Fixed term deposits
Term deposits from 1 month to up to 36 months, with settlement of interest at maturity or in predefined periods, and with fixed interest according to the contracted term.
The Fixed-Term Deposits offer you:
- 100% return on invested capital
Maturity terms : from 1 month to up to 36 months
- Interest rate : it is established at the time of contracting according to the deposit term (see current offer above)
- Settlement of interest : you can choose how you want to pay your interest: on a monthly, quarterly, half-yearly or annual basis, or at maturity.
- Early cancellation : early cancellation is permitted. In the event of requesting cancellation a penalty fee will be applied to the redeemed amount, depending on the time elapsed between the cancellation date and the maturity date of the deposit. This penalty fee will never exceed the interest generated to date.
Personal income tax
- The interest on deposits is repaid as return on capital assets in the Taxable Amount of Savings of personal income tax, consequently paying taxes at a fixed rate of 21% , regardless of the period of generation.
- At the time of payment, this interest is subject to a withholding tax of 21% .
- Since 1 January, 2007, the 40% reduction has been eliminated for deposits with a generation period of over 2 years, in such a way that the period of interest generation does not influence the tax burden. Nonetheless, the law provides for a tax compensation, determined by the annual Budget Law, for contributors who are in a worse taxation position compared to that which would have resulted from applying the previous regulation. This is provided that the deposit was contracted prior to 20 January, 2006, date of publication of the Preliminary Draft Law.
Capital gains tax
Deposits should be declared annually in the capital gains tax when the holder is under this obligation. The amount to be declared is the higher value of:
- balance on 31 December
- average balance for the last quarter
In the event of the holder's death, the balance of the deposit should be declared for the taxation of said tax.
2. Non-residents in Spain
For deposits of non-residents, duly accredited, no withholding is carried out on generated interest, which is exempt from tax payment in Spain.
In the event of not accrediting said residence, an 21% withholding will be applied.