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Open a Bank Account in Spain
Updated on Tuesday 28th June 2022 Rate this article
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Foreigners are allowed to open a bank account in Spain at a commercial bank of their choosing. This right is granted to natural persons relocating here for a longer period of time, but it is also available for persons who want to open a company in Spain. It must be noted that businesses in the process of registration in Spain are legally required to open a corporate bank account, used for depositing the minimum share capital, but also for the company’s transactions.
Our team of specialists in company formation in Spain can present the process foreigners must follow when opening a bank account. With regards to the registration of a corporate bank account, our consultants can present the list of documents investors must submit, as well as other criteria that they should satisfy in this case.
| Quick Facts | |
|---|---|
| Who can open a bank account in Spain? | Both residents and non-residents in Spain |
| Formalities to open a bank account in Spain | - work and residence permit, a valid ID, proof of employment for natural persons - company documents for legal entities |
| Required documents | - Articles of Association and Certificate of Incorporation for companies, - a valid passport in the case of natural persons |
| Types of bank accounts | - saving accounts, - deposit accounts, - debit and credit accounts, - digital accounts |
| Debit or credit card issued with a bank account | Yes |
| Cash deposit to open a bank account | A small deposit might be solicited by the selected bank. |
| Fees to open a bank account in Spain | Some banks impose fees for opening accounts. |
| Banking services offered (YES/NO) | Yes |
| Possibility to open a bank account online (YES/NO) | Yes |
| Possibility to pay online the utility bills (YES/NO) | Yes |
| Overseas money transfers accepted (YES/NO) | Yes |
| Formalities for student bank account | - letter of approval from the University, - specific bank forms, - residence permit, - proof of domicile |
| Loans option available (YES/NO) | Yes |
| Offshore bank accounts | Yes, under certain conditions |
| We provide support for opening a bank account in Spain (YES/NO) | Yes |
The corporate bank account, set up at any commercial bank in Spain
In this part of the article, we will focus on the steps investors must take when opening a corporate bank account. This process is not very complex, but it does involves a set of documents and this is why we recommend foreigners to request full representation from our team of consultants in Spanish company formation, who can provide assistance not only during the process of setting up a bank account, but also during other incorporation steps.
One of the basic steps investors should take is to decide on the commercial bank where they want to open their bank account. There are numerous options in this sense, the Spanish market being represented by privately held banks, but also by state held banks. Financial institutions operating at a global level are also present here and they operate through subsidiaries or branch offices.
As a general rule, most of the businesses prefer to set up their bank accounts at privately held banks, as the state banking institutions are oriented to personal savings or to credit schemes. Foreign businessmen who want to open a company in Spain have to be aware that all banks operating here are allowed to charge fees for their services, including for ATM withdrawals.
The yearly maintenance of the bank account is also charged with a fee, depending on type of account, but the maximum rates that commercial banks can charge are regulated by the Bank of Spain. Investors must also expect to pay fees for transfers registered from the respective accounts.
In 2022, you should expect to pay around EUR 15 - EUR 20 per year charged as a fee for your current account, but the fee system can vary based on the bank that you selected. If you have a debit card in Spain in 2022, you may have to a pay a fee of EUR 12 to EUR 15 per year, while for a credit card, a fee of EUR 30 may apply. You also have the possibility of sending money abroad from your account and you must know that this operation can be charged with a fee of EUR 3 to EUR 15 for sums with a maximum value of EUR 50,000.
Documents for opening a Spanish corporate bank account in 2022
When opening a bank account in Spain, businessmen will have to provide their personal identification documents, but also the company’s statutory documents, which vary based on the business form selected for incorporation (limited liability companies are incorporated based on the articles of association, while partnerships are set up based on a partnership agreement). The company’s representatives should also provide additional documents that were issued prior to opening of the bank account.
For example, the procedure for company formation in Spain starts by applying for a trading name, applying for a foreigner tax identification number, registering the company with the Mercantile Registry, obtaining the company’s tax identification number, preparing the statutory documents, these being the basic incorporation procedures. After these are finalized, the investors can proceed to opening a bank account in Spain.
When opening a bank account in Spain for a newly-founded business, the first step that the investors must conclude once the account becomes operational, is to deposit the required capital, which varies depending on the selected legal entity. For example, in the case of a limited liability company, the minimum share capital is of EUR 3,000. Once the investors have deposited the required capital, the bank will issue a certificate which states that the required capital was deposited in the account.
This is a necessary step during the procedure of company registration in Spain, as after the minimum share capital is deposited, the investors will need to handle other incorporation steps, where the certificate issued by the bank will be required. For instance, after this is completed, the company’s representatives must sign the public deed of incorporation, a step that is performed with the assistance of a public notary in Spain.
When this document is drafted and signed, the public notary will require from the company’s founders specific documents, such as company’s incorporation certificate, the documents issued by the tax institutions, but also the certificate issued by the bank where the account was set up.
In the case in which one wants to open a company in Spain registered as a limited liability company, the minimum share capital must be deposited in full once the bank account is set up. However, in the case of joint stock company, which needs a minimum share capital of EUR 60,000, when opening a bank account in Spain, the investors are required to deposit only 25% of the minimum capital.
The rest of the capital can be added later, but of course, if the investors have the total sum of money necessary, they can make a payment in full as well. Our team of consultants in company registration in Spain can offer more details on other incorporation aspects applicable to this company type.
You can also rely on our team of specialists for in-depth legal assistance on how to start the process of opening a bank account in Spain in the case of those who want to operate a business through a sole trader (it is necessary to know that the Spanish law distinguishes between two types of sole traders, with different legal requirements).
What is the structure of the banking sector in Spain?
As we presented earlier, the banking industry in Spain is represented by both private and state financial institutions. Most of the banks operating in Spain are private banks, which are usually preferred by both local and foreign investors for opening a bank account or for applying for credit. Currently, the industry is characterized by the following traits:
- • in 2018, the Spanish banking industry was represented by 12 major banking groups;
- • these 12 banking groups accounted for more than 90% of the entire banking industry;
- • they were divided in 3 main categories – 62 cooperative banks, 52 private banks and 2 savings banks;
- • the profitability of the banks operating in Spain increased, from 7.05% in December 2017, to 8.37% in December 2018;
- • the value of credits granted by banks also increased (mainly addressed to small and medium-sized companies and households) from EUR 272 billion in 2017 to EUR 293 billion in 2018;
- • deposits expanded as well, from EUR 1,018 billion in 2017 to EUR 1,061 billion in 2018.
How can foreigners open a bank account in Spain?
The right of opening a bank account in Spain is available for both natural persons and legal entities, who can be local residents or foreigners. A natural person who is a non-resident in Spain (the residency is defined under the Article 9 of the Law 35/2006 of 28 November 2006) is entitled to open a bank account in his or her name at a local commercial bank.
It must be noted that foreign natural persons can choose any of the commercial banks operating in Spain and, as a general rule, one must expect to provide the following documents for this action: the document attesting the applicant’s identity, a document showing the persons’ professional status (employed, self-employed, retired, student, etc.) and a document showing the person’s address (here, any type of document is allowed, including utility bills).
However, foreigners must also be aware that some banks may request a certificate of non-residence, a document which can be obtained through the Spanish consulate or the Spanish police office closer to the place where the foreigner resides. Once the bank account becomes operational, one should know that it provides the same benefits as the one available for locals, and there aren’t any differences in the taxes or fees associated with the usage of the account.
Foreigners also have the possibility of opening a bank account in Spain in other currencies but, regardless of the currency selected, local banks will require that the documents submitted by the applicant will be translated into Spanish. Our consultants in company registration in Spain can provide more information to foreign natural persons who want to set up an account in their own name here.
As an individual who wants to have a Spanish bank account, there are several options in this sense. One can open a current account, which represents the standard type of bank account available here; foreigners can set up a savings account, which is created for the purpose of increasing the value of the account by adding a small percentage in the form of interest to the sum deposited in the account.
Individuals also have the possibility of opening a bank account in Spain as a deposit account, created to secure the money deposited in the respective account and the salary account, a type of account designed solely as a way through which an employer can pay the employee’s salary.
Foreigners must know that they can also set up an online bank account and that the bank accounts available for natural persons are divided based on the residency of the applicant (Spanish resident or foreign resident), in which case, different documents will be required. Those who want to open a personal bank account in 2022 or a bank account for a newly founded business, are invited to contact our team of specialists in company registration in Spain.
Meet us in Madrid and Barcelona
Call us now at +34 938 07 40 56 to set up an appointment with Federico Richardson, one of our specialists in company formation in Madrid and Barcelona. Alternatively you can incorporate your company without traveling to Spain.
As a Lexidy Law Boutique SLP client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Spain.
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