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V2206-14 7 August 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Residents in Spain must pay tax on foreign bank income and report it

The taxpayer asks about their tax obligations when opening a bank account in the UK while residing in Spain. The DGT responds that they must pay tax on worldwide income and report the account if certain thresholds are exceeded.

The question raised

Tax obligations in Spain arising from the holding of a foreign bank account.

The DGT's ruling

Residents in Spain are taxed on their worldwide income, including interest from foreign accounts, which is included in the savings tax base as income from movable capital. Furthermore, there is an obligation to submit an annual informative declaration regarding foreign accounts if the balances as of December 31 and the average balance of the last quarter jointly exceed 50,000 euros. This reporting obligation persists in subsequent years if the balances increase by more than 20,000 euros compared to the last declaration.

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