Question
“I have a considerable amount of money (about $500,000), which I inherited and want to transfer from a bank in the U.S. to Spain. Will this cause me any trouble?”
Answers
These are the answers of Spainguru’s Facebook group members:
“DO NOT deposit that money in Spain. Leave it in your US account. Spanish banks can freeze your account without warning and may take months to resolve the issue. It’s safer to transfer only what you need, when you need it.”
Read Spainguru’s article “How Much Money Can You Transfer to Spain?”
“Spanish banks can ask for documentation proving the origin of large transfers. If you don’t provide this, they can freeze your account. Always have your paperwork ready, especially for transfers above €10,000.”
“Keep the money in the US and let it earn interest in high-yield accounts or CDs. US banks often offer better returns than Spanish ones, and you’ll avoid unfavorable exchange rates and extra fees.”
“If you do transfer the money, do it in smaller batches—like $40,000–$50,000 at a time—to avoid higher transfer fees and scrutiny. A Spanish bank suggested this approach, and they didn’t ask for documentation in that case.”
“Be cautious about splitting transfers to avoid scrutiny. Structuring large transfers into smaller ones to bypass reporting requirements can be considered money laundering.”
“Wise (formerly TransferWise) is a good option. You can open both USD and Euro accounts, transfer funds with low fees, and avoid Spanish bank bureaucracy. Their euro accounts are based in Brussels, which may offer added privacy from Spanish authorities.”
“From the US side, transferring large sums is legal, but you must comply with FBAR and FATCA requirements if you’re a US taxpayer. This includes reporting foreign accounts holding more than $10,000.”
“If you’re a Spanish tax resident, large incoming transfers may trigger reporting obligations, and you must declare them via Modelo 720 if assets exceed €50,000. Spain may also ask for inheritance tax documents if relevant.”
“Speak with a cross-border tax advisor and lawyer in both the US and Spain. Understanding tax liabilities and complying with reporting rules in both countries is essential.”
“The timing of your transfer matters. Exchange rates fluctuate, and poor timing can cost you significantly. The current USD to Euro rate is unfavorable, which reduces the actual value received.”
Conclusion
The Spainguru community strongly advises caution when transferring a large sum like $500,000 to Spain.
The prevailing recommendation is to keep the money in the US and transfer smaller amounts only when necessary, to avoid triggering bank freezes, heavy scrutiny, or unfavorable exchange rates.
Spanish banks may require documentation about the source of the funds, and large transfers can initiate both Spanish and US reporting obligations.
Alternatives like using Wise for transfers or maintaining funds in high-yield US accounts were suggested. Several members emphasized the importance of consulting qualified cross-border tax professionals to navigate the legal and tax landscape safely.
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