Direct debits and paying bills

It is for anyone thinking about, planning or carrying out a move to Spain.

Start with "Setting up direct debits (domiciliación) for rent and bills". It explains who can take money from your account and how to set up and cancel a debit. After that, read the page that matches your problem:

• A charge you don't recognise: "A charge you don't recognise: how to return a direct debit".
• Paying your landlord: "Paying rent and deposits by bank, Bizum or cash".
• Sending or receiving money: "How bank transfers work in Spain: IBAN, SEPA and instant payments".
• An empty account at the wrong moment: "When a direct debit bounces: fees, consequences and fixes".

Tax payments, the legal side of leases and deposits, and setting up utility contracts are covered elsewhere.

Key rules

• Cash limit: Cash payments are limited to 1,000 euros when one side is a business or professional, and cash is a weak way to prove rent.
• Solvency listing: An unpaid debt can be listed on a solvency file only if it is certain, due and undisputed, at least 50 euros, and you were warned first.
• Unauthorised debits: An unauthorised direct debit can be claimed back up to 13 months after it was debited, and you should tell your bank as soon as you notice it.
• Cancelling a mandate: Tell your bank at least one business day before the due date to stop a debit, and also tell the creditor in writing; cancelling does not end the contract.
• First debit notice: The creditor normally tells you the amount and date of a debit at least 14 days beforehand, unless you agree a different period.
• Refund window: You can ask your bank to refund an authorised SEPA Core direct debit within 8 weeks of the date it left your account, with no reason needed.

Direct debits and paying bills: the whole process, step by step

• Sign the direct debit mandate with the creditor, who must hold a signed mandate before it can debit you (Setting up direct debits (domiciliación) for rent and bills): before the first debit

• Receive the creditor's notice of the amount and date of the debit (Setting up direct debits (domiciliación) for rent and bills): normally at least 14 days before each debit, unless you agree a different period

• Keep enough money in the account for the debit date (When a direct debit bounces: fees, consequences and fixes): before the due date

• If you want to stop a debit, tell your bank and also tell the creditor in writing (Setting up direct debits (domiciliación) for rent and bills): at least one business day before the due date

• If the account was empty, the bank returns the receipt unpaid and you may get fees and a payment demand (When a direct debit bounces: fees, consequences and fixes): within a few business days of the due date

• Ask your bank for a refund of an authorised debit with no reason needed (A charge you don't recognise: how to return a direct debit): within 8 weeks of the date it left your account

• Wait for the bank to refund you in full or give a reasoned refusal (A charge you don't recognise: how to return a direct debit): 10 business days after your request

• Claim back an unauthorised debit, telling your bank as soon as you notice it (A charge you don't recognise: how to return a direct debit): up to 13 months after the debit

• If the bank refuses or ignores you, complain to its customer service department, then to the Banco de España (A charge you don't recognise: how to return a direct debit): the bank has one month to reply; go to the Banco de España within 15 months of your first complaint

Documents you may need

Income and work

• Your bank statements for the length of the lease — Paying rent and deposits by bank, Bizum or cash

The home and the lease

• Your contract or the creditor's terms — When a direct debit bounces: fees, consequences and fixes

Payments and receipts

• A signed receipt — Paying rent and deposits by bank, Bizum or cash
• The bank's transfer confirmation — Paying rent and deposits by bank, Bizum or cash
• Proof that the landlord has registered the fianza with the regional body — Paying rent and deposits by bank, Bizum or cash
• Written confirmation from the landlord if the IBAN for payments changes — Paying rent and deposits by bank, Bizum or cash
• Proof of payment — When a direct debit bounces: fees, consequences and fixes

Other documents

• Proof that you sent your written return request — A charge you don't recognise: how to return a direct debit
• Proof of your earlier complaint to the bank's customer service department — A charge you don't recognise: how to return a direct debit
• Your bank's fee schedule — When a direct debit bounces: fees, consequences and fixes

Direct debits and paying bills: questions that cross several articles

Can I cancel a direct debit and still owe the bill?

Yes, cancelling a direct debit does not end the contract, so you still owe the bill and must pay another way. Otherwise the creditor can charge you or treat you as in breach. See Setting up direct debits (domiciliación) for rent and bills, and When a direct debit bounces: fees, consequences and fixes.

Must a Spanish landlord or supplier accept my foreign IBAN for direct debit?

Yes, EU rules say a payee cannot require a Spanish account, so a SEPA IBAN from another country must be accepted. In practice some small firms and utilities still refuse. You can complain to the Banco de España or consumer authorities. Read Setting up direct debits (domiciliación) for rent and bills, then A charge you don't recognise: how to return a direct debit.

Can an unpaid bounced debit get me on a solvency file like ASNEF?

Yes, but only if the debt is certain, due and undisputed, at least 50 euros, and you were warned first. If you dispute the debt, the creditor should not list it. Read When a direct debit bounces: fees, consequences and fixes, and A charge you don't recognise: how to return a direct debit if you dispute it.

What fees can I face if my account is empty on the debit date?

Your bank can charge a returned-receipt fee from its fee schedule, and the creditor can add late-payment interest or pass on its own bank costs if the contract allows it. Disproportionate penalty fees can be challenged as abusive.