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MONEY

Can I pay my Spanish bills via direct debit from a foreign account?

If you don’t have a Spanish bank account but you own or rent a property in Spain, you may be wondering if you can use a foreign account to pay your water, electricity and internet bills.

Published: 2 August 2023 16:52 CEST
iban discrimination
The SEPA (Single Euro Payments Area) law is rarely respected by companies and institutions in Spain. (Photo by ANNE-CHRISTINE POUJOULAT / AFP)

In theory, if you have a bank account in another EU country you should be able to pay your Spanish bills from it via direct debit. 

That’s been the case since 2014 when the European Union passed a law that made it illegal to discriminate against an international bank account number (IBAN) from another EU country.

In practice, the SEPA (Single Euro Payments Area) law is rarely respected by companies and institutions in Spain.. 

Whether you try to sign up for home internet with Movistar or get your electricity up and running with Endesa, you’ll more than likely be told that it is not possible to pay the monthly bills from a non-Spanish account, let alone one that’s from a non-EU country. 

It’s referred to as IBAN discrimination, and it’s a problem that affects plenty of other European countries as well as Spain. 

If your IBAN doesn’t have an ES at the start, service providers will claim that it isn’t possible for the direct debit to be set up, leaving you little other choice than to open a Spanish bank account.

That can be a hard pill to swallow for non-resident second-home owners for example, who may not want to incur the usual hidden fees that come with opening a Spanish bank account, especially given that they’re not living full time in Spain. 

READ MORE: How to open a bank account in Spain if you’re not a resident

A number of neobanks such as N26, Revolut, Starling Bank, Klarna, Raisin and Wise have raised the alarm about this unjustified discrimination, setting up a platform called acceptmyiban.org in the process.

But nothing has really been done about it at a Spanish government level, with the only change being that people can now pay their Spanish taxes from a non-Spanish account.

Revolut and N26 now offer Spanish IBANs, which could be the solution for some.  

Other fintech companies that operate in Spain and thus offer Spanish IBANs are Bunq, Nickel, Vivid, Rebellion, Wise and Bnext.

For non-residents Britons in Spain, it may be advisable to get in touch with Starling Bank or Monese as they offer a euro account, although that doesn’t mean you won’t necessarily run into problems when it comes to paying Spanish utility bills from it. 

As always, check what extra fees (if any) are attached to these international transactions. 

If you have no success overall, the best if not only option is to set up a Spanish bank account. 

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VISAS

Spain’s soon-to-end golden visa: Can I still apply and what if I have it already?

Last April, Spain's government said it intends to axe its property-based golden visa scheme, but is it too late still apply, how long does it take and what happens if you have the visa already? The Local spoke to an immigration lawyer to find out.

Published: 17 May 2024 12:25 CEST
Spain's soon-to-end golden visa: Can I still apply and what if I have it already?

The golden visa programme, also known as the visado de residencia para inversores in Spanish, grants non-EU nationals residency in Spain when they buy a property in Spain worth €500,000. 

It can also be obtained by investing €1 million in shares in Spanish companies, or €2 million in government bonds, or having transferred €1 million to a Spanish bank account. 

In early April, Prime Minister Pedro Sánchez announced he was axing the property-based golden visa, although there’s no new law in place yet.

READ MORE: What the end of Spain’s golden visa means for foreigners

More recently the government’s junior coalition party Sumar had said that they have now filed an official bill in the hope they can scrap it as soon as possible.

Sumar spokesperson Íñigo Errejón told journalists that the visas are a privilege that must be scrapped “immediately” because they have an inflationary effect on the housing market.

All of this means that those still interested in still getting the visa are confused. They don’t know when the scheme will end, if they still have time to send in applications and what will happen to those who are already in the process of applying.

In order to help answer some of these pressing questions, The Local Spain contacted María Luisa De Castro from CostaLuz Lawyers in to find out more. 

Q: When will the Golden Visa scheme officially end?

A: “The exact date for the official end of the Golden Visa scheme has not been fully detailed yet. Initially, changes would be implemented in the near future, potentially within the next few months. Some optimists believe it might be a bluff by the government and that it may not be implemented after all.”

READ MORE: When will Spain’s golden visa scheme officially end?

Q: Has the process of applying changed?

A: “As of now, the process remains unchanged, so it’s exactly the same as before.”

Q: Can people still apply for now?

A: “Applications are still being accepted. However, given the recent announcement, it is advisable for prospective applicants to act swiftly.”

Q: What will happen if I’m in the middle of the application process?

A: “For those currently in the middle of the application process, their applications will still be processed under the existing rules. Once the new regulations come into effect, it will very likely come with some transitional provisions to handle ongoing applications.”

Q: What about those who want to invest instead of buy a property?

A: “The visa remains available for other investment options such as investments in companies, public debt, etc.”

Q: What if I already have the golden visa through property investment, will I be able to renew it in the future?

A: “Our opinion (and that is what we will defend) is that renewal rights are acquired when the visa is granted and therefore cannot be subsequently reduced, as this would constitute a retroactive limitation of individual rights. The Spanish Constitution prohibits retroactive application of laws that are not favourable or that restrict individual rights once they have been acquired.”

Q: How quickly can I get the golden visa?

A: This depends on where you apply from. According to the CostaLuz Lawyers, if you’re applying outside the country “You should apply at least 90 days before you plan to travel to Spain”. If you’re inside Spain, you can apply through the Unidad de Grandes Empresas. This could take anywhere between 20 and 60 days.

CostaLuz Lawyers argue that it’s not necessary to wait until the property purchase has gone through, that you can apply with your initial contract or a statement from your bank in Spain, certifying that you have deposited at least €500,000.

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