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BANKING

Banking giant Barclays to close all accounts of Brits living in Spain

UK nationals living in Spain have begun to receive letters from their bank telling them that their accounts will be closed, in an apparent post-Brexit change. Have you been affected?

barclays closes accounts spain customers
Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country. Photo by Tolga Akmen / AFP

Customers of Barclays Bank who are living in Spain and other EU countries have been receiving letters telling them that their UK accounts will be closed by the end of the year. 

A number of readers of The Local’s network of news websites have contacted us to report receiving either letters or messages in their online banking telling them that their accounts would be closed because of their residency in Spain or in other countries in the EU.

A Barclays spokesperson told The Local: “As a ring fenced bank, our Barclays UK products are designed for customers within the UK.

“We will no longer be offering services to personal current account or savings customers (excluding ISAs) within the European Economic Area. We are contacting impacted customers to give them advance notice of this decision and outline the next steps they need to take.”  

Customers are being given six months to make alternative arrangements. The changes affect all personal current accounts or savings accounts, but do not affect ISAs, loans or mortgages.

During the Brexit transition period Barclays closed Barclaycard accounts of customers in Spain, but did not indicate any changes to standard bank accounts.

READ MORE: 

Around the same time several other British high street banks began closing accounts of British customers who live in the EU, although with the exception of Barclaycard customers in Spain who were largely spared.

Many UK nationals who live in Spain maintain at least one UK bank account – in addition to a Spanish account – sometimes just for savings but others use their accounts regularly to receive income such as pensions or income from rental property or – for remote workers – to receive income for work done in the UK.

Not having a UK bank account can make financial transactions in the UK more complicated or incur extra banking fees.

READ MORE: What are the best UK banks for Brits in Spain?

Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country.

And it seems that many UK high street banks are deciding that the extra paperwork is not worth the hassle and are withdrawing completely from certain EU markets. 

When British banks began withdrawing services from customers in the EU back in 2020, a UK government spokesman told British newspaper The Times that “the provision of banking services is a commercial decision for firms based on a number of factors” so Brits in Spain probably shouldn’t hold their breath for any help from that direction.

READ ALSO: Premium Bond holders in Spain may have to cash in if no UK bank account

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BREXIT

UK driving licences in Spain: When no news is bad news

The UK Ambassador to Spain has given an update on the driving licence debacle, with nothing new to genuinely give hope to the thousands of in-limbo drivers whose increasing frustration has led one group to try and take matters into their own hands.

UK driving licences in Spain: When no news is bad news

It’s been almost five months since UK driving licence holders residing in Spain were told they could no longer drive on Spanish roads. 

Since that fateful May 1st, an unnamed number of the approximately 400,000 UK nationals who are residents in Spain, as well as hundreds if not thousands of Spaniards and foreign nationals who passed their driving test in the UK, have not been able to use their vehicles in Spain or even rent one. 

What adds insult to injury is that British tourists visiting Spain can rent a car without any issue. The fact that Spanish licence holders living in the UK can also continue to exchange their permits in the UK 21 months after Brexit came into force is equally hard to swallow.

READ MORE: ‘An avoidable nightmare’ – How UK licence holders in Spain are affected by driving debacle

The latest update from UK Ambassador to Spain Hugh Elliott on September 27th has done little to quell the anger and sense of helplessness felt by those caught in this bureaucratic rabbit hole.

“I wanted to talk to you personally about the driving licences negotiations, which I know are continuing to have a serious impact on many of you,” Elliott began by saying.

“As the government’s representative in Spain, I hear and understand your frustrations. I too am frustrated by the pace.

“We previously thought, we genuinely thought, that we’d have concluded negotiations by the summer. 

“Many of you have quite rightly mentioned that I expressed the hope to you that we’d have you back on the road by the end of July.

“Now the truth is it has taken much longer, as there have been unforeseen issues that we have been working very hard to resolve. 

“And I’m as disappointed as you are by the length of time that this is actually taking. 

“But, please, be assured that we are resolving those issues, one by one. There are only a couple of issues left, but they are complex.”

It has previously been suggested by the UK Embassy that Spain has asked for data provision to form part of the exchange agreement, and that British authorities were reluctant to share said information on British drivers’ records, including possible infractions. 

Whether this is still one of the causes of the holdups is unknown, given how opaque the Embassy is being in this regard. 

“We’re working on this every day, it remains a priority,” the UK Ambassador continued.

“There is a lot going on behind the scenes, even if it doesn’t feel like it to you. 

“I know too that you want a timescale and you want an update after every meeting.

“But I’m afraid I just can’t give you those things in this negotiation.” 

The ambassador’s words are unlikely to appease those who are still unable to drive. 

A few weeks ago, a Facebook group called “Invasion of the British embassy in Madrid for the DL exchange issue” was set up, which so far has more than 400 members. 

The group’s administrator, Pascal Siegmund, is looking to set up a meeting with the British Embassy and Spanish authorities to shed light on the impact that not being allowed to drive is having on the life of thousands of UK licence holders in Spain. 

Many of those affected are sharing their stories online, explaining how, due to administrative errors on the part of Spain’s DGT traffic authority, they were unable to process their licence exchange before the deadline. 

This contrasts with the little sympathy shown by UK licence holders who were able to exchange and other commentators, who accuse those in limbo of not having bothered to complete the process, arguing that it’s essentially their own fault.

READ ALSO: Not all Brits in Spain who didn’t exchange UK driving licences are at fault 

“Many of you also continue to ask why you can’t drive while the talks are continuing,” Elliott remarked.

“It is not in the gift of the UK government to reinstate the measures which previously allowed you to continue to drive whilst the negotiations were ongoing earlier in the year. 

“As we said previously, we did request the reinstatement of those measures several times, but this wasn’t granted.”

It’s worth noting that since the news broke on May 1st that UK licence holders residing in Spain for more than six months could no longer drive, no Spanish news outlet has covered the story again. 

Pressure from citizen groups such as the one recently set up and increased awareness about the issue in English-language news sites such as The Local Spain is perhaps the best chance in-limbo drivers have of their voices being heard and the driving licence debacle being finally fixed. 

“I’d say we’re genuinely still making progress,” UK Ambassador Elliott concluded, practically the same message as in previous updates.

“I get how frustrating it is to hear that, but we are making progress. We’re in discussions almost daily about outstanding issues. 

And I remain very optimistic that we will reach an agreement and hope it will be soon. 

But as I say, I can’t give you a definitive timetable. 

“And so, the advice that we have been giving all along, which is that you should consider taking the Spanish test if you do need to drive urgently, remains valid. Though we appreciate that’s hard.

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