What is a banker's draft and how does it work?

In many countries, bank transfers and digital payments have largely replaced paper cheques but in Spain, the banker’s draft remains a preferred and trusted method of transferring large sums. Whether you’re buying a property, paying legal fees or settling a significant invoice, a banker’s draft (cheque bancario) is still considered one of the most secure and widely accepted forms of payment.

What Is a Banker’s Draft?

A banker’s draft is a paper cheque issued by a bank that guarantees payment. The money is withdrawn from your account when the draft is created, meaning the funds are already secured.

In Spain, banker’s drafts are still deeply fixed in how business is done. This is because they offer something many digital methods don’t.. a guaranteed, traceable payment.

Why Do Spanish Notaries Still Ask for Banker’s Drafts?

When you’re buying a property or finalising any legal contract in Spain, you’ll almost certainly deal with a notary, a legal official who oversees and validates the transaction.

A notary in Spain plays a key role in ensuring that agreements are lawful, properly documented and registered correctly with relevant authorities.

Many notaries in Spain will only complete a transaction if the buyer presents a banker’s draft in euros from a recognised institution.

Why?

• Proof of Funds: The draft confirms that the money exists and has already been set aside.
• Instant Acceptance: Unlike international transfers, which can take days to clear, a banker’s draft can be deposited immediately.
• Legal Assurance: The paper trail of a banker’s draft is accepted by Spanish legal authorities as reliable proof of payment.

Even if you're used to digital banking, the Spanish system still places heavy trust in formal documents and a banker’s draft carries that trust.

When Are Banker’s Drafts Used in Spain?

If you’re making any of the following payments in Spain, expect to be asked for a banker’s draft:

• Property purchases (deposit or full amount on completion day)
• Rental deposits and first month rent for long-term tenancies
• Private vehicle sales
• Legal settlements, inheritance or tax payments
• Any high value payment where proof and security are required

In particular, many estate agents and lawyers will explicitly request a Banker’s Draft as part of the closing checklist for a home purchase. Arriving without one can delay your signing day or even put the transaction at risk.

What Happens If You Don’t Use a Banker’s Draft in Spain?

If you decide not to use a banker’s draft in Spain, you might think a bank transfer will do the job.

In reality, it can cause a few problems. Transfers from outside the eurozone, often take several days to clear. If the money hasn’t cleared before the signing, the notary can delay or even cancel the process.

Even a confirmation slip isn’t always accepted as legal proof of payment. That’s why most people still rely on a physical banker’s draft, it’s the option notaries trust and the safest way to finalise a large payment in Spain.

What Fees Are Involved When Using a Banker’s Draft?

When a banker’s draft is paid into a Spanish high street bank, usually there’s a processing fee of around 2-3% of the total amount.

For example, if you sell a property in Spain for €300,000, the receiving bank could deduct between €6,000 and €9,000 in fees. On top of that, the funds are typically converted at a less favourable exchange rate which will add another 2-3% in extra cost.

It’s always worth checking in advance how much the bank charges in processing fees and what exchange rate margin they apply.

What Are The Risks Of Using a Banker’s Draft?

Although banker’s drafts are trusted, they do come with risks. A banker’s draft holds transitory value meaning the physical cheque itself represents the money. If it’s lost or stolen before being deposited, the funds are effectively gone. This is why security, handling and insurance are crucial when dealing with banker’s drafts.

How Regency FX Protects You

At Regency FX, we understand the importance and the risk of paper-based payments. That’s why we’ve built our service to protect and simplify the process for you:

• No banking charges: What the cheque is worth is exactly what gets credited to your Regency FX account.
• Insurance protection: As soon as we receive the cheque from you, your funds are insured and safe.
• Collection service: We can come to you to collect the banker’s draft in person.

FAQs on Banker’s Drafts in Spain

What does a Spanish notary expect on signing day?‍

You’ll be asked to present a banker’s draft for the final payment along with valid ID and any other documents needed for the transaction.

Can I use a bank transfer instead of a banker’s draft?‍

Sometimes you can but many notaries still prefer banker’s drafts because they carry stronger legal assurance. It’s always a good idea to check with your lawyer before making that decision.

How long does it take to get a banker’s draft?‍

Most banks usually take around one to three working days to issue a banker’s draft, although it can sometimes take longer if extra checks or approvals are needed.

What are the costs involved?‍

High street banks regularly charge a processing fee of around 2-3% when handling banker’s drafts. In addition, many apply a less competitive exchange rate which can reduce the amount you receive even further.

Why Choose Us for Banker’s Drafts in Spain?

At Regency FX, we don’t charge any fees to exchange banker’s drafts and our exchange rates typically beat the banks by up to 5%. The result is a faster, fairer and more transparent service that helps you keep more of your money.

Even if you’re only at the stage of exploring a property purchase or sale, it’s worth getting in touch. We can monitor rates on your behalf, help you plan ahead and ensure your banker’s draft is managed correctly when the time comes.

As a trusted and experienced currency specialist, Regency FX works hard to deliver competitive rates, smooth transactions and clear communication at every step.

Get a quote and see how much more you could save.