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Buying property in Spain, which Spanish bank to use

  • 29-01-2019 7:10am
    #1
    Registered Users Posts: 14 ✭✭✭ humbahuwamba


    Hi

    I'm in the process of buying a house in Spain. I need a Spanish bank account and I'll need to transfer my money from Ireland into that bank account.

    I was wondering if anyone has done this and if they have any advice, recommendations, warnings, etc., regarding which bank to use?

    Thanks
    Humba


Comments

  • Registered Users Posts: 6,168 ✭✭✭ troyzer


    Hi

    I'm in the process of buying a house in Spain. I need a Spanish bank account and I'll need to transfer my money from Ireland into that bank account.

    I was wondering if anyone has done this and if they have any advice, recommendations, warnings, etc., regarding which bank to use?

    Thanks
    Humba

    No you don't.


  • Registered Users Posts: 78,041 ✭✭✭✭ Victor


    BIC and IBAN should take care of this.


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    troyzer wrote: »
    No you don't.

    Have you bought property in Spain without opening a bank account there? Could you explain how you did it?


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    Victor wrote: »
    BIC and IBAN should take care of this.

    Thanks bud, I know what a BIC and IBAN are.


  • Registered Users Posts: 6,168 ✭✭✭ troyzer


    Have you bought property in Spain without opening a bank account there? Could you explain how you did it?

    You don't need a Spanish bank account. Your SEPA bank account is the same everywhere. Anything a Spanish account can do, your Irish account can do.


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  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    troyzer wrote: »
    You don't need a Spanish bank account. Your SEPA bank account is the same everywhere. Anything a Spanish account can do, your Irish account can do.

    Have you bought property in Spain without opening a bank account there?

    Because, you see, what you're say is contrary to what everybody else I've spoken to is saying.


  • Registered Users Posts: 6,168 ✭✭✭ troyzer


    Have you bought property in Spain without opening a bank account there?

    Because, you see, what you're say is contrary to what everybody else I've spoken to is saying.

    Everybody else is wrong. There are EU directives around this.

    There is no legal difference between a Spanish and an Irish bank account and third parties are not allowed to discriminate between them.


  • Registered Users Posts: 95 ✭✭ jkb_dub


    Have you a solicitor locally in Spain ? If not I'd recommend that as the first step. There are a number of steps you need for registering your new property which they can navigate, NIE numbers, direct debits with service providers, annual taxes, wills etc.

    I use Caixa bank, found them very good. App on the phone is all I've needed. I've recently heard folks people struggle with Bankia.


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    jkb_dub wrote: »
    Have you a solicitor locally in Spain ? If not I'd recommend that as the first step. There are a number of steps you need for registering your new property which they can navigate, NIE numbers, direct debits with service providers, annual taxes, wills etc.

    I use Caixa bank, found them very good. App on the phone is all I've needed. I've recently heard folks people struggle with Bankia.

    Thanks for your reply.

    How much did Caixa charge you for transferring money from Ireland to there?

    I'm dealing with an estate agent, Tecnocasa, they're doing all the paperwork. Their offices are everywhere so I presume they're reliable.


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    troyzer wrote: »
    Everybody else is wrong. There are EU directives around this.

    There is no legal difference between a Spanish and an Irish bank account and third parties are not allowed to discriminate between them.


    So, the answer to my question is 'No'.


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  • Registered Users Posts: 6,168 ✭✭✭ troyzer


    So, the answer to my question is 'No'.

    Of course the answer is no. The question is irrelevant.

    This is an area I have a lot of experience in. It is illegal to discriminate between different IBANs within SEPA.

    If someone is telling you that you have to set up a Spanish account, they are wrong and in breach of EU directive 260/2012 among others.


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    troyzer wrote: »
    Of course the answer is no. The question is irrelevant.

    This is an area I have a lot of experience in. It is illegal to discriminate between different IBANs within SEPA.

    If someone is telling you that you have to set up a Spanish account, they are wrong and in breach of EU directive 260/2012 among others.


    I thought there was a rule against giving legal advice on here?


  • Registered Users Posts: 14,763 ✭✭✭✭ First Up


    I thought there was a rule against giving legal advice on here?


    No rule against taking it.


  • Registered Users Posts: 6,168 ✭✭✭ troyzer


    I thought there was a rule against giving legal advice on here?

    I'm not giving you legal advice. I'm telling you that you don't need a Spanish bank account and why.


  • Registered Users Posts: 27,309 ✭✭✭✭ drunkmonkey


    troyzer wrote: »
    I'm not giving you legal advice. I'm telling you that you don't need a Spanish bank account and why.

    It's not the question he asked. He's being advised to get one. Technically your right but it's a long way from reality. Try taking out a contract here from a foreign bank account.

    What's the best websites you've found for looking a property there? Are you taking a Spanish mortgage, was there much hoops to jump through?

    Could Brexit cause some problems for the Brits and have a knock on effect on house prices there?


  • Registered Users Posts: 19,675 ✭✭✭✭ neris


    Weve used La Caixa for years no complaints and always been helpful when it comes to changes in the terms of mortgage and interest

    Where in Spain are you buying?

    It's not the question he asked. He's being advised to get one. Technically your right but it's a long way from reality. Try taking out a contract here from a foreign bank account.

    What's the best websites you've found for looking a property there? Are you taking a Spanish mortgage, was there much hoops to jump through?

    Could Brexit cause some problems for the Brits and have a knock on effect on house prices there?

    Not speaking for all of spain but down where we are house prices have been steady for years with no big movements either way but property doesnt shift fast and theres been a big increase over time in the scandanavians buying & living there. Any Brits we,ve talked to down there have no intetntion of moving or leaving but they do have worries over sterling and what its going to do to pensions and investments they have in the UK.


  • Registered Users Posts: 4,386 ✭✭✭ EKRIUQ


    Have you bought property in Spain without opening a bank account there?

    Because, you see, what you're say is contrary to what everybody else I've spoken to is saying.

    Firstly you should be using a solicitor, depending where your buying there very versed in dealing with ex-pats and make sure you get a good solicitor as there has been a lot of laws regarding property created by the EU for EU citizens which the Spanish government have been trying to ignore and in some comunidads denying it.

    A solicitor will organise everything for you
    NIE number that is necessary to open a bank account and everything else in Spain
    Notary costs, title deed tax and land registration
    For the property sale to go through on the day of sale you are going to have to put the water, electricity and Impuestos SUMA into your name straight away.




    As for banks chose one that you can easily communicate with
    Sabadell they have an English department and there website is also bilingual. They will even send your Spanish bank statements to an Irish address.

    I have a friend who works at BBva, they seem to be very professional also but the best thing is pick one near your property so if there is problems you can call in.

    Edit: To answer the question do you need a bank account to buy a property in Spain, not to pay for the property but for the sale to go through to the acceptance of the Notary you will need a bank account.


  • Registered Users Posts: 27,309 ✭✭✭✭ drunkmonkey


    It's Ibiza but prices are very steep, I've been there a good few times so have a good run of the island, all the websites seem to have high end properties. Went into a few agents there but it was all 1mil plus, hard to find a 3 bed anything there at reasonable money.


  • Registered Users Posts: 95 ✭✭ jkb_dub


    Thanks for your reply.

    How much did Caixa charge you for transferring money from Ireland to there?

    I'm dealing with an estate agent, Tecnocasa, they're doing all the paperwork. Their offices are everywhere so I presume they're reliable.

    Honestly, I'd ask them to recommend a local solicitor unless their in-house team will maintain your relationship going forward post close of your purchase.

    For my purchase, I transferred the deposit from AIB to the estate agent. The remaining payments were sent from AIB to my solicitor in Spain. I think I was charged a small fee for the transfer as I needed it done quickly and it was over X amount so had to be done in branch... Talk to your local bank, they'll advise the limitations/costs.


  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    It's not the question he asked. He's being advised to get one. Technically your right but it's a long way from reality. Try taking out a contract here from a foreign bank account.

    What's the best websites you've found for looking a property there? Are you taking a Spanish mortgage, was there much hoops to jump through?

    Could Brexit cause some problems for the Brits and have a knock on effect on house prices there?


    I look at https://www.idealista.com/



    They have loads of properties but to be honest I find the best way to search is to pick the neighbourhood you're interested in and visit the estate agents there and ask them. Often the websites aren't up-to-date, and even what they have in their own window may not be. This has been my experience in Seville, other areas (specifically on the coast where they're targetting foreign buyers) it might be completely different.



    No mortgage.


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  • Registered Users Posts: 14 ✭✭✭ humbahuwamba


    EKRIUQ wrote: »
    Firstly you should be using a solicitor, depending where your buying there very versed in dealing with ex-pats and make sure you get a good solicitor as there has been a lot of laws regarding property created by the EU for EU citizens which the Spanish government have been trying to ignore and in some comunidads denying it.

    A solicitor will organise everything for you
    NIE number that is necessary to open a bank account and everything else in Spain
    Notary costs, title deed tax and land registration
    For the property sale to go through on the day of sale you are going to have to put the water, electricity and Impuestos SUMA into your name straight away.




    As for banks chose one that you can easily communicate with
    Sabadell they have an English department and there website is also bilingual. They will even send your Spanish bank statements to an Irish address.

    I have a friend who works at BBva, they seem to be very professional also but the best thing is pick one near your property so if there is problems you can call in.

    Edit: To answer the question do you need a bank account to buy a property in Spain, not to pay for the property but for the sale to go through to the acceptance of the Notary you will need a bank account.


    OK, thanks, some good advice there.


    I have an appointment for the NIE on Friday. Fingers crossed!


    I understood that the agency and their solicitors would take care of all the paperwork (a Spanish friend of mine bought recently and that's how it happened with him). Has anybody else bought just using the estate agent's solicitor?


    Good advice about using a local bank. Do they operate on a 'branch' basis like in Ireland? ie. Wherever you open your account is your 'branch' until the end of time.



    I understand about the deeds, water and electricity. But I'm nowhere near that stage yet.


  • Registered Users Posts: 4,386 ✭✭✭ EKRIUQ



    Good advice about using a local bank. Do they operate on a 'branch' basis like in Ireland? ie. Wherever you open your account is your 'branch' until the end of time.

    Pretty much, but like over here everything is going online and I find the spanish banking system to be a little more advanced that over there in regards to technology

    I understand about the deeds, water and electricity. But I'm nowhere near that stage yet.

    Your solicitor should have all that in place and it will happen on the day of the sale.


  • Registered Users Posts: 6,294 ✭✭✭ EagererBeaver


    I bank with Sabadell and find them great.

    Unless you're committed to tecnocasa, I would avoid them like the plague. They're the McDonald's of estate agents and I've rarely seen one of their agents old enough to shave.


  • Closed Accounts Posts: 636 Chanel Fat Comet


    troyzer wrote: »
    Of course the answer is no. The question is irrelevant.

    This is an area I have a lot of experience in. It is illegal to discriminate between different IBANs within SEPA.

    If someone is telling you that you have to set up a Spanish account, they are wrong and in breach of EU directive 260/2012 among others.

    In Germany you need to have a German bank account if you're residing there.


  • Registered Users Posts: 78,041 ✭✭✭✭ Victor


    Has anybody else bought just using the estate agent's solicitor?
    In Ireland, both sides are required to have independent advice. Getting advice from a lawyer connected to the vendor / their estate agent might not be wise.


  • Registered Users Posts: 6 ✭✭✭ Borana


    In Germany you need to have a German bank account if you're residing there.

    Definitely right. The banks are not there only for mortgage applications. Once you purchase a property in Spain, you are subject to VAT and stamp taxes which amount to 12 - 15% of the actual amount paid for the property. I do not think that anybody would argue 23000€ is a small amount of tax for you to be requested a local bank deposit. To be 100% sure, I checked the information on the web for buying and registering a property in Spain from both Spanish and English resources and almost every decent page with a tutorial/guide confirm opening a bank account as a step of the process. This is just an example: Registering a property in Spain
    For everybody who thinks that IBAN/BIC is enough, you should always consider that in the case of a necessity for local authorities to withdraw funds from your account, they would not have the authority to do so over an Irish account. Even if they did, the transfer would take three work days to arrive in the Spanish bank account.


  • Registered Users Posts: 1,387 ✭✭✭ redcup342


    In Germany you need to have a German bank account if you're residing there.

    No you don't.

    Finazamt even pay my Tax Return into my foreign account.

    Transfers are 1 working day now on IBAN.

    My Foreign account reports my income on my German Tax number like normal.

    Sure N26 are operating all over the place with a German IBAN.


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