non residents bank account

Have had a property in Spain for a few years and have always had a non residents bank account. However Bancaja in their wisdom have changed it to a residents bank account, they say we have to prove we are non residents now. Which is the best way to do this please? TIA

You will need to request and obtain a certificate issued by the Tax authorities (Inland Revenue) from your country of residency stating that you are resident on that country.

HMRC offers two online options

HMRC has recently published a web page called Apply for a certificate of residence in the UK which explains how an individual can apply for a certificate of residence in the UK.

You cannot be resident in 2 countries, so hopefully this will sort it for you. Also if you are still working send a copy of your P60, unless you commute to Spain daily, it would be impossible to work in the Uk and reside in Spain.

If you spend more than 183 days in any 12 month period you automatically become a resident of Spain.. If you have sold your property or rented your property out in the UK ...then this is no. longer your main residence... in this case the 183 day rule Doe's not apply ...you will become a residents of Spain from day one of your arrival.

   Alaska

            The Certificate of Non Residence is obtained from the Extranjería (Foreigners Department) of the National Police.

They are renewable every two years.

Most banks will, for a fee, obtain the certificate for you-

PS   That your bank has changed your account to a residents account  would seem not to make much difference other than to save you paying for the non-residents cert every 2 years.

The main difference between residents and non-residents accounts I believe is that the non-resident account is tax free.  That a resident’s account is unlikely to earn any interest on which tax would be stopped  makes that irrelevant anyway.

Anyone got another angle which I have missed  on this ?

Yes it appears you are indeed correct johnzx! Having visited various offices and back to the bank today.

We have to get this certificate which had run out.

The bank have agreed to do this for us for 30 euros. Numerous forms were filled out today and they cross referenced our UK address with what we had given them initially,  we have to prove our pension to them on our return to the UK.

In future we can email the bank to renew. It just goes to show a different contact made all the difference.

Will now have to put a note in diary for Jan/Feb 2020!

Thanks again for your help.

Maybe others can help, but I have no idea why your bank would need to know,   or why you should tell your bank anything about income you have in UK.  I personally would not do.so and I am tax resident in Spain.

When my son, who is not resident in Spain, had an account he was never asked for that info

Johnzx

 " Most banks will, for a fee, obtain the certificate for you- "

Don't some Banks automate the system for you and take the amount every two years from your current account but waive the fee if you have a deposit account (savings) with them?

Ads you may be right. I do not know what every bank does. 

However, I am very surprised to hear  that a Spanish bank would not make a charge; they usually do whenever possible !

Nothing lost in asking the question if your Bank would do this, Alaska!

The Certificate of Non Residence is obtained from the Extranjería (Foreigners Department) of the National Police.

They are renewable every two years.

Most banks will, for a fee, obtain the certificate for you-

It would be interesting to know how Extranjeria can issue this certificate for people registered resident.

Mmmm.....No Police cross referencing Kavanagh to check if applicants have actually provided a tax certificate proving residency elsewhere?

Despite any erroneous ideas to the contrary which anyone may have, it is the Extranjerías  which issues the non-resident’s cert.

Sorry if it too obvious but that is the office where the NIE's and EU Registrations are administered, so of course they can see from the records on the system,

Whatever the system and whoever is responsible for it, 1,000s of Brits initially opened non resident bank accounts to get started, then purchased a property and registered as residents. They still have these non resident bank accounts. So how Extranjeria can issue this non resident certificate for people registered resident is another Spanish nonsense and mystery.

Have had a property in Spain for a few years and have always had a non residents bank account. However Bancaja in their wisdom have changed it to a residents bank account, they say we have to prove we are non residents now. Which is the best way to do this please? 

Maybe banks and financial institutions here are adopting the recent rules set by UK Inland Rev and “ demanding” proof as to which country we should, or should not, be pay tax to.

Too many people straddling the borders hoping it is advantageous to be overlooked.

Important information from Spanish Property Insight re disclosure of tax information....

"Spain signed in 2014 a treaty, along with over 100 other countries, for cross-border tax co-operation to combat tax evasion. As from 2018, the Spanish Tax Authority (AEAT) will automatically receive a great deal of fiscal information from non-resident owners, including UK and Irish nationals. And by the same token, the Spanish Tax Office will be collating a great deal of fiscal information on you from Spanish banks, and other sources, and sending it back to all those countries that signed the CRS treaty.

One of the (most visible) results of this budding cooperation between tax offices is the letter or e-mail you will have received in January 2018 from your Spanish bank/s informing you they are going to pass along a great deal of fiscal information on you to the Spanish Tax Office, which in turn will relay it over to your home country’s tax office.

Both countries, going forward, will now be busy cross-checking your fiscal declarations and tax residency to catch you out in case you have not been declaring and paying your taxes in your country of tax residence as well as in Spain.

If you are tax resident in Spain, even unbeknownst to yourself, and you have failed to declare your income you may be facing fines for tax model 720 follow a sliding scale. Any ‘incongruity’ is fined starting at €10,000 and any data ‘omitted’ is fined starting at €5,000. Fines can lead up to a staggering 120% of the undeclared amounts you hold abroad on being resident in Spain. The afore does not preclude the fines for Income Tax which additionally can be up to 150%.

Bottom line, for your own sake, if you own assets or derive any income in Spain, get your taxes sorted out pronto because it is a ticking time bomb and time is running against you. "

As I thought and not before time although guess it will take some time which may give confidence to some folk. But never forget tax authorities, world wide, have no reason to hurry whilst interest is accumulating from 5-7 previous years €€€€€€€ plus future infinitum providing there is some form of communication between those involved

Certainly UK are going for gold. Every financial institution we deal with are requesting proof of where our tax office is.

Floella

"providing there is some form of communication between those involved"

What happens if people have not received letters or emails  from the Spanish Authorities? 

Just wondering as you understand it Floella, Is this action dependent on being informed by the authorities( acting as a start point) ? 

Will this be open.  for instance,  to future challenge if the authorities have not correctly informed individuals of the specific details relating to this cross border cooperation and individual's responsibilities in this regard going forward?

I don't think you get letters or emails from the Spanish authorities or, indeed, the UK authorities. I certainly haven't but I have had ones from my UK bank. Non-residents in Spain that I know have had similar letters and emails from their Spanish banks.

 Writing from personal experience communications from any financial or tax institution will always be via post...whether UK or Spain. Sometimes hand delivered.

In both countries proof of a notification being sent is all that is required. One doesn’t receive it.....that’s tough.

Does that work both ways?.