Why Is Free Banking in Spain Not Actually "Free"?
When purchasing a property in Spain, one of the most important things you’ll need to do is open a bank account. But, as an expat or non-resident, working out which bank to go for and what charges you can expect to pay, can be very tricky. Even when an account is marketed as being free, it very rarely is in Spain unless you have a mortgage with a Spanish bank.
So, what is it that you need to know about banks in Spain? How can you spot the ones that are going to charge you extra fees? And what else is important when choosing the correct bank for you?
We’re going to take you through everything you need to know about banks and bank fees in Spain, so you can make the correct choice for you and your money.
The Banking System in Spain
In Spain, there are several different types of banks to choose from. These include state-owned, private, cooperatives, international and only mobile banks. Whichever one you choose, the banking system will be fully integrated with the international financial market.
Before the 2008 financial housing crisis, there were many more banks to choose from in Spain. However afterwards, many of the smaller banks merged with other ones to become more financially secure. Some regional banks even closed, leaving the bigger ones to take over across the country.
The Banco de España (Bank of Spain) is responsible for regulating banks in Spain and acting as the country's central banking authority.
Commonly Known Banks in Spain
There are several large banks in Spain and you’ll see branches of them all over the country.
Some of the biggest ones are:
● Caixabank
● BBVA
● Banco Santander
● Banco Sabadell
● Bankia
● Unicaja Banco
There are also lots of regional banks in Spain which are called cajas. These tend to be much smaller than the more common banks and there may be only one branch in a larger city. In some cajas, it’s unlikely that they’ll have English-speaking workers and the services are less likely to be tailored to expat and non-resident needs.
Banking Services in Spain (And Why Free Banking Isn’t Necessarily Free)
Banks in Spain offer a wide range of services and types of bank accounts. Some of the services are only available to residents of Spain, whereas others are available to expats and homeowners too. The services may claim to be free but it’s always important to read the little print.
Mortgages: Mortgages can be tricky to come by for non-residents and you’ll probably have to shop around different banks before you find one that works for you.
Current Accounts: Almost all banks offer accounts that you can use for daily money handling and transfers.
Saving Accounts: Some banks offer special savings accounts. They may also offer pension plans or investment opportunities.
Insurance: Many banks offer insurance. In fact, if you take out a mortgage with a bank, then you might have to take out property insurance with them – at least for the first year. They may also offer life insurance and health insurance.
Online and Mobile Banking: Most people expect online and mobile banking nowadays, so most banks offer these services. Banking apps can make transferring money and paying much easier and quicker.
Special Services for Foreigners: Some banks offer specific help with international money transfers or setting up non-resident accounts. They will often also have English-speaking workers to help.
Bank Fees in Spain
If you open a regular current account in Spain, in all likelihood, you’ll be charged for the privilege. Sabadell, Santander and Unicaja all charge 240€ in maintenance and yearly Spanish bank fees. On top of that, you’ll probably be charged around 20€ for having a credit card and up to €30 for a debit card. If you don’t spend a certain amount per month on your credit or debit card, you may also incur extra fees which can really rack up over time.
International bank transfers (non-EU) can be another concern for expats in Spain. Transferring money from other countries and in other currencies can cost you up to 35€ per transfer. If you need to regularly transfer money, for example from a pension, you could be losing hundreds a year simply in transfer costs.
Really, it all boils down to the fact that Spanish banks don’t make it very clear as to which fees you can expect to incur. Complicated wording, plus the language barrier can make it very difficult to make head or tail of what you need to do with your current account to avoid paying extra fees.
You will however often qualify for free banking, or pay less, if you purchase bank sold products, such as insurance. Just keep in mind that bank sold products often are priced higher than if you buy the same products from someone else.
What Makes Bueno Different?
We know exactly how difficult it can be to set up a bank account in Spain, especially as a foreigner. All the paperwork and trying to navigate the language makes it all the more demanding. Which is why Bueno is different.
No more hidden fees. No more complicated forms. A Bueno current account is very easy to set up and you’ll have a Spanish IBAN from which you can manage all your daily and property-related payments. We pride ourselves on offering top-level customer service in 7 languages so we can be there every step of the way to help you with your financial and property needs.
We’re also very transparent when it comes to pricing. It costs just 9.90€ per month or 99€ per year to have full access to your Buneo account and all the benefits associated with it via the web or app. There are no hidden fees so you know exactly what you’re paying and when. We’ve also partnered with Currencies Direct to offer you the best rates with excellent customer service when transferring money between accounts.
Your account is fully licensed by the Banco de España as an electronic money institution (EMI) and all your deposits are held in segregated accounts with traditional and regulated banks, so even if Bueno is not licensed as a bank, you know your money is always safe. The accounts of course come with the same functionality as traditional bank account.
Time to Open a Bueno Account?
If you’re fed up of paying extra and hidden fees with your current bank, then it might be time to make the change to Bueno. Our multi-lingual team will be happy to offer you personalized and local knowledge to help you manage your finances and property whether you’re in Spain or overseas. Get in contact with the team at Bueno to see how you can save money on your current account and transactions.