Insight #5 How to Manage Your Finances in Northern Spain: Smart Banking & Money Transfers

Living in Northern Spain while earning from outside the eurozone brings unique challenges when managing your finances. Whether you’re paying rent, buying property, or covering everyday expenses, finding efficient and affordable ways to transfer money is essential. We’d like to share some insights about the practicalities of having a Spanish bank account and making the most of your international transfers, based on our experience helping many people through this process.

Why Having a Spanish Bank Account is Essential

If you’re living in Spain, having a local bank account isn’t just convenient—it’s practically necessary. Here’s why it makes your day-to-day life so much easier:

• Utility Payments: Your electricity, water, and internet providers typically only accept payments from Spanish accounts, making it much simpler to manage these essential services.
• Tax Payments: Working or owning property in Spain means you’ll need to pay various taxes—income tax, property tax, etc.—and these payments require a Spanish account.
• Public Charges: When dealing with government fees, fines, or registration costs, you’ll find that a local account is often the only accepted payment method.
• Mobile/Cell Phone Contracts: Setting up with providers like Vodafone or Movistar? They’ll want to link your monthly payments to a Spanish bank account.

We’ve seen firsthand how having a local bank account simplifies life for long-term residents. It’s one of those practical steps that makes your transition to Spanish life much smoother.

Making International Transfers: How to Keep Costs Down

Once you’ve set up your Spanish bank account, you’ll need to transfer money from your home country. If you’re earning in USD or GBP, choosing the right transfer method can save you significant amounts of money.

We’ve put together a comparison of costs for transferring 10,000 EUR from either USD or GBP into Spain. This information is based on publicly available details (though fees can change, and special promotions may apply):

Major Spanish Banks (for both USD and GBP transfers):

• Banco Santander: 75€ fee + exchange rate markup
• CaixaBank: 70€ fee + 2.5% exchange rate markup
• BBVA: 70€ fee + exchange rate markup
• Abanca: 60€ fee + exchange rate markup
• Banco Sabadell: 75€ fee + 3% exchange rate markup

Currencies Direct: Unlike the banks, Currencies Direct has no fixed fee. Instead, they only apply a margin to the exchange rate of 0.5% to 1% for a 10,000 EUR transfer.

Breaking Down the Costs

Traditional Banks:

• Fixed Fees: Between 60€ to 75€ for a 10,000€ transfer
• Exchange Rate Markups: An additional 2.5% to 4% on top of the fixed fee
• Total Cost: You might end up paying between 310€ to 475€ for that 10,000€ transfer

Currencies Direct:

• No Fixed Fee: Unlike the banks, Currencies Direct doesn’t charge any fixed fee for transfers
• Lower Exchange Rate Markup: Their margin typically ranges from 0.5% to 1%, considerably lower than banks
• Total Cost: For the same 10,000€ transfer, you might pay between 50€ and 100€

How Much Could You Save?

Using Currencies Direct for your transfers could save you between 210€ and 375€ compared to traditional banks. That’s meaningful money that stays in your pocket!

Real-Life Benefits of Lower Transfer Costs

Here are some practical scenarios where these savings could make a significant difference:

Property Purchases: If you’re buying a home in Northern Spain and transferring something like 200,000 EUR, the savings with Currencies Direct could amount to thousands of euros. That’s extra money for your new home or investment rather than going toward fees.

Regular Transfers: For monthly expenses like rent (say 1,000 EUR), using a service with lower fees adds up to substantial savings over time.

Exchange Rate Protection: One particularly helpful feature of Currencies Direct is the ability to lock in favorable exchange rates for future transfers. This makes budgeting much more predictable, especially when you’re regularly transferring money from your home currency.

Personal Support When You Need It

Beyond the financial benefits, having access to personal customer support can be incredibly valuable. When you’re managing finances across borders, being able to speak with someone who can guide you through the process and answer your questions provides peace of mind.

What Our Clients Say and Getting Started

Many people we’ve worked with have shared positive experiences using Currencies Direct, particularly those making large transfers for property purchases or setting up regular payments. They consistently mention the quick transfers, helpful customer service, and significant savings compared to traditional banks. The personalized support has been particularly valuable for clients navigating the complexities of international finances.

Managing your finances while living in Northern Spain becomes much more straightforward when you have a Spanish bank account and the right tools for cost-effective international transfers. Currencies Direct offers competitive rates and clear pricing that works well for expats and international residents looking to manage their money wisely across borders.

If you’re looking to make international transfers with lower fees and better exchange rates, we think it’s worth exploring whether Currencies Direct might be a good fit for your needs. To get started, simply visit their website here.

For any questions about currency transfers or relocating to Green Spain, our team is here to help you every step of the way—just get in touch!

Your Galicia & Green Spain Property & Relocation Team:

Southern Galicia 

Caroline Harris @ caroline@galiciagreenspainproperty.com 

Lucie Prokopova @ lucie@galiciagreenspainproperty.com

Northern Galicia

Estefania Rua @ estefania@galiciagreenspainproperty.com

Asturias

Donna Gonzalez-Linnitt @ donna@galiciagreenspainproperty.com