Question
I moved to Spain a year ago from Italy and still have a bank account there. I’d like to close the account and transfer the funds here, but before I do, I’m wondering if Spain would tax that money/transfer? I am worried about Spanish Taxes.
Answers
These are the answers of Spainguru’s Facebook group members:
“Typically income is taxed. Transferring money from your own account to another of your own account is typically not considered income.”
“Have you done your model 720 reporting of foreign assets? If so, no worries. Only needed if the asset exceeds €50k though”
“2023 will be the first year that I was a tax resident in Spain, so I will make sure that my accountant files the 720 form for me when I file! Good to know ??”
Conclusion
The discussion clarifies that transferring funds from one personal account to another, across EU countries, is not considered taxable income in Spain.
However, the conversation brings attention to the importance of the Model 720 declaration. This declaration is necessary for residents in Spain with foreign assets exceeding €50k in any of the categories: property, accounts, and investments. The dialogue emphasizes the need for timely filing of Model 720, in January, for assets held in the preceding year as of December 31st.
It’s a critical compliance aspect for expatriates in Spain to avoid potential tax issues, especially for those who have recently moved and are navigating the complexities of Spanish taxes for the first time.
