For purely statistical and informative purposes the Circular 4/2012 of Bank of Spain, establishes that individuals or entities (public or private) resident in Spain, other than payment service providers registered on the official registers of the Bank of Spain, that carry out transactions with non-residents or hold assets or liabilities abroad, must report them to the Bank of Spain.
The frequency of the reporting (ETE) will depend on the volume of transactions carried out by the subjects obliged to submit them in the immediately preceding year, and on the balance of assets and liabilities of these subjects at December 31 of the previous year, as follows:
- If the amount of the transactions during the immediately preceding year, or the balance of assets and liabilities at December 31 of the preceding year, is EUR 300 million or more, the information shall be provided monthly, within the 20 days following the end of each calendar month.
- If the amount of the transactions during the immediately preceding year, or the balance of assets and liabilities at December 31 of the preceding year, is EUR 100 million or more but less than EUR 300 million, the information shall be provided quarterly, within the 20 days following the end of each calendar quarter.
- If the amount of the transactions during the immediately preceding year, or the balance of assets and liabilities at December 31 of the preceding year, is less than EUR 100 million, the information shall be provided annually, within the first 20 days of January of the following year
- When the aforementioned amounts do not exceed €1 million, the return will only be submitted to the Bank of Spain at the express request thereof, and in a maximum period of two months following the date of that request.
However, residents that have not reached the reporting thresholds mentioned above, but that will cross them in the current year, will be required to file the corresponding declarations within the timeframe previously established from the moment at which the limits are exceeded.
Notwithstanding, when neither the amount of the balances nor the transactions exceed €50 million, the declarations can be filed on a summarized basis, only indicating the opening and closing balances of assets and liabilities held abroad, the total sum of receipts and the total sum of payments in the period reported.
There is no obligation to submit the information where the transactions made in the previous year, do not exceed the amount of one million euros and where the sum of the active and passive balances without netting the amounts also does not exceed that figure in that year, and both circumstances are maintained for the current year, no declaration of any kind will have to be filed, unless expressly required by the Bank of Spain.
Information to be included
- Proprietary transactions with non-residents, whatever their nature and regardless of how they are settled, i.e. whether settled by overseas transfers, crediting or debiting bank or inter-company accounts, compensations or cash payments.
- Balances and changes in assets or liabilities to the outside, whatever the form in which ( accounts in financial institutions, inter-company accounts or cash- pooling agreements, deposits of cash or securities , equity participations , instruments materialize debt securities, derivatives, real estate, etc. . ) .
Technical Applications of Circular 4/2012 recently published on the website of the Bank of Spain, categorized information to declare the following:
- Shares and other forms of equity, regardless of where they are deposited, except shares in investment funds or pension.
- Marketable securities deposited with nonresident entities and marketable emissions reporting abroad and their yields, although some of them are also being heard on the above concept.
- Fixed-income securities and non-marketable yields.
- Procurement / repurchase agreements, securities lending and performance.
- Loans, credits, deposits, accounts and returns (including contracts for cash- pooling) .
- Soil, land, properties and performance.
- Financial derivatives.
- Commercial loans and other transactions with non-residents, not included in the previous sections. (Payments for purchases made abroad by imports or export receipts).
The offenses and penalties regime is provided by Law 19/2003, of 4 July, on the legal regime of capital movements and financial transactions abroad. The punishment depends on the classification of the offense:
- Very serious offense: Performance of prohibited acts, business, transactions or operations without seeking authorization, when mandatory, or prior to granting or in breach of the terms of said authorization. Absence of truthfulness in the application for authorization from the competent bodies, if deemed particularly relevant. The maximum amount of the fine may be up value of the undeclared transaction, but may be less than EUR 30,000.
- Serious offense: the lack of statement of truth, omission or inaccuracy in the data statements regarding operations which exceed EUR 6,000,000, as well as breach of the requirements made. The maximum amount of the fine may be up to 50% of the value of undeclared operations, but may be less than EUR 6,000.
- Minor offense: lack of statement of truth, omission or inaccuracy in the data statements regarding operations which do not exceed EUR 6,000,000. The maximum amount of the fine can amount to 25 % of the value of undeclared operations, but may be less than EUR 3,000.
When the infringement consists in the presentation of the statement but later without prompting the Bank of Spain, the penalty may be between 150 and 300 euros if they have not been more than 6 months and between 300 and 600 euros when the period display has been exceeded by more than 6 months.