Automatic exchange of information and regulatory changes

IAI commissioning

Automatic Information Exchange Begins

El October 29, 2014 in Berlin (Germany), on the occasion of the Global Forum on Transparency and Exchange of Information (entity linked to the Organization for Economic Cooperation and Development -OECD), the authorities of 51 countries signed a multilateral agreement on the automatic exchange of information (IAI) on financial accounts, with the aim of promoting international cooperation in tax matters through the exchange of information and implementing better control of tax fraud, and therefore, an increase in public revenues by virtue of the tax obligations of the taxpayers.

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DFrom Foster Swiss, tax and financial consultants with more than 15 years of experience specialized in all types of international business projects, we advise you on current legal regulations and throughout the process of regularization of your assets or capital abroad, under evaluation prior to your strictly confidential case.

We can process your case before the Spanish tax authorities to find a solution always within the absolute legality. A possible solution available to our clients is the regularization of assets or capital abroad that have not yet been declared and are pending a possible requirement from the Tax Agency (AEAT). Our services include: planning the best action before the regulatory body, with prior study of your strictly confidential case, negotiation and mediation with the Treasury until obtaining an agreement and legal defense service. Consult your case with us at Foster Swiss.

    The beginnings of the IAI

    Beginnings of the Multilateral Agreement

    Ehe multilateral agreement for the IAI is the result of the project launched by Germany, Spain, France, Italy and United Kingdom, following the model of agreement FATCA with the United States. Based on this G-5 project, the OECD has a model agreement on this common and standardized information exchange system.

    Through this agreement, 101 countries have committed to this exchange information, which in a first stage will be implemented by some 55 countries by 2017 and the rest, 46 countries, as of 2018. It will affect natural and legal persons resident for tax purposes in a country that has capital or investments in another country where it is not a tax resident.

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    Special case: Switzerland

    ESpecial attention is deserved by bank accounts in Switzerland, since, for the moment, although the agreement they have signed will begin to provide information as of 2018, banks will provide information as of 2018, but with retroactive effect as of January 2017. Therefore, as of December 31, 2016, existing bank accounts in Switzerland will be reported to the respective Tax Authorities of the beneficiary's country.

    How does the IAI affect you?

    Automatic exchange of information and Spanish residents

    Model 720

    Regularization of assets abroad


    Depending on the tax laws of each country, they may or may not be required to declare the money you have abroad. In the case of Spain, in 2012, as a modification of the tax and budgetary regulations and of adaptation to financial regulations and for the intensification of actions in the prevention and fight against tax fraud, the law was passed that requires all natural and legal persons to declare the assets they have abroad by filing Form 720.

    Its objective is to report on accounts in financial institutions located abroad, on securities, rights, insurance and income deposited, managed or obtained abroad and on real estate and rights on real estate located abroad. Individual and legal persons (owner, representative, beneficiary, authorized person or entity with disposal powers or real owner), residents of Spanish territory and permanent establishments in said territory of non-resident persons or entities are required to file Form 720 They will have the obligation to report on those assets located abroad.   

    What happens if I do not regularize my assets abroad?

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    SThere will only be an obligation to report for those groups in which the sum of the assets that comprise it exceeds 50.000 euros, therefore, for lower amounts there will be no obligation. Regarding the group of accounts in financial institutions, it will suffice for it to exceed it or the sum of the balances at December 31 of the corresponding year or that of the average balances. In subsequent years, information will only be provided on the groups in which there has been an increase of more than 20.000 euros compared to the last declaration filed.

    The penalties for not presenting it will be 10.000 euros per omitted data and in the case of filing the return outside the established deadline (between January 1 and March 31 of the year following that referred to in the information in Form 720), You may suffer a penalty of up to 150% of the value of the declaration if it has been requested by the Public Treasury or a 20% surcharge if the presentation of the declaration is voluntary.

    Information is power

    SIf you want to know more about the main tax havens in the world, feel free to visit The daily offshore news, our news portal related to the latest news on tax havens.
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