Can Expats In Spain Use A Foreign Bank Account To Pay Their Bills?
Expat Tips
Published: 08 August 2023 14:48 CET
Updated: 06 October 2025 11:15 CET
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
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
Fintech options that issue Spanish IBANs
- 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 and supports SEPA direct debits. Open N26 account
- bunq (ES IBAN) — Lets you choose a Spanish IBAN. Learn more
- Nickel (ES IBAN) — A BNP Paribas brand offering simple setup with a Spanish IBAN.
- Wise (EU IBAN) — Often accepted for SEPA, though not always by large utility 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. 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 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
Steps to take
- Tell the company (in writing) that EU/EEA IBANs must be accepted for SEPA payments and ask them to correct the process.
- If they refuse, file a complaint with the relevant authority (Banco de España guidance link below) and attach proof.
- Add your case to “Accept My IBAN” to strengthen EU-wide 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
No-copayment plans for residency and visas
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