Best Banking Options for Expats in Spain (2026)

Many expats assume they need a Spanish bank account on day one. In practice, you can handle most financial needs with digital banks while you wait for your NIE and sort out documentation.

A Spanish IBAN becomes necessary for specific situations: some landlords require rent payments from Spanish accounts, some employers insist on paying to Spanish banks, and certain utility companies won't accept foreign IBANs.

If none of these apply to you, digital banks may be all you need. If they do apply, you'll need a Spanish account eventually—but not necessarily immediately. Understanding this saves frustration.

Wise offers a multi-currency account with transparent, low-cost transfers. You can hold EUR, USD, GBP, and 50+ other currencies, converting at the real exchange rate plus a small transparent fee. For anyone receiving income in one currency and spending in another, Wise is usually the cheapest option.

You get account details in multiple countries (US routing number, UK sort code, EU IBAN), making it easy to receive payments from anywhere. The card works for spending with no foreign transaction fees.

The limitation: Wise provides a Belgian IBAN, not Spanish. Most places in Spain accept any EU IBAN, but some landlords and employers specifically require Spanish IBANs. For those situations, Wise won't work as your primary account.

N26 provides a free current account with a German IBAN, Mastercard debit card, and a polished mobile app. The account includes free ATM withdrawals (with limits), instant transfers within N26, and SEPA transfers across Europe.

For Spain specifically, N26 works well for daily banking: paying rent (if landlord accepts EU IBANs), receiving salary, paying bills. The German IBAN is accepted almost everywhere an EU IBAN works.

The main consideration: N26 has faced regulatory issues that temporarily froze new account openings in the past. They've resolved these, but it's worth noting. Also, like other digital banks, you won't have branch access for cash deposits or complex issues.

Revolut provides a Lithuanian IBAN with extensive features: multi-currency accounts, stock trading, crypto, budgeting tools, and travel insurance options. The free tier is generous, with premium tiers adding perks like lounge access and better exchange limits.

For spending, Revolut's interbank exchange rates (weekday, within limits) are hard to beat. The card works globally with minimal fees. Virtual cards and disposable card numbers add security for online purchases.

The tradeoffs: the feature overload can be confusing, customer support is inconsistent (though improving), and like other digital banks, the Lithuanian IBAN won't satisfy requirements for a Spanish IBAN.

If you need a Spanish IBAN—because your landlord requires it, your employer insists, or you're planning to stay long-term and want local banking relationships—traditional Spanish banks are the path.

The experience is... traditional. Branch hours are limited (often 8:30am-2pm only), appointments are usually required, and the process involves paperwork and patience. Staff English proficiency varies wildly by branch.

The key requirement: most traditional banks want your NIE (foreigner identification number) to open a resident account. Some branches offer non-resident accounts with just a passport, but these come with higher fees and limitations. Once you have your NIE, the process becomes more straightforward.

Before NIE: Digital banks (Wise, N26, Revolut) are your best options. You can open accounts remotely with just a passport. Some Spanish bank branches offer non-resident accounts with passport only, but this varies by branch and often involves higher fees.

After NIE: Traditional Spanish banks become accessible. Most still require an appointment and documentation (passport, NIE, proof of address, sometimes proof of income). The process takes 30-60 minutes at the branch.

Practical approach: Open digital accounts immediately for functional banking. Add a traditional Spanish account once you have your NIE and actually need a Spanish IBAN. Many expats maintain both long-term—digital for better rates on transfers and spending abroad, Spanish for local requirements.

Digital nomad / remote worker: Wise or Revolut handles most needs. You're receiving income from abroad, spending in EUR, and probably moving eventually. A Spanish bank adds friction without clear benefit unless your specific landlord requires it.

Employed in Spain: Check with your employer first—can they pay to any EU IBAN, or do they require Spanish? If Spanish required, you'll need a traditional bank. If not, digital banks work fine and you can add a Spanish account later if needed.

Retiree on non-lucrative visa: You'll likely want a Spanish account eventually for local integration—paying taxes, dealing with utilities, etc. But digital accounts work for the transition period while you wait for NIE.

Family relocating: A Spanish account is probably worth the effort for stability: rent, school payments, utilities. Start with digital, add Spanish once NIE is sorted.

Trying traditional banks before NIE: Walking into a Spanish bank without NIE usually ends in rejection or a subpar non-resident account. Get your digital accounts working first; pursue Spanish banks after NIE.

Assuming all EU IBANs are equivalent: For most purposes, they are. But specific landlords, employers, or services may insist on Spanish IBANs. Ask before assuming your German or Belgian IBAN will work.

Using home country cards for daily spending: Foreign transaction fees (typically 1-3%) and poor exchange rates add up quickly. Get a Wise or Revolut card for spending—it's free and saves significant money.

Not having backup payment methods: Spanish bureaucracy can freeze accounts unexpectedly, and cards can fail. Maintain accounts with multiple providers so one issue doesn't leave you stranded.