TRANSFERS ABROAD AND EXCHANGE CONTROL
The basic principle on which legislation in the Basque Country is based is the freedom of capital and financial transactions with foreign entities. Thus, any acts, business, transactions and operations between residents and non-residents that involve or may result in foreign collections and payments and transfers to or from foreign countries and changes in accounts or financial debtor or creditor positions vis-à-vis foreign countries are free, subject to certain limitations regulated by sectoral regulations.
Notwithstanding the foregoing, there are certain reporting obligations regarding such movements.
01. DECLARATION OF FOREIGN TRANSACTIONS TO THE BANK OF SPAIN(Bank of Spain Circular 4/2012)
Individuals and legal entities (public or private) resident in Spain that carry out transactions with non-residents or hold assets or liabilities abroad must declare / notify them to the Bank of Spain merely for information and statistical purposes.
Obligation to make a declaration / communication
- Individuals that usually reside in Spain1.
- Legal entities with registered offices in Spain.
- Branch offices and permanent establishments in Spanish territory of individuals or legal entities resident abroad.
- Others to be determined by legislation in similar cases.
Frequency of declaration / communication
This depends on the volume of the transactions made by the persons obliged to declare or communicate during the immediately preceding year or, where applicable, on the balances of their assets and liabilities at the end of the preceding year:
|Transaction volume / asset and liability balances||Frequency||When to declare|
|Volume < 1 mm €||Only at the express request of the Bank of Spain||2 months from the date of request|
|1 mm € < Volume < 100 mm €||Yearly||20 days after the end of each calendar year|
|100 mm € < Volume < 300 mm €||Quarterly||20 days after the end of each calendar quarter|
|Volume > 300 mm €||Monthly||20 days after the end of each calendar month|
02. DECLARATION OF IMPORT AND EXPORT of certain payment means2 to the Bank of Spain
The outflow or inflow out of or into Spanish territory of payment means for an amount equal to or greater than 10,000 EUROS or its equivalent in foreign currency is subject to prior administrative declaration. If no such declaration is made, Spanish customs officials may requisition these payment means.
03. DECLARATION OF MOVEMENTS3of certain payment means in Spanish territory to the Bank of Spain
The movements in Spanish territory of payment means for an amount equal to or greater than 100,000 EUROS or its equivalent in foreign currency is also subject to prior declaration.
1 Except for accredited Spanish diplomats abroad and Spanish staff providing services in Spanish embassies and consulates or in international organisations abroad.
2 “Payment means” are considered to be paper and metal money – euros or foreign currency – cheques made payable to the bearer denominated in any currency, and any other physical means, including electronic ones, designed to be used as a means of payment to the bearer. For the sole purpose of the outflow or inflow out of or into national territory, “payment means” shall also mean bearer-negotiable instruments, including monetary instruments such as travellers’ cheques, negotiable instruments including cheques, promissory notes and money orders, whether issued to bearer, endorsed without restriction, issued to the order of a fictitious payee or in any other form by virtue of which title thereto is transmitted upon delivery, and incomplete instruments including cheques, promissory notes and money orders, signed but with the name of the payee omitted.
3 “Movement” is understood to be any change of place or position occurring outside the domicile of the holder of the payment means.