Banking in Spain as a Brit: opening an account on the Costa del Sol

You'll want a Spanish bank account within weeks of arriving, and with an NIE and a bit of patience it's very doable.

The short version

• Most Brits in Málaga end up with two accounts: a Spanish one for rent, bills and the community fees, and a UK one kept going for pensions, ISAs and anything with a UK address [4].
• Banks will ask for your passport and your foreigner number (NIE or TIE), plus proof of address and of where your money comes from. The NIE is the step that holds most people up.
• Anyone legally resident in the EU has the right to a basic payment account (cuenta de pago básica), with fees capped at EUR 3 a month (about £2.50) [1][2].
• If you're a resident with money abroad, Spain expects you to declare it, and the Modelo 720 return covers assets held outside Spain [3][5].
• Your UK State Pension can be paid straight into a Spanish account, after a 0.39% conversion charge [4].

Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = EUR 1.20).

Resident or non-resident account?

Spanish banks sort customers into two camps, and which one you're in changes the paperwork and sometimes the fees.

Banks set their own fees and conditions on top of the law, so compare the tariff sheets (folleto de tarifas) of two or three banks in Málaga before you sign. Keep in mind that a "free" account often comes with conditions such as paying your salary or pension in, or a minimum number of card payments a month.

If you move from part-year to living here full time, tell the bank. A non-resident account held by someone who is really a resident is the sort of thing that gets accounts frozen while compliance asks questions, which is a right faff when the rent's due.

The documents banks ask for

Spanish banks follow EU anti-money-laundering rules, and expect to be asked for more than you would be back home in Blighty. Have these ready before you walk into a branch on Calle Larios or in Fuengirola:

1. Your passport. The original, not a photocopy.
2. Your NIE or TIE. The NIE is your foreigner number for life; the TIE is the residence card that carries it. Our guide to the NIE and TIE explains how to get them.
3. Proof of address. For residents, a padrón certificate from the town hall or a rental contract. See the padrón.
4. Proof of income or where your money comes from. A Spanish work contract or payslips, a State Pension award letter, or UK bank statements.
5. A tax-residence self-declaration. Every bank will ask which country you're tax resident in and for your tax number there. That's normal: it's how banks swap information between countries.

Some banks will open an account with only a passport and NIE, then ask for the rest within a set period. Others want everything up front. If your Spanish is shaky, branches in Málaga, Torremolinos, Benalmádena, Fuengirola and Marbella are well used to British customers, and many have staff who speak English, but the contract you sign will be in Spanish. Read the fee pages, or take someone who can.

Your right to a basic account

If a bank turns you down, you're not stuck. Under Spanish law, which carries out an EU directive, banks must offer a cuenta de pago básica to anyone resident in the EU, including people without a fixed address [2]. The bank can't make you take other products to get it.

What you get [2]:

• paying money in and taking it out, at the counter and at cash machines in the EU
• direct debits, debit or credit card payments, and transfers, including standing orders
• one single monthly charge of no more than EUR 3 (about £2.50), which the Banco de España can update every two years

The Banco de España explains that the EUR 3 cap covers up to 120 euro payments a year within the EU; above that, banks can charge per transaction, but only up to their own average price for the service [1]. For people in a vulnerable financial situation, the account is free.

It's a no-frills account, but it's enough to pay rent and bills while you sort out something better. Ask for it by name; staff won't always offer it.

Keeping your UK account going

Don't close your UK account the week you land. A UK account makes life easier for:

• the State Pension and private or workplace pensions paid in pounds
• rent from a UK property
• HMRC payments and refunds
• UK direct debits, such as a mobile contract or subscriptions

The catch is that some UK banks don't like customers who live abroad, and a few close accounts once they know you've moved. Our guide to keeping a UK bank account when you live abroad covers which kinds of account tend to survive and what to do about a UK address.

Your State Pension into a Spanish account

DWP will pay your State Pension into a bank in the country where you live, or into a UK bank [4]. For a Spanish account you give the IBAN and BIC. The money is converted at the exchange rate on the day, with a 0.39% conversion charge before you're paid, and you can choose to be paid every 4 or 13 weeks [4]. Spain is in the EEA, so your State Pension still rises every April. Some people prefer the pension to land in the UK and move it over themselves; either way works.

Moving money from the UK

Sending money between the UK and Spain is one of the first things you'll do, and one of the easiest places to lose money without noticing. A few rules of thumb:

• Compare the total cost. Look at the exchange rate you're given against the mid-market rate, as well as any fee. A "no fee" transfer with a poor rate is not free.
• Big sums need a plan. If you're buying a flat in Málaga, the deposit and completion money can be large enough that a small difference in the rate matters a lot. Speak to your bank early, and expect the Spanish bank to ask where the money came from.
• Keep a paper trail. Sale documents for a UK house, pension statements or savings statements make anti-money-laundering checks go faster.

Our guide to sending money between the UK and abroad sets out the options without naming any firm.

Day-to-day banking in Málaga

Once you're set up, a few local habits are worth knowing:

• Bizum is how Spaniards split a bill or pay a friend back, straight from a Spanish bank account by mobile number. You'll be asked "¿te hago un Bizum?" within a month.
• Direct debits (domiciliaciones) are how you pay electricity, water, internet and the community fees on your block. Your landlord or the administrador will ask for your IBAN.
• The IBI (council tax on property) is usually paid by direct debit if you own your home.
• Cash is still used in some bars and markets, but cards are taken almost everywhere in the city and along the coast.
• Your foreign assets. Once you're tax resident in Spain, you may have to report accounts and other assets held abroad, including your UK accounts, on Modelo 720 [3]. The FCDO's Living in Spain guide also reminds residents that they must declare assets held outside Spain [5]. See Spanish wealth tax, Modelo 720 and the solidarity tax, and remember that a tax adviser who knows both countries can check your situation.

Banking questions come up all the time in our community group for Brits in Spain, from which branches have English-speaking staff to how long a TIE takes in Málaga.

Sources

1. Banco de España, Portal del Cliente Bancario: Cuenta de pago básica
2. Consumo Responde (Junta de Andalucía): everyone resident in the EU has the right to a basic payment account
3. Agencia Tributaria: Model 720, informative declaration on assets and rights held abroad
4. GOV.UK: State Pension if you retire abroad – bank accounts your pension can be paid into
5. GOV.UK (FCDO): Living in Spain (last updated 3 July 2026)

Keep reading

• NIE and TIE: Spain's foreigner numbers explained
• Spanish taxes for Brits: the UK link and your State Pension
• Keeping a UK bank account when you live abroad
• Sending money between the UK and abroad