IBANs cannot be refused on the basis of their location alone, this is IBAN discrimination.

Article 9 of the EU Regulation 260/2012 on IBAN discrimination states that payments cannot be refused on the grounds that the account (IBAN) is located in another European country. However, we have noticed that some merchants or employers may refuse to accept our IBAN. Therefore, if you encounter this problem, please remind your debtor or creditor of the relevant legislation so that they take the appropriate action and accept your Nøelse IBAN."