Paying Bills & Banking In Spain

If you’re moving to Spain, here’s our complete guide with everything you need to know to to get your finances, fine tuned.

Banking

You’re not legally required to have a Spanish bank account to be a resident, but in some instances it can be easier setting up payments through a localised bank. Most Spanish bank accounts aren’t free and while costs are low, there are charges for basic services you might not be used to in the UK.

Some of the major Spanish banks offer non-resident accounts, specifically for foreign residents and have English speaking telephone banking services. Smaller branches do not always have English speaking staff.

How To Open A Bank Account

Accounts usually take 1 – 5 days to set up and cards and documents typically arrive within 2 weeks.

To open an account in Spain you’ll be asked to provide;

• Photo ID
• NIE number*
• Proof of address
• Proof of employment (employment contract, self-employment documentation, student card)

Non-Spanish documents may need to be officially translated and/or authenticated with an Apostille stamp. An Apostille is an official government certificate added to documents being presented in a foreign country.

* Spanish citizens and foreign residents are required by law to have an identification number, or Número de Identificación de Extranjero. There are a number of online services that provide help to Apply for an NIE.

Paying Bills

The typical bills for Spanish homes are;

• Local property tax
• Rubbish collection tax
• Community fees (privately shared land only)
• Electricity & gas
• Water
• Telephone/broadband

Property Tax & Rubbish Collection Tax

Once you’ve signed the deed on your Spanish property, the Public Notary will inform your local town hall that you are now the legal owner. The process then allocates the Local Property Tax (I.B.I.) for the property in your name and issues the first bill. The process can take several months but you can continue to live in the property and use public services during this time. Notifications will be sent direct to the property or digitally via email.

Once the transfer is complete, you can set up payment via direct debits for property tax and rubbish collection.

Community Fees

Community fees are applicable for gated/private communities, apartments, etc. These fees are set by the management company, covering things like general maintenance, landscaping, emergency repairs. These will be stipulated in the contract when buying your property.

Community fees are usually paid by direct debit.

Electricity & Gas

There are two types of provider in Spain, the open market (mercado libre) or the regulated market (mercado regulado). Most energy providers in Spain typically operate in both markets but are required to operate under a different name in each market.

Gas is not common, most Spanish homes use only electricity and many towns don’t have gas networks, those with gas must arrange bottled deliveries. Home owners are legally required to check gas appliances for safety once a year.

The most common form of paying fuel bills in Spain is direct debit.

Some Spanish fuel companies don’t enjoy a great reputation for customer service and one of the chief complaints is billing. To avoid overpayment, check your bills regularly.

Water

Water bills are normally issued monthly or quarterly. Similar to the UK, there is no open market, each area/city has one water provider which will be either privately owned, state run or a mix of the two. Water rates can vary widely from region to region. Water rates are also subject to change due to demand and availability (typically more expensive during the drier months).

Most providers require direct debit payments to be set up when opening an account.

Telephone & Broadband

There are a number of landline and broadband providers in Spain. Like UK providers, not all companies operate in all regions. Prices vary, so shop around for the best deals.

Services require direct debit payments to be set up when opening an account.

Creating An Account

To open an account for most utilities you’ll need to provide;

• Photo ID
• Your NIE number
• Your bank details
• Proof of address

Some utilities (particularly state services) require payment through a Spanish bank account. This is changing, but in many cases having a Spanish account can make things a little easier.

How To Pay

Direct Debit

Referred to as SEPA debit in Spain, direct debit is by far the most common way to pay bills. Many services including utilities won’t allow you to open an account without setting up a direct debit.

Online Banking

Many foreign residents living in Spain prefer to use an international bank or bank from their country of origin. However, it’s worth noting that some Spanish companies will ask for payment via a Spanish bank. Digital banking is an easy way to set up direct debits and monitor transactions (some Spanish service providers don’t have the best reputation for billing accuracy or customer service, so keep an eye on those bills).

Cheques

Cheques are rarely used in Spain and many companies, services and individuals won’t accept them. Where cheques are accepted, most banks charge a percentage fee for processing the transaction, which means for larger cheques, the commission can be considerable.

Read more…

Spain Removals

Guide to Paying Bills & Banking in Spain

Applying for Spanish Citizenship

All the above information was correct at the time of writing. Spanish legislation is liable to change and we recommend you check with the correct Spanish authorities and service providers for the latest details.