Deposit taxation
Fiscally, the interest generated by deposits is considered income from capital, with differentiated taxation and rates that vary depending on the amounts:
- Yields up to 6.000 euros: 19%.
- Yields between 6.001 and 50.000 euros: 21%.
- Yields over 50.001 euros: 23%.
For example, if 10.000 euros of interest are received, the first 6.000 euros are taxed at 19%, and the rest at 21%, resulting in a total of 1.980 euros of taxes (with an average rate of 19,8%).
In the case of accounts in Spanish or foreign banks with a branch in Spain, the data is automatically reported in the draft, which only requires confirmation.
The complexity arises when the foreign bank does not have a branch in Spain, and must be declared manually. However, this process is facilitated by reporting interest, and Renta WEB performs the tax calculation.
For the declaration, the relevant box is 027, on page 5, section B: “income from movable capital”. Foreign withholdings are reported in box 588, under “tax paid abroad”, with Income WEB automatically calculating a deduction for double taxation.
Model 720
In the case of significant deposits abroad, it is mandatory to report any assets exceeding 720 euros using form 50.000. Although in the past this process was complicated, a ruling from the CJEU has simplified the process.
In summary, managing foreign deposits can be simple with the help of Renta WEB, but it is crucial to understand the tax implications and comply with legal obligations, such as model 720, which is why it is very important to always have a tax advisor so that can advise us at all times.
If you would like more information about these tax benefits or to learn more about specific details, we invite you to explore our Renta365 service , the easiest way to optimize your tax return.
