March 28, 2012
The accounts of residents and non-residents differ in that different regulations apply to money transfers for the resident and the non-resident. The main difference is that Spanish withholding tax of 19% is not withheld from the non-resident account.
If you are a resident, 19% of your interest earnings will be withheld and paid to the Spanish tax authorities in your name, just as for Spaniards.
If you are a non-resident, no tax will be withheld, but you will be liable for tax in your country of residence.
Any bank transaction of more than 3,000 euros requires the payor and the payee of the amount to be identified.
Some banks charge more than 4% when transferring money out of Spain. Other banks charge fees of around 21 euros per 6,000 euros of transfer so make sure you discuss the conditions which apply to your bank account at the time you open it.
I feel I should add that there are many Spanish banks, and each has a plethora of accounts to choose from. To be sure you get the right kind of account for you I would recommend taking a Spanish speaker with you. There are free-to-run accounts, and accounts with monthly charges, as there are in most countries. Some are NOT cheap so beware and be sure the bank gives you full details of any and all charges associated with running your account. I have been with Solbank (part of Banco Sabadell) since arriving in Spain. There are minor charges monthly but I hardly notice and the service I receive far outways the cost. I am not “recommending” them, just saying I have had no problems with them in over eight years.
So that’s it! All you need to know before you buy or sell a property in Spain!
All eight parts of the series will always be here for your reference. Of course, as and when changes are made to the processes or fees and taxes I will make the necessary updates.
Permalink: Spanish Property: The Buying/Selling Process
Once again, a big thank you to Raquel Perez at Perez Legal Group for providing the information.
Tel: +34 952 833 169