Cost of Living Guide
Utilities, Internet, and Contracts: What Breaks
Getting utilities and internet set up abroad involves more friction than expected. Contracts, deposits, and documentation requirements vary. Understanding common problems helps you avoid delays.
Last reviewed: January 2026
Research summary for planning purposes. Not legal, tax, or financial advice. Verify with official sources.
This page explains common problems people face setting up utilities abroad.
- Why utility contracts often require local bank accounts
- Documentation that delays or blocks connections
- Contract terms that create unexpected costs
- How internet setup differs from expectations
- What to verify before signing utility contracts
Key tradeoffs
Important considerations that affect most people in this situation.
Taking Over Existing Accounts
- • Faster connection—often already active
- • May inherit previous tenant's issues
- • Deposit may already be covered
- • Less paperwork sometimes
Setting Up New Accounts
- • Clean start with no history
- • Full control over account terms
- • New deposits required
- • Setup delays possible
Utility providers often require local bank accounts
Many utility companies only accept payment from local bank accounts via direct debit. International cards or foreign accounts may not work.
This creates a timing problem. You need utilities to live there. But getting a bank account often requires proof of address. The loop is real.
Workarounds exist. Some landlords keep utilities in their name. Some providers accept alternative payment methods for a fee. Neither is guaranteed.
Documentation requirements cause delays
Setting up new utility accounts requires paperwork.
Missing any required document stops the process. Different providers have different requirements. What works for electricity may not work for internet.
Getting all documents takes time. Expect the process to take days or weeks, not hours.
- Proof of identity (passport, residence card)
- Proof of address (rental contract, often)
- Tax identification number (required in some countries)
- Previous account reference (sometimes asked for)
- Bank account details for direct debit
Contract terms create unexpected costs
Utility and internet contracts often have minimum terms. 12-24 months is common for internet. Leaving early triggers penalties.
Price increase clauses are often buried in contracts. Your rate may go up after an initial period. This is standard but catches people off guard.
Cancellation processes can be slow. Notice periods of 30-60 days are common. Miss the window and you pay another month.
Internet installation takes longer than expected
Same-day or next-day internet installation is rare. Typical waits are 1-3 weeks. In some areas or buildings, longer.
Fiber availability varies by building and street. The address next door may have options you do not. Check before signing a lease if internet matters to you.
Mobile data or temporary hotspots are common bridge solutions. Budget for this gap period.
Deposits and connection fees add up
Utility deposits are common for new customers without local credit history. These can range from €50 to several hundred.
Connection fees may apply for new installations or reactivations. Internet installation often has a separate fee.
Deposits are returned when you close the account, but timelines vary. Some take months. Factor this into your planning.
Taking over existing accounts has tradeoffs
If the previous tenant had utilities, you may be able to take over the accounts. This avoids new setup delays.
But you may inherit their problems. Unpaid bills, damaged equipment, or outdated contracts. Verify the account is in good standing.
Some landlords keep utilities in their name and include them in rent. This simplifies things but reduces your control and transparency.
Electricity and gas: what varies
Electricity and gas markets are structured differently by country. Some have regulated providers. Others have competitive markets with many options.
Pricing structures vary. Fixed rates, variable rates, time-of-use rates. Understanding your options takes research.
Meter reading and billing practices differ. Some are monthly. Some are estimated with periodic true-ups. Know how billing works.
Water and waste: often simpler
Water is often a regulated monopoly. You have one provider option for your address. Setup is usually straightforward.
Waste collection may be included in rent or local taxes. In some areas, it is separate. Recycling rules vary widely by location.
Costs are typically lower than electricity. But deposits or setup fees may still apply.
Mobile and phone contracts
Mobile plans with local SIM cards are widely available. Prepaid options require less documentation than contracts.
Contract plans may offer better rates but require commitment and local bank accounts. The documentation requirements mirror other utilities.
Keeping your home country number while getting a local SIM is possible but has cost implications.
Language creates practical barriers
Utility providers often operate only in the local language. Customer service, contracts, and bills may all be in a language you do not speak.
Automated phone systems rarely have English options. In-person service centers may have limited hours.
Having someone who speaks the language help with setup is practical. Translation apps help but have limits.
Common pitfalls
Issues that frequently catch people off guard in this area.
Next steps
Continue your research with these related guides.
Cost of Living Hub
Overview of all cost guides
Banking Hub
Bank accounts for utility payments
How to Open a Bank Account Abroad
Getting accounts for direct debit setup
Healthcare Hub
Another setup requiring documentation
Visas Hub
Status affects some provider access
Living in Valencia
City guide with utility context
Living in Spain
Country guide with infrastructure info
Sources & references
Utility Market References
- Energy regulator information – Market structure and consumer rights
- Telecommunications authority – Internet provider regulations
Practical References
- Expat community experience – Real-world setup challenges
- Provider comparison sites – Current market options
Information gathered from these sources as of January 2026. Requirements and procedures may change.