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Guide: Work & Taxes

Spanish IBAN vs. Neobanks: Why Wise and Revolut Might Fail for Utilities

Why your Wise or Revolut account won't work for Spanish utilities, rent, and services — and how to get a local Spanish IBAN without the hassle.

Updated February 12, 2026
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You've just moved to Spain. You have a Wise account with a Belgian IBAN, or a Revolut account with a Lithuanian one. It works for transfers, shopping, and ATMs. Then you try to set up electricity, internet, or pay your rent — and the system rejects your IBAN.

Welcome to one of the most frustrating parts of living in Spain as an expat: IBAN discrimination.

What Is IBAN Discrimination?

IBAN discrimination happens when a company refuses to accept a SEPA payment because the IBAN comes from a different EU country. Under EU Regulation 260/2012 (the SEPA Regulation), this is explicitly illegal. Any euro-denominated IBAN from any EU/EEA country must be accepted for SEPA direct debits and credit transfers.

In practice, Spain is one of the worst offenders. Between 2021 and 2025, the Accept My IBAN platform received 4,688 complaints — with Spain accounting for 15% of all reported cases, behind only France (22%) and Germany (19%).

The European Banking Authority has flagged this as an ongoing consumer protection issue, and the Banco de España has published guidance reminding companies of their legal obligations. Despite all of this, rejection of non-Spanish IBANs remains common.

Where You'll Hit Problems

These are the services most likely to reject a non-Spanish (non-ES) IBAN:

Almost always rejected:

  • Electricity providers (Iberdrola, Endesa, Naturgy)
  • Water and gas companies
  • Most telecoms providers (Movistar, Vodafone, Orange)
  • Government payments and tax obligations

Frequently rejected:

  • Landlords and property management companies
  • Community fees (gastos de comunidad)
  • Gym memberships (though legally they must accept any EU IBAN)
  • Insurance providers

Usually works fine:

  • Online subscriptions (Netflix, Spotify, etc.)
  • E-commerce purchases
  • Person-to-person transfers

iIt's illegal — but enforcement is weak

If a company rejects your EU IBAN, they're breaking the law. You can report it. But in the moment, when you need electricity connected this week, legal rights don't keep the lights on. The practical solution is to have a Spanish IBAN ready.

The Problem with Each Neobank

Wise

Wise issues IBANs from their Belgian entity (starting with BE). This is a fully valid SEPA IBAN, but:

  • Most Spanish utility companies will reject it
  • Spanish government systems often require an ES-prefixed IBAN
  • Wise itself has been vocal about IBAN discrimination, operating the Accept My IBAN reporting platform

Wise is excellent for international transfers and holding multiple currencies. It is not a reliable primary bank for daily life in Spain.

Revolut

Revolut's situation has improved. Since August 2023, Revolut has operated in Spain through a licensed entity and now issues Spanish IBANs (ES) to new Spanish customers. If you opened your account before the migration, you may still have a Lithuanian (LT) IBAN — but Revolut has been migrating accounts to ES IBANs.

If you have a Revolut account with a Spanish IBAN, it generally works for direct debits and utilities. Check your IBAN prefix — if it starts with ES, you're likely fine for most services.

N26

N26 has operated in Spain since 2019 and issues Spanish IBANs (ES) for all accounts opened since April 2019. It works for utilities, direct debits, and Bizum. N26 is rated as a top choice for expats in Spain for 2026.

Account types include Standard (free), Smart (€4.90/month), Go (€9.90/month), and Metal (€16.90/month). There is no minimum deposit or income required for the free account. To open an N26 account, you need a valid ID and a Spanish NIE/NIF.

Your Best Options for a Spanish IBAN

Option 1: Online-First Spanish Bank (Fastest)

If you need a Spanish IBAN quickly and have your NIE/NIF:

| Bank | Monthly Fee | Key Features | NIE Required? | |------|------------|--------------|---------------| | N26 | Free (Standard) | App in English, Bizum, no minimum | Yes | | Revolut (Spanish entity) | Free (Standard) | App in English, good FX rates | Yes | | Openbank (Santander) | Free | Full Spanish bank, English app | Yes | | EVO Banco | Free | No maintenance fees, English support | Yes |

Option 2: Traditional Spanish Bank (Most Accepted)

For the smoothest experience with utilities, landlords, and government services, a traditional Spanish bank account eliminates all friction:

  • CaixaBank — Spain's largest bank, branches everywhere, English-speaking staff in expat-heavy areas
  • BBVA — Strong mobile app, accounts can be opened online
  • Sabadell — Popular in Catalonia and Valencia
  • Santander — International reach, English support

Traditional banks typically charge €3–10/month in maintenance fees unless you meet conditions (direct deposit of salary, minimum balance, etc.). Many waive fees for the first year.

To open a traditional bank account, you'll need:

  • Passport
  • NIE/NIF (or proof of NIE application in some cases)
  • Proof of address (padrón or utility bill)
  • In some cases, proof of income or employment

Option 3: Keep Both (Recommended)

The pragmatic approach most expats settle on:

  1. Spanish bank (N26, Openbank, or a traditional bank) for utilities, rent, direct debits, and anything that requires an ES IBAN
  2. Wise for international transfers, holding foreign currency, and sending money home at good exchange rates

This gives you the best of both worlds — a local IBAN that works everywhere in Spain plus low-cost international transfers.

Pros

  • +N26 and Revolut now offer free Spanish IBANs — no need for a traditional bank if you don't want one
  • +Opening an account is fast (often same-day) with just NIE/NIF and passport
  • +Keeping Wise alongside a Spanish bank gives you the best FX rates for international transfers
  • +Digital banks have English-language apps and support

Cons

  • -You need an NIE/NIF before most banks will open an account
  • -Traditional banks charge monthly fees unless you meet conditions
  • -Some landlords and older systems still prefer traditional bank IBANs over neobank IBANs
  • -IBAN discrimination means you'll likely need to switch accounts for utilities

How to Report IBAN Discrimination

If a company rejects your valid EU IBAN, you have recourse:

  1. Ask for written confirmation of the rejection — request they state in writing that they cannot accept your IBAN
  2. Report to Accept My IBAN at acceptmyiban.org — this feeds into EU-level enforcement data
  3. File a complaint with the Banco de España at clientebancario.bde.es — Spain's banking supervisor
  4. Contact your national European Consumer Centre — they can raise cross-border complaints

Realistically, reporting helps improve the situation long-term but won't solve your immediate problem. Have a Spanish IBAN as your backup.

What to Do This Week

  1. Check your current IBAN prefix — if it starts with ES, you're likely fine for most Spanish services
  2. If you only have a BE or LT IBAN, open a free Spanish account with N26, Revolut (Spanish entity), or Openbank — you'll need your NIE/NIF
  3. Don't close your Wise account — keep it for international transfers and as a multi-currency backup
  4. Set up utilities and rent payments from your Spanish IBAN to avoid rejection
  5. If a company rejects your valid EU IBAN, report it — it's illegal and the more reports filed, the faster enforcement improves

+No NIE yet?

Most banks require an NIE/NIF to open an account. If you're in the first few days and need a bank account urgently, some traditional banks (particularly CaixaBank and BBVA) will open a non-resident account with just your passport — but the process is slower and usually requires an in-branch visit. Getting your NIE first makes everything easier.