Tax on your savings in Spain.

Fiduciary Wealth Team

Tax rates on savings have been significantly increased in Spain with a starting rate of 21% and a top rate of 27%. If there was a legitimate way to reduce these taxes and retain access to your capital, do you not deserve to know how? Well one way of mitigating tax is to invest in a Spanish compliant tax wrapper. Sounds complicated? Take a look at the example below, in practice this could mean a tax rate in single digits on your savings.






Value after 5 years




Withdrawal required



2/3rds deemed



1/3 rd deemed

capital = 40,000



growth= 20,000

(no tax)

Tax on 6,000 @  21% plus additional tax @25% on 14,000




Effective tax rate on funds withdrawn




Tax is paid directly to Hacienda ensuring that you do not have any problems with the local tax authorities and there are a broad range of fund options available to suit every risk appetite. In addition this type of arrangement is currently outside of the scope of the EU Savings Directive which applies to all types of income producing investments including bank deposits and your plan may potentially be structured in a way to mitigate Spanish succession taxes.

How does this compare with the tax you are currently paying, the meagre returns you are probably receiving and the risk associated with keeping your investment in a Spanish bank?

To find out how this could work for you telephone +350 200 50982 or email