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BANKING

Banking giant Barclays to close all accounts of Brits living in Spain

UK nationals living in Spain have begun to receive letters from their bank telling them that their accounts will be closed, in an apparent post-Brexit change. Have you been affected?

barclays closes accounts spain customers
Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country. Photo by Tolga Akmen / AFP

Customers of Barclays Bank who are living in Spain and other EU countries have been receiving letters telling them that their UK accounts will be closed by the end of the year. 

A number of readers of The Local’s network of news websites have contacted us to report receiving either letters or messages in their online banking telling them that their accounts would be closed because of their residency in Spain or in other countries in the EU.

A Barclays spokesperson told The Local: “As a ring fenced bank, our Barclays UK products are designed for customers within the UK.

“We will no longer be offering services to personal current account or savings customers (excluding ISAs) within the European Economic Area. We are contacting impacted customers to give them advance notice of this decision and outline the next steps they need to take.”  

Customers are being given six months to make alternative arrangements. The changes affect all personal current accounts or savings accounts, but do not affect ISAs, loans or mortgages.

During the Brexit transition period Barclays closed Barclaycard accounts of customers in Spain, but did not indicate any changes to standard bank accounts.

READ MORE: 

Around the same time several other British high street banks began closing accounts of British customers who live in the EU, although with the exception of Barclaycard customers in Spain who were largely spared.

Many UK nationals who live in Spain maintain at least one UK bank account – in addition to a Spanish account – sometimes just for savings but others use their accounts regularly to receive income such as pensions or income from rental property or – for remote workers – to receive income for work done in the UK.

Not having a UK bank account can make financial transactions in the UK more complicated or incur extra banking fees.

READ MORE: What are the best UK banks for Brits in Spain?

Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country.

And it seems that many UK high street banks are deciding that the extra paperwork is not worth the hassle and are withdrawing completely from certain EU markets. 

When British banks began withdrawing services from customers in the EU back in 2020, a UK government spokesman told British newspaper The Times that “the provision of banking services is a commercial decision for firms based on a number of factors” so Brits in Spain probably shouldn’t hold their breath for any help from that direction.

READ ALSO: Premium Bond holders in Spain may have to cash in if no UK bank account

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For members

BANKING

The best bank accounts for self-employed workers in Spain

Whether it be financial advisors, savings incentives, or the flexibility to do things like paying taxes and arranging payrolls, finding the right bank account can really help your self-employed working life in Spain.

The best bank accounts for self-employed workers in Spain

Being self-employed (autónomo in Spanish) can seem a little tough in Spain at times. Whether it be the endless admin, high social security charges or tax brackets, sometimes it can feel as though freelance or small business life just isn’t meant to be in Spain.

One thing that can make life a little easier is having a bank account designed especially for the self-employed.

READ ALSO: CALENDAR: The key deadlines for self-employed workers in Spain in 2024

What is a self-employed account?

A self-employed account is basically a bank account designed for self-employed people that you can open in your own name to handle all your professional money matters.

Many self-employed people find this beneficial because you can keep personal money separate from business income, and generally keep a clearer, more balanced set of accounts — something that comes in handy when making a tax return in Spain.

Another benefit is that many self-employed accounts allow you to use banking services that you would not have access to via your normal current account, such as doing payrolls, if you have staff, or access to financing and loans that regular banking customers can’t get. Many also offer cash back on paying social security fees. Also, often when opening a self-employed or business account, banks offer you a personal adviser to help you with your financial decision.

So, which are some of the best bank accounts for self-employed workers in Spain?

Sabadell Self-Employed Account – Cuenta Autónomos Sabadell

Sabadell’s Self-Employed account offers an account for the self-employed zero commission charges and zero conditions. You receive a free business debit and credit card, with no maintenance fees.

Aside from immediate transfers, all other transfers are free within the EU.

You also get a return of 3 percent of your direct debit electricity and gas bills paid via the account, something handy for self-employed people with offices.

Bankinter Professional Account – Cuenta Profesional

Bankinter’s Professional Account gives you remuneration of up to 5 percent APR in the first year and up to 2 percent APR in the second (maximum balance of €5,000).

It is a commission-free online account (via web and mobile app) with which you can separate your personal and professional expenses, and you will have a personal manager at your disposal to help you resolve all your doubts and needs.

You also receive a free credit card, free national and intra-EU transfers, can make free cash withdrawals over 17,000 cash points, advance deposits, and get multi-channel access to your account.

However, there are some conditions. You must deposit a minimum of €800 per month in the account (cash deposits not be valid), keep the card active, and make at least three charges per receipt per quarter.

READ ALSO: The social security fees Spain’s self-employed will pay in 2024 

Payhawk Enterprise – Payhawk Empresas

Payhawk accounts are a little different and go beyond the traditional definition of a business account. Unlike conventional accounts, Payhawk provides an entire banking ecosystem designed to optimise financial control and simplify the management of business budgets and expenses.

This account might appeal more to self-employed and small business owners with a significant staff or turnover, rather than to individual freelance workers.

The Payhawk Business account has automated expense management, offers Visa corporate cards (physical and virtual) that have usage limits and integrated spending policies.

The Payhawk platform also automates accounting, enables budget creation and frees you up from laborious administrative tasks, and the mobile app allows you to approve funding requests and make payments from anywhere.

READ ALSO: The financial aid available to Spain’s self-employed workers in 2024 

Revolut Pro Account

The Revolut Pro Account offers 0.8 percent cashback on card payments, create professional invoices, receive payments with QR codes, and spend and send money abroad with great exchange rates

This account may be better suited to individual self-employed workers in Spain.

Revolut Pro offers various banking plans with extra features:

Standard: Free
Plus: €2.99/month
Premium: €7.99/month
Metal: €13,99/month.

N26 Business Account

The N26 Business Account appeals to the self-employed by offering a 5 percent refund of the monthly autónomo social security charge to those who pay their self-employed fee with the N26 account (up to a maximum total of €180 per year).

The N26 Business Account is 100 percent online, free, and focused on the self-employed. It offers a free Mastercard debit card, which gives you 0.5 percent back on your purchases, allows free transfers to Spain and the Eurozone, and does international transfers through Transferwise.

You can make free withdrawals at any ATM a maximum of 5 times a month, and N26 offers a 24/7 customer service.

CaixaBank Business Account – Cuenta Negocios

Caixa’s Business Account gives you a specialised bank manager who will accompany and advise you throughout the life cycle of your business. If you don’t have a website but you want to make online sales through social networks or WhatsApp, Caixa’s SocialCommerce tool allows you to do all that and manage your online business.

If you do have a website, Caixa uses Cyberpac or Addon Payments to accept payments in your online shop in a simple and secure way. Similarly, if you want to further invest in or expand your business, you can finance your fees and receipts to expand or renovate your business and take it to the next level.

The account also has no fees or commissions. However, you’ll need to meet 3 requirements in order to pay no fees on the account:

Direct debit income of at least €750 a month or €9,000 a year.

Set up a direct debit for your self-employed social security payment.

Make any of the following payments from the Caixa Business account: your taxes, employee social security contributions, employee pay slips, utility bills or card purchases.

There is a maintenance fee of €15 per month if you don’t meet the requirements.

Santander ONE Business Account – Cuenta Santander ONE Empresas (autónomos)

For new customers, Santander’s ONE Business Account offers no account maintenance fees for the first 12 months

Neither are their issue or maintenance fees for Santander debit and credit cards, or for making transfers in Euros via online banking, mobile and ATMs, except for urgent transfers. No fee for debit cash deposits and withdrawals at more than 30,000 Santander ATMs worldwide either.

You have to meet some requirements to pay no commissions:

Deposit or invoice at least €1,800 every three months by means of POS, transfers, bills, or cheque deposit.

Make one of the following operations: payment of employee salaries, payment of the self-employed quota, or make 6 uses of the account card.

The maintenance fee if you do not meet the account requirements is €30 per month.

BBVA – Business Welcome account – Cuenta Negocios Bienvenida

BBVA’s Business Welcome account allows you to transfer your direct debits from other banks free of charge, and you’ll be given a specialist bank manager whenever you need one.

If you pay your taxes and/or social security contributions directly into the Welcome Business Account, BBVA offers you 3 percent of what you pay back – up to €100 gross per quarter, meaning you could earn back €400 per year. This offer is only for new self-employed customers.

On top of that, there are no fees on conditions during the first year with BBVA’s Business Welcome account. From the second year onwards, you have to meet the following conditions each month:

You must set up a direct debit to pay your social security or professional association fee through the Business Account, and you must also pay your taxes (IVA, IRPF, business tax or corporation tax) by direct debit.

There is a maintenance fee of €12 per month if you do not meet the account requirements after the first year.

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