OECD’s Common Reporting Standard (CRS)
14 Jul. 2016
As of 1 January 2016, Spain has fully adopted the provision of the Council Directive 2011/16/EU on administrative cooperation in the field of taxation, and the OECD CRS for the automatic exchange of financial account information.
Under the CRS and EU Directive, financial institutions in participating jurisdictions will report the full name and address, jurisdiction of tax residence, tax identification numbers and financial information of individual clients to their local tax authorities, which will then automatically exchange the data with the tax authorities of the participating countries where the individuals are tax resident of.
Spain is one of the 101 committed jurisdictions as well as Gibraltar, Guernsey, Jersey and the Isle of Man, to mention some of them.
Financial institutions in all participating jurisdictions will be obliged to ascertain and verify the tax residence status of their individual clients by application of specific due diligence procedures under the CRS.
The automatic exchange of information related to financial accounts held by the end of year 2015 and open afterwards will start in 2017.
Spanish tax-resident who have not fully disclosed their foreign portfolios to the Spanish tax authorities may encounter trouble. Full voluntary disclosure by means of late filings could enable avoiding potential tax-fraud penalties.