Expats In Spain: Do You Really Need A Spanish Bank Account To Pay Your Bills?

If you’ve conscionable moved to Spain, chances are personification has told you, “You’ll request a Spanish slope relationship for everything.”

It sounds convincing, right? After all, betwixt utilities, rent, taxes, and nan dreaded IBI, it seems for illustration having a section IBAN (that small “ES” codification astatine nan commencement of your relationship number) would make life easier.

But here’s nan thing: you don’t ever request one. In fact, nether European law, you’re perfectly entitled to usage your slope relationship from different EU aliases EEA state to salary your bills successful Spain. And if anyone tells you different – well, they’re breaking nan rules, not you.

Let’s break this down clearly, because this rumor affects thousands of expats each year.

Is it ineligible for a Spanish institution to cull your overseas IBAN?

No. Absolutely not.

Under Article 9 of EU Regulation 260/2012, nary business, nationalist authority, aliases slope tin garbage a euro costs aliases nonstop debit conscionable because nan IBAN starts pinch thing different than “ES”. Whether your relationship is successful Germany, France, Belgium, aliases Lithuania, if it’s portion of nan SEPA zone, it must beryllium treated for illustration a Spanish one.

This is called IBAN discrimination, and it’s illegal. Even Spain’s cardinal bank, Banco de España, has reminded companies that rejecting a non-Spanish IBAN “contravenes EU law.”

The reality, however, is that immoderate still do it. A 2025 study by nan European Consumer Centre (ECC-Net) recovered that thousands of group crossed Europe – particularly successful Spain and France – are still facing refusals. The problem is truthful wide that Spain’s ain Ministry of Economy has projected caller rules to yet stamp it out.

So, which bills tin you really salary from your overseas account?

In theory? Pretty overmuch each of them.

Electricity, water, gas, telephone bills, broadband, insurance, organization fees, gym memberships – thing that tin beryllium paid via a SEPA nonstop debit aliases transportation should spell done without a hitch.

The SEPA strategy (that’s nan Single Euro Payments Area) was created precisely to make payments betwixt European countries activity for illustration nationalist ones. Whether your relationship is successful Madrid aliases Munich shouldn’t matter.

But mentation and believe don’t ever align. Some companies, peculiarly smaller utilities aliases section services, still garbage non-Spanish IBANs because their systems haven’t caught up. It’s frustrating – and again, it’s illegal.

How do SEPA Direct Debits (“domiciliaciones”) really work?

If you’ve ever signed a domiciliación bancaria – nan authorisation that lets a institution return your bills automatically – that’s a SEPA Direct Debit. The rule says nan location of your slope doesn’t matter, arsenic agelong arsenic it’s wrong SEPA.

You simply motion nan mandate, springiness your IBAN, and that’s it. Your energy supplier aliases net institution tin propulsion costs from your account, wherever it’s based. Spain adopted this strategy afloat backmost successful 2014.

So if personification astatine nan antagonistic tells you, “Our strategy doesn’t judge overseas accounts,” it’s their package that’s outdated — not your IBAN.

What should you do if your IBAN gets rejected?

First, don’t panic – and don’t return ‘no’ arsenic nan last answer.

1. Write backmost (politely but firmly). Mention that nan refusal violates Article 9 of EU Regulation 260/2012 and that your relationship is wrong SEPA. Ask them to update your details.
2. Escalate internally. Sometimes customer work unit simply don’t know. Ask to speak to personification from billing aliases finance.
3. Keep proof. Save screenshots, emails, and chat logs showing nan refusal.
4. File a title pinch nan Banco de España if it involves a slope aliases costs service, aliases pinch your location user agency (OMIC) if it’s a backstage company.
5. Report it connected AcceptMyIBAN.org

. It’s a level supported by EU authorities that tracks and reports these cases crossed Europe.

The much group report, nan faster these outdated practices disappear.

Can you salary your taxes pinch a overseas account?

Yes – nan Spanish Tax Agency (AEAT) explicitly allows it.

If your slope isn’t 1 of AEAT’s “collaborating” entities successful Spain, you tin still make your costs by SEPA transportation from your EU account. The AEAT’s website moreover provides step-by-step instructions for doing so.

Just travel their guidelines carefully: you’ll request to see a circumstantial reference number successful your transportation explanation and support nan confirmation receipt for your records.

In different words, your French, Belgian aliases Irish IBAN will activity perfectly good for astir taxation models.

What astir Social Security payments and benefits (TGSS)?

The Social Security agency (TGSS) besides allows you to domicile payments aliases person benefits to a SEPA account. Their forms mention to “IBAN” — not “Spanish account”.

That said, successful immoderate section offices, unit still insist connected an ES IBAN retired of habit. If that happens, simply explicate that your relationship is SEPA-compliant and constituent them to Article 9. You tin moreover show them nan Banco de España’s nationalist guidance confirming it’s allowed.

It whitethorn return a small persistence, but legally, you’re covered.

Do municipality halls judge EU IBANs for section taxes for illustration IBI aliases rubbish fees?

They’re expected to – and legally, they must.

Most section authorities tin process SEPA payments for things for illustration IBI (property tax), basura (waste collection), aliases car taxes. Some smaller municipality halls still garbage overseas accounts because of aged systems aliases deficiency of unit training, but that’s not a valid logic nether EU law.

If your ayuntamiento refuses your IBAN, nonstop a short written petition referencing Article 9 of Regulation 260/2012 and inquire for written confirmation. If they still opportunity no, return it to your section user agency aliases nan Defensor del Pueblo.

Are location immoderate other fees aliases delays?

Legally, location shouldn’t be.

A SEPA costs must costs precisely nan aforesaid and return nan aforesaid magnitude of clip arsenic a home one. If your supplier adds a “foreign relationship fee” aliases tells you payments will return longer, that’s besides discrimination.

Even De Nederlandsche Bank (the Dutch cardinal bank) has warned that companies tin look sanctions for this. Spain’s regulators stock that view.

Of course, mistakes happen. If your costs bounces back, cheque that nan IBAN and BIC codes are correct — galore errors are conscionable typos, not bias.

When do you really request a Spanish IBAN?

There are a fewer applicable exceptions.

If you want to usage Bizum, Spain’s celebrated instant costs app, you’ll request a Spanish IBAN. The work only useful pinch Spanish banks participating successful its network.

Some older systems – for example, bequest telecom billing platforms aliases section clubs – whitethorn besides still request an ES IBAN for method reasons. In those uncommon cases, opening a elemental Spanish relationship (or utilizing a fintech for illustration Nickel that offers an ES IBAN) tin prevention you a headache.

But day-to-day? Your EU relationship is legally fine.

Which banks aliases fintechs are astir expat-friendly?

Many online banks for illustration Revolut, Wise, aliases N26 activity good for expats successful Spain. They rumor EU IBANs (usually not Spanish) that afloat support SEPA transfers and nonstop debits.

If you specifically request Bizum aliases a Spanish IBAN, cheque newer providers for illustration Nickel aliases nan integer arms of accepted banks – they’re progressively offering online accounts pinch ES IBANs and debased fees.

The champion approach? Keep your main EU relationship for mundane payments, and unfastened a mini Spanish 1 only if you genuinely request Bizum aliases look repeated refusals.

Is IBAN favoritism still happening – and really do you conflict back?

Sadly, yes. According to nan European Commission, IBAN favoritism remains “a regular root of complaints.” Consumer groups crossed Europe opportunity nan believe hasn’t vanished because immoderate companies simply disregard nan rule until they’re challenged.

That’s why reporting matters. Platforms for illustration AcceptMyIBAN cod complaints and push regulators to act. Spain’s Banco de España besides encourages consumers to travel guardant — and has already sanctioned entities for non-compliance.

Each study adds pressure. And small by little, it’s working: much companies are updating their systems to yet judge EU IBANs arsenic nan rule requires.

What astir Brits – can you still usage your UK slope relationship successful Spain?

That’s nan million-pound question, isn’t it?

Here’s nan truth: yes, nan UK is still portion of nan SEPA zone, moreover aft Brexit – but it’s location arsenic a “non-EU participant”. The European Payments Council (EPC) confirmed this successful its charismatic connection backmost successful March 2021, announcing that UK costs work providers stay wrong SEPA for some euro in installments transfers and nonstop debits, arsenic agelong arsenic they meet nan method requirements of nan strategy (European Payments Council, 2021

So, successful theory, your British IBAN (starting pinch “GB”) should still activity for euro payments crossed nan SEPA area. In practice, though, things aren’t that simple.

After nan UK near nan EU, immoderate British banks pulled retired of SEPA nonstop debit services, meaning they nary longer support automatic euro measure payments. That’s why galore companies successful Spain — utilities, councils, mobile networks — still cull GB IBANs. It’s not that they’re anti-British; it’s that their systems don’t ever recognise those IBANs arsenic “reachable” for SEPA nonstop debits.

The Bank of England has confirmed that information successful SEPA remains voluntary for UK banks, and each institution decides whether to connection SEPA services. So while SEPA transfers whitethorn spell through, SEPA nonstop debits often won’t.

So what should British expats do?

Most expats from nan UK now unfastened a euro relationship pinch an EU IBAN to make life easier.

Fintechs for illustration Wise, Revolut, and Monese rumor accounts pinch EU IBANs (e.g., BE, LT, aliases IE) that afloat comply pinch SEPA, meaning you tin salary your Spanish bills and taxes without nan consequence of rejection.

These accounts besides spare you conversion fees, since you tin clasp euros straight — and they’re recognised by Spanish providers arsenic modular SEPA accounts.

The bottommost line

You don’t request to unreserved into opening a Spanish slope relationship conscionable to salary your bills.

As agelong arsenic your relationship is wrong nan SEPA zone, your IBAN – whether French, Irish, Dutch, aliases German – is perfectly valid for life successful Spain. If personification tells you otherwise, they’re nan ones breaking nan rules.

Of course, for convenience (and Bizum), a Spanish IBAN tin still travel successful handy. But knowing your authorities — and being fresh to quote them — tin prevention you time, stress, and unnecessary slope fees.

So adjacent clip personification says “you request a Spanish account,” smile, sip your cortado, and show them: actually, nan EU says I don’t.