We help you open a currency exchange establishment—buying and selling foreign banknotes and traveler's checks—with Bank of Spain authorization and registration (Royal Decree 2660/1998). And if what you want is to send money abroad, we explain why that is now a payment service that requires you to be a payment institution (PSD2), not a currency exchange establishment.
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Six building blocks that organize your project, starting with the most important one: determining whether you exchange physical currency (Bank of Spain registration) or send money abroad (payment institution), because the regime is different.
The first step is to define the activity. Buying and selling foreign banknotes makes you a currency exchange establishment (Bank of Spain register); sending money abroad is a payment service that requires you to be a payment institution. Confusing the two is the most expensive mistake.
We prepare and file the authorization application with the Bank of Spain and the entry in the Register of Currency Exchange Establishments, under Royal Decree 2660/1998.
If your business is sending and receiving money to and from abroad (remittances), the route is authorization as a payment institution or acting as an agent of one. We guide you through the PSD2 regime.
Selling foreign banknotes requires a public limited company (S.A.), minimum capital and an exclusive corporate purpose. We structure the entity and show that its directors are fit and proper.
Currency exchange establishments are obliged entities under anti-money laundering rules. We put in place the AML/CFT manual, the internal control body and the identification procedures.
We implement the mandatory disclosure of exchange rates, fees and charges, the transaction record and the agent regime, with its limit: buying and selling banknotes cannot be delegated.
Physical currency exchange offices, businesses that buy foreign currency, remittance platforms or banks: each activity has its own regime. Identifying yours is the first step to avoid applying for the wrong authorization.
"A currency exchange office at an airport or in a tourist area that buys and sells foreign banknotes and traveler's checks needs Bank of Spain authorization and entry in the Register of Currency Exchange Establishments."
"Buying foreign banknotes against payment in euros, even as a sideline to another business, requires Bank of Spain authorization and making the service clearly distinguishable to customers."
"Sending or receiving money to or from abroad is money remittance: it is now a payment service and requires authorization as a payment institution, or acting as an agent of one, under PSD2, not currency exchange registration."
"Credit institutions fall outside the Royal Decree 2660/1998 regime: they can exchange currency for their customers without registering as a currency exchange establishment, as they are already authorized and supervised."
Applying for currency exchange registration when your business is sending money (or the other way around), operating without authorization or neglecting anti-money laundering are the failures that most hold back, and most expose, this business.
Two different regimes: physical banknote exchange goes through the Bank of Spain register; sending money abroad goes through the payment institution regime (PSD2). They are not interchangeable.
The Bank of Spain decides on the authorization within 3 months. If that period ends without an express decision, the application is deemed rejected (negative administrative silence).
Registration before operating: after authorization, you have 6 months to incorporate the company and register in the Register of Currency Exchange Establishments, via the Commercial Registry, before you start.
Buying and selling banknotes cannot be delegated: although agents can be used for certain operations, buying and selling foreign banknotes and traveler's checks cannot be entrusted to agents.
Form and capital: selling banknotes requires a public limited company (S.A.), minimum capital and an exclusive corporate purpose, with directors who meet the fit and proper standards of the financial sector.
AML/CFT and transparency: the establishment is an obliged entity under anti-money laundering rules and must publish exchange rates, fees and charges and keep the transaction record for 6 years.
The whole project depends on the answer: currency exchange registration with the Bank of Spain or authorization as a payment institution. Clarify this before you take the first step so you do not apply under the wrong regime.
It is a natural or legal person, other than a credit institution, that buys and sells foreign banknotes and traveler's checks on premises open to the public. Its activity is authorized and supervised by the Bank of Spain.
It is governed by Royal Decree 2660/1998 and its implementing rules.
Authorization is granted by the Bank of Spain, and the entity must register in the Register of Currency Exchange Establishments kept by the Bank of Spain itself, after registration with the Commercial Registry.
Not today. Sending and receiving money to and from abroad (money remittance) is a payment service governed by PSD2 rules: it requires authorization as a payment institution or acting as an agent of one. The register of currency exchange establishments focuses on physical banknote exchange.
It depends on the activity. Buying foreign banknotes against payment in euros has simpler requirements and can be done by a natural or legal person. Selling banknotes requires a public limited company (S.A.) formed by simultaneous incorporation, minimum capital and an exclusive corporate purpose.
The Bank of Spain decides within 3 months; if that period ends without an express decision, the application is deemed rejected (negative administrative silence). After authorization, you have 6 months to incorporate the company and register in the Register of Currency Exchange Establishments.
For some operations, yes, with powers of attorney executed before a notary and entered in the register. But there is a clear limit: buying and selling foreign banknotes and traveler's checks cannot be entrusted to agents.
You are an obliged entity under anti-money laundering rules, you must publish exchange rates, fees and charges at each location, record transactions and keep the documentation for 6 years, and you must also send periodic information to the Bank of Spain.
No. The Royal Decree 2660/1998 regime does not apply to credit institutions, which can exchange currency for their customers without registering as a currency exchange establishment, as they are already authorized and supervised.
Buying (the establishment acquires foreign currency from the customer and pays in euros) has lighter requirements. Selling (handing foreign currency to the customer) requires a public limited company (S.A.), minimum capital and an exclusive purpose, because of its greater exposure.
Through an authorized payment institution or by acting as an agent of one. Sending money (money remittance) is a PSD2 payment service, separate from physical banknote exchange.
Yes. Currency exchange establishments are among the obliged entities under anti-money laundering and counter-terrorist financing rules.
A means of payment in foreign currency, issued in fixed amounts, that the customer can redeem for cash. Buying and selling them is part of the typical activity of a currency exchange establishment.
Yes, with Bank of Spain authorization. If currency is bought on the same premises as another activity, measures must be taken so that the customer can clearly identify who provides the exchange service.
No. Crypto-assets are not foreign currency for these purposes; exchanging them for money is governed by the MiCA regime and crypto-asset service providers (CASPs), not by the currency exchange regime.
The same idea of "moving currency" hides different regimes depending on the transaction. This comparison shows which one is yours and which authority to apply to.
Whether you exchange physical banknotes or move money between accounts makes the difference. These are the factors that decide your route.
Before filing anything, we settle your regime: banknote exchange or money transfers. That way you avoid filing the wrong application and losing months.
| Activity | What it involves | Where it is authorized / registered | Legal form |
|---|---|---|---|
| Buying foreign banknotes | Acquiring foreign currency in cash from the public (payment in euros) | Bank of Spain — Register of Currency Exchange Establishments | Natural or legal person |
| Buying and selling banknotes | Buying and selling banknotes and traveler's checks | Bank of Spain — Register of Currency Exchange Establishments | Public limited company (S.A.), minimum capital, exclusive purpose |
| Money transfers (remittances) | Transferring money to or from abroad (money remittance) | Bank of Spain — as a payment institution (PSD2) | Payment institution or agent of one |
| Exchange by credit institutions | The bank exchanges currency for its customers | Already authorized (not registered as a currency exchange) | Credit institution |
Indicative table for information purposes. Physical currency exchange is governed by Royal Decree 2660/1998 and its implementing rules; money transfers, by payment services legislation (PSD2 and Royal Decree-law 19/2018). Requirements, capital and timelines may vary and should be validated case by case with legal advice. This page is for information only and does not constitute advice.
Opening a currency exchange business is not just filing an application: it means identifying the regime, structuring the entity, evidencing fit and proper standards and anti-money laundering compliance, and obtaining authorization before registering. The order matters.
Physical banknote exchange and sending money abroad are not the same. Identifying the transaction and the right legal vehicle is the first decision, and it keeps you from applying for the wrong thing.
Selling banknotes requires a public limited company (S.A.), minimum capital and an exclusive purpose, with fit and proper directors. Buying has simpler requirements.
Entry in the Bank of Spain Register of Currency Exchange Establishments, after the Commercial Registry, is the condition for starting operations.
Is your business sending money or issuing means of payment? See our pages on the payment institution license, PSD2 and the electronic money institution. For lending, see the financial credit establishment.
Setting up a currency exchange business is an ordered sequence (regime, structure, AML/CFT and transparency, application and authorization + registration) before the Bank of Spain. This is the path.
1) RegimePhysical banknote exchange (Bank of Spain register) or sending money abroad (payment institution). The transaction defines the legal vehicle and the procedure.
2) StructurePublic limited company (S.A.), minimum capital and exclusive purpose for selling banknotes, with directors who are fit and proper and of good repute.
3) AML/CFT + transparencyAML/CFT manual (obliged entity), disclosure of exchange rates, fees and charges, and a transaction record.
4) Authorization + registrationThe application is filed with the Bank of Spain, which decides within 3 months (deemed rejected if there is no decision in time). After authorization: public deed, Commercial Registry and entry in the Register of Currency Exchange Establishments within 6 months, and only then, start of operations.
Quick decisionBuying and selling foreign banknotes: Bank of Spain Register of Currency Exchange Establishments.
Sending and receiving money to and from abroad: authorization as a payment institution (PSD2).
Credit institutions: they exchange currency without registering as a currency exchange establishment.
Bank of Spain authorization and entry in the Register of Currency Exchange Establishments.
Prerequisite for operating.
Public limited company (S.A.), minimum capital and exclusive purpose for selling banknotes.
Buying has simpler requirements.
Obliged entity: manual, internal control body and customer identification.
Under Law 10/2010.
Publish the applicable exchange rates, fees and charges at each location.
Information visible to customers.
Record transactions daily and send information to the Bank of Spain.
Retention for 6 years.
Anticipate them before filing the application to avoid requests for information and rejection.
If you are going to open a currency exchange office or send money abroad, these terms come up in the application, in dealings with customers and in Bank of Spain supervision.
A natural or legal person, other than a credit institution, that buys and sells foreign banknotes and traveler's checks on premises open to the public, authorized by the Bank of Spain.
Acquiring foreign currency in cash from the customer against payment in euros. It has the simplest requirements and can be done by an authorized natural or legal person.
Handing foreign currency to the customer. It requires a public limited company (S.A.), minimum capital and an exclusive corporate purpose, because of its greater exposure.
Sending and receiving money to and from abroad (money remittance). It is now a payment service and goes through the payment institution regime, not the currency exchange regime.
An entity authorized to provide payment services, including money remittance. It is the vehicle for anyone who wants to run remittances professionally.
The Bank of Spain register in which the establishment must be entered, after the Commercial Registry, before operating. Registration is a requirement for starting.
An establishment that sells banknotes must have the buying and selling of currency as its exclusive corporate purpose, without prejudice to ancillary activities authorized by the Bank of Spain.
The establishment can operate through agents with registered powers of attorney for certain operations, but not for buying and selling foreign banknotes and traveler's checks.
Royal Decree on foreign currency exchange at establishments open to the public other than credit institutions. It is the core legislation of the regime.
A practical guide to launching your currency business: how to tell physical exchange apart from money transfers, what authorization each one needs, what legal form and capital are required, and what AML/CFT and transparency obligations you will have to meet.
Tell us whether you will exchange physical banknotes or send money abroad, and we will tell you the applicable regime, the right legal vehicle and the requirements to apply to the Bank of Spain.
The buying and selling of foreign banknotes and traveler's checks on premises open to the public, by entities other than banks, is governed by Royal Decree 2660/1998, the Order of November 16, 2000 and Bank of Spain Circular 6/2001. Credit institutions are excluded from this regime. Sending money abroad, by contrast, is a payment service subject to PSD2 rules and Royal Decree-law 19/2018.
Two activities that are often confused should be kept apart: physical currency exchange (buying and selling banknotes) is authorized and entered in the Bank of Spain's Register of Currency Exchange Establishments; sending money (money remittance) requires being a payment institution or acting as an agent of one.
Authorization is granted by the Bank of Spain and decided within 3 months; if that period ends without a decision, the application is deemed rejected (negative administrative silence). After authorization, you have 6 months to incorporate the company, register it with the Commercial Registry and enter the establishment in the Register of Currency Exchange Establishments.
Buying foreign banknotes against payment in euros has simpler requirements and can be done by a natural or legal person. Selling banknotes requires a public limited company (S.A.) formed by simultaneous incorporation, minimum capital and an exclusive corporate purpose, with directors who meet the fit and proper and good repute standards of the financial sector.
The establishment is an obliged entity under anti-money laundering rules and must publish exchange rates, fees and charges, record transactions daily and keep those records for 6 years. It may operate through agents with registered powers of attorney for certain operations, but not for buying and selling foreign banknotes and traveler's checks.
Key legislation, linked to the official text:
Legislation and links reviewed in .