CRS and FATCA: What Spain's Tax Authority Knows About Your Overseas Accounts

The End of Banking Secrecy: What Has Changed

Before 2014, a Spanish tax resident with a foreign bank account — whether in Switzerland, Liechtenstein, the Channel Islands, or Singapore — could in practice keep that account hidden from the AEAT. Banking secrecy laws in many jurisdictions made information exchange difficult or impossible, and the AEAT lacked both the legal tools and the practical means to discover most offshore accounts.

That era is definitively over. The combined effect of the OECD's Common Reporting Standard (CRS), the US Foreign Account Tax Compliance Act (FATCA), and the EU's expanded Directive on Administrative Cooperation (DAC) means that the AEAT now receives automatic annual information about the foreign financial assets of Spanish tax residents from more than 120 jurisdictions worldwide — without needing to make any specific information request.

Understanding what the AEAT receives, how it uses that data, and what it means for your compliance obligations is essential for any Spanish tax resident with foreign financial assets.

The Common Reporting Standard (CRS)

The CRS is the OECD's framework for the automatic exchange of financial account information between participating jurisdictions. It was developed in response to the G20 mandate following the 2008 financial crisis and came into force progressively from 2017 onwards. As of 2026, over 120 jurisdictions participate in CRS — including all major financial centres (Switzerland, Singapore, the UK, Germany, France, the Netherlands, the Cayman Islands, British Virgin Islands, Hong Kong, UAE, and many others).

Under CRS, financial institutions (banks, brokers, insurers, custodians, investment managers) in participating jurisdictions identify account holders who are tax resident in other CRS jurisdictions and report specific financial data to their local tax authority, which then automatically exchanges the data with the account holder's country of tax residence.

What Information Does the AEAT Receive Under CRS?

The data fields reported under CRS are comprehensive:

• Account holder identification: Name, address, date of birth, country of tax residence, and Tax Identification Number (NIF/NIE for Spanish residents)
• Account details: Account number, financial institution name and address
• Account balance or value: Balance at year-end, or full year value for investment accounts
• Income received: Interest credited, dividends paid to the account, other income
• Gross proceeds: Total gross proceeds from the sale or redemption of financial assets (shares, bonds, funds) during the year

This means the AEAT knows not just that you have a Swiss bank account, but also how much money it holds, how much interest it paid, how many dividends were credited, and how much you received from selling securities during the year. Cross-referencing this data against your IRPF return is straightforward.

FATCA: The US-Spain Information Exchange

The Foreign Account Tax Compliance Act (FATCA) is a US domestic law (enacted 2010) that requires non-US financial institutions worldwide to report information about accounts held by US persons to the IRS. Spain and the US signed a Model 1 Intergovernmental Agreement (IGA) in 2013, under which Spanish financial institutions report to the AEAT, which then exchanges the data with the IRS.

The reciprocal element is particularly important for Spanish residents: under the IGA, the US also shares information with Spain. US financial institutions report to the IRS on financial accounts held by Spanish tax residents (not just US citizens), and the IRS shares this data with the AEAT. This means the AEAT receives information about US bank accounts, US brokerage accounts, and US-held financial assets belonging to Spanish tax residents — including income earned in those accounts and balances.

The practical consequence: Spanish residents with US brokerage accounts (Schwab, Fidelity, Interactive Brokers, etc.) should assume the AEAT is receiving annual data on those accounts — balances, dividends received, and gross sale proceeds from securities sales.

DAC: The EU's Expanded Exchange Framework

The EU's Directive on Administrative Cooperation (DAC) provides the framework for information exchange between EU member states. DAC has been significantly expanded over the years:

• DAC1: Exchange of employment income, director's fees, pensions and real estate income between EU states
• DAC2: Automatic exchange of financial account data (implementing CRS within the EU)
• DAC6: Mandatory disclosure of cross-border tax arrangements (reportable arrangements)
• DAC7: Reporting by digital platforms (Airbnb, Uber, Amazon marketplace sellers, etc.) on income earned by users — implemented from 2023
• DAC8: From 2026, extension of automatic exchange to cryptocurrency and other digital asset transactions. Crypto-asset service providers (exchanges, custodians) will report on Spanish residents' crypto holdings and transactions

DAC8 represents the most significant expansion of the information exchange framework in recent years. From 2026, the AEAT will receive data on cryptocurrency held and traded by Spanish residents — including exchange-held assets (not self-custodied wallets, which remain outside the reporting scope for now), transaction histories, and gains/losses. Spanish residents who have not declared their crypto gains on their IRPF returns should urgently seek advice.

What the AEAT Does With CRS Data: Cross-Referencing

The AEAT's IT systems automatically cross-reference CRS and FATCA data against IRPF returns filed by Spanish residents. The matching process identifies:

• Foreign accounts not declared on Modelo 720
• Foreign income (dividends, interest, capital gains) declared in CRS data but absent from the IRPF return
• Account balances significantly higher than declared worldwide assets on IRPF or Patrimonio returns
• Inconsistencies between declared residency status and foreign financial data

A practical example: the AEAT receives CRS data from a Swiss bank showing that a Spanish-resident taxpayer (identified by NIE) holds an account with a year-end balance of €300,000, received €15,000 in dividends and €8,000 in interest during the year. The taxpayer's IRPF return shows no foreign income and no Modelo 720 declaration for this account. This discrepancy triggers an automated alert in the AEAT system, which may lead to a comprobación limitada (limited review) or inspección completa (full inspection).

The Regularisation Strategy: Before the AEAT Finds You

Voluntary regularisation of undeclared foreign assets and income before the AEAT initiates a formal procedure gives the taxpayer access to significantly reduced penalty regimes:

• A voluntary disclosure filing (declaración complementaria) for IRPF and Patrimonio shortfalls results in interest charges (currently approximately 3.75% per year) and late payment surcharges (5-20% depending on how late) — but no formal tax penalty (sanción)
• If the AEAT initiates the procedure first, the formal penalty regime applies: 50% (leve), 100% (grave), or 150% (muy grave) of the underpaid tax, in addition to interest and surcharges
• For Modelo 720 failures (not declaring foreign assets), the revised penalty regime post-ECJ C-788/19 ruling applies: €20 per incorrectly reported data item (minimum €300, maximum €20,000 per year)

The regularisation process requires filing amended or late IRPF returns, late Modelo 720 declarations, and potentially Patrimonio returns. The complexity increases with the number of years involved and the diversity of foreign assets. Expert legal guidance is essential to ensure the regularisation is complete and correctly structured to minimise penalties.