Most of the large Spanish banks, such as Sabadell, Caixabank, or BBVA, will open bank accounts for foreigners, including non-resident accounts that can be opened regardless of your residency status but come with higher fees. But if you don’t want to go the traditional bank route, you have some alternative options, not only for bank accounts but also for money transfer services.
Online banks – remember, you can’t go into a physical branch with these!
Note that of the big banks in Spain now have “free” online-only options, however in most cases you need to be a resident to open this type of account. Among them, popular options in expat forums are Santander’s OpenBank and BankInter’s Evo Banco online brands.
There are also online banks outside of Spain that offer service in English and operate in Spain. Some popular options are:
N26 – This is an online only bank based in Germany. If you can show residency in Spain (with a TIE card) you can open an account with N26 with a Spanish IBAN number. This allows you to pay bills and do business in Spain, and the account comes with a debit card. However, many in the SpainGuru community have noted that N26 is not on the list of approved financial institutions accepted by government entities. So at least as of mid-2021, it wasn’t possible to pay Spanish taxes or social security directly from an N26 account (it is possible to pay in cash at a bank that is recognized by these government entities, even if you’re not a customer of that bank – but requires going to a branch or an ATM in person). N26 has a build in-integration with Wise, making it easy to transfer money from other currencies into your account.
Wise borderless account – Wise now has the option to hold a balance in multiple currencies, and thanks to local bank partners in many countries they offer bank account numbers for each currency. For some people, it may be a viable alternative to a normal bank account. However, there are a few disadvantages. First, for a euro balance, the IBAN is based in Belgium no matter where you are in Europe. Technically, any European IBAN should be accepted anywhere you need to make payments in Spain (or any other European country), however, having a Spanish IBAN is a safer bet.
Revolut – Another popular option, especially among British expats in Spain. I don’t have direct experience with this service, but it is similar to Wise in terms of offering low cost international transfers, and allowing you to hold balances in different currencies. It was not a popular option for Americans because only recently they started offering service in the US.
Bunq – Bunq is a Dutch digital bank founded in 2012 that recently started offering Spanish IBAN (September 2021). Bunq is a leading fintech European startup with the Unicorn status (valued at more than $1bn) that is popular in northern Europe and is starting to gain popularity in southern European countries.
Prepaid accounts
Correos Prepago – (Service suggested by Youtubers She saves, He invests, They travel) For anyone who doesn’t have a Foreigner’s Identity Card (TIE) that needs a bank account and is already here in Spain. Basically, it’s a debit card that you can get from Correos (post office) for 6 euros (you only need a passport). It’s rechargeable for 1.5 euros at any Correos office and you can opt for having an IBAN for 2 euros every month. It has an in app cancellation in case you don’t need it anymore and it can be hooked up to TransferWise in case you need to send any of your money to another bank account out of the country. It’s also available to be used on Apple Pay.
Apps and services for transferring money abroad
When it comes to transferring money into your foreign bank account, I recommend Wise for major currencies but might consider Smallworld, Remitly or World Remit if you are remitting to less commonly traded currencies (pesos, etc.). For larger transfers (above $10,000), it’s also worth comparing with Caxton and XE.com.
One option we haven’t tested, but appears to be a cheaper version of Wise, is an app called TransferGo, and may also make sense for small transfers (especially if you are not in a rush – as they offer lower cost exchanges for slower delivery times). Also, a Canadian I know recommends
As mentioned before, Uphold allows you to conveniently make international transfers, as well as buy cryptocurrencies including Bitcoin and Ethereum, and invest in US equities and precious metals.
To learn more about additional financial services relevant to expats, check out our Resources page.
Using American credit and debit cards abroad
(Section written by Youtubers She saves, He invests, They travel)
Depending on the length of your time abroad, you might also consider continuing using your home country accounts and cards. However, make sure to check what exchange rates and fees are charged for foreign transactions.
For Americans, some popular options because of their low foreign transaction rates are:
- Capital One 360 Checking Account and a Capital One 360 or Venture One Credit Card
- Charles Schwab checking account and debit card
- Chase Sapphire Preferred or Reserve credit card
