Many foreigners have tax obligations in Spain however may not have a Spanish checking account to pay them from. Changes by Spain’s tax authorities would possibly simply make it simpler, relying in your circumstances.
Navigating the ins and outs of the Spanish tax system could be a little daunting at occasions. That’s why many individuals select to pay for a gestor to deal with all of it for them.
But for a lot of foreigners in Spain, particularly these with property within the nation however who aren’t resident, determining when and methods to pay your taxes might be additional sophisticated, particularly in the event you do not converse Spanish.
READ ALSO: What does a ‘gestor’ do in Spain and why you may want one
This was compounded by the truth that, for a few years, you could not pay Spanish taxes from a overseas checking account. As such, many individuals have been pressured to open a Spanish checking account for the only goal of paying tax.
Can you pay taxes in Spain with a overseas checking account?
Fortunately, it is not like that. From February 1st 2024, the tax authorities in Spain began permitting tax funds through direct debit from any checking account inside the SEPA space, eradicating the necessity for a Spanish checking account.
So, briefly, sure, you’ll be able to pay your Spanish taxes with a overseas checking account — relying on the nation wherein the account relies.
Advertisement
What is SEPA?
SEPA stands for Single Euro Payments Area is a principally an built-in financial institution switch system. SEPA consists of all of the EU members states, plus these within the EFTA (Iceland, Norway, Liechtenstein and Switzerland). The UK can also be nonetheless member of the SEPA space, regardless of Brexit.
Before the change, you could possibly solely pay your taxes in Spanish through banks authorized by the tax authorities.
READ ALSO: Spanish tax returns: A useful information for foreigners
VAT and tax specialists Marosavat clarify that below the earlier guidelines, “direct debit [was] solely accessible when the taxpayer’s checking account belongs to a financial institution entity cooperating with the Spanish tax authorities. This requirement impose[d] an essential restriction when utilizing direct debit as a fee technique, particularly for overseas taxpayers.”
But slowly, the Spanish tax authorities have eased the foundations and made it simpler for overseas companies and tax payers to pay their tax from overseas. First, in March 2021, the foundations have been relaxed for overseas companies with tax obligations in Spain.Â
Then from July 2023 overseas accounts have been authorized for deferment and break up functions of tax debt, and from February 2024 for normal tax funds.
Following the adjustments, Marosavat says, “the funds will nonetheless be processed via a cooperating financial institution entity, which communicates with the taxpayer’s financial institution entity. In consequence, all commissions and financial institution bills associated to the process can be handed on by the tax administration to the taxpayer.”
According to Spain’s Agencia Tributaria web site, which you’ll find an English language model of right here:
-
Payments are allowed for individuals who do not need an open account in any collaborating entity in state assortment administration.　
-
It is particularly meant to be used by those that pay their money owed from overseas.　
-
It might be executed by each pure individuals and authorized entities.　
-
The fee can have releasing results on the date of receipt and entry of the switch. 　
Advertisement
Non-resident property homeowners
This is especially welcome information for second residence homeowners in Spain, lots of whom are non-resident and handle their properties from overseas for a lot of the yr.Â
According to IberianTax, by extending tax funds to the broader SEPA space, “property homeowners can now proceed to make use of their residence nation’s financial institution accounts or accounts from different SEPA international locations to make tax funds in direction of their taxes. This change simplifies the method and alleviates the burden of establishing a separate Spanish financial institution unnecessarily.”
