MOVING to Spain is often a decision filled with excitement. A new country, a new personal or professional chapter and, in many cases, a better quality of life.
However, for those who arrive with savings accounts, fixed-term deposits or investments in other countries, one question tends to arise early on and it often brings concern: how to manage their assets correctly within the Spanish tax system.
What happens to the interest earned outside Spain? What exactly do I need to declare? When do I have to do it? What documents are required?
For many expatriates and retirees, these questions come up far too often and usually when there is very little room to react.
Your taxes don’t travel with you
One of the most common mistakes when moving to Spain is assuming that nothing changes as long as the money remains abroad. From the moment a person becomes a tax resident in Spain, the situation is different. Spain taxes worldwide income.
This means that interest earned on savings accounts and deposits held in other countries must be declared in Spain, even if the bank is located in Germany, France or the Netherlands.
And it is not just about paying taxes. There are also reporting obligations that many people are not aware of.
In fact, a significant proportion of errors made by foreign residents in their tax returns are not due to concealment, but simply to a lack of understanding of the system.
Nevertheless, not knowing the law doesn’t make us exempt from it, so we recommend you keep reading.
Why savings are usually the safest assets when moving countries
When it comes to taxes, not all financial products create the same level of complexity. Savings accounts and fixed-term deposits are generally among the most straightforward assets to manage when changing tax residence.
Interest income is clearly defined, easy to calculate and follows predictable rules under Spanish tax law.
Unlike other investments, there are no complex valuations, market swings or transaction histories to reconstruct, just interest earned and balances held.
For many people moving to Spain, this simplicity becomes increasingly valuable.
Over the years, it is common to build up a fragmented financial structure: a savings account in the home country, a fixed-term deposit taken out at a different time, or an account opened during an earlier stage of working life.
The result is often money spread across several banks, countries and languages, which can lead to additional complications such as interest certificates arriving late, documents in foreign languages or tax calendars that do not always align.
Having savings structured in a clear and transparent way can therefore significantly reduce the risk of mistakes and unexpected issues when dealing with a new tax system.
Income tax and reporting forms: when doubts arise
Over time, many realise that declaring interest in the Spanish Personal Income Tax (IRPF) is not enough. There are also reporting obligations, and the real challenge is often not the tax rate itself but staying organised: knowing where the money is held, how much interest it generates and whether reporting thresholds have been exceeded.
When information is fragmented across several banks and countries, keeping track of these details can quickly become overwhelming especially for those unfamiliar with Spanish administrative procedures.
One of the most important reporting obligations is tax Form 720, which requires taxpayers to report bank accounts and deposits held abroad when their combined value exceeds €50,000.
This form does not involve paying additional taxes, but it does require precise information such as balances, banks, countries and dates.
For example, Max moves to Spain and keeps €100,000 invested in a one-year fixed-term deposit at a German bank, while also holding €50,000 in a savings account at another German bank. As the combined value of these accounts exceeds €50,000.
What does this mean for Max? He must declare all the interest earned in his Spanish income tax return and submit Form 720, reporting both accounts in detail, including balances, banks, countries and dates.
The difficulty in situations like this rarely lies in the amounts involved, but in maintaining a clear, consolidated view of savings spread across different banks, languages and documentation formats.
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How Raisin helps simplify everything
Moving to Spain should not mean living with the constant worry of whether everything is being declared correctly. Experience shows one thing clearly: the greatest enemy of tax compliance is not legal complexity, but a lack of organization.
The more accounts and banks you have, the harder it becomes to maintain a clear and unified view of your savings.
Raisin is a platform that provides access exclusively to savings accounts and term deposits from banks across the European Union within a single environment, reducing fragmentation, making it easier to track balances and interest, and offering a clear overview of savings even when money is spread across different countries.
As a new client you can also get the Cuenta Bienvenida, which offers a return of 3.33% AER. It is a completely free, commission-free account designed as an entry point to start organising your savings in a simple and efficient way.
Once opened, Raisin allows you to continue investing in competitive savings products from European banks through the Cambio Inteligente, enabling you to move your money into new opportunities without losing control or visibility.
In addition to making it easier to compare interest rates and manage savings, Raisin provides customers with access to and a clear overview of their account information and documents (e.g., balances and interest statements) that may be relevant for their own tax reporting, including potential reporting obligations such as Model 720*.
If you live in Spain and have savings in your home countries, Raisin can manage your savings in a clear, organised, and secure way. Because living in Spain should be an experience of calm, not a constant source of tax uncertainty.
* Please keep in mind that Raisin does not prepare, validate, or submit tax forms on customers’ behalf. Customers remain responsible for determining whether they have a reporting obligation and for filing the relevant forms.
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