SPAIN

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With a population of nearly 48 million and a forecasted GDP of $1,799bn in 2025, Spain is a medium‑sized advanced open economy, featuring high income levels, economic diversification via tourism, manufacturing and services, and improving external balance. Its net international investment position has steadily improved from about –63 % of GDP in mid‑2022 to around –57 % by Q2 2023, although it remains a significant external debtor .

On the fiscal side, Spain’s public debt ratio stood at approximately 101.8 % of GDP in 2024, projected to decline modestly to 100.9 % in 2025, and remain broadly stable in 2026. The fiscal deficit is forecast to narrow from around –3.2 % in 2024 to –2.8 % in 2025 and –2.5 % in 2026.

Fiscal credibility is gradually being restored following the pandemic, buoyed by strong labour market performance, tourism recovery, EU recovery‑fund inflows and fiscal consolidation efforts. Nevertheless, Spain remains above the EU benchmark for debt and deficit and continues to grapple with structural issues.

Key medium‑term challenges include persistent high unemployment—especially among youth—housing affordability pressures, and the need to raise productivity and investment. Growth is expected to remain robust in the near term, with real GDP estimated to reach ≈ 2.6 % in 2025, tapering to around 2.0 % in 2026.

Summary

BNP Paribas has been present in Spain since 1979 when foreign banks were first allowed to operate there. Since then, the bank has become one of the largest foreign financial institutions in the country, with over 4,000 employees. BNP Paribas has four business centres across the country (Barcelona, Bilbao, A Coruna and Madrid), offering proximity to its corporate and institutional customers throughout Spain. BNP Paribas' cash management offering in Spain includes comprehensive local cash management capabilities including Pagarés, Recibos, Efectos and Confirming capabilities, together with local channels and formats and flexible lockbox solutions.

Currency

  • Euro (EUR).

Bank accounts

  • A company is generally considered resident in Spain if its place of effective management is located in Spanish territory or its head office is registered under Spanish law.

Factoring

  • There are specific regulations of the Bank of Spain to develop and provide factoring services. Articles 347 and 348 of the Spanish Mercantile Code, complemented by some others of the Civil Code, regulate the assignment of receivables.
  • If notified, a letter of global or individual assignment (notified to the involved debtors) is required to involve debtors and oblige them to pay to the factoring company as assignee.
  • Factoring agreements should be signed in front of a public notary.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

Electronic credit transfers are used by companies to make supplier and payroll payments. Direct debits are used for approximately 40% of retail payments in Spain. Card payments, and increasingly contactless card payments, are the preferred in-store payment methods, although mobile payments are also rising. In July 2021, a new anti-fraud law was approved which limits cash payments for services to EUR 1,000 from EUR 2,500. (The law also reduces the limit from EUR 15,000 to EUR 10,000 for individuals outside Spain).

Electronic banking services are available from all banks. There is no national electronic banking standard in Spain, so companies use banks' proprietary services. Multinational companies also use the SWIFT for Corporates messaging standards. Transaction and balance reporting, automated end-of-day sweeping, and some transaction initiation services are available on a domestic and cross-border basis.

Digitalisation of bank services and the launch of digital-only banks such as Revoult, Bnext and Openbank, has seen widespread adoption of online and mobile banking.

Short term investments

Interest payable on credit balances

  • Interest-bearing current accounts are permitted for residents and non-residents.

Demand deposits

  • Demand deposits are available for residents and non-residents.

Time deposits

  • Time deposits are available in EUR or foreign currency for residents and non-residents.

Certificates of deposit

  • Domestic banks issue certificates of deposit for a variety of terms and rates, although they are not commonly used.
  • The depósito financiero is more popular. If maturity is less than 15 days, the product is called a ‘financial account’. If maturity is above 15 days, it is called a ‘financial deposit’. The minimum investment amount is EUR 5,000.

Treasury (government) bills

  • The Spanish treasury (Tesoro Público) issues Treasury bills (letras del tesoro). Terms of three, six, nine, and 12 months are the most common. The minimum investment is EUR 1,000.
  • Government bonds with longer maturities are also issued.

Commercial paper

  • Domestic commercial paper (pagarés de empresa) is issued by companies and public authorities but is more commonly used as an investment type by financial institutions.
  • Euro commercial paper (ECP) is issued by larger companies with a published credit rating. ECP can be issued in a range of currencies.

Money market funds

  • Domestic money market funds are popular short-term investment instruments.
  • International money market funds are also available to Spanish investors.

Repurchase agreements

  • Repurchase agreements with maturities ranging from overnight to one week are commonly available in Spain. Longer terms of one, two and three months are available.

Banker's acceptances

  • Banker's acceptances are not used in Spain.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the European Union (EU), Spain follows the EU customs code and applies all associated regulations and commercial policies.
  • Trade with countries in the European Economic Area and Switzerland is exempt from tariffs and other controls.