Tax residents must report foreign accounts if they hold a non-Spanish IBAN

The management of financial assets following a change in tax residence involves specific reporting obligations that can cause confusion. A critical point is the distinction between the location of the financial institution and the nature of the IBAN that identifies the bank account.

What the DGT has ruled

The inquiry analyzes whether changing from a German IBAN to a Spanish IBAN in a bank account alters the obligation to submit the informative declaration on assets or rights located abroad, in accordance with Articles 42 bis and 42 ter of the General Tax Activities Regulation (RGAT).

The technical criterion focuses on the location of the assets or rights. The regulations establish that the obligation to report arises when the assets are located abroad. The fact that a bank account begins to use a Spanish IBAN code does not exempt the holder from the obligation if the asset remains linked to a financial institution with its headquarters or establishment in a country other than Spain.

What it means for you

If you are a tax resident in Spain and hold accounts or securities in foreign financial institutions, you must pay attention to the structure of your account and not just the IBAN code. Changing a banking identifier is not the determining factor for exemption from the informative declaration.

The key points to consider are:

• Location of the asset: What determines the obligation is where the asset or right is located, not the format of the IBAN code.
• Financial institutions: If the financial institution is foreign, the assets are considered to be located abroad, regardless of whether the account operates with an IBAN that appears local.
• Regulatory compliance: Omitting this information may lead to sanctions under the General Tax Law (LGT).

What you should do

It is necessary to verify the tax residence of the financial institution where your assets are held. Do not assume that adopting a Spanish IBAN eliminates the obligation to report your assets held abroad. It is recommended to analyze the nature of each account and its link to non-resident entities to ensure compliance with Articles 42 bis and 42 ter of the RGAT. Each wealth situation requires a technical evaluation to determine whether the assets must be reported informatively.