Getting your banking set up correctly and early makes everything else about the move smoother. Without a Spanish bank account you cannot pay rent by direct debit, set up utilities, receive a Spanish salary, or handle most day-to-day financial transactions the way residents are expected to. 

Yes. Your NIE- NUmero de Identidad de Extranjero,is required to open a resident bank account in Spain. Without it, some banks will open a non-resident account as a temporary measure, which allows basic transactions but comes with limitations - higher fees, restricted services, and no direct debit facilities in most cases. Once you have your TIE card and NIE you should upgrade to a full resident account as soon as possible. The non-resident account is a bridge, not a long-term solution.

Spain has a well-developed retail banking sector and most major banks are accustomed to dealing with foreign residents. The four banks most commonly used by British expats are as follows.

• Santander Spain is familiar by name to UK customers but operates as a separate entity from Santander UK. Having a UK Santander account does not give you any particular advantage when opening a Spanish one, though the brand familiarity can make the process feel less daunting. It has an extensive branch network across Spain.
• BBVA is one of Spain's largest banks and has invested heavily in its digital banking platform, which is well regarded and available in English. It tends to be a popular choice among younger expats and digital nomads who prefer to manage their finances online.
• CaixaBank is the largest bank in Spain by domestic market share and has the widest branch and ATM network in the country, making it particularly useful if you are living outside a major city. Its app and online banking have improved in recent years.
• Sabadell has a strong presence in Catalonia and the eastern coastal regions and has historically been proactive in serving the expat community, particularly in areas like the Costa Blanca and Costa del Sol. It has English-language customer service in some branches in high-expat areas.

For the transition period between arriving in Spain and getting your full resident account set up, and for ongoing management of money between the UK and Spain, digital banking options are very useful.

• Wise holds balances in multiple currencies, allows you to receive UK payments into a UK sort code and account number, and converts and transfers money between currencies at the mid-market exchange rate with transparent fees. For anyone managing income in pounds and expenses in euros it is one of the most cost-effective tools available.
• Revolut offers similar multi-currency functionality with a Spanish IBAN available on paid plans, which can be used for some Spanish direct debits. It is widely used by expats during the transition period but has limitations as a primary account.
• N26 is a German digital bank that operates across the EU including Spain and offers a full Spanish IBAN from day one. It is a legitimate alternative to a traditional Spanish bank for those who prefer fully digital banking, though its product range is narrower than the high street banks.

If you are moving funds from the UK to Spain to cover a property purchase, set up your initial life there, or move savings, the method you use to transfer matters financially. Bank-to-bank international transfers are the most straightforward but involve the exchange rates and the highest fees.

Wise is reliable for transfers up to mid-range amounts and offers real-time rate transparency. OFX, Currencies Direct, and Moneycorp are specialist currency brokers that are worth considering for larger transfers, particularly property purchases where even a small improvement in the exchange rate can represent thousands of pounds. These services also offer forward contracts, which allow you to lock in an exchange rate in advance if you are concerned about GBP/EUR fluctuations during a property purchase process that may take several months to complete.

Yes, UK citizens can obtain mortgages in Spain, but the terms differ depending on whether you are a resident or a non-resident at the time of application.

As a non-resident

This means you have not yet established legal residency in Spain. Spanish banks will lend up to 60% to 70% of the property's assessed value (loan to value), meaning you need a deposit of 30% to 40% plus the purchase costs on top. Interest rates for non-resident mortgages are generally slightly higher than for residents.

As a resident

Once you hold a TIE card and can demonstrate income and financial stability in Spain- lending conditions improve, with LTV ratios up to 80% available, though this varies by bank and individual financial profile.

Moving to Spain does not mean closing everything in the UK, and for most people maintaining some UK financial infrastructure makes sense, at least in the short term. Keep at least one UK bank account open, you will need it to receive UK pension payments, manage UK rental income if applicable, and handle financial matters that still run through UK systems. Some UK banks have closed accounts of customers who have moved abroad, citing residency requirements in their terms. If you are concerned about this, check your bank's policy before you move and consider opening an account with a bank that explicitly permits non-resident customers, such as some of the digital banks or private banking options. 

Your UK ISA holdings are not affected by moving abroad in terms of existing balances - you can keep what you have but you cannot make new contributions to a UK ISA once you are no longer a UK tax resident. Existing ISA funds continue to grow free of UK tax within, but Spain may tax the gains depending on your tax position there, which is another reason to take proper tax advice before moving.