Transfer of Funds
There are now no restrictions on transferring funds to and from Spain from other countries of the European Union and the ESS. If you want to make transfers to or from countries outside the EU area, you need to consult you own bank. However if you want to take out more than 13,353 euros from Spain to another country, or move more than 80,000 euros within Spain, you are obliged to communicate it with the authorities (which the bank will also advise you about).
Some banks are still charging heavy commissions on transfers of pensions from abroad while other banks do not - so it is advisable to “shop” around. The EU has decided to eliminate the commissions when using cash machines outside your own country, but inside the EU area……At last!
The Cheque in Spain
Write cheques only in ball point pen or ink. Write (or accept) a cheque to the person or business that is to receive payment and not to the bearer (al portador). To ensure that a cheque can only be deposited into the account of the person or business to whom it is made, write "to be credited to the account of " (a abonar en cuenta) before the name of the recipient, or cross the cheque with two parallel lines. Do not leave blank spaces, which could be used to increase the amount.
Keep blank cheques, destroy excess cheques, and never leave a blank signed cheque for anyone. Writing a cheque without enough funds in the bank is illegal.
To fill-in your Spanish cheque using Spanish numbers use the Euro Cheque website
Bank Statements
Most banks are willing to send your statements to any address you want whether in Spain or your home country. The identifying number is the same as on your cheques - with the first four digits giving the banks number, the next four the branch number then two control numbers and the last ten your own account number, it is recommended you use this whole number to avoid any confusion.
Other Bank Services
Standing orders (Domicilliaciones). You can order the bank to regularly pay certain bills when they become due but you must make sure that you have sufficient funds in the account to cover these.
Do not expect to get anything free from the bank! Ask for their list of fees which must be approved by the Bank of Spain (el Banco de Espana)
Mortgages (“Hipotecas”)
A resident or a non-resident foreigner may take out a mortgage in Spain, including on State-subsidized housing (“VPO” or Vivienda de Proteccion Oficial). You may use either Spanish or a foreign mortgage holder, and the mortgage may be either in euros or foreign currency. A resident may finance up to the whole value of a property, however It is now getting harder for a non resident to do the same.
Interests on mortgages in Spain are low, however not as low as they have been a few years before. Variable interest mortgages can be had at around the late 4.´s to 5% per annum, and fixed interest mortgages can be had at 5-7% per annum, however, if you want to obtain a good interest rate you have to visit many banks and be prepared to shop around and do some waiting around. Always check redemption penalties though as these also differ. and often there is a redemption for the life of the mortage unlike in the UK where there is a term for the same. If you want to take out a mortgage with variable interest, the best reference for the variations is the IRMH (Indice de Referencia del Mercado) published by El Banco de Espana.
There are a whole host of mortgage lenders and rates with different banks and with a mortgage calculator here and there is everything you could think of to ask about mortgages. Most lenders charge the Euribor rate with an additional percentage amount added to this, for example 'Euribor plus 1%'.
So what is the Euribor?
Euribor is short for Euro Interbank Offered Rate. The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds form one another. There are different maturities, ranging from one week to one year. The Euribor rates are considered to be the most important reference rates in the European money market. The Euribor rates provide the basis for the prices and interest rates for all kinds of financial products like interest rate swaps, interest rate futures, saving accounts and mortgages.
More information on Eurobor rates here