Standing orders - or an official arrangement whereby your bank automatically pays a given bill each month - are an important form of payment in Spain. Known as "domiciliaciones" or "domiciliación de pago" in Spanish, this is often a requirement for doing business with an official entity or even a private company. However, even when not required, sometimes you are better off setting up a standing order to avoid late fees, those associated with annual municipal taxes, for example.
Following are a few of the situations where you might be required to set up a standing order:
Telephone companies, electric companies and water companies commonly expect payment by standing order.
It depends on the school, but many Spanish private school administrations prefer that parents pay by standing order. Any changes in service - such as a decision to no longer use the cafeteria or lunch room - should be communicated in writing.
Because they only come around once a year, it is easy to forget. For this reason, it is recommended that you pay this tax by bank order.
If you live in a planned community that shares common areas and services, you will need to pay fees on a regular basis. It is recommendable to pay these fees by standing order, especially if you are often away from your property.
In reality any company that provides you with regular, monthly service - even your gym - might ask you to pay by standing order.
Setting up a standing order usually involves nothing more than providing the service company with your bank details - i.e. name, location of your branch, full account code - and a signature. To stop a standing order, visit your bank to sign the appropriate papers.