How to Report Investments to the Spanish Tax Authority in 2026

With millions of Spaniards investing in interest-bearing accounts offered by European neobanks, index funds, and ETFs, filing income tax returns has become more complicated. This guide explains how to correctly report each type of investment on the 2025 income tax return (2026 filing).

Types of Investment Income

In Spain, investment income can fall into two categories:

Income from movable capital: interest on accounts, deposits, dividends, bond coupons
Capital gains/losses: profit from selling stocks, ETFs, or funds at a higher price than you paid

Both are taxed as part of the savings tax base:

Up to €6,000: 19%
€6,000 – €50,000: 21%
€50,000 – €200,000: 23%
€200,000 – €300,000: 27%
Over €300,000: 28%

Spanish savings accounts and deposits

If you have an interest-bearing account or deposit at a Spanish bank (Openbank, EVO Banco, Pibank), the bank:

Apply an automatic withholding of 19% when paying interest
Report this information to the tax authorities—these details will appear on your tax return draft
On your tax return, you report the gross interest and the withholding tax already applied

In practice, if you only have deposits in Spanish banks, the draft return already includes this information automatically. You just need to verify that it is correct.

Accounts at European neobanks (Revolut, Trade Republic, N26)

This is where many investors make mistakes. Accounts with Revolut, Trade Republic, or N26 are European banks that:

Do not withhold taxes in Spain (they are not required to withhold for the Spanish tax authorities)
Do report to their national tax authorities (Lithuanian Bank of Lithuania for Revolut, German BaFin for TR and N26)
Interest must be reported in Spain on your income tax return

How to report it:

Download the annual tax summary from the neobank’s app (it’s usually available in January–February)
On the tax return: capital gains section
Enter the gross amount received — since there is no Spanish withholding tax, the withholding will be €0
You pay 19% on the gross amount (less than if there were withholding tax in another country)

Form 720: Do you need to file it?

Form 720 is the declaration of assets held abroad. You must file it if you have assets abroad totaling more than €50,000 (accounts, securities, real estate).

Neobank accounts:

If the average balance for the fourth quarter in all your foreign accounts exceeds €50,000: yes, file Form 720
If it is less: not required
It is filed between January and March of the following year

Mutual funds and ETFs

Investment funds (Vanguard, Amundi purchased on MyInvestor, etc.):

You are only taxed when you redeem (sell)
If you transfer from one fund to another: no tax event
Upon redemption: it is a capital gain or loss = sale price - purchase price
The manager reports to the IRS — this usually appears on the tax return

ETFs (IWDA, VWCE, etc.):

Same as funds: you only pay tax when you sell
If the broker is European, they may or may not report to the Spanish tax authorities
Recommended: keep all purchase/sale receipts to calculate gains correctly
If there are losses: they can offset gains from that year or the following 4 years

Offsetting gains and losses

Investment losses can reduce the tax owed:

Losses on stocks/ETFs offset gains on stocks/ETFs from the same year
Unoffset losses can be carried forward for up to the next 4 years
Gains in funds offset losses in other funds (same tax basis)

The two-month rule (wash sale)

In Spain, there is an anti-avoidance rule: if you sell shares at a loss and repurchase the same security within the two months before or after, the tax loss is deferred. This is important for those who engage in tax loss harvesting at year-end.

Treasury Bills

Treasury bills are not subject to withholding tax upon redemption. The difference (face value minus price paid) is reported as investment income in the year of maturity. See details in our Treasury Bills guide.

Summary: Investor Tax Checklist

☐ Interest from Spanish accounts — already in draft (verify)
☐ Interest from Revolut/Trade Republic/N26 — report manually
☐ Gains/losses on funds and ETFs upon redemption
☐ Form 720 if you have more than €50,000 abroad
☐ Treasury bills upon maturity
☐ Offsetting losses against gains