the Bizum system, and you can also use Bankia Wallet to pay directly with your mobile phone, in a similar way to ING Direct’s Twyp Cash.

You can withdraw money from Bankia ATMs (up to 600 Euro daily) and no commissions will be charged. If you’re abroad and need to withdraw cash they will charge 4% with a minimum of 4 Euro.

You can use your card to spend up to 1,500 Euro daily.

The best thing about Cuenta ON is that it is completely commission-free. I prefer ING Direct’s interface, related services and also their facility of withdrawing from other ATMs commission-free. Therefore Cuenta ON is a good secondary or backup account. I would always suggest having two bank accounts in place just in case conditions change with your usual bank. Keep in mind that terms can change at any point with Spanish banks, so you’ve got to be on the ball and read any communication they send you.

Self Bank

Self Bank is an online bank with no offices. Signing up is simple and done through their website. You will then need to print a paper and sign it, as well as take a copy of your passport and NIE. With these papers in hand, you can then ask for a UPS courier to collect the documents at your convenience and at no charge. You will then have to wait a few days until the papers arrive at the Self Bank offices in Madrid. If everything is in order, they will open your bank account and send you the cards. That’s it.

Self Bank has a modern website and account management interface and is one of the best regarded online banks. In order to open your account, they will ask you for another account at a local bank for verification purposes, so this cannot be the first bank you open. It’s another great option for a backup account, and you can also use the brokerage facilities which are quite decent if you operate regularly on the stock market.

This bank is also commission-free and 100% digital. If you want to open a 3-month deposit account they offer 2% interest for the first 3 months, up to a maximum of 15,000 Euro. Their savings account offers 0.15% returns.

You can use your Self Bank debit card to withdraw money at no cost from more than 9,500 CaixaBank ATMs around the country.

You can send money to friends with their Self Money app, all you need is your friend’s mobile phone number or email address.

There are no fees charged for national or Eurozone transfers.

Self Bank does not have any online chat facilities, you can get in touch via phone or email. Their website and documentation is only available in Spanish, so I wouldn’t recommend this account if you’re not very fluent, especially since everything is done online. If you get stuck, you won’t be able to visit a local branch and hope that someone there speaks English.

Banc Sabadell

Update June 2018: I no longer recommend this bank due to the various reports of multiple charges that are now associated to having accounts with them (see comments section).

Banc Sabadell is one of my favorites, if it weren’t for the requirement to make a monthly inbound transfer of at least 700 Euro to keep the account commission free, I would probably have opened an account with them instead of ING Direct.

The big advantage of Sabadell is that it is a very stable local bank with straightforward and professional procedures. Their offices always make you feel welcome and their staff usually speak English. The website and contracts are also available in English, making this the best bank to look at if you don’t know any Spanish or prefer dealing in English.

Their Cuenta Expansion, as I mentioned, requires a 700 Euro movement every month, else you will get charged 4 Euro commission per month. Everything else is commission free and you can withdraw money from ATMs of Sabadell for free, provided you withdraw more than 60 Euro. You can also withdraw for free with the same condition from the following banks: Bankia, Abanca, BMN, Ibercaja, Kutxabank, Unicaja, Liberbank, EspañaDuero, Cajasur, Caixa Ontinyent y Colonya Caixa Pollença.

Banc Sabadell is the best mix of traditional bank with offices all around, and a good online service. Best of all, it is all available in English, which is perfect for expats.

Wrapping up

You will no doubt have your own requirements for bank accounts. Perhaps you are already thinking of a loan or mortgage, or are mostly interested in finding a bank with great stock brokerage facilities, or even other products such as life insurance or deposit accounts.

Make sure you make a list of things that are most important to you, then start your search by visiting all the sites of the local banks. You will usually get a gut feeling about certain banks that will allow you to narrow things down. You can then proceed to visit the local offices of the shortlisted banks and get a feel for the kind of people that work there and get more information about their products.

Finally, you can make an educated decision on which account to use. Remember that you can always close an account without any hassle or cost if further down the line you understand that the bank is not well aligned with your needs.

When you open a bank account at any entity, be aware that they will usually ask for your passport and your NIE at the very minimum. They might also ask for things like your rental contract, statement from your foreign bank, tax statements from your previous country of residence etc. Banks are on the lookout for money launderers and have very strict parameters within which to operate. All the banks I mentioned above are very reasonable in what they require and will not make things difficult for you. Others may have stricter policies, and they might reject your application without providing any specific reasons.

Good luck with opening a bank account in Spain, and if you have any questions feel free to ask in the comments section.

Comments

  1. N26 don’t support non resident accounts. I’ve tried to open an account and if your tax liability is in the UK then you can’t open the Spanish account, even with a Spanish address.

    Just worth noting..

    Reply

  2. Hi Jean,

    I notice that you now recommend N26.

    There’s more good news.

    N26 have recognised the difficulties in Spain where companies appear to ignore European law requiring acceptance of all bank accounts throughout the Eurozone. So, new N26 customers in Spain are now given a Spanish IBAN rather than a German IBAN. Existing customers will be able to switch from a German to a Spanish IBAN.

    This should overcome the difficulties of deliberately awkward companies like Movistar!

    Life gets better all the time…

    Reply

  3. I had very bad experience with openbank. They made it hard for me to open an account, including requesting me to visit a santender bank and make 10 euros transfer. I felt like its a scam. I opened an account without problems in sabadell.

    Reply

  4. Surprised you first mention Open Bank as an alternative, then list other banks but not Open Bank and lastly recommend no banks at all. I’ve been a customer of Open Bank for 5 years. Never paid anything for my account or card. The website is in Eng/Spa and so is their app. Check it out!

    Reply

  5. I don’t speak Spanish. I’ve sent a query to ING about opening the account in English. Reply came in Spanish. I’m so done with this. Any recommendations? Revolut doesn’t work, it’s not recognized by authorities as a Spanish account, I cannot even use their card to recharge my prepaid phone.

    Reply

    • Update: I asked if they could answer my queries in english. Got an arrogant reply that they only provide services in Spanish. The reply came, of course, in Spanish. This from their official Facebook account. They really work hard on not having me as a client. Any suggestions?

      Reply

      • Unfortunately I’m not surprised as this happens quite frequently and not just with this bank but with the majority of businesses in Spain. It’s mostly due to them not being equipped to support English-speaking clients rather than any malice, although I understand how sometimes it does come across as arrogant as they lack the apologetic attitude typically taken by support in English-speaking countries. I have learnt Spanish myself so I’m afraid I can’t really give you any suggestions.

        Reply

        • I’m not even from an English speaking country and I’d consider their reply rude. I just moved here and the only other languages that I speak, apart from my native Czech, are English and German. I think I will go with Bankia for now, as they were prompt to answer my questions in English, even though some of the reviews here are not very favourable. I’m planning on learning Spanish, but this is my day #11 in Spain 🙂

          Reply

          • Absolutely, you’re right to expect a nice reply and an accommodating attitude from any service provider. Bankia are heavily criticised by many, however my experience with them has been good, they’ve always been very nice to me at the branch. They also have Apple pay integration which Ing don’t have.

  6. Hi Jean,
    We have internet banking with Caixa Bank in Santander and have just had a message about KYC which appears to be about money laundering etc.
    Some posts on the internet suggest that bank accounts can be frozen.
    We have had out account for over 10 years and this is the first time this has been mentioned to us.
    Can you give us some information on this please.

    Thanks.

    Reply

    • KYC can be annoying but as long as you provide the info they request there should be no problem. Accounts are only frozen in extreme cases where there are problems.

      Reply

  7. Hey Jean,
    Checking ING and they only seem to have a cuenta nómina available now- which means there needs to be a minimum deposit each month (like the drawback you mention with Sabadell). Any suggestions for people that don’t have this option? (Aka starting one business with no guaranteed monthly income)

    Reply

  8. Hi I’ve recently moved to Spain for nine months – have started the bank account process,sadly with Sabadell before seeing these posts. My account is not fully open until they see my NIE which is on is way. How easy is it to cancel/close an account soon after opening? My language proficiency is not great!

    Reply

  9. My experience with Bankia is pure disaster. I speak Spanish (and English and German), and we have had accounts with Caja Granada (worked resonably well, except for some criminal action) and BMN (worked well), but since Bankia took over, the internet access is blocked. To de-block the access, I had to go to the branch, which I did about ten times. People there were friendly, but incompetent. I gave them all the documentation they claimed they needed (BMN did not need all that), and still no internet access. I cannot call in, because my identity card has letters and numbers, and the telephone machine accepts only numbers. We pay by direct debit things like power, IBI or telephone. I tried to change that process to the bank of my European homecountry, which is absolutely possible under European law – except that some companies do not want to do that. Without internet access, I don’t know, whether there is enough money in the account, so we get our power turned off. In my experience, Bankia is absolutely worthless.

    Reply

  10. Great info Jean !
    However I just tried to open an account in ING bank and they only let me open it if I have the “tarjeta de residencia” only with my NIE and job contract they don’t open it.
    You managed to open it only with your NIE?
    Best Regards,
    Elson

    Reply

    • Tarjeta de residencia is a NIE. I’m not sure what happened there but you should definitely be able to open it once you present your NIE (it’s a flimsy card-like thing like this one).

      Reply

      • NIE is foreigners identity number, which you can get easily. Residencia is a different accolade, meaning you are resident in Spain. I’m guessing ING no longer offer non-resident accounts if they require Residencia

        Reply

        • NIE counts as residency, in fact on the card there is the date when you started residing in Spain. I did not need any other papers apart from perhaps empadronamiento or flat rental contract (I don’t remember if this was necessary).

          Reply

          • Not any more Jean. They are two seperate applications, with different requirements. I believe they used to be one application for both, not anymore

          • I don’t know Jean. I moved to Spain in January and was advised by the translation service I used that it’s now two seperate applications. For Residency you have to provide proof of healthcare (private insurance not enough due to limitations on care covered), your NIE, a current Certificado De Empadronmiento, three months bank statements, proof of employment (translated by an official Spanish translator if not in Spanish language, plus all the usual identification and proof of address stuff. It’s a four to six week wait for an appointment with the Policia Nacionale around these parts

          • I think we’re talking about the same thing as those are the documents I needed to get my NIE (the one like I linked to in my previous comment). I know that there used to be a paper that gave you a NIE but not residency, and now with the card I have it serves both as a record of my NIE number as well as a residency permit.

          • Perhaps you can apply for residencia and nie at the same time, but one is not the same as the other. If you need residencia to open a resident account, having only an nie will not work as it isn’t proof of residency

          • If we’re referring to NIE purely as the number, then yes, I agree. If we are referring to the NIE as in the card I linked to, then I say it should be enough to prove residency.

        • Richard,

          I was working in a spanish Bank for many years. Try in BBVA with nie and passport, easy on line. 1 week takes all the process. Bankia online is fine, also.
          My suggest is not complicate the life. If ING makes you difficulties, just pass to others interfice.

          Reply

  11. With a Santander 123 debit card you can withdraw €’s cash commision free at the basic Mastercard exchange rate, but only at Spanish Santander ATM’s. But do make sure you opt for a € transaction: don’t select £ transactions when offered at the ATM – that would be costly!

    Also, using a UK Santander debit card for any other transaction in Spain would be costly.

    You can check all UK credit and debit card charges at moneysavingexpert.com.

    Reply

  12. Hi, I have just purched a bungalow on the coast and bought it through a reputable estate agent. So far i can’t fault them as they bave dealt with everything. The only problem i have is the bank account. They took me to Bankia where we opened an account as required. We have been told that we have to deposit €450 per month or average €5000 over 3 months so as not to incur any bank charges. I have read the above and now wondering if this is a error or have fallen into a trap. We are non resident’s and would like some advice on now to avoid bank charges.

    Thanks

    Slips

    Reply

    • That sounds quite normal to me; it’s not a scam or trap, just the way they do things. If you could avoid having a bank account in Spain in the first place it would be easier to avoid all charges. Banks have little incentive to open accounts for non-residents so they put some conditions like the one you mention.

      Reply

      • Thanks Jean for your quick reply We wish we didn’t have to open one but have been informed we must to complete our purchase. The most annoying thing is, back in the UK we have two Sandander accounts. Apparently although Santander is spanish the don’t recognise each other in Spain. I will enquire about this when i return to the UK as they have told me i can use my UK Santander card in Spain without incurring any charges. 

        Sent from Samsung tablet.

        Reply

    • Hello Slips,

      I have an account with Bankia, I know how they work.
      As you have got a mortgage with them, you could send a transfer every month to them from your UK account, in case your mortgage quot is smaller than 450 €, you could transfer back the rest of the money to your UK account.

      It really important you tell them to set your transfer as a regular income in your account , if not charges will carry on.

      regards

      Reply

      • Hi, thanks for the info. As i dont have a mortgage do you know if i send say €500  from my UK bank to Banka then say €300 back fto my UK bank. Will i get charged by either bank for these transactions as they will be converting pounds to euros and then euros to pounds?
        Thanks again for you reply Slips 

        Sent from Samsung tablet.

        Reply

        • Hello Slips,

          Bankia have got the account called Cuenta ON, for digital customers (no charges), included a debit card( free comission). You could open it on line , change the standing orders, and close the old one.

          Recently I opened one in BBVA on line, and they look quite smart, even they go to your house to check your identification card in case you would like, although you better send it by email with a picture taken by your mobile. It is free of charges, included a debit card.

          I give some information quite interesting. In a question of a month, in Spain banking customers could be willing to transfering our account to another bank quite quick with all direct debits included. The bank which you would like to go with, will be do all work for you. You dont have to do nothing.

          THX

          Reply

          • I opened a Bankia one too but I don’t like their interface as much as Ing Direct’s. BBVA seems like a more modern alternative so I might give that a shot once the portability facility you mention becomes a reality in a month’s time.

          • In case you have got a normal account (transfers, direct debits, debit cards,…) all main Spanish banks got a sufficient interface mobile service.
            Bankia is too slow, jajaj but I could coup with ING Direct is a very fresh bank and thet were the pionners in Spain about these types of services, I love them BBVA have got several prices about their technologies invesment quality last five years (good job). They got future.

            Hugs

  13. Thanks for the research Jean. I have my nomina account with Sabadell and until a couple of weeks ago I also had my Non-Profit Association with them. However the T&Cs apparently “changed” since I opened the account 3 years ago and since January they have charged me over 300€ in bank charges and commissions – when asking for a detailed explanation I was told they were “bank charges and commissions”!!! All the donations I had received were eaten up in bank charges so I closed the account. I have left my nomina account with them but am still looking for an alternative for the non-profit.

    Reply

    • You’re welcome Deborah, I’m sorry about that. I had something similar happen to me recently and I can understand the feeling. Hope you manage to find a good bank for the non-profit. Do let us know who you end up going with.

      Reply

    • They charged me too. Sabadell is a disappointment for me. Charged me commissions that even by T&C were not supposed to charge. And now I am trying to get that money back. They also blocked my account for a unknown reason, I had money there. Untill today they didn’t explain me a reason. And when I called to their 24/7 number for a help, later I found out I was charged 37€ fir that few minutes phone call.

      Reply

  14. Jean,

    You have created an extremely informative website. I looked again at your opening paragraph and I guess this insistence by some organisations on their customers using only Spanish bank accounts is quite common. I found that it’s often the local staff trying to enforce outdated rules, but when pressed, and after referring the matter to their head offices, €-accounts from other countries are accepted. But there remains a hardcore of organisations, like Movistar and Apple, whose automated systems block attempted payments from non-Spanish bank accounts!

    I believe the law on these matters is clear. I found this statement on my bank’s website:

    “Pursuant to EU legislation on cross-border payments in the Single Euro Payments Area (SEPA), bank accounts and IBANs from all member states must be accepted for transfers and direct debits both on a national and cross-border basis. Regulation (EU) No 260/2012 of the European parliament and of the council.”

    So, what can we do about those Spanish organizations who flout European law?

    When I found serious resistance, from one of my Spanish utility providers, to transferring my direct debit from a Spanish to a German bank account, I took the easy option of switching utility provider! But I appreciate that such an alternative is not always available!

    Perhaps we should ask offending companies for their complaints book and register an official complaint about their refusal to accept a non-Spanish account in contravention of European law. I must admit that when I tried that in one local office, I was told that it was a sub-office and that I’d have to go to their regional office 50Km away for their complaints book: that in itself was possibly a breach of Spanish law, but again I gave up and found an easier alternative solution!

    I’d love to know what others have done to try bringing Spanish companies into line with European law.

    Reply

    • Hi again Alonso (I’m assuming that’s not your real name although Alonso Hamilton would be a cool name anyway), thank you for taking the time to leave some excellent comments so far.

      The law, as you state, is very clear. There will always be organizations that flout the law, and ultimately it’s the customer that votes with his money. I think many of us live under the false assumption that everything should be fair, but in practice it rarely is. Although such laws exist, in practice companies have the power to flout them at will, unless a group of customers actually invest the time and money to go after them. After all, even the government itself sometimes isn’t exactly in line with European law. The Modelo 720 saga is one such example of the Spanish government going into very grey areas.

      Ultimately I therefore agree with you, the first step should be to politely but insistently ask the provider to abide by the rules, and if they refuse, change the provider where possible. I’m assuming you’re from a smaller town in Spain; perhaps in bigger cities such as Barcelona or Madrid it would be easier to get this type of uncommon request dealt with efficiently.

      The only similar issue I’ve experienced was when renting apartments and buying private insurance. Apartment owners typically ask for a Spanish bank account, presumably because they think it makes things simpler for them. I think that with the modernisation and harmonisation that has happened in banking in recent years, this is no longer a real concern. I was able to convince my landlord to use my foreign bank account, at least until I got a local one a few months later. I also managed to convince Sanitas (private insurance) to set up direct debits with my foreign account rather than a local one, and I only changed it to the Spanish account a year later out of personal preference.

      Reply

      • Jean,

        An excellent response. I can see that you had already experienced these issues well before I’d even thought about them. I really like the way you handled everything.

        You’re also correct about my cool name and my Andalusian rural holiday home base. Indeed I imagine there would be far fewer issues in Madrid.

        My latest problem was trying to top up a Movistar PAYG phone while in the UK. Movistar’s automated system rejected a UK credit card, a GB € debit card, and a German € debit card. I had to resort to using my Spanish bank account which I’m about to close permanently! I’m not sure how to deal with this in future apart from remembering to top up before leaving Spain, or asking a friend to top up with their Spanish bank account (but that rather defeats the purpose of my mini-crusade!).

        Has anyone got any ideas?

        Reply

        • The only idea I can think of is to buy a virtual debit card and use that to pay such items. Tarjeta Spark could be such an option. In the US you can buy prepaid debit cards at Walmart etc but I don’t think they are available in Spain.

          Reply

          • Thanks Jean. I’ll keep that in mind for when I next visit Spain. I also believe that I still have a free OpenBank account which I’ve not used since opening 2 years ago. The OpenBank debit card is in Spain so, if it’s still active, I’ll try that for topping up my Movistar mobile!

  15. I am surprised that so many ex-pats, especially non-residents, are still paying fees to Spanish Banks, when free banking is available from N26!

    N26 now do the account switching for you, ie N26 will transfer all your Direct Debits from your existing Spanish bank.

    You get a € debit card which is free to use for any purchases and permits five free ATM withdrawals/month from any bank ATM in Europe (there are charges for any withdrawals made in excess of 5/month).

    Reply

  16. Great post. Thank you! Ludicrous costs and commissions at sabadell are forcing me to change to ING and bummer… they just stopped their sin nomina offer 😥

    Reply

  17. Hello, I really appreciate this page, but want to add an update:

    ING just discontinued their ‘cuenta sin nomina’ …

    I wrote their support this morning about not being able to find it on their web page. This was their response:

    “Estamos en un proceso de simplificación de productos y ya no es posible contratar la Cuenta SIN NÓMINA.”

    So now they only have the “nomina” account which requires you to make a monthly deposit of at least 700€ into it.

    So ING are out of the picture for me.

    I have also tried OpenBank. The website looks good and there’s an English version of their online banking. But for the past 3 weeks I have received an error message every time I have tried to open an account online. Support’s reply is that “there is currently an error!”. No mention of when this may be fixed. If ever.

    I am a resident and currently with Sabadell, but I want to leave as my income is currently irregular, so they’ll soon roll in the fees – including for every time I use you debit card to pay something.

    It’s not easy …

    Reply

    • That’s really unfortunate, sorry to hear about that change. Bank tellers have told me that there is a way to “cheat” their deposit system by withdrawing the 700 and then depositing it back in, this will keep the system from flagging you as not having made a deposit. It’s an option, but I just thought it was too much of a hassle in any case, and I’d rather go to a bank that is ready to service me without playing silly games.

      Reply

      • Absolutely. I’ve heard about the cash-out, cash-back-in cheat too, but prefer spending my time on something a little more constructive and a little less silly.

        And, like you, I would prefer to have my money in a transparent, no-nonsense bank. But they’re pretty hard to come by in these parts …

        Reply

        • It’s easily set up with a recurring payment of 700€ from a Revolut account (for which there are no charges) into your ING account. And a standing order dated, say 4 days later in the month, from ING to your Revolut account.

          Once set up (and it would only take minutes to do so), you can simply forget about it and it would take up no more of your time. It would cost the lost interest on the 700€: perhaps 10€/annum at worst with current UK European interest rates!

          If you’re not particularly bothered about banking with ING, you could just have a Revolut or N26 account. Both are free to operate, with free to use debit cards, and both can handle all your direct debits in Spain: but N26 allows more free cash withdrawals from European bank ATMs.

          Good luck with your choices…

          Reply

  18. In my opinion and experience the Banking system of Spain is perhaps one of the worst in the EU. Information about opening an account is pretty vague and funnily same Bank having different branches have different requirements for opening an account. The process is pretty tiring, lengthy and too many questions.

    I think if Spain really wants to recover from its abysmal economic downturn, just a small reminder that youth unemployment is above fifty percent and would like to build a prosperous future, then leniency and logical policies should be implemented rather than making things difficult for investors, foreigners and even themselves to refrain from opening a bank account and future investment.

    Reply

    • In terms of opening a bank account yes, I agree with your analysis. With regards to banking services the bank I use (Ing Direct) is pretty good especially with its online system and app.

      Reply

      • Thanks Jean for your opinion and prompt reply. After having physically visited different Banks in Spain, I have to admit that Ing Direct, Bankia and OpenBank are all strong contenders. The process is rather comfortable and less time consuming. Not too many silly questions asked and less hassle in terms of documentation.

        In addition, Bankia employees are somewhat very friendly and customer-focused but more importantly they can communicate in English. The same worked well with OpenBank (over the phone) as well. The communication with Ing Direct was rather not too appealing, although a friend of mine accompanied me which helped solve the communication barrier, but we understood each other finally, lol. Ing Direct have a lot of foreign and local clients but ironically their website is in Spanish and do not have the option to view in English, which is somewhat unusual.

        Reply

        • Agreed Nathan. Bankia’s online system is quite old-fashioned and I prefer Ing Direct’s, but the branch employees were friendly when I went there to open the account. Sadly, most bank employees nowadays are trained to be very clinical in their approach, so that doesn’t make for a very nice experience for the customer.

          I only went once to the Ing Direct branch to get some information about their offerings. They were very professional and even offered refreshments at the entrance. I ended up opening the bank account from the comfort of my own home, as all documents are brought to your front door to sign and the whole process is done online.

          Reply

          • Thanks again Jean for your reply. I would request you to please provide a few details about Ing Direct.
            – How efficient and lenient are they in terms of International Bank Transfers and inside the EU as well ? For example, the commission or fees that may occur for 5000 euros ? What documents are required and in terms of filing a tax, how that works having an online account ? The procedure ?

            Thanks in advance and keep up the good work.

          • You’re welcome Nathan. I’ve only done EU transfers with them and they were painless and fast. They also provide documents related to tax at the end of the year, so you just forward those to your accountant. For other questions I’d rather you contact them directly so that you’ll get the most up-to-date and accurate information; after all I’m just another regular customer of theirs and not a banking expert.

          • Thanks Jean and Nathan, very useful information there. I haven’t been keeping up with the thread, apologies – was any consensus reached regarding non-resident accounts?

          • Hello Richard,

            There some conditions a client should get to have free comissions account, as having a regular transfer coming every month to your Spanish account or your pension. All traditionals have got an special non comissions account free in this case. However I prefer contracting to an on line banking account as ING Direct or BBVA or even Bankia.

            In case you like traditional banks the best is Bankinter although they dont have plenty branches around . It is a mix bank, half on line,and half traditional.

            All traditinal banks they have got bad customer service so that many Spaniards like to visit the bank every day and they are collapsed so the staff feel quite streased.

            Caixa should be the option , they tried to get them out with some comissions and they are incorporating some technology for customers so the branches are smarter.

  19. Hello,
    Very good article however trying to open an online account with Bankia and ING.
    Google translate gets me two pages in then Spanish only without a translate option.
    What Am I doing wrong.
    Thankyou.
    Jeff.

    Reply

  20. We left Sabadel last year because of the ridiculous every transaction charge…(added up nearly 200 euros a year)
    We are now with BankInter as we looked around and their charge is the most reasonable: 45 euros a year without debit card (20 euros more with card i think, we didn’t want to know as we don’t really need a card) and 50 euros every 2 year, worked out 70 euros a year, still a lot cheaper than Sabadel.
    Will make an inquiry with Cajamar and Bankia next time we are in Spain as we heard there is no charge.

    Reply

      • I’m sure they’re detailed in the small text of the agreement or their website, so they would be perfectly legal.

        Reply

          • Understood. Unfortunately, I haven’t done any research on that particular facet of things. The quickest way to solve these issues is to move your money to another bank; it’s not worth the hassle to go against a bank even though they might not be acting correctly against you.

          • I worked in BMN and Bankia the last 12 years. The banks normatives are regulated by the Bank of Spain and they could change the comissions every 3 months. Banks lobby is quite close to the politians in Spain so the legal structure are done for them to gey as much profits as they can.

  21. I’m stuck with Sabadell and their now 35 euro/qtr charges. They also charged me(no prior warning) a huge 300 euro to transfer 78K from my marbella account, to my lawyer in Spain….don’t get caught on that scam. As a non resident I have found it impossible to get an online account with any of the recommended banks. BBVA just ignores you after a certain online set up point(despite sending all documentation and visiting a BBVA bank branch), the others reject applications with a resident/non resident box early on. I have N26 and revolut accounts for normal use, but I’m not sure if these allow DD’s from Spain utilities. Any ideas?

    Reply

    • SEPA requires organisations to accept any European bank with a € IBAN account for DD collections.

      N26 now offer to do the switching for you.

      Reply

      • While it is true that SEPA rules REQUIRE spanish utilities and other suppliers to accept payments from other non-spanish banks by own experience has been that this is a mixed bag in practice. Had no trouble with internet and electricity suppliers and eventually water and rates got sorted out but our gas company (art of Repsol) have steadfastly refused to accept DD’s from my dutch bank. The bank of my water suppliers (not a local authority) have told them the same thing. In both cases I have to “push” the payments on receipt of bills. DD’s do not work with them!

        Reply

  22. N26 Bank

    I gather that there may be some interest in free banking with N26 in Spain.

    I find that it provides all I need, but you should be aware that there are no cheques and there is no way that you can credit your account with cheques or cash. All transactions are electronic, except they do provide you with a debit card which you can use, without charge, for purchases and up to five cash withdrawals per month at ATMs.

    I hope that helps.

    Reply

    • Judt to confirm Alonso , as seeing a few banks with just online checking account ie openbank . So when you say can not credit account with cash you mean can only credit it with transfer from say another bank electronically.

      Sorry but i can ask as well . Most of these banks are saying no fees / account maintenance , free debit card . When i read more i still think they are saying yes free card but if used ie in mercandona or to pay for goods there will be a Fee.

      So if anyone can clarify no maintenance fee / commissions means no fee on every transaction .

      Again sabadell say free withdrawels no charge at atm , yes no charge there but still o.65 inhouse when used . Not sure if thats illegal advertising !

      Reply

      • Sorry Elaine for taking so long to answer your questions: I hadn’t looked at this site for some time.

        N26 have no branches in Spain, so there’s nowhere to deposit cash or credit cheques into your account. It is online banking and you can transfer electronically in and out for free as often as you wish. There are no fees for 5 bank (that’s any bank in Europe) ATM withdrawals/month: but there are charges for those ATM cash withdrawals in excess of 5/month. There’s no fee for debit card purchases whether in Mercadona or anywhere else in Spain!

        It seems you can deposit cash and cheques into an Openbank account at any Santander branch in Spain, but I believe there are restrictions on the frequency of such deposits.

        Sabadell is another Spanish Bank!!!

        Reply

  23. Interesting comments.

    I’ve just opened an account with N26 using my Spanish address. It is a German bank so I have had difficulties getting my direct debits changed to them: not the bank’s fault, just a few ignorant yokels employed by Spanish organisations, I need to pay regularly, who are unaware of SEPA and European law on direct debits in the Euro zone!

    Never mind, the job is nearly done following threats of official complaints. Then no more non-resident bank charges and no more Spanish customs of suddenly freezing accounts without reason or notification!

    Thank you Germany for saving me for evermore from the Bankers of Spain.

    Reply

    • Excellent Alonso, very glad to see that you managed to do this. Some people here in Spain can be really inflexible and archaic with this stuff, and it takes a tough stance like that to get things moving.

      Reply

    • Hi Alonzo

      The only reason I opened a non-resident Spanish account is because Movistar said they only accept direct debits from Spanish Banks when I wanted home broadband and contract mobile phones for my partner and I. From your post you are suggesting that they are legally obligated to accept SEPA payments from any Eurozone bank account – is this correct? Thanks

      Reply

      • Absolutely. However its only a few years ago that the rules changed, and it takes Spanish companies and their staff a while to get up to date. My electricity company was the only one to really resist my request to change DD. I was going to ask for their complaints book and pursue a case against them, but then life’s too short so I switched electricity company instead! The spin-off is going to be a saving of about 50€/annum in electricity charges.

        Movistar might be more difficult: I don’t think they have any local offices, only agencies! So how do you register a complaint? Have you no other broadband provider you can switch to? As long as you’ve got broadband, you can set up your own VOIP telephone very cheaply (look up Sipgate for starters).

        Good luck.

        Reply

    • Hi Alonso,
      How did you manage to set up direct debits with your N26 account? I also live in Spain and currently have a Sabadell acct, which is a bit of a nightmare and the fees they charge are not justifyable.

      I was under the impression that I need a Spanish IBAN (ES) to have direct debits for utilities and insurance companies in Span.

      Thank you in advance.
      Juliya

      Reply

      • Juliya,

        You don’t need a Spanish IBAN. The companies you’re dealing with have to set up the DD’s: you simply need to give them your N26 IBAN and BIC. However you are likely to get some resistance through ignorance, particularly, if like me, you’re based in some backward rural area.

        I found that if you keep pushing , but remain friendly, they will have a go. The first hurdle is convincing them that you have indeed supplied the full and correct data: the German IBAN comprises 22 characters compared with the Spanish 24 character IBAN which they’re familiar with! But then they’re always pleasantly surprised when the ‘DE’ IBAN works on their systems.

        Good luck.

        Reply

  24. Just had notification from Sabadell, the 30 euro per quarter fee from June is going to be 35 euros per quarter

    Reply

  25. Also looking to move from Sabadell, 30 euros per quarter plus 65 cents for every transaction, not to mention the fees for non residents certificate. We have been customers for a few years and these charged keep increasing! There must be a cheaper alternative? Anyone have experience of bbva online account? Have sent message asking if it is available for non resident. I have also been looking at transfer wise borderless account but don’t think it allows dd’s. Any other ideas?

    Reply

    • hi i have just been checking our account, very remiss. Its not just non residents we are being charged 24 euros a quarter just for having a debit card. On top of this we are then charged 65 cents on every single transaction . I am going to I scream as its bad enough if it was card transactions but this is for direct debits the lot .
      I WOULD NOT RECOMMEND SABADELL AT ALL and hardly any english speaking staff in the branches

      Reply

      • I also do NOT recommend Sabadell for the same reason. My first charge was in December for 40 euros, my second in March for 95 and my final charge was 141 euros!! That’s over 276 euros within 9 months. I closed my account with them today.

        Reply

  26. what about Bankia, can you open an account withiout a NIE? perhaps using a passport number?

    Reply

    • For a resident account you need a NIE, the question is whether they offer accounts for non-residents. If you go to their site you can ask for a free callback, or just drop into any of their branches to ask.

      Reply

        • There are different types of NIEs/residency cards. I am referring to the NIE which has a date of residency on it.

          Reply

  27. Hi Jean and thanks for your very informative report.

    Like Richard above I have just arrived in Spain to work. My UK employer (I´m transferring to the Spanish subsidiary) has advised that I should remain as a UK resident (it´s a long tax story). However, I will get paid in Spain (hence I need a Spanish account) and I will do various activities such as renting an apartment, buying car etc. I also have a NIE card, rather than the paper version, from a previous employment for a Spanish company. I will also be paying taxes in Spain on income earned here (and then adjusted on my UK Self-assessment each year)

    Following your recomendation, I contacted ING Direct to know what they need in order to open an account (I can do it with Nomina as I am employed here) but was told that I cannot open an account with them unless I´m a resident in spain – do you, or any other correspondent on here, know if that is the case and if any of the other accounts you recomend don´t have that restriction?
    Many thanks
    Michael

    Reply

    • Hi Michael, you’re welcome.

      ING Direct do not open accounts for non-residents as far as I know, so that is in line with your experience. Last time I checked, Sabadell had that facility if you paid something extra. La Caixa as well if I remember correctly, but I’ve never done it myself.

      Reply

  28. Hi Jean

    I have opened a Sabadell account as a non-resident (I’m waiting for an interview for my residency application). Sabadell charge €30 quarterly for a non-resident account. Do any of your top 4 banks (other than Sabadell) charge this? This is extortionate and, frankly, to have to pay this to a bank for an account is reprehensible, so I want to change banks as soon as possible. Thanks.

    Reply

    • I wish I read all comments and this part where “Sabadell charge €30 quarterly for a non-resident account” earlier.

      Just looking at the information Sabadell gave me, it was hard to see that cost – and of course nobody said anything.

      120 euro per year for basically automatic payments of water, electricity, and tax is pretty steep.

      But with the Sabadell account, it seems easy to open an account with Bankia instead. No fees as far as I can see.

      Reply

  29. Very useful information. I am currently with BBVA but want better English speaking service and a good internet service. Never thought about having 2 accounts but that makes good sense, so I’ll try both ING and Self Bank and see which is best.

    Reply

  30. Thank you for doing all the research Jean. This is super helpful.
    Other than Sabadell, do you know if any other banks will let you open an account without an NIE?

    Thanks,
    Juliya

    Reply

  31. Jean:
    Very informative column.
    We’re thinking of purchasing some property in Spain, but the bank where we opened an account (Bankinter) says they’re going to charge .4% for making a deposit from outside Spain. Sounds almost criminal. Any advise on how to avoid this charge?
    Bill

    Reply

    • Yes that sounds very fishy, I know from my experience or that of close friends that Ing Direct, Bankia, Sabadell and Caixa don’t charge for deposits from outside Spain.

      Reply

  32. After 20 years here and a (ex) CAM and BBVA customer I just stayed on with Sabadell and closed my BBVA account, that may have been a mistake. Sabadell has been going through some changes over the last year or two with money saving (for the bank) in mind. The last time I had to go into my branch they were incredibly forceful about not going into the branch and using the online system. Also you really do over estimate the number of English speakers in Sabadell. Ex-CAM employees yes, but these are becoming fewer every day. Sabadell? No. They also seem to now be charging for just about everything they can. Which is the reason I came across you post. I am researching a new account. I should say in fairness that I did used to work for both the CAM and BBVA. But that said I really do see an incredible (and not good) change with Sabadell. Bankia is sounding like the bank of choice, ING is tempting but I did used to have a Deutsche account and it was sometimes unwelcome with the Spanish. But think you for all your work and dealing with banks is hard work sometimes.

    Reply

  33. Great information, thank yiu. As others, we were transferred to Sabadell from Lloyds/Halifax and are appalled at the seemingly regular increases in charges. Sabadell stopped sending us paper statements so as we aren’t registered for internet banking, we weren’t aware for quite some time how much we were being charged. Our Spanish bank account is there mainly just to pay for water, electric and council tax equivalent. We have now requested paper info and the latest info from them informs us that charges will now be 30 euros PER QUARTER! Also, I’m not sure what other charges are on top, other than they do charge us for the credit/debit card and it does cost us to transfer from the UK. All in all its costing us a fortune. We are retired and only visit our apartment 3 or 4 times a year and like the comfort of visiting branches. Do you have any advice for us?

    Reply

  35. Do you know whether the banks commission free do direct debits? We are with Sabadell, like Pat we were transitioned from Lloyds/Hailfax and went with the flow. However we do have 5 direct debits on the account as we are not resident here but come every 3 months for a month.

    Reply

    • Yes, direct debits are a basic feature of practically all accounts here in Spain. I haven’t encountered any banks which don’t do it.

      Reply

  36. When our bank was taken over by Sabadell we just carried on with our account with them!

    We realize now we should have gone into their dealings better, I am the prime account holder and my husband has a debit card on the account to.

    We have just been away on holiday for a month so not used the cards consequently we both have been charged 30€ each as a fine, we also have to pay 20€ a year each for the priviledge of having a debit card. They never informed us that we should pay in 700€ a month either to have a commission free account.

    Just thought you may be interested to hear this.

    Reply

    • Thanks Pat, I can understand how annoying such fines can be. As you mention, it’s very important to read contracts carefully and ask all questions necessary. To their credit, all the banks I visited have been very clear about their terms and gave me the time to study their contracts and ask many questions.

      As I mention in the article, both ING Direct and Bankia are alternatives that do not charge a monthly fee.

      Reply

  37. Hi Jean – thanks for writing this – as someone who’s just arrived in Spain (from UK) and looking for info – this is very helpful. I don’t have an NIE yet but went to speak to Sabadell today about opening an account.

    He gave me two options: an ‘Expansion Account’ and a ‘Key Account’.

    The Expansion account requires me to pay in a min of €700/month (as you mentioned) but he also said I would need to pay an annual ‘insurance’ fee of €40 (or transfer €10K to a savings account).

    He said this was a safe guard incase I left the country with my account in debt.

    Have you ever heard of that? As I’m currently studying rather than working I don’t have an employer.

    I’m happy to pay this if it’s a genuine requirment – but I wanted to check whether it’s the guy trying to sign me up for something that’s not actually needed -or whether it’s legit?

    Reply

    • You’re welcome Sam. I have only discussed the Expansion account with Sabadell, so I can’t comment on the Key account. When I had gone to the branch and also taken a look at the contract, there was no mention of an insurance fee. It could be something new that they introduced in recent months.

      I honestly don’t like these clauses, they just rub me the wrong way. Many banks nowadays act as if they are doing you a big favour in opening an account. While I think Sabadell is a good bank, the 700 euro a month clause had driven me to look to other alternatives, and I’m very happy with ING Direct.

      If you’re decided on Sabadell, I can suggest just going to another branch and asking the same questions, and you can thus verify if they mention anything about the insurance fee. Chances are that it is indeed a new requirement that they have, but that’s what I would do if I wanted to be 100% sure.

      Reply

  38. Hi Jean, thanks for the info!

    Just an addition for ING Direct. There is a step when it asks for an IBAN number and it has to be a spanish account with your name. It’s a procedure apparently to confirm your identification.
    It seems you can’t open it online as a first account.

    Reply

    • In that case I suggest opening a bank account with Bankia first. They don’t have this requirement. With that bank account open you can just deposit a token amount and proceed to apply with ING Direct. I prefer ING Direct to Bankia and having two bank accounts is always a nice bonus just in case something happens with one of them.

      Reply

  40. Hey Jean, great post.
    One question: was it easy for you to get the NIE? I’m an italian citizen, I’ve been there last summer and their requirements for a NIE were a bit confusing and not clear.

    Thanks.

    Reply

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Jean Galea

Online Entrepreneur. Global Citizen. Padel Player.
Founder of WP Mayor & WP RSS Aggregator.

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