From Dollars to Euros
Figuring Out Finances in Spain
One of the most confusing parts of moving overseas was the financial piece. How does one use U.S. dollars in the European Union?
As it turns out, some tools are available to make this process easier.
After taking James Blick’s Move to Spain Masterclass, I learned a couple of ways to convert dollars to euros. However, I tucked that away for later and forgot about what I’d learned. (I know, I know, but we were drowning in information.)
When our kids were accepted to their private school, we were notified that our fees were due for the upcoming school year. Okay, great. Using our American bank account, I wired the funds – and that’s when I began to realize there had to be a better way.
The funds were held for review several times, and panic began to set in. Some of the things we needed to pay for had a timeline. At one point, I spent almost 30 minutes on the phone with a bank customer service rep, who subtly told me how her family sent money to her sister-in-law in Belgium.
Aha! I thought. I completely forgot about that.
This is how I remembered to use the Wise account I had set up months ago in anticipation of our move.
Frequent international travelers are often aware of Wise because the fees to transfer money are reasonable, transfers are rapid, and it is incredibly simple to use. You can even get a physical or virtual debit card, which limits your personal bank account’s exposure in an international travel situation where you might want to use a debit card.
(Full disclosure: The link above is a referral link. It offers a bonus to you and me.)
Wise was the solution I needed rather than using the clunky wire feature offered by our American bank account with its fee-heavy structure and frequent fraud reviews.
Okay, that problem was solved. One more to go.
When we arrived in Spain, one of the things I knew we needed to do almost immediately was open a Spanish bank account. Spanish bank accounts are like a golden ticket to so many parts of life in Spain. For one, our kids’ school would only accept direct debits from a Spanish account. While Wise works for many things, it wouldn’t work for this. (Essentially, Wise offers an IBAN, which we needed, but it’s based in a country outside of Spain in the EU.)
There were a couple of ways we could go about this. One was to walk into a Spanish bank branch with our NIEs and passports. Because my Spanish was still pretty poor, I didn’t particularly like that option. I’m pretty tech-savvy, so I wondered, "Can I get an online bank account?"
Yes, I could.
The two options for a Spanish online bank account I see recommended repeatedly are N26 and Revolut.
(Full disclosure: The link above is a referral link. It offers a bonus to you and me.)
Revolut is another service like Wise, but in this case, it could act like a more traditional bank account for my purposes. They offer a Spanish IBAN, implement Bizum (it’s like Venmo), and transfer U.S. dollars directly into the account if you wish.
We went with Revolut, and it’s been smooth sailing ever since. We’ve converted our prepaid phones to a contract, set up direct debits with utilities, and had zero payment issues with our school. We even pay rent with our Revolut account (which we can do with Wise).
Using just these three financial components – Wise, Revolut, and our American bank account – has been enough to fund our basics in Spain. We use U.S. credit cards to pay for nearly everything, earning points and miles for future travel purchases.
I have all of this down to a science now, but in the beginning, I felt confused, lost, and unsure of exactly what I was doing. As I’m learning about everything else living abroad, it takes a while to become comfortable and understand the ins and outs of nearly everything.
It’s Adulting 101 for fortysomethings.