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.