MONEY MATTERS
Spanish currency, money and banking information for buying property in Spain and moving to Spain.

There are many banks in Spain and since April 1994, any European Union bank can open branch offices in Spain. The currency of Spain as in other European countries is the Euro (€). The Euro became the legal tender on 1 January 1999. If you are moving to Spain and opening a Spanish bank account the procedure is exceptionally simple and essentially not unlike opening a bank account here in the UK - charges can be higher than in the UK and you should shop around a bit and find out how much the charges are even for just having money sitting in the account. This you should be aware of if opening a bank account in Europe anywhere.

Generally in Spain banking hours are Monday to Friday from 8am to 2pm. There are some variations to this, some opening on Saturdays until 1pm. Opening a bank account in Spain is relatively easy. Most of the major Spanish banks in the cities and other areas where there are many non-Spanish residents cater for people who don't speak Spanish. The accounts you can open will be specific to whether you are a Fiscal resident or a non resident. To open a bank you will only need your passport or residence card, you will also be asked for your N.I.E. number which can be obtained at your nearest police station with a foreigners department.

There are now no restrictions on transferring funds to and from Spain from other countries of the European Union. However, some banks are charging heavy commissions on transfers from abroad. So if you are thinking of transferring your pension or other money regularly it pays to shop around to find out the conditions offered prior to opening Euro bank accounts in Spain. To make an international transfer to or from Spain you will require an IBAN code (International Bank Account Number) which can be obtained easily from your bank.

Services offered by Spanish banks include Credit/Debit Cards, Cash Cards, Currency Exchange, Travellers cheques, Money transfers, Mortgages, Onshore Investing, Stocks and Bonds, Standing Orders, Direct Debits, Cheques etc. and can all be arranged easily as they are standard practice for most banks.  All banks offer customers a combined cash and debit card, widely used and accepted throughout Spain. This card can be used at an ATM or used like cash to buy groceries, clothing or pay the bill at many restaurants and even cafes. Some establishments carry a minimum charge of approximately €6 for accepting cash/debit/credit cards.

However, check the charges from the bank by asking for its list of fees for transactions.  These charges are notoriously high in certain circumstances.

TAX

Regarding tax - this is specialist subject and we highly recommend that you take specialist advice. There is, of course a Spanish tax to pay when buying property in Spain and this is currently set at 7%

Please feel free to download our LEGAL BUYING GUIDE which will give you a good outline to the costs and initial taxes when buying a property in Spain.

Useful links:

Blevins Franks Overseas tax advisors

HIFX money exchange