Spanish broker or foreign broker: who reports and who withholds

Terms used

• Retención — The retención is tax withheld at source by the payer and credited against your final IRPF bill.
• IRPF — The IRPF is Spain's personal income tax, filed in an annual return.
• AEAT — The AEAT is Spain's tax agency.
• Datos fiscales — Your datos fiscales are the tax data AEAT holds about you, which feed your draft return.
• Borrador — The borrador is the draft income tax return AEAT prepares from the data it holds.
• Modelo 720 — Modelo 720 is an information return declaring assets held abroad, filed once a year when thresholds are passed.

Key rules

• Spanish broker: It withholds on some income and reports to AEAT, but you still check the data and pay any difference.
• Foreign broker: It usually does not withhold or report, so you declare all income and gains yourself.
• Modelo 720: You must report a foreign asset category worth more than €50,000 on 31 December, between 1 January and 31 March.
• Payment: There is no separate form for foreign broker income; you pay with the annual return.

The short answer

A Spanish broker withholds tax on some income and reports your data to the tax office (AEAT). A foreign broker leaves the reporting to you. You calculate your own tax and file Modelo 720 if it applies. Neither route removes your duty to check your return.

If you use a Spanish broker

Spanish entities pay dividends net of retención, a withholding taken on account of your IRPF. The rate is 19% in 2025. Withholding rates can change yearly.

• Dividends: withheld at source.
• Fund redemptions: gains are withheld on when you redeem. Switching from one fund to another (traspaso) is not withheld on.
• Selling shares or ETFs directly: generally no withholding.

The broker sends your data to AEAT. It appears in your datos fiscales and in the draft return (borrador). You still need to:

1. Compare that data with your own records.
2. Add any income the broker did not report.
3. Keep money aside for the difference. Your savings tax brackets go above 19%, so the final tax can be higher than what was withheld.

If you use a foreign broker

A foreign broker that does not withhold or report to Spain leaves everything to you. You declare all dividends, interest and gains in your annual IRPF return. The campaign runs from April to the end of June.

• Dividends and interest go in as savings income.
• Sale gains and losses go in as capital gains and losses.
• Convert every amount to euros at the exchange rate on the date of each transaction. Do purchase and sale separately.
• Work out your own cost basis. Use FIFO (oldest shares sold first) for identical securities, and apply the rule on repurchases after a loss.
• If tax was withheld abroad, you can claim a foreign tax credit. It is limited by the tax treaty and by the Spanish tax on that income.

There is no separate form to pay. The tax is paid with the annual return.

Modelo 720 for assets abroad

Modelo 720 is an information return for assets held abroad. It has three categories: accounts at foreign financial institutions, securities, funds and insurance, and real estate. You must report a category worth more than €50,000 on 31 December. File between 1 January and 31 March.

After your first filing, you file again only if a category rises by more than €20,000 over the value last reported. Crypto held abroad has its own form, Modelo 721.

The old special penalties of 150% have been removed. Ordinary fines now apply, with fixed amounts per data item. Late or missing filings cost around €200 per item, with a minimum of €1,500. Late voluntary filings cost less.

Securities held with a foreign broker are the usual reason a broker user needs this form. Check your total at 31 December each year.

Getting your tax reports

The brokers differ in what they give you. Check each broker's current documents.

• Interactive Brokers does not produce a Spanish-format report and does not report to AEAT.
• Degiro gives an annual report, but many users rebuild the FIFO and currency conversion themselves.
• Trade Republic gives an annual tax report for Spanish clients. It generally does not report to AEAT, so you still declare.

Many people use a third-party tool to turn these reports into Spanish figures. The documents, checklist and timeline below set out the steps.

Which should you choose?

Choose a Spanish broker if you want your data pre-filled and less paperwork. Choose a foreign broker if it offers products you need. If you do, plan time each spring for the calculations, and check your Modelo 720 total every year.

Timeline and deadlines

• Add up the value of your foreign accounts, your securities, funds and insurance, and your foreign real estate, each as a separate category: on 31 December each year

• File Modelo 720 if any category is worth more than €50,000: between 1 January and 31 March of the following year

Documents you need

• Interactive Brokers: the annual activity statement and the realized profit and loss and dividend report in your base currency, issued by the broker. It is not in Spanish format and is not sent to AEAT, so you use it to work out your own gains.

• Degiro: the annual report with your transactions and account statements, issued by the broker. You will usually still rebuild the FIFO order (oldest shares sold first) and the euro conversion yourself.

• Trade Republic: the annual tax report for Spanish clients, issued by the broker. It does not report to AEAT, so you still declare the income yourself.

Check each broker's current documentation to confirm which annual reports it offers.

Checklist

• Find out whether each broker you use is Spanish or foreign, and whether it withholds tax and reports to AEAT, Spain's tax agency.

• Compare the data from your Spanish broker with your datos fiscales and the draft return, and add any income it did not report.

• Set aside money for the difference between the withholding and your final tax, since your savings brackets rise above 19%.

• Download the annual tax report from each foreign broker.

• Enter all dividends and interest from foreign brokers as savings income, and all sale gains and losses as capital gains and losses, in your annual return.

• Convert every amount to euros using the exchange rate on each transaction date, purchase and sale separately.

• Work out your cost basis, using FIFO (oldest shares sold first) for identical securities, and apply the rule on losses when you rebought the same security.

• Add up each foreign category at 31 December and file Modelo 720 by 31 March if one is worth more than €50,000.

• Check whether you also need Modelo 721 if you hold crypto abroad.

Frequently asked questions

Do I still have to check my tax data if my Spanish broker withholds tax?

Yes, you still have to check your tax data, because the withholding is only an advance payment on your final tax. Compare your datos fiscales (the tax data AEAT holds on you) and the draft return with your own records, and add anything the broker did not report. If your savings income reaches the higher brackets, you pay the difference with the return.

Does a Spanish broker withhold tax when I sell shares or ETFs?

No, a Spanish broker generally does not withhold tax when you sell shares or ETFs directly. Switching between funds (traspaso) is not withheld either. The gain still appears in your return, so set money aside to pay it.

Can I get credit for tax a foreign broker withheld abroad?

Yes, you can claim a foreign tax credit for tax withheld abroad, but it is limited by the tax treaty and by the Spanish tax due on that same income. Keep the broker's statement showing what was withheld.

Is there a separate form to pay tax on foreign broker income?

No, there is no separate payment form for foreign broker income. You pay the tax with your annual return, filed between April and the end of June.

Do the old 150% Modelo 720 penalties still apply?

No, the special 150% penalties were removed after the EU court ruling against them. Ordinary fines now apply, about €200 per data item with a minimum of €1,500 for late or omitted filings, and lower fines for late voluntary filings.