The Spanish Official Bulletin (BOE) dated May 4th 2012 published a Circular from the Bank of Spain as part of a package of legal measures towards reforming the current Spanish regulatory framework regarding the disclosure of information concerning foreign transactions, assets and liabilities, which has remained unaltered since 1991.
This reform seeks to harmonize the Spanish legal regime on foreign economic transactions to the standards set by the EU regulations. Within the said harmonizing regulations we may also include the Royal Decree 1360/2011 and Order EHA/2670/2011, both of which amend the Royal Decree 1816/1991 of December 20th, on foreign economic transactions, and its developing Order, respectively.
The main novelty of the Circular lies in the fact that the individuals (persons and corporations) are now obliged to disclose information regarding any foreign economic transaction, asset or liability, provided its value is comprised within the range set forth below, for statistic, fiscal and administrative purposes, whereas prior to the Circular’s publication that obligation lay on the Payment Service Providers (private banks). Consequently, this leads to the automatic derogation of Bank of Spain Circulars 6/2000 (declaration forms PE1, PE2, PE3, PE4, CC1, CC2, CP1), 3/2006 (forms DD1, DD2, DD2bis) and, partially, 2/2001 (marketable securities).
Spanish residents are thus obliged to inform to the Statistics Department of the Bank of Spain on any operation undertaken with a non-resident on their own behalf and by any form of settlement (bank accounts, real estates, bank deposits, shares…).
Moreover, the Circular states the periods in which the operations must be declared, depending on the value of the relevant transaction or asset (liability):
- Operations or balances (credit / debit) worth more than 300 million euro (up to the 31st of December of the previous year) must be declared on a monthly basis, and during the first 20 days of each calendar month,
- If the operations, assets or liabilities are worth more than 100 million euro but less than 300 million euro, they must be declared once every trimester, within the first 20 days after the calendar trimester’s end,
- If the amount of the operations, or the value of the balance (credit / debit), are below 100 million euro, the declaration will take place once a year within the first 20 days of the following calendar year. Nonetheless, if the amounts do not exceed a million euro, only by express request from the Bank of Spain will the declarant be obliged to do so, within the following two calendar months.
Finally, the Circular contains a transitory provision which states that those residents who were obliged to disclose the information required by the abovementioned Circulars 6/2000, 2/2001 and/or 3/2006 will still be compelled to do so up until December 31st 2013, with due regard to the compliance of this new regulation. Therefore, both regimes will be coexisting throughout the year 2013.
The information contained in this note should not be regarded in itself as specific advice on the matter discussed, but only a first approach to the subject. Therefore it is highly recommended that the recipients of this note search professional advice about their particular case before taking specific measures or actions.