The official currency of Spain is the Euro (EUR).

BANKING IN SPAIN

Banking in Spain is as sophisticated as in your home country.  There are savings banks and regular banks.  You will need a regular bank for most of your transactions, and most bank staff will automatically assume you are opening a checking account; however, state that you want a checking account. 

Your passport or residency/ID Card (NIE) will serve as identification and must be brought with you when you open your account.  The manager will request that you fill out a limited amount of information, and he will help in the opening of the account.

A temporary checkbook will be given to you and your permanent checkbook should be available within ten (10) days.  The bank will not mail you the checkbook; you must go into your branch to pick it up.  The same is true if you need more checks.  They are not automatically ordered. You must request new checks from your branch.

Interest rates for a non-resident will be favorable.  And every two years the bank will ask you to fill out a form stating that you are still a non-resident.

Online banking is available from all major national banks, which is useful if you are going to be away from your property any length of time.

Many countries take a personal interest in their banking customers, and Spain is extremely hospitable and friendly to their clients. 

Although the major national banks have branches in all cities and most towns, each region of Spain has its own banks with branches in almost every town within that region.  It isn’t difficult to change banks. You simply open an account with the new bank and, if you have direct debits, you show the last statement on which they appeared and these will automatically be taken over by your new bank. Then you close your account with the first bank.

Some issues to consider when choosing a bank in Spain:

1.  The ability to speak English (if you do not speak Spanish). Most banks in tourist areas insist their staff speak more than one language.

2.  The ability to send and receive money from overseas.  Be sure to check the fees that the bank charges for these services.  

3.  Ask how often the bank sends bank statements.

4.  Can you get an overdraft protection and what are the charges for this?

At most banks you can request that your monthly banking statements be sent to you in English. Statements are sent to customers monthly or quarterly, but you can request one at any time.

If you receive regular payments from abroad, it is certainly worth shopping around for the best rates for conversion. An EU state pension paid into a Spanish Bank should not carry a charge for processing.

You will always find at least one or two banks offering a 24-hour cash machine, even in the smallest of towns.  Spain is very much a cash and credit card society, with checks rarely used. Many businesses will insist on cash or a credit card for payment. 

You can withdraw Euros from an ATM in Spain, using your bank-issued debit card. Be sure your PIN is only four digits long… and in numbers, not letters.

CREDIT CARDS
Before you move to Spain, shop for a credit card provider who does not charge commission on overseas transactions and uses the current bank rate (not the less advantageous tourist rate).

You will be issued a credit card from your new bank that is attached to your checking account. It works like a debit card.  Pick it up at the bank at the same time your personalized checkbook is issued. The credit card, which may be a MasterCard or Visa, is used like any other credit card, but you can only spend or withdraw money up to the limit of what you have in your bank account.

It is a requirement in Spain that identification be shown when you use a credit card, be it your passport or your Spanish ID card (tarjeta de residencia).

You can use your foreign credit or debit card in stores and (some) restaurants in Spain. However, many shops' credit card machines are out of date and have trouble accepting foreign cards. Don’t rely on this as a form of payment - always carry enough cash just in case your card isn't accepted.

Many shops would rather take your money than risk losing business, so if you don't have your passport with you, it is often possible to get them to accept your card anyway, and they can enter the processing information by hand.

If you are paying by credit card in Spain and your home currency is not the Euro, do not allow the business to charge you in your home currency.  It will cost you more than the credit card company will charge for the conversion.  Always sign in the local currency and make a note at the bottom of your receipt that the bill is being paid in Euros. 

PAYING BILLS
Direct debits are often used to pay for utilities such as water, electricity and the telephone. When you open an account for these services, you will give your bank’s name and your account information and your payment will be directly debited to your account.  Your satellite television can also be paid in this way.

You can stop the direct debit process by telling your bank branch that you wish to cancel the debit.  

SOCIAL SECURITY
The U.S. Federal Reserve Bank of New York and several central banks around the world have agreed to provide an international direct deposit service for Social Security payments. This service allows the transfer and conversion of U.S. Social Security benefits to a foreign bank free of the various charges; the Social Security Administration picks up the tab. The countries that currently participate in this international direct deposit service (also called electronic benefit transfer) are: Argentina, Australia, Canada, France, Germany, Ireland, Italy, Norway, Portugal, Spain, Sweden, and the United Kingdom.

For details about Social Security payments while you are outside the United States, visit their website: http://www.ssa.gov. There is also a Federal Benefits Unit attached to the American Embassy in Madrid.  The email contact is:  FBU.Madrid@ssa.gov 

TAXES
If you are a resident of Spain, you must file a tax return with the Spanish government.  It is best to contact an accountant in Spain who is familiar not only with Spanish tax law, but the tax laws of your home country as well. 

If you are from the U.S., you must also file a U.S. tax return annually in order to receive your Social Security benefits.