In Spain Finance and banking institutions maintain a good relationship and better communication. That is why the draft of the income contains the main data bank, so that you do not have to include them by hand.
This is the positive part of this communication, the negative is that Finance can inquire about the movements of our account at any time. To go further, you will need to initiate an inspection procedure that we should communicate.
What the bank does every year when it comes to the time of filing the declaration of income and of the Tax on the Heritage, is to rotate the same tax information that we have sent to us. This information includes:
- position (account balance) in the account at the end of the exercise, with the interests that have been generated and the retention has been applied.
- investments, regardless of whether they are deposits, investment funds or any other financial product. Will only reflect withdrawals of capital along with the retention.
“FINANCE you MAY INQUIRE AT ANY TIME ABOUT THE MOVEMENTS OF OUR BANK ACCOUNTS.”
“THE COMMUNICATION BETWEEN FINANCIAL INSTITUTIONS AND THE tax agency IS QUITE FLUID.”
Beyond the yearly communications law establishes that the bank must report to always produce a certain type of transactions referred to revenues, withdrawals and transfers. What makes the obligation to report is the amount of the transaction and the means used.
These are the scales:
- Transactions with banknotes of 500 euros, regardless of the amount. The Supreme Court says that banks must reflect these operations and report on them for possible crimes of money laundering.
- Transactions in excess of € 10,000.
- Payments and collections by more than € 3,000, provided they are carried out in cash regardless of the form of income to account. Transfers are not considered income in the strict sense, since in reality the money is transferred from one account to another.
- Loans and credits by more than 6,000 eur.
To overcome these limits, this does not mean increased taxation, but by being informed Finance, we may be required by the AEAT to provide an explanation of where they come from these funds, especially in the income of cash or transfers received from abroad.
The financial institution shall inform the persons carrying out the operations, the amount, as well as the account number and their owners. In reality any community state will be able to cross the information it holds on residents abroad. In this way it is easier to pursue the tax fraud, through the European Union.
”THE SAME INFORMATION SENT TO US by THE BANK EACH YEAR TO MAKE THE DECLARATION OF income TAX IS SENT TO THE TAX AGENCY.”
”in ADDITION, THERE is OTHER INFORMATION THAT is, ON a MANDATORY basis, HAVE TO REPORT TO the TREASURY by FINANCIAL INSTITUTIONS.”
the transfers between accounts, revenues or cash withdrawals are not taxed due to tax, unless involving really the income, yield or capital gains. Let’s look at some examples:
- we Receive a bank transfer or a deposit to our bank account, in the amount of 5,000 euros, from a friend who returned to us a loan for the said amount, which we did a year ago. This amount is not taxed, since there is no income, yield, or increase of equity. Thing different is that the return of the principal borrowed and any additional amount on account of interest, in which case, tributarían interests.
- We have sold a garage, and we charged in bank check, you enter into our account, in the amount of 15,000 euros. That garage cost us, 4 years ago, 12,000 euros. This banking income implies an increase in capital, subject to taxation, the net capital gains shown, that is to say, for the sum of 3,000 euros.