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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.

Published: 21 March 2024 10:04 CET
The best bank accounts for self-employed workers in Spain
These are the best bank accounts for self-employed workers in Spain in 2024, according to comparison websites. Photo: Anastasia Shyrokykh/Unsplash

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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For members

TAXES

How foreigners in Spain’s capital can pay less tax with the new Mbappé Law

The regional government of Madrid is finalising the approval of the so-called Mbappé Law, a very favourable new personal income tax regime for foreigners who settle and invest in the Spanish capital.

Published: 23 April 2024 16:44 CEST
How foreigners in Spain's capital can pay less tax with the new Mbappé Law

Similar to Spain’s Beckham Law, introduced in 2005, this piece of legislation is named after a famous footballer who will be the first to benefit from lower tax rates, as will other foreigners in Madrid.

Kylian Mbappé is a French footballer who currently plays for Paris Saint-Germain, but looks set to sign for Real Madrid this summer.

The objective of the right-wing Madrid government of Isabel Díaz Ayuso is to attract more foreign investment to the region with beneficial fiscal rates.

READ ALSO – Beckham Law: What foreigners need to know about Spain’s special tax regime

Unlike the Beckham though, the Mbappé Law is only designed to benefit foreigners who move to the region of Madrid, it’s not open to those who want to move elsewhere in Spain.

Also unlike the Beckham law, foreigners will only be able to reap the rewards of the Mbappé Law if they invest money into the region. This could be in the form of investments in companies or in vehicles, but it cannot include investments in property.

Specifically, applicants will be able to deduct 20 percent of all the money they invest in the Madrid region.

The law applies to regional personal income tax, which accounts for approximately half of entire tax payments in Spain, since the other part corresponds to the State’s collection.

Normally, a foreigner like Mbappé will be taxed in the highest income bracket, as they will earn well over €300,000 gross per year.

When the law is finally approved however, Mbappé could avoid paying the regional income tax entirely, in the event that 20 percent of his Madrid investments represent the same amount that he would have had to pay in taxes on his salary.

READ ALSO: Why you should move to this region in Spain if you want to pay less tax

How will the Mbappé Law work?

For example, if Mbappé earned €40 million gross (not his actual salary), he would normally be charged €18 million in personal income tax.

Of this, 24.5 percent would correspond to the state tax, and this would have to be paid as normal. This means the state would collect €9.8 million from him in tax.

The change happens with the rest of the tax – the regional tranche. If he doesn’t make any investments, which now seems unlikely, he would have to pay €8.2 million in tax to Madrid.

If on the other hand the French superstar invested €40 million in Spanish companies or state bonds – he could deduct €8 million, which represents 20 percent of that amount.

This would mean that Mbappé’s tax rate would remain at 24.5 percent, a marginal rate that is slightly higher than the personal income tax for a worker who earns €20,000 and receives around €1,300 net per month.

As a percentage, of course, the amounts in Mbappé’s case are going to be huge. So, instead of paying €18 million in total, he would only pay €9.8 million.

Overall, this legislation signals that Madrid will become even more attractive to foreign investors.

By contrast, those who move to Catalonia will have to pay 25.50 percent in regional income tax, which added to the 24.5 percent of the state tax would increase personal income tax by half. So as a Real Madrid player Mbappé would earn €30.2 million, but if he signed for Barça he would pocket €20 million.

What’s the catch?

There are a few caveats to the new law, which primarily depend on how long you stay in Madrid. The new regulations establish that you have to stay and live in Madrid for a total of six years. If you leave before those six years are up, then you will be forced to return part of the tax savings you made.

What does this mean for Madrid?

The regional government of Madrid estimates that 30,000 foreign investors could choose to move to the region specifically in order to benefit from the new law and that it will cost the public coffers €60 million per year.

The idea is that Madrid will continue to attract foreign investment. Madrid’s leader Isabel Díaz Ayuso recently claimed that: “Two out of every three euros that arrive in Spain as an investment from abroad do so in projects that are developed within the Community of Madrid. In the last decade, the flow of investments has doubled”.

Madrid already has some of the best tax incentives in Spain. Residents pay less tax on their income, assets, inheritance and property transactions and conditions are beneficial to high-income earners in particular.

Financial experts agree that Madrid is among, if not the top region, with the most lenient tax system in the country, and when the Mbappé law comes into force, the region will benefit from even more incentives.

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