Banks in Spain

The Spanish banking system: key features

The Spanish banking system has two tiers, with a single institution at the top level. That institution is the Bank of Spain (Banco de España), which oversees all other financial organizations and regulates their activity.

At the next level are all the other Spanish banks. Financial services in the country can also be provided by credit cooperatives, various funds, and other organizations.

Until 2011, Spain had savings banks known as "cajas." They were later abolished and converted into ordinary banks (banco), though many kept the word "Caja" in their name. Many such organizations tell clients that, while they are formally banks, commercial activity is not their main purpose - their goal is not profit but helping people through useful financial services.

Spain's financial system went through a serious crisis in 2008. Many banks failed at the time, some organizations went through restructuring, and there were numerous mergers. So it is no surprise that the country now has relatively few financial institutions with a long history. That said, this is arguably a plus, since the institutions that survived the reform are solid ones operating in strict compliance with the law.

Factors that affect account opening for non-residents in Spain

Many foreign nationals have noticed that Spanish banks treat clients differently. What determines the outcome of an application?

First, it depends on the bank itself. National financial institutions are generally welcoming to non-residents (for example, CaixaBank, BBVA, Sabadell, Abanca, Banco Santander, and others). International banks, by contrast, tend to set higher requirements for foreign clients and applicants should be ready for thorough vetting when opening an account. Second, it depends on having the required documents - it is important to prepare for the bank visit and find out in advance the possible list of documents and all procedural requirements. Third, it depends on how you apply - an online application or an in-person visit. A personal visit significantly raises the chances that an account-opening application will be accepted for processing. Another reliable way to get quality service is to go accompanied by someone fluent in Spanish. This helps avoid misunderstandings and ensures you correctly understand what bank staff are telling you.

Banks in Spain that readily open accounts for foreigners: top 5

Here is a list of the most stable and foreigner-friendly banks, compiled based on international rankings. Among the top five:

• CaixaBank - part of one of Spain's largest banking groups, named the best financial institution in Western Europe in 2021, with a well-developed network of branches and ATMs;
• BBVA - this bank also has numerous branches and ATMs throughout Spain, with many services available remotely;
• Sabadell - the advantages of this institution include an English-language menu at its numerous ATMs, low service fees, and no fees for clients under 25;
• ING - a Dutch bank that is extremely accommodating to non-residents and offers many online services, though it has relatively few offline branches;
• Abanca - can boast an extremely developed network of offices, the result of absorbing several banks, and does not charge for account maintenance.

How to open a bank account?

To open an account in Spain, you need to submit an application to your chosen bank along with the following set of documents:

• passport;
• NIE - the foreigner identification number issued by the police;
• proof of income;
• a certificate confirming official employment, stating your position and length of service at that job.

All documents must be translated into Spanish and apostilled.

Additional documents may be required, and the bank employee will inform you if that is the case.

The Spanish banking system: pros and cons

Banks in Spain have many undeniable advantages, including:

• the safety of deposits and financial transactions;
• the ability to transfer money within the EU without fees;
• well-organized online banking that lets you set up automatic payments - for a mortgage or utility bills, for example.

The country's banking system is generally welcoming toward foreigners. Problems for non-residents tend to arise only at the level of individual branches.

Notable drawbacks:

• Spanish-only interfaces on the website, in the app, and at ATMs, making it hard to open an account fully remotely;
• it is often only possible to deposit cash onto a card at the branch that opened the account;
• non-residents must gather a large package of documents to open an account.

Clients may also be asked for documents proving the origin of funds, even for a relatively small deposit - usually amounts up to €5,000.