tax on Spanish savings accounts
Posted: 27 December 2008 06:14 PM  
Tourist
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The interest rate on savings accounts with Spanish banks currently appears attractive (e.g. 5% on 12-month deposit). But I can find no mention of taxation on the interest, neither in bank information nor with Google search in Spanish. (Most Euro countries apply a withholding tax on interest on investments, which may however be waived for savings accounts). What is the position here?
PS I notice that the submission form describes me as “tourist” - I don’t know why. I am not formally resident, but I have a NIE number and a current account with Caja de Granada.

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Posted: 27 December 2008 08:16 PM   [ # 1 ]  
Just Landed
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It means you’re a tourist on the forum, not a tourist in Spain. It will change if you post more 😊

Sorry I can’t help with your main question, I’m sure someone will be along soon to give you some answers

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Posted: 28 December 2008 03:30 AM   [ # 2 ]  
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If you are a non-resident, you don’t have to pay taxes in Spain, but pay them in your own country, so you will have to mention these interest on your tax document at home.

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Posted: 29 December 2008 04:47 PM   [ # 3 ]  
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All investments are taxed at a flat rate of 18% which is automatically withheld by the payee for all residents accounts. If you are a resident you must advise your bank so that they can withhold the 18%.

Needless to say many people have not declared this to their bank to avoid paying the 18% but the rules have now been changed so that this tax avoidance cannot take place any longer.

All banks reports all accounts whether saving or loans to Spanish tax man for the annual tax return system during June/July of each year.

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Rob
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Selling legal property on the Costa Blanca

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