Spanish tax on overseas bank account

This is our first fiscal year for Spanish tax returns. We've been told that we have to declare any UK bank account with over 50 thousand in it on 31/12/2023. My question is, the money above 50,000, is it taxable and at what rate or is it the interest made on the money above 50,000. Any help would be great.

You don't pay tax on the amount, just the interest

Thank you for your reply. As I only have to produce the statement for the 31/12/2023, how would they know how much interest was paid. They also want the average amount in the account for the final 3 months of 2023. I can't see how they would work out the interest.

Interest received needs to be declared as income on your annual tax return.

Note you do not have to declare sums held in cash in bank accounts, those you will presumably have paid tax on at some point, and tax is what it's all about.

You do however have to declare assets the total value of which exceed €50,000, those can include property, private pension funds, share portfolios, and the like.

Thank you. We were confused as to how they would work out the interest on the account if they only wanted an end of year statement. But if they take into account that the tax has already been paid on it then it seems they just want to know what is in the account. As we have no overseas property that won't be an issue. My current sticking point is that I have a company pension which has already been taxed by HMRC. Not sure how that works out for Spanish tax.

Marcliff has explained well the basic points. Would just add that you also have to update the 720 every year if you open or close any Accounts, not only if the value changes by 20k. This is an excruciatingly complicated form if you have an asset mix. Best to get Help, though that of course incurs fees. At least they no longer impose punitivo charges if you get any bit of it wrong or forget to include that dormant account with 1p in it. ( thankyou EU Courts for making Spain see sense). But needs to be done by end March or there'll still be a fine.

Thank you all. Really grateful for all the advice

If you are paying tax on your company pension in the UK and it is not a government derived pension e. g. from the armed forces etc. Then you should not be taxed in the UK but paying it here. You will have a period of time where you are paying both and will need to apply to HMRC to stop paying UK tax. You can claim back the UK tax once you can prove that you are paying Spanish tax.