Financial institutions will be required to report the names of the holders and authorized persons on all bank accounts as well as their personal details to the Spanish Tax Administration as of 2016.

The information financial institutions will have to provide the Spanish Tax Administration on all accounts each year will be as follows:

•  Name and surnames or business name or full name, address, country or jurisdiction of residence and taxpayer’s identification number of the account holders or those with the power to control the account.
• Account number.
• The name and taxpayer’s identification number of the financial institution responsible for communicating the information.
• The balance or value of the account at the end of the corresponding calendar year. In the case of an insurance policy with a cash value or an annuity, the cash value or the surrender value will be taken into consideration. And if the account has been cancelled at some time during the year, its cancellation must be communicated.
• Depending on the type of account, other additional details may have to be provided. For example, the gross total sum of interest paid or credited to the account during the calendar year must be reported on deposit accounts.

This measure, which was approved by Spanish Royal Decree 1021/2015, of 13 November, also indicates that any accounts for which the financial institution does not receive a holder’s residency statement within 90 days will be blocked.

Some cases are not subject to the reporting obligation such as central banks.

On the other hand, the Spanish Tax Administration may exchange this information automatically with the corresponding administration in the country or jurisdiction of residence for tax purposes for people who hold or control an account. Thus, tax compliance of those who obtain revenue from abroad may be verified. This is, therefore, a legal mechanism to fight fraud.

This regulation will enter into force on 1 January 2016, and financial institutions will be required to report this information for the first time in 2017 with 2016 data.