Banks are barely out of the headlines across Europe at the moment, thanks to the lingering debt crisis in the Eurozone, but what is it like to be a customer with a bank in a Euro country, such as Spain?
Article written by The Overseas Guides Company
If you’re on the verge of buying a property in Spain or relocating there, you’ll need to open a local bank account, so to help prepare you this week Sally Veall, an expat in the Costa Brava and author of the SpainBuyingGuide.com, talks about her own experience of banking..
Perhaps little else is as worrying as where to place your money when you plan to move abroad. Currently, with many banks in the Eurozone having to be bailed out, the decision to use one bank over another is all the more important. Spain has its own banking problem due to bad debts and mortgages unpaid, so where should you open an account?
Until very recently there were far more banks and “cajas” (savings banks, a bit like building societies) in Spain than in Britain, many being small, local financial institutions. Unfortunately, the cajas lent more money than they could sustain and subsequently several were in serious trouble and had to merge. The merged bank then collapsed. The Spanish government has introduced very strict new regulations for banks and the few remaining cajas. Ultimately, it is likely that the main five will emerge as the strongest and thus, are where the majority of people choose to bank.
As an expat coming to Spain, your own UK bank may have a branch in the region where you will live. HSBC for example has branches in most major cities. Barclays also has a presence in Spain, but is Barclays Spain so it is actually a Spanish company as is Deutsche Bank. The main Spanish banks are Santander, BBVA, Banco Popular, Banc Sabadell and Caixabank and these list expats from all over the world amongst their customers. Most branches will have at least one person who speaks English and in tourist areas, several. Some will provide all documentation in English and you will find that all offer on-line banking, some also in English.
Most bank accounts carry a charge in Spain of around €20 (approx. £16) every three months, however there are accounts available which offer free banking subject to certain conditions such as a regular transfer of funds of a set amount into the account. This can be very useful if you expect to have money sent from the UK to cover regular outgoings and expenses. Other types of account offer cash back on money spent. There are special accounts for pensioners too. Make sure you investigate in order to get the best deal for your needs.
Unfortunately, at present obtaining a mortgage is extremely difficult in Spain. Small overdrafts can be arranged with your bank but it is imperative to speak to them before your account goes into the red. As with banking in any country, it is a good idea to get to know the manager and other personnel in your local branch. You will usually find there are members of staff who act like personal bankers and to whom you can address your problems directly. Building a good relationship with them pays dividends.
Some banks, such as Banc Sabadell, have apps for iPhone, iPad and Android so you can do your banking, check statements and request transfers on the move. However this service may not yet be available in English at all banks.
If you plan to open a small business in Spain, your local bank becomes even more important. Most large banks offer specialist business services and advice with helpful business accounts, but you will need to go round to several to find the one which offers you the best service. In fact, I would advise everyone to visit two or three banks before deciding where to deposit your funds.
In Spain, cheques are hardly ever used. When you open an account you will be offered a debit and a credit card linked to the account. You can ask for a cheque book, but it really isn’t necessary as transfer of funds bank to bank within Spain is usually free.
Bear in mind, Spanish banks have different opening times in summer and winter and may not be open on Saturdays. Generally, they are open weekdays in the mornings until 1.00pm or 2.00pm.
For details of property for sale in Spain, visit the Spanish listings on Rightmove Overseas.
Finally, to save money when transferring funds from the UK to your Spanish bank account, and vice versa, always use a currency exchange specialist such as Smart Currency Exchange, as you’ll receive a better exchange rate than if you made the transfer direct through your bank. For more information, visit the Currency Zone or download Smart’s free report here.
To understand the full step-by-step process to buying a property in Spain, collect The Overseas Guides Company’s ‘Spain Property Buying Guide’
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc