Belgian property owners in Spain are legally obliged to declare their Spanish bank account to both the National Bank of Belgium (NBB) and in the annual personal income tax return. Although these accounts are often only used to pay utilities and local taxes (with no significant movable income), the reporting obligation is unconditional. Non-compliance can lead to significant administrative fines due to the automatic data exchange between the Spanish and Belgian tax authorities.
Why tax authorities are doing extra checks on foreign accounts
Every year, the FPS Finance carries out targeted audit actions on the tax situation of Belgians with interests abroad. The focus here is specifically on undeclared foreign accounts and associated moveable income.
Because clients in our practice often maintain a Spanish account purely for the operational costs of their second residence, the reporting requirement is often unknowingly overlooked. However, this is risky.
Step 1: Registration with the Central Contact Point (NBB)
You are required to register each Spanish bank account once with the Central Contact Point (CAP) from the National Bank of Belgium. This is an administrative procedure separate from your tax return.
You can complete registration in two ways:
- Online registration: The fastest method via the secure National Bank web application.
- By post: By filling in the official standard form and sending it to: National Bank of Belgium, Central Contact Point, avenue de Berlaimont 14, 1000 Brussels.
Step 2: Notification in personal income tax (Box XIV)
Besides registering with the NBB, you must confirm in your tax return each year that you (and possibly your partner or minor children) are foreign account holders.
- Location in declaration: You enter this under Box XIV, section A.
- Data: You will include the name of the account holder and the country (Spain).
The inevitability of data sharing
Concealing a Spanish bank account no longer makes sense due to international Common Reporting Standard (CRS). Spanish financial institutions identify their clients as tax resident in Belgium and transmit this information to the Spanish tax authorities (Agencia Tributaria).
The following data are then automatically shared with the Belgian tax authorities:
- Personal data: Name, address, date of birth and tax identification number (NIE).
- Account information: Bank account number (IBAN) and the name of the bank.
- Financial data: In specific cases, balances, gross income and returns on assets are also shared.
Don't forget real estate income
In addition to the bank account, as a Belgian tax resident you are also required to provide your Spanish real estate indicate. Since 2021, every foreign property will receive an official Foreign Cadastral Income (KI) assigned by the Belgian administration. You must include this CI annually in your tax return to correctly apply double tax avoidance through the tax treaty between Belgium and Spain.
Frequently asked questions about Spanish bank accounts (FAQ)
Is it compulsory to declare a Spanish account if there is no money in it?
Yes. The notification requirement is linked to the existence of the account, regardless of the balance or amount of income. Once the account is opened, it must be reported to the National Bank and personal income tax.
What are the penalties for not declaring a foreign account?
Fines can range from administrative fines (starting around €50 to €1,250) to tax increases on undeclared income. Moreover, undeclared income extends the tax authorities' investigation period to 10 years.
Do I also have to report a closed Spanish account?
Yes, you have to report the closing of an account to the CAP of the National Bank. In personal income tax, you last declare the account in the year it was closed.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
