Question
I am both an Australian an a Spanish citizen. I am currently in Spain and my Australian bank has contacted me saying that due to FATCA requirements they are blocking all Australian-based bank accounts until we can update our residency details.
The same has happened with my share trading account.
To those of you who went through this, how did you solve it? Are we forced to close the Australian bank accounts everytime we Travel to Spain and then reopen them once we go back to Oz and viceversa for every 6 months plus one day every time we stay abroad?
Answers
These are the answers of some Facebook group members:
“FATCA only cares if you are a U.S citizen so it shouldn’t matter to your Aussie bank if you are a resident in Spain – you may just have to fill out a form for them to confirm you are not a U.S citizen. It is normal that they would have to block your account until they confirm you do not have ties to the U.S – so just contact them to find out what they need you to provide.”
“I had an issue with NZ banks in regards to this. Usually if you contact them, give them updated residency details and provide your NIE then it’s fine. It’s usually just to make sure you’re fulfilling your tax obligations and you can’t be double taxed between Spain and Australia, but you may need to declare any Australian income (interests and dividends from shares for example) in your Spanish tax return if that’s your primary place of residence.”
“Having lived abroad for most of the last 25 plus years ( only last 5 in Spain), I can say that there are always problems with banks no matter where. I just spent 2 days on the phone about cards linked to Australian accounts. The bank swore there were no blocks but funnily enough, about an hour after the last call, they suddenly worked. When it comes to banks, it’s hard to win”
“We are dual citizens and operate bank accounts in Australia and Spain. Australian residents for tax purposes and declare that in Spain. Never heard of FATCA”
“I’ve just gone through this with ING. Apparently as of the 31st of July 2022 Australia has caught up with the rest of the world and introduced compulsory IML (International Money Laundering) checks. Call each institution and answer 5 questions. Its a lot easier than the Spaniah IML requirements.”
“We let them know before we flew to Spain and all good”
“We’re Aussies living here and my husband just received his residency. His account here was blocked from deposits but he could withdraw. He has to present his residency card before the account can accept deposits .”
“I recently got an email saying I had to supply my tax file number in Spain to the bank or risk my oz account being frozen. It was through the bank app so no scam. I supplied my NIE, that was the end of it”
“Hmmmm. Be careful. Don’t click any email links.”
For the ones who don’t know about FATCA, or the Foreign Account Tax Compliance Act, is a U.S. law that requires foreign financial institutions (FFIs) to report information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest, to the Internal Revenue Service (IRS). In Australia, FATCA requires Australian banks and other FFIs to report certain information about their U.S. account holders to the Australian Taxation Office (ATO), which will then share the information with the IRS. This is intended to help the IRS identify and enforce compliance with U.S. tax laws by U.S. taxpayers who may be holding financial accounts abroad.
