Financial transactions with foreign countries
Capital movements and financial transactions with foreign countries
All acts, business, transactions and operations between residents and non-residents that involve or that might result in foreign collections or payments, together with transfers to or from abroad, and changes in debit and credit accounts or financial positions are exempt, subject to no limits other than those set down in this Act and sector specific legislation (article 1.2 of Act 19/2003, of 4 July).
The Treaty on the European Union establishes this freedom, in line with other basic Community freedoms. Article 56 of the Treaty on the European Union not only prohibits restrictions on the free movement of capital and payments between Member States, but also between Member States and third countries.
Pursuant to the Treaty, the principle of unrestricted movement of capital must, by extension, objectively include cross-border economic transactions.
From a subjective perspective, the basic criteria in relation to capital movements is residency. The basic concepts of residency (resident and non-resident in Spain) are defined in article 2 of Act 19/2003, of 4 July.
Article 58.1.b) of the Treaty recognises the right of Member States to establish a declaration procedure for capital movements for the purposes of administrative and statistical information, and to take measures justified on public order or safety grounds.
Acts, business, transactions and operations, and transfers to and from abroad, must be declared.