# Do I need a Spanish Bank Ac



## Joker1 (Aug 27, 2016)

My pensions are paid into my UK Account. The question is do I need to open a Spanish Bank Account. Is it possible to live in Spain by withdrawing Sterling from ATMs and changing it to Euros. I have been doing this for years in Cyprus and it works well.


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## xabiaxica (Jun 23, 2009)

Joker1 said:


> My pensions are paid into my UK Account. The question is do I need to open a Spanish Bank Account. Is it possible to live in Spain by withdrawing Sterling from ATMs and changing it to Euros. I have been doing this for years in Cyprus and it works well.


:welcome:

yes I guess it's possible, but most people choose to have their pensions paid into a Spanish bank account


You'll need a Spanish bank account if you're living here anyway though, to pay utilities, & it's also easier to register as resident (as is required if you're here more than 90 days) if you can show income in a Spanish account


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## tebo53 (Sep 18, 2014)

Joker1 said:


> My pensions are paid into my UK Account. The question is do I need to open a Spanish Bank Account. Is it possible to live in Spain by withdrawing Sterling from ATMs and changing it to Euros. I have been doing this for years in Cyprus and it works well.


If you are talking about Private pensions, most of them will not pay into a foreign account, only into a UK based bank.

I have my private pensions paid in my UK bank then use "Transferwise" to transfer a lump sum over to my Spanish account every month. It's easier and a far cheaper way to transfer your money than the way you suggest. 

UK OAP pensions can be paid direct into a Spanish account if requested.

Steve


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## Joker1 (Aug 27, 2016)

Thank you. A Spanish Bank ac it is then.


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## mrypg9 (Apr 26, 2008)

Joker1 said:


> Thank you. A Spanish Bank ac it is then.


Another way is to open an offshore account with a British High Street bank like Barclays or Lloyds. I have my UK pensions and savings income paid into the sterling account, change into euros when the rate is good and paid into the euro account. I then transfer the minimum amount to pay bills etc. into my Spanish account when needed.

I opened my Lloyds offshore account eleven years ago when I was using several currencies. All that was needed was a deposit of £100 $100 or 100 euros. It costs under £8 a month to maintain the two accounts and I have credit and debit cards for each. I use the offshore euro debit for all payments other than utilities etc. and my Spanish account debit card for withdrawing cash without paying a transaction fee.

The advantage for me is that I don't run the risk of having my Spanish account frozen because of some quarrel with hacienda or an unpaid fine I was unaware of. I don't know how true the stories of such things happening are but I don't want to risk the inconvenience.

The idea that offshore accounts are for the wealthy, tax avoiders/evaders or Mafiosi is an outdated one held by the ignorant. I know several people like myself of fairly modest means who find these accounts very convenient.


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## ExpatWannabee (Jul 6, 2011)

We still keep the bulk of our money in Canada, including pension deposits. We get a transfer to our Spanish bank account once a month to pay the bills. Canadian banks are rock solid. Spanish banks - not so much.


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## Joker1 (Aug 27, 2016)

Savings accounts in UK banks pay a pathetic amount of interest. Is it the same in Spain?


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## tebo53 (Sep 18, 2014)

Joker1 said:


> Savings accounts in UK banks pay a pathetic amount of interest. Is it the same in Spain?


You don't get any interest on a "current acconnt" type of account which you will find a lot of expats use just to transfer set amounts each month.

When you are a resident, Sabadell bank have an account called the "Expansion" Account which, when you pay your bills through the bank, example: rent, electric and phone/internet you get 3% back per month.

I think other banks do a similar scheme. I do not and would not have a Spanish savings account! 

Steve


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## Pesky Wesky (May 10, 2009)

ExpatWannabee said:


> We still keep the bulk of our money in Canada, including pension deposits. We get a transfer to our Spanish bank account once a month to pay the bills. Canadian banks are rock solid. Spanish banks - not so much.


After what we've seen in recent years I wouldn't say any banks are Rock Solid! They are strong until a stone is taken out of some foundations on the other side of the world, and Jerico - everything comes tumbling down


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## Lynn R (Feb 21, 2014)

tebo53 said:


> You don't get any interest on a "current acconnt" type of account which you will find a lot of expats use just to transfer set amounts each month.
> 
> When you are a resident, Sabadell bank have an account called the "Expansion" Account which, when you pay your bills through the bank, example: rent, electric and phone/internet you get 3% back per month.
> 
> ...


Santander in Spain has the 123 account which has been paying up to 3% interest on current account balances, but only on balances up to €15,000. I read in the British press the other week that they had slashed their interest rate on these accounts in the UK, though, following the BoE's cut to base rates, so I don't know if the rate has been cut for their Spanish accounts too, I haven't seen any publicity about it if it has. They do charge a monthly fee for these accounts, though.


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## ExpatWannabee (Jul 6, 2011)

Pesky Wesky said:


> After what we've seen in recent years I wouldn't say any banks are Rock Solid! They are strong until a stone is taken out of some foundations on the other side of the world, and Jerico - everything comes tumbling down


I would agree with you regarding 95 percent of the banks in the world, Pesky. But Canada has historically had an extremely conservative banking industry which has resulted in a small number of banks, which are very powerful, but also very tightly regulated federally. The country has only six large banks, three of which are rated as among the strongest 20 in the world. And, of course, it has never allowed stupid products like sub-prime mortgages.

Of course, in the case of a global crisis, Canada would also be hit hard. I said that our banks were solid as a rock - I didn't say the rock was impermeable. But barring that, I think you'd agree that it would be safer to keep your money in a Canadian bank than a Spanish one.


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## Pesky Wesky (May 10, 2009)

ExpatWannabee said:


> I would agree with you regarding 95 percent of the banks in the world, Pesky. But Canada has historically had an extremely conservative banking industry which has resulted in a small number of banks, which are very powerful, but also very tightly regulated federally. The country has only six large banks, three of which are rated as among the strongest 20 in the world. And, of course, it has never allowed stupid products like sub-prime mortgages.
> 
> Of course, in the case of a global crisis, Canada would also be hit hard. I said that our banks were solid as a rock - I didn't say the rock was impermeable. But barring that, I think you'd agree that it would be safer to keep your money in a Canadian bank than a Spanish one.


I like the use of impermeable 

I expect you're right about them being more secure than Spanish banks, I really don't know enough about it. However, the crisis taught me that that saying "Don't count your chickens before they're hatched " could very well be changed to "Don't count your chickens - ever"


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## st3v3y (Aug 27, 2015)

mrypg9 said:


> Another way is to open an offshore account with a British High Street bank like Barclays or Lloyds. I have my UK pensions and savings income paid into the sterling account, change into euros when the rate is good and paid into the euro account. I then transfer the minimum amount to pay bills etc. into my Spanish account when needed.
> 
> I opened my Lloyds offshore account eleven years ago when I was using several currencies. All that was needed was a deposit of £100 $100 or 100 euros. It costs under £8 a month to maintain the two accounts and I have credit and debit cards for each. I use the offshore euro debit for all payments other than utilities etc. and my Spanish account debit card for withdrawing cash without paying a transaction fee.
> 
> ...


I've just checked into this as I didn't realise there was a possibility your Spanish account could be frozen. The criteria seems to have changed as you need income of £50k or savings of £25k but the monthly fee is still the same. I'm already with Lloyds which saves some hassle so will consider this option. 

Thank you Mary.


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