Valuing foreign accounts, shares and property for the declaration

Key rules

• Accounts: Report both the 31 December balance and the last-quarter average balance; the larger one is used for the threshold test.
• Property: Use the acquisition value (price plus taxes and expenses), never market or cadastral value.
• Joint holdings: Each owner declares their own share, and the 50,000 euro threshold is tested separately for each person.
• Signatory accounts: You declare an account you do not own if you are an authorised signatory, beneficiary or have power of disposal.
• Currency: Convert to euros at the rate on the valuation date, normally 31 December.

The valuation date is 31 December

Almost every asset is valued on 31 December of the year you are declaring. Property is the main exception: it uses what you paid, not a year-end value. Convert anything in another currency into euros (see the currency section below).

Bank accounts

You report two figures for each account: the balance on 31 December and the average balance for the last quarter. The larger of the two is the one used to test whether you pass the 50,000 euro threshold for the category.

If you closed an account during the year, report the balance on the closing date. The average balance then runs from the start of the quarter to that date.

Shares, funds, insurance and annuities

• Listed shares and securities: use the market value on 31 December.
• Unlisted holdings: value them under the Wealth Tax rules. For shares, that usually means theoretical book value, or capitalised average profits where that is the rule used.
• Investment funds and collective investment institutions: use the market or liquidation value on 31 December (the net asset value of the units). The acquisition value is also reported.
• Life or disability insurance: use the surrender value on 31 December. This is what the insurer would pay if you cashed it in.
• Annuities, temporary or life: use the capitalised value on 31 December.

Details differ by asset type, so ask the insurer or fund manager for a year-end statement that shows the right figure.

Property abroad

Declare foreign property at its acquisition value. That is the purchase price plus the taxes and expenses you paid. Do not use market value or the local cadastral value.

You declare property when the total value of the category is more than 50,000 euros. In later years you report it again only if the value rises by more than 20,000 euros, for example because you bought another property.

Joint holdings

If you own an asset with someone else, each owner files for their own percentage. The 50,000 euro threshold is tested separately for each person.

• Property: you declare your share of the acquisition value.
• Accounts with several holders: each holder declares the full balance, provided they are an owner, an authorised person or a beneficiary.

Joint accounts and marital property regimes can work differently. Read the form instructions before you fill in a joint holding.

Accounts where you are only a signatory

You must declare an account even if you do not own it, when you are an authorised signatory, a beneficiary or have power of disposal over it. You report the same figures as an owner: the balance on 31 December and the average balance for the last quarter. The 50,000 euro threshold applies per category.

The form uses different codes to show your capacity (owner, authorised, beneficiary and so on). Choose the one that matches your role on each account. Whether a particular role triggers filing depends on the facts, so ask a tax adviser if your case is unusual.

Converting currencies

Convert foreign-currency values into euros at the exchange rate on the valuation date, normally 31 December. The form instructions point to the rate published by the European Central Bank or the Bank of Spain, or the rate of your Spanish bank, for that date. Keep a note of the rate and where you got it.

The checklist below lists what to gather, and the questions below it cover common edge cases.

Information to gather for the foreign asset declaration

• Get the balance on 31 December and the average balance for the last quarter for each foreign account.

• Note for each account the bank name, its BIC/SWIFT code, its address and country, and the account number or IBAN.

• Write down your status on each account (owner, authorised signatory or beneficiary), the date you opened it or became a holder, and the closing date if it was closed.

• Find the 31 December market value of listed shares and securities, and the 31 December net asset value of fund units.

• Work out the value of unlisted holdings under the Wealth Tax rules, and the redemption value of insurance or the capitalised value of annuities.

• Collect for each security the entity name and country, its tax ID, the ISIN or other identifying code, the type of security, the number of units and the acquisition date.

• Note for each property whether it is urban or rural, its full address and country, and any registry data that exists.

• Record the acquisition date, whether you own it fully or partly, and the percentage you hold.

• Check that every item has its value, country code and acquisition or account opening date.

Frequently asked questions

How do I value a jointly owned foreign property or account?

For a jointly owned property, you declare your own share of the acquisition value, matching your ownership percentage. The 50,000 euro limit is tested separately for each holder.

Do I have to declare an account if I am only an authorised signatory?

Yes, you must declare a foreign account even if you only have signing authority, are a beneficiary or have power of disposal over it. You report the balance at 31 December and the average balance for the last quarter. A different key code marks your capacity, such as owner or authorised person.

How is foreign life insurance or an investment fund valued?

Life or disability insurance is declared at its surrender value at 31 December. Annuities are declared at their capitalised value at 31 December. Fund shares are declared at their market or liquidation value at 31 December, and you also report the acquisition value.