Spain to tax bank deposits

I make that €30/year on 100k.

I pay more than that in fees and stamp duty. Wealth tax it is not!

The trick about new taxes is to start them low and painless.

Is this only to deposits in Spanish Banks?

What about a foreign bank account operated by a Spanish national?

bullish :unamused:

It’s a logical consequence and something that really should have happened here when the banking system imploded.

No panic it’s been here for years.

Stamp duty on financial cards … cards.html

I suppose the big deal is that it’s a tax on deposits, not on interest earned from deposits. Also, it’s to be applied retrospectively to deposits earned last year.

However, if you look at the actual numbers, the maximum tax on deposit interest in Spain is 18%, and personal allowances can be set against it.

So if you were earning a measly 1% interest:

Deposit interest tax = 18% x 1%, deposit tax = 0.03%, net interest as a proportion of earnings = 21%

Ireland, deposit interest tax = 41% + 4% PRSI (if you are a chargeable person) = 45%, and there are no allowances.

Guess which one I’d take!

I’d take this over the Irish pension levy. There’s an example of most people not even realising they’ve had their deposits taxed!

That’s the key.
To me the whole concept of taxing savings is very ‘South American Banana Republic-ish’.
We have it in the guise of the Pension Levy.

It’s funny how when things creep up on you bit by bit, that it’s almost unnoticeable.
Imagine 10 years ago telling the populace that your government was going to go after what little after-tax income you manage to squirrel away in a bank account, or that your pension pot would be forced to hand over a % of the total holding, whether it makes money or not.

The problem I have is, governments get used to this extra income.
So when things eventually improve, the taxes stay in place and the money is spent by a minister who wants to buy votes.

Yeah pure banana republic shyte - basically theft by another name.

Governments M.O. is to steal by inflation. Germans won’t let them have inflation. So they have to steal directly.

Savings are dead money. Get with the program! :smiley:

cf. zerohedge (aka zeroright)

I can remember seeing women marching in protest about turnover tax in Dublin in the middle or late 60s. The rate was 2.5%, I think. Turnover tax wast VAT in all but name. What’s the rate now?

Governments don’t make money, they borrow it from the banks.