Spanish Banks

There are many banks to choose from in Spain. The banking system which is very modern and well established is controlled by the Banco de España (Bank of Spain). The central office is located in Madrid and many branches are located in the Spanish provincial capitals.

The reason why there are a large number of banks in Spain is due to the fact that any European Union bank is allowed to open branches in Spain. In general, The Hacienda (The Ministry of Finance) oversees the financial system of Spain, the same way as the Banco de España directly oversees the banks of Spain.

Most big towns have one or two branches of the main banks, whereas in the cities there are more branches giving customers a larger choice of where to bank. Small towns tend to have a limited amount of banks – or just one if you are lucky.

Banks are generally open Monday to Friday from 9.00 am (or earlier)  to 2.00 pm and Saturday 9.00 am to 1.00 pm. In summer they may close slightly earlier. You can always rely on the ATMs that are now scattered around most towns and cities in Spain.

Spanish banks are divided into Clearing Banks and Savings Banks.

At one time there were numerous clearing banks, however this has changed in recent years. The reason for this is because a lot of banks were bought-out by the larger banks or merged with another bank. For example, The BBVA (Banco Bilbao Vizcaya Argentaria) is a result of two major banks merging. The BSCH (Banco de Santander y Central Hispano) was created by the merger of the Santander, Central and Hispano banks. Some other important Spanish banks are the Banco Atlántico, Banco de Andalucía, and Banco Zaragozano.

Savings banks are called “cajas de ahorro” and are quite common. They tend to be provincial or regional, however the Caja Madrid and Catalan La Caixa are found in most cities and towns. These types of banks often represent charitable institutions, as they invest some of their profits in social/cultural associations.The most common saving banks in Andalucia are UniCaja (Malaga), Caja Mar, Caja Rural, Caja Sur, La General (Granada), El Monte (Sevilla and Cordoba) and Caja San Fernando (Cadiz).

Most banks offer online banking facilities and the Spanish are becoming more and more relaxed and confident using it. By logging into their business or personal accounts on a daily basis they can carry out their online banking transations. It is often the case that Banks in Spain are guilty of long queues and this is another reason why on-line banking is a positive step forward.

Because of the large number of Spanish banks it may be difficult to make up ones’ mind where to open a bank account. Most people take some factors into account such as location, whether the staff can speak English, bank charges and transfer fees. To open a bank account in Spain all potential clients must be over 18 and be able to provide proof of identity (e.g. a valid passport). Clients who do not have an NIE and come from a foreign country are considered a non-resident. According to the regulations of the Bank of Spain, non-residents can hold bank accounts in euros or in foreign currency but must have a valid passport or the ID number of their country of origin. They also have to justify their non-resident status when opening the account, or within 15 days. If the non-resident acquires resident status after opening the account, he or she must notify the bank and give them the NIE. The fees paid by a resident account are cheaper than the ones by non-resident one.

Residents must provide their Residence Card and NIE, “número de identificacion de extranjeros” (foreigner’s identification number) – all owners of foreign property need to have this number. Current accounts or savings accounts clients are given an ATM/ debit card and a cheque book. However, cheques are not accepted – in general terms - as a way of payment in businesses and shops. Residents can open an account in euros or in a foreign currency (depending on what the bank offers).

Paying utilities and rent is typically done by granting the ability to debit your bank account. Cheques are rarely used. A Landlord may ask for the rent in cash this is usually so they don’t have to declare the rent on their income tax form. Undeclared money is called “dinero negro” or “dinero en B”

Spaniards tend to prefer to get a mortgage with their local savings bank, although aggressive marketing from the big banks over the past 10 years has meant that they have a much bigger share of the mortgage market than they used to. Most banks will offer mortgages to non-clients. However the mortgage terms offered to a client are better than those offered to non-clients. All clients must be over the age of 25 and have an employment contract (fixed) or be self-employed for 3 years or more. The actual amount of money that will be lent is dependent on residential status and income. This can vary from bank to bank so it is worth finding out how much can be borrowed and for how long.

The following information will help you understand the long number that makes up your account number. This is useful to know when you are transferring money from abroad. The first 4 digits of your International Bank Code is the Bank Number, the next 4 are the Branch Number, the following 2 are the Control Number and the remaining 10 are the Account Number.