Can Expats In Spain Use A Foreign Bank Account To Pay Their Bills?

Spain is one of Europe’s most popular destinations for expats, retirees, and second-home owners — but daily life here brings some practical hurdles. Paying electricity, water, and internet bills sounds simple until you realise many Spanish providers still expect a local bank account. Even in 2025, expats continue to hit roadblocks when trying to use a foreign IBAN, despite EU law saying they should be accepted. This guide explains what’s really happening, what your rights are under SEPA, and how to pay your Spanish bills smoothly whether you live here full-time or part-time.

Important note on account types

Note: This guide covers EU/EEA/UK/CH bank accounts only. Non-EU accounts (such as those from the US, Canada, or Australia) generally can’t be used for regular bill payments in Spain. If you’re from outside Europe, opening a local or EU-based IBAN account is strongly recommended for all direct debits.

What the law says (SEPA and IBAN discrimination)

Since 2014, EU rules prohibit “IBAN discrimination.” If your bank account is in the EU/EEA, a Spanish company should accept it for SEPA direct debits and transfers. On paper, a French, German, Dutch, Irish or other EU/EEA IBAN must be treated exactly like a Spanish ES IBAN.

The reality on the ground in Spain

In day-to-day life, many providers still reject non-ES IBANs when you try to set up a direct debit (domiciliación). Readers commonly report problems with large companies such as Movistar (broadband) and Endesa (electricity), where online forms refuse non-Spanish IBANs or staff say it “isn’t possible.” This ongoing problem is widely referred to as “IBAN bias.”

Why this matters for second-home owners and non-residents

If you spend only part of the year in Spain, opening and maintaining a traditional Spanish bank account can feel unnecessary — especially when monthly fees, minimum balance rules, or add-on charges are involved. IBAN bias effectively forces some non-residents to open an ES account they never really wanted, just to keep utilities paid automatically.

2025 updates at a glance

• Spanish and EU authorities have increased pressure on companies that ignore SEPA rules, with clearer complaint routes for consumers.

• Banco de España provides guidance on how to act if your IBAN is refused.

• Enforcement is improving but not perfect — so practical workarounds remain essential.

Fastest workaround: get an ES (Spanish) IBAN via fintech

Modern app-based accounts that issue Spanish IBANs dramatically reduce friction with utilities and telcos. Options to explore include:

• Revolut (ES IBAN) — New customers in Spain receive a Spanish IBAN, which usually works smoothly for direct debits.

• N26 (ES IBAN) — Offers a Spanish IBAN for residents in Spain and supports SEPA direct debits.

• bunq (ES IBAN) — Lets you choose a Spanish IBAN; reliable for domiciliaciones.

• Nickel (ES IBAN) — A BNP Paribas brand expanding in Spain; simple setup with a Spanish IBAN.

• Wise (EU IBAN) — Typically provides BE/DE IBANs; often accepted for SEPA, but an ES IBAN can still be more reliable with some providers.

UK, Switzerland and other non-EU readers: a nuance

Post-Brexit, a GB IBAN isn’t an EU account, but many UK/CH customers still hold SEPA-capable euro IBANs (for example, BE/DE). These can work, yet acceptance varies by provider and channel. If you hit a wall, switching billing to an ES IBAN from a fintech above is the most reliable route.

Paying taxes and public bodies

Public portals have made progress in accepting non-ES SEPA accounts for certain payments (and often allow card or transfer alternatives). If your IBAN is rejected online, look for a card-payment option, try a manual transfer, or use an ES IBAN to avoid delays. Save screenshots if you need to escalate.

If you can’t set up a direct debit

• Pay one-off bills by card in the provider’s app or portal.

• Request a payment link or barcode for each invoice.

• Switch billing to an ES IBAN (fintech) and keep your main banking elsewhere.

• For communities of owners (comunidad) and water boards, ask the administrator to resubmit the mandate with your ES IBAN.

How to report IBAN discrimination

1) Tell the company (in writing) that EU/EEA IBANs must be accepted for SEPA payments and ask them to correct the process.

2) If they refuse, file a complaint with the competent authority (see Banco de España link below) and attach proof (emails, rejected forms, screenshots).

3) Add your case to Accept My IBAN to contribute to broader enforcement.

Getting your life set up in Spain?

Once your utilities and banking are sorted, make sure your health cover is too. You’ll need private insurance that meets Spanish residency and visa requirements and gives you peace of mind from day one. Check out our affordable Sanitas health insurance plans and find the right policy for your stay in Spain.

Sources

• European Commission guidance on IBAN discrimination: European Commission — IBAN discrimination.

• Banco de España consumer blog on what to do if it happens: Banco de España — how to act.

• Spanish Consumer Portal (2025) reminder on EU-wide validity: Spanish Consumer Portal (2025).

• ECC-Net 2025 material on ongoing complaints: ECC-Net (2025).

• Background and enforcement coverage: Cinco Días (June 2025); Cinco Días (Apr 2024).

• ES-IBAN availability (fintechs): N26 — Spanish IBAN; bunq — Spanish IBANs; bunq in Spain.