Monzo in Spain: what we know for business accounts

Monzo, the British digital bank with the coral-coloured card, now has the green light in Spain. If you are setting up a company, this is good news, but you should separate what has been confirmed from what is still a promise.

What has happened

Monzo now appears in the register of the Bank of Spain (Banco de España). It operates under its European banking licence, obtained in Ireland, which allows it to work throughout the European Union. It has started signing up customers through a waiting list, and the full launch is planned for the end of 2026.

The specialist press agrees on three points: it will offer a Spanish IBAN, it will integrate with the usual payment services, and it will focus on business accounts, which are a very important part of its growth in the United Kingdom.

What we do not know yet

This is where caution is needed:

• The terms of the business account in Spain have not been published. The fees going around are the UK ones, in pounds, and they will not necessarily apply here.
• It is not confirmed whether it will open to limited companies (SL) from day one or start with self-employed workers (autónomos).
• We do not know what documents it will ask for from a newly formed company, or how long approval will take.

Anyone who tells you today that Monzo is the best account for your company in Spain is guessing.

What it means for your business

One more competitor with a banking licence is good news for two reasons.

First, it is a bank, not an electronic money institution. Deposits at a licensed bank are covered by a deposit guarantee scheme. Many of the online accounts that young companies use are not: they keep your money separate, but without that guarantee. It is a difference that almost nobody checks when opening the account, and it matters on the day something goes wrong.

Second, more competition puts pressure on fees. Traditional banks and neobanks are already competing for business accounts with introductory interest rates and fee-free accounts. Monzo's arrival pushes in that direction.

We call it the starter bank: a new company's first account does not have to be its permanent one, but it does have to open quickly and without being rejected. Banks often reject newly formed companies that cannot show any trading activity, and that rejection delays everything else: the share capital, the registrations, the first invoice.

Six questions before you open a business account

They apply to Monzo and to any other bank or online provider:

• Is it a bank or an electronic money institution? This decides whether your deposits are covered by a guarantee scheme.
• Does it provide a Spanish IBAN? Some Spanish customers and public bodies still object to IBANs from other countries, even though EU law prohibits this.
• Does it accept your legal form and your activity? Many providers exclude specific sectors, such as crypto, gambling or financial advice.
• What does it really cost? Not just the monthly fee: international transfers, additional cards, cash withdrawals and currency exchange.
• Does it connect to your management software? Reconciling bank transactions by hand is one of the biggest wastes of time in a small business.
• What support do you get when there is a problem? An account frozen by a compliance review, with no phone number to call, can paralyse a company for weeks.

What to do

• If you are setting up your company now, do not wait for Monzo. Open an account with a provider that already works with businesses in Spain, and switch later if it pays off.
• If you are interested, join its waiting list and compare once it publishes its terms for businesses.
• When choosing a bank, always ask whether it is a licensed bank or an electronic money institution, and which guarantee scheme covers your deposits.

For every company we set up, we choose the right provider with you and prepare the application so that it is not rejected. If you are undecided between several, message us on WhatsApp and we will tell you which one suits your activity.