These simple guidelines will help you apply for a credit card in Spain as a foreigner without any fuss

Spain is a beautiful country to live in. Despite average career prospects, immigrants are delighted by the local leisure options, friendly people, a number of beautiful cultural and natural attractions, and a great climate. In fact, 79% of expats feel at home in the Spanish culture (vs. 63% globally) and have no trouble with learning the Spanish language. However, true comfort of life in a foreign country can be achieved only if you get access to the local banking system.

According to the IMF, the Spanish banking sector has a solid global presence, operates on a traditional business model, and remains highly profitable. These banks primarily rely on deposits to fund their credit activities and have minimal exposure to the broader financial system or within their own groups. A large portion of the business and profits of significant banks comes from foreign subsidiaries. Profitability increased significantly after the pandemic as financial impairments declined and has continued to rise as lending margins improved in response to higher interest rates. With stable asset quality, banks have been able to boost dividend payouts and ramp up share buybacks while maintaining solid solvency buffers. However, Spain’s significant banking institutions’ (SIs) capitalisation is lower than their Euro Area (EA) counterparts due to smaller voluntary capital buffers and a higher concentration of risk-weighted assets. Nonetheless, banks maintain firm liquidity reserves.

Credit cards have many benefits. Getting one to complement your debit account gives people additional financial opportunities. Like foreigners looking to open a bank account in UAE, non-residents in Spain will face stricter application requirements, absence of local credit history being one of the reasons for increased scrutiny.

Nevertheless, everything is possible if you know what to look for.

1. Prepare the documents. You’ll need an ID to prove your age and identity, as well as proof of long-term residency (permanent residence visa) and the tax identification number for foreigners Número de identidad de extranjero (NIE).

2. Get NIE. Foreign citizens are both entitled and required to apply for the foreign identity card (NIE) once they have obtained a residence permit or are staying in Spain for more than six months. The application must be submitted within one month of either entering Spanish territory or the residence permit taking effect. Take all the documents you previously needed to apply for a visa and submit your application to the relevant authorities of the province where you have settled in Spain, like the Immigration Office or a police station.

Alternatively, an NIE may be requested at the Consular Office of the applicant’s country of residence. To apply for an NIE at a Consular Office, you will require the following documents:

• The EX-15 standard application for?m, completed and signed by the applicant or representative.
• A valid passport in original form and a copy of the biographical data page are required. Citizens of European Union member states can use their national identity document instead, submitting both the original and a copy (front and back).
• If the NIE is requested through a representative, both the original and a copy of the representative’s identity document or passport must be provided. Additionally, a power of attorney must be submitted, clearly stating that the representative is authorized to submit the NIE application.
• A document that verifies the applicant’s residence within the Consular jurisdiction.
• Form 790, code 12, duly completed, and payment of the corresponding fee.

You can download the required forms and request additional information on the Spanish Ministry of Foreign Affairs, European Union and Cooperation website.

3. Open a bank account. You can open up an account with most main banks in Spain either before you move or once you arrive in the country to live there. Many Spanish banks offer non-resident accounts for those only planning to move to the country. Most banks in Spain also offer credit cards with their accounts. However, those foreigners who are not permanent residents yet are not likely to get one. You can apply for the credit card either at the time you open the account or afterwards.

If you’re the owner of a non-resident account, you must inform the bank should you become resident (i.e. spending 183 or more days per year in Spain; having a business or employment based in Spain; having a spouse or minor child who are resident in Spain).

4. Consider digital banks. Several innovative banks in Spain offer online accounts and accept applications from residents of multiple countries. Banks like Revolut and Bunq also provide credit card options. Opening a mobile-only account typically takes just a few minutes and can be done directly from your smartphone. To set up an account, you’ll need to provide an address, email, and mobile phone number for linking. Additionally, Spain has a vibrant cryptocurrency ecosystem, providing residents with various opportunities to engage in crypto-related financial activities.

5. Work on your creditworthiness. The availability of credit money and the amount of credit available to any bank customer depends on their credit history. Spain doesn’t have a scoring system like the US or UK. However, negative credit incidents such as unpaid debt are recorded and influence credit decisions. Setting up utility accounts and paying them regularly would be a good way to start building your creditworthiness in Spain. Credit scores aren’t shared between countries, so you’ll get a fresh start, even if you had troubles with loan repayment in your home country.

This article was updated on Oct. 17, 2024, to add recent information on the Spanish banking system, current NIE rules (including the procedure for requesting an NIE via a Consular Office), and illustrations.