Bank Message for tax residency

[Chris1965]

Anyone else had a online message to confirm their residency status for tax ??

[Geoff007]

We are with Sabadell -nothing received yet !

[Johnrgby2]

Anyone else had a online message to confirm their residency status for tax ??

We switched accounts with Sabadell about 5 months ago and was asked then, but nothing since.

[Deso]

It's either an annual or bi annual thing so probably depends on when you opened the account.

[chrisandco]

I thought that is was up to the individual where they claim residency for tax purposes.
If you spend 183 days or more in one country, that is where you should declare.

[Deso]

If you have a non resident account, you have to declare your residence status every 2 years. It is to do with tax on interest.
Your bank will normally do this for you, for a charge of course. 

"When opening a bank account in Spain, regardless of the underlying conditions of the account, your account will be assigned one of two account types :

The bank account that will be opened for you will depend on whether you are formally resident in Spain, or whether you reside and pay taxes in another Country. Clearly there are different tax obligations between residents and non residents and Non residents` returns are generally exempt from taxes in Spain, due to them being taxable elsewhere.

According to Spanish law, individuals who satisfy one of the following conditions are deemed resident for tax purposes:
• People who spend 183 days per year or more in Spain.
• People who have made Spain the centre of their business or professional activity.
• People with a spouse or underage children who are resident in Spain.

If considered formally resident in Spain then an individual is subject to Spanish income tax and may be taxed at source accordingly.

With regards to bank accounts, any revenue obtained from funds held in these accounts, such as interest received on funds deposited, is subject to tax. This tax is to be satisfied in your country of residence, and hence if you are resident in Spain then the tax on this revenue is taxed by Personal Income Tax. Furthermore the bank will be obliged to withhold tax at source on the interest awarded paying only the net amount after deduction of said tax.

On the contrary, if you are resident in another country other than Spain, then the interest or revenue achieved from funds held on deposit may be paid gross without deduction of any tax at source.

This is such when your bank account is considered a “non resident bank account”. In order for the bank to assign such status to your bank account and in order to comply with their internal formal obligations with the Spanish authorities it is necessary for them to receive a formal declaration by the account holder in regards to their residence.
Declaration of Residence

This is the internal document used by Spanish banks to formally ascertain the residency of the account holder, and therefore where their tax obligations lie.

It is first filled out when the account is opened and subsequently a renewal is required every 2 years. Under normal banking procedures the bank will mail such form every 2 years to the registered address for the account holder who should simply verify the information contained, complete any additional personal information, sign the document and return the same to the bank.

Failure to comply with this obligation may result in the bank being unable to pay any interest or revenue gross and oblige the bank to deduct the appropriate tax at source on said income."

[Can the Man]

We did ours with Solbank last year

[Chris1965]

If you have a non resident account, you have to declare your residence status every 2 years. It is to do with tax on interest.
Your bank will normally do this for you, for a charge of course. 

"When opening a bank account in Spain, regardless of the underlying conditions of the account, your account will be assigned one of two account types :

The bank account that will be opened for you will depend on whether you are formally resident in Spain, or whether you reside and pay taxes in another Country. Clearly there are different tax obligations between residents and non residents and Non residents` returns are generally exempt from taxes in Spain, due to them being taxable elsewhere.

According to Spanish law, individuals who satisfy one of the following conditions are deemed resident for tax purposes:
• People who spend 183 days per year or more in Spain.
• People who have made Spain the centre of their business or professional activity.
• People with a spouse or underage children who are resident in Spain.

If considered formally resident in Spain then an individual is subject to Spanish income tax and may be taxed at source accordingly.

With regards to bank accounts, any revenue obtained from funds held in these accounts, such as interest received on funds deposited, is subject to tax. This tax is to be satisfied in your country of residence, and hence if you are resident in Spain then the tax on this revenue is taxed by Personal Income Tax. Furthermore the bank will be obliged to withhold tax at source on the interest awarded paying only the net amount after deduction of said tax.

On the contrary, if you are resident in another country other than Spain, then the interest or revenue achieved from funds held on deposit may be paid gross without deduction of any tax at source.

This is such when your bank account is considered a “non resident bank account”. In order for the bank to assign such status to your bank account and in order to comply with their internal formal obligations with the Spanish authorities it is necessary for them to receive a formal declaration by the account holder in regards to their residence.
Declaration of Residence

This is the internal document used by Spanish banks to formally ascertain the residency of the account holder, and therefore where their tax obligations lie.

It is first filled out when the account is opened and subsequently a renewal is required every 2 years. Under normal banking procedures the bank will mail such form every 2 years to the registered address for the account holder who should simply verify the information contained, complete any additional personal information, sign the document and return the same to the bank.

Failure to comply with this obligation may result in the bank being unable to pay any interest or revenue gross and oblige the bank to deduct the appropriate tax at source on said income."

Thanks Des!!!!!

[Deso]

No worries.