Question
Hi, I’ve heard that there are tax implications in Spain when a certain amount of money is wired into our Spanish bank account. Does anyone know if this is true and if so what the threshold is? Maybe this is just the standard income tax? Thank you.
Answers
These are the answers of some Facebook group members:
“Not tax issues but if you transfer more than $10,000 at a time, the bank may/will ask for proof of its source. All part of the international banking laws meant to limit money laundering especially by drug lords.”
“And it’s not Spain specific. Any banks anywhere would ask you for the source of the fund if a large sum comes into your account.”
“And if at any time during the tax year if you have had more than $10,000 in a foreign account you must complete a document for the IRS. It doesn’t affect your taxes, you just have to report it”
“…that only applies to US citizens, of course. The rule that applies to all foreigners here in Spain is that if you have more than €50,000 of assets in any of three groups (bank accounts; property; investments, basically) outside Spain, you have to complete a 720 form in March. Again, it doesn’t affect your taxes, but there is a very hefty fine for non-compliance.”
“If you have more than $10k USD in a foreign account any time during the year, you need to file a Foreign Bank Account Report but it is not an IRS filing. Simply info only.”
No, there are no tax issues. You are required to declare your worldwide assets to Spain on the Modelo 720, but that’s an informational report, not a taxable one. And it’s only for assets held outside of Spain.”
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