5 Best Banks For Freelancers in Spain [Ultimate 2022 Guide]

Setting up your own business in a new country can be quite daunting and challenging. Especially when there are new legalities that you must be mindful of in a new place. One of the foremost priorities in such a case will be to get your finances sorted. If you are self-employed, chances are you would want the best bank which can cater to your unique needs since you will not have the same banking requirements as someone receiving a regular fixed salary in their account. In this guide, we have compared some of the best bank accounts specifically for freelancers and small businesses in Spain.

Quick Comparison Of The Best Banks for Freelancers in Spain

Here is a quick comparison of the services offered by each bank. Not every bank offers the same services, and there might be some features which will make some options more attractive to you than others.

	N26	Wise	Revolut	Monese	Openbank
English website and support	√	√	√	√	√
No monthly fee	√	√	√	√	√
Free payment card	Virtual debit Mastercard	×	×	MasterCard	Open debit card
Accounting integration	√	√	√	×	√
Apple and Google Pay	√	√	√	√	√
Cash withdrawal fee	3 free cash withdrawals per month	2 free cash withdrawals per month	5 free cash withdrawals per month	Free up till 200 GBP	5 free cash withdrawals per month
Foreign transaction fee	×	0.35-2.85% commission fee	0.3%	0.5%	1.5%
Online or bank branch	Online	Online	Online	Online	Online

3 Reasons Why You Should Open A Business Bank Account In Spain

Easier To Manage Expenses And Income

A lot of people who are working as freelancers will not earn the same amount each month. Keeping a separate business account can help you in looking at the seasonal variation in your business, that is, what time in the year it picks up and what months it is not that busy. All of this can be incredibly useful in budgeting and making business decisions in the future as well.

You can also keep a better track of your expenses, cash flow and profit that comes in from the business only and look at how much comes in versus what you end up spending. If you don’t do this and have the same account for your personal and business needs, you might find it harder to differentiate between business and private expenses, and things can quickly become muddled.

Easier To File Your Annual Tax Return

The tax return will require you to list your incomes and expenses in chronological order, which can be done easily if the accounts for personal and business use are different. You can maintain cleaner records for tax filing since you will need to calculate your monthly earnings using all the paychecks that come your way. A separate bank statement from a business account will do half the work for you. You also won’t have to filter out non-business expenditures. This will make the entire process a lot simpler and efficient and will also reduce the chances of a mistake. And you may well know that mistakes when filing your tax returns, like claiming a personal purchase as a business one, can land you in a lot of trouble.

Greater Flexibility In a Business Bank Account

With freelancing, you will need to receive credit card payments, write checks and collect receipts. All of this is easier if you have a business account. This type of account will also allow you to make a far larger number and type of transactions. A personal account on the other hand will have more limitations, and especially as a freelancer make handling business slightly more difficult. These include restrictions on the number and size of transfers you can make, which will prove to be a hindrance in the financial freedom afforded to you by virtue of being a freelancer and the nature of the business.

An additional benefit is also that if you have an account solely for business needs, and are running low on cash because work is slow, you might find it easier to get credit options from your bank based on the history of that account.

What Are the Best Banks For Freelancers In Spain

N26

is an online-only bank with its headquarters in Germany. It was founded in 2013 and offers its services to more than 8 million customers in 24 European countries. The bank does this using a team of only 1,500 people from around the globe. Operating online only does not mean the bank is any less safe; it is governed by the same regulations that all other banks must operate by.

Pros

• Advanced security measures since it is 100% online
• 3 free of cost ATM withdrawals every month (within the Eurozone)
• Spend from your mobile wallet by connecting to Apple Pay or Google Pay
• No foreign transaction fee on your debit card
• Tools like the N26 Insights to make the most of your data
• Customer support in English
• Online process for account opening which takes just 8 minutes

Cons

• The plastic MasterCard used to be free but now you must pay 10 euros for it
• If you have more than 50,000 euros in your account at any time you must pay an additional fee
• The free account does not have access to Spaces, which can help you in budgeting etc.
• Since there is two-factor authentication, if you lose your phone, you lose access to your bank account
• The account creation website runs into glitches and has some problems when verifying your identity

Wise (formerly Transferwise)

Wise is based out of the UK, and to date has served more than 10 million customers. Its scale of operations isn’t small either: every month the app is used to move more than three billion GBP globally. Wise is technically not a bank, but a money transfer operator and it has some of the best rates for international transfers.

You can open a ‘seemingly local’ bank account in a number of different countries. You can also convert your earnings easily into more than 50 different currencies. This is especially useful for freelancers since you can invoice like a local regardless of where you are actually based, and receive earnings in a number of currencies for free. All you need is a Wise account number. You can also get a Wise Business Visa card for withdrawing money and making purchases online, and connect it to accounting tools like Xero, allowing you to download statements and do a lot more analysis about your earning and spending patterns.

Opening an account is absolutely free, and can be done directly from a device connected to the internet. And you can even make transfers and receive money without any hidden fees.

Pros

• Hold money in up to 50 currencies
• Among the lowest transfer fees offered in the market
• Exchange rate for currency transfers is mid-market range
• You can avoid foreign transaction fees using their debit card
• No monthly fee or account setup charges

Cons

• Doesn’t support cash or cheque payments
• Since it is not like a traditional bank, facilities like overdraft and loans cannot be availed
• Holding a large Euro balance will cost you money
• Fees charged if you top up the account using ACH, debit or credit card

Revolut

This is a London-based fintech and is available not only in the European Union but also in other countries around the world. It has more than 12 million users, and is a prominent player in the low-cost digital banking sphere.

This is one of the most travel-friendly banks that you can find, making it all the more useful to freelancers. You can make use of their comprehensive insurance plan. Moreover they only charge a small percentage of 0.5% for monthly transfers exceeding 5000 pounds.

It has a digital banking app, allows transactions with low fees, and has state of the art features which are also reliable and secure. Revolut also offers advantages to those who travel a lot or have banking needs in countries other than their own, which might help you as a freelancer. It even allows you to make payments on the go, including international transfers.

Pros

• Bank with an international approach
• Accessible from any device
• No hidden fees
• Good prices on the debit card for international transactions
• Foreign transfers up to 1000 pounds are exempted from foreign exchange fees

Cons

• You cannot access certain services with a standard account
• While they are often free, some foreign transactions will cost a fee
• Currency conversion rates are higher on weekends

Monese

Monese was established in 2015 in the United Kingdom. It is a mobile based app which provides all of the services that you can get with a traditional bank. It does not require you to have a UK address, a regular source of income or even any credit history. All you need is your passport and identity card of your country.

Pros

• Monese needs only 2 to 3 hours for transferring payments
• You can make payments using Google Pay and Apple Pay
• You can transfer money to other countries without getting charged any processing fees
• Get a Monese MasterCard for free
• Free ATM withdrawals upto 200 GBP. After that you will be charged a 2% fee
• 24/7 customer service

Cons

• The free plan has limited features only
• Since it does not operate like a regular bank, there are no options for getting a loan or overdraft
• Your transactions are also not protected by FSCS (Financial Services Compensation Scheme)
• You can only access your account through one smartphone

Openbank

Openbank is part of the Spanish Santander group. It was established in 1995 and is Spain’s first 100% digital bank. The bank continues making use of innovative methods to give a seamless banking experience that is safe from fraud and other threats. It currently provides its services to 1.7 million people globally.

Pros

• One of the first banks to use machine learning and artificial intelligence to enhance its security features and provide protection against fraud
• Uses robo-advisors to develop an investment advisory service which can adapt its strategy based on the market
• Website and support in English
• Integration with mobile wallets like Apple Pay and Google Pay
• Offers personal loans and mortgages, which many other mobile banks do not

Cons

• Only offers a Euro account and doesn’t offer low fee international transfers
• High foreign exchange fees
• Some glitches in the sign-up experience from the website and mobile app
• Some fees like on ATM withdrawals beyond a point are worth noting

Conclusion

This guide gives you details about the best banking options for freelancers in Spain. It describes both the advantages and the downsides of each option. Now that you have this information, and can tell what sets each bank apart, it should be much easier to choose the best option for yourself depending on your needs and the nature of your business.