New law in Spain includes a provision concerning the requirement to identify the residence of persons holding or controlling certain financial accounts. Law 34/2015 (22 September 2015) amends and adds new measures (provision 22) to the Spanish general tax law 58/2003 in order to implement FATCA and Common Reporting Standard (CRS) reporting requirements and a penalty regime.
The new measures provide that for accounts opened as of 1 January 2016, both the FATCA and CRS rules grant account holders a period of 90 days in which to provide financial institutions with the required information regarding their tax residency and nationality. If the information is not provided within this period, the financial institution will be required to “block” the account and cannot make charges against or credits to, or perform any other operations on the account until such data is furnished.
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