What Hacienda already knows about your foreign accounts (CRS and FATCA)

Terms used

• NIF — The NIF is the Spanish tax number Hacienda uses to identify you and match your data.
• IRPF — The IRPF is Spain's personal income tax, filed in an annual return.
• Modelo 720 — The Modelo 720 is the yearly declaration of assets held abroad, required above 50,000 EUR per category.
• CRS — CRS is the international system under which countries automatically share financial account data about each other's tax residents.
• FATCA — FATCA is the US system, agreed with Spain, for exchanging data on accounts of each other's residents.

Key rules

• Automatic exchange: Banks in CRS countries and the US report your accounts to Hacienda without you doing anything.
• Self-reporting: The exchange does not replace your own Modelo 720 and income tax filing.
• Modelo 720 level: You must declare a category of foreign assets once it is worth more than 50,000 EUR.
• Voluntary correction: Fixing a missing account or income before a notice arrives reduces surcharges.

The short answer

Assume Hacienda can already see your foreign accounts. Many countries send account data to Spain every year, and Hacienda matches it to you by your NIF. This does not remove your own duty to declare. If you are a Spanish tax resident, you still have to report your income and, above the limit, your foreign assets.

How the exchange works

Two systems feed Hacienda.

CRS. More than 100 countries take part. They include all EU states, the UK, Switzerland, Gibraltar, Andorra, Liechtenstein and Monaco. Banks in those countries report accounts held by people who are tax resident in Spain. The list of countries changes, so check the current one for the country where you bank.

FATCA. The US is not part of CRS. It has its own agreement with Spain, in force since 2014. Spanish banks report accounts of US persons, and the US sends Spain information on the US accounts of Spanish residents.

Which accounts are covered

• Deposit accounts, such as current and savings accounts.
• Custody accounts, where a bank holds your investments.
• Shares or debt interests in investment entities.
• Insurance and annuity contracts that have a cash value.

What Hacienda receives

For each reportable account, Hacienda gets:

• your name, address and foreign tax identification number
• your date and place of birth
• the account number and the name of the bank
• the balance or value at the end of the year
• the gross income for the year: interest, dividends, other income and sale proceeds

FATCA data covers the same kind of detail: identity, tax number, account number, balance and income.

What Hacienda does with it

Hacienda compares this data with your income tax return (IRPF), your Modelo 720 filings, wealth tax and the Spanish bank information it already holds. Foreign assets and income are a named priority in its yearly control plan, so mismatches are found automatically.

If the data shows an account you did not declare, or income missing from your return, you can expect a letter or formal request. You are usually asked to explain or correct the position. Hacienda can also open a check or inspection.

Why you still have to report yourself

Automatic exchange does not replace your own filing. Modelo 720 is the declaration of foreign assets. You must still file it if the assets in a category, such as accounts, securities or property, are worth more than 50,000 EUR. The penalties were reformed in 2022 after a European court ruled the old ones disproportionate, but the duty to file stayed.

Your income tax return must also include income from foreign accounts, such as interest and dividends.

What to do

Correct any missing account or income yourself before a letter arrives. A voluntary correction reduces the surcharges. If a letter has already arrived, answer it and explain or correct the position. The checklist and documents list below walk you through this, and the FAQ covers common questions.

Documents you need

• Your NIF, the Spanish tax number Hacienda uses to match foreign account data to you

• Your income tax return (IRPF) for the year in question, to compare against the income your foreign accounts produced

Checklist

• Check whether each country where you hold an account takes part in CRS or, for the US, FATCA.

• List every foreign deposit, custody, investment and cash-value insurance account you held during the year.

• Compare each account's year-end balance and income with what your Spanish tax return shows.

• Check whether each category is above the 50,000 EUR level that requires a Modelo 720 declaration, since automatic exchange does not replace your own filing.

• Correct any missing account or income before a Hacienda notice arrives, because a voluntary correction reduces surcharges.

• If a notice arrives, answer it by explaining or regularising the position.

Frequently asked questions

Which countries send Hacienda my account data under CRS?

More than 100 countries send Hacienda account data under CRS, including all EU states, the UK, Switzerland, Gibraltar, Andorra, Liechtenstein and Monaco. The US is not in CRS and uses its own system, FATCA. Accounts covered include deposit and custody accounts, investment holdings and insurance contracts with a cash value.

What details about my foreign account does Hacienda receive?

Hacienda receives your identity and the account's key details, including your name, address, tax number, account number and the bank's name.

Does FATCA also send Hacienda data about my US accounts?

Yes, the US sends Spain data on Spanish residents' US accounts under an agreement in force since 2014. It covers identity, tax number, account number, balance and income. The same agreement works the other way for US persons with Spanish accounts.

What happens if the exchanged data shows an account I did not declare?

Hacienda can send you a notice asking you to explain or regularise the position, and it can open a check or inspection. Foreign assets and income are a stated priority in its yearly control plan. Correcting the position yourself before a notice arrives reduces surcharges.