Spain Explained

Foreign bank account: can expats in Spain use it to pay bills?

Managing finances as an expat in Spain can seem daunting, especially when dealing with local banking requirements and utilities. A common question among expats is whether it’s possible to pay bills directly from a foreign bank account. Here’s what you need to know.

Utility bills and a foreign bank account

Expats in Spain can use a foreign bank account to pay certain bills, but there are limitations. Many utility companies in Spain (e.g., electricity, water, and gas providers) require a local Spanish bank account for direct debit payments. This is largely due to the SEPA (Single Euro Payments Area) system, which facilitates transactions across European countries but may not always align with local company policies. While some companies may accept payments from foreign accounts, this is not universally guaranteed.

Challenges with Using Foreign Accounts

  1. Direct Debit (domiciliación bancaria): Spanish service providers often mandate that payments be made through direct debit, which is easier and faster with a local account.
  2. Fees and delays: international transactions from foreign accounts may incur additional fees or take longer to process.
  3. Compatibility issues: some providers are not equipped to process payments from non-Spanish IBANs, even within the SEPA zone.

Recommendations for expats in Spain

  • Open a Non-Resident Spanish bank account: this is often the easiest solution for managing utilities and other recurring payments. Non-residents can apply with their passport and a “Certificado de no Residencia” (certificate of non-residency).
  • Research flexible providers: some international banks or fintech companies (e.g., Wise, Revolut) offer accounts that support direct debits in euros, which might be accepted by Spanish utility companies.
  • Check with your service providers: always confirm whether they accept payments from foreign bank accounts before setting up services.

In summary, while using a foreign bank account to pay bills in Spain is technically possible, having a local account is often more practical. For a smooth experience, consider opening a Spanish bank account tailored to expat needs or leveraging modern digital banking solutions.

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2 comments

Colin Corbishley

31 December, 2024 5:40 pm

Why don’t you research properly and give your findings, I used Starling bank with a euro account, I had direct debits with all the utilities including suma and could even transfer for my non resident tax, no complaints from any off them and no charges as the payments are euros, also free banking from starling, not like the Spanish banks that want to charge a fortune with very little help.

Oscar Paoli

21 January, 2025 3:22 pm

Thank you for sharing your experience with Starling Bank and its euro account. It’s great to hear that you’ve found a cost-effective and efficient solution for managing your utilities, non-resident taxes, and other payments in Spain.

Your feedback highlights a valid point about the differences in banking practices between UK-based and Spanish banks. Many people find the fees and service limitations of Spanish banks frustrating, so it’s good to know that Starling Bank offers a viable alternative without additional charges for euro payments.

I’ll look into the features and compatibility of Starling Bank’s euro account with different financial scenarios here in Spain, as it could be a helpful recommendation for others looking to simplify their banking needs. Your insights are much appreciated and will help inform further research on this topic.

Thank you again for your input! If there’s anything else you’d like to share or discuss, I’d be happy to hear from you.