Depending on region to region, payments can also be made through foreign bank accounts, but regular Spanish companies and some utility companies do not all accept a direct debit from a foreign bank account. Incidentally, with the introduction of the IBAN bank account number, this is less of an issue. With a so-called ‘certificado del banco’ (=bank letter drawn up in English or Spanish, showing the IBAN number and corresponding account holder(s)), most companies will accept a direct debit. However, sometimes it is still advisable to have a Spanish bank account, as there are always exceptions to the rule. Beyond that, a Spanish bank account can also be useful to keep the expenses for the second home separate from the first home.

WHAT DOCUMENTS DO YOU NEED TO OPEN A BANK ACCOUNT?

• ID card
• NIE number
• A document proving your address in Spain: this can be your purchase deed, a utility bill such as electricity or gas, etc.
• A document proving your employment status, such as an employment contract/pay slip, pension slip, etc.
• Tax return (BE/NL) from the previous year

It is practical to choose a bank where they speak Dutch and/or English. In case language is a barrier, the documents must be translated by a sworn translator.

For residents, the bank usually has fewer requirements and there is more flexibility when opening the account, including lower costs, but this depends on the services and products contracted with the bank. It also depends on which bank you want to open an account with.

BANK FEES AND COMMISSIONS

The costs of a bank account in Spain are significantly higher than in Belgium and the Netherlands. The costs can vary greatly from bank to bank. So it is advisable to carefully consider what each bank has to offer before choosing a bank. Also, take into account that the costs and commissions charged by a bank will vary depending on your personal circumstances.

Current accounts are usually cheaper than other types of accounts. When you receive a fixed monthly amount (such as part of your salary, pension, or regular contribution from your account in Belgium or the Netherlands), you can usually enjoy favorable rates and commissions. The same applies when taking out a home insurance or an investment portfolio with the bank.

Also, be aware of the commissions that banks charge for cash withdrawals at ATMs that do not belong to the bank itself and commissions for certain transactions such as bank cheques or transfers.

DECLARATION OF FOREIGN BANK ACCOUNTS: reporting obligation

Something that is rarely mentioned is the fact that you are legally obliged to register your Spanish bank account in your country of residence.

You can register your Spanish bank account online in most cases.

In addition, you have to report in your annual personal income tax return that you hold a foreign bank account.