Is this an offshore account?

axel rose

A relative of mine owns a property in Spain and another in Ireland. He has in the region of €10,000 in a savings account there. It has only been there a few months, however I am wondering if this is considered to be an offshore account?

I have no clue when it comes to this type of thing and we dont want to be doing anything illegal so any information would be really helpful.

pigeonbutler

Nothing wrong with it as long as he declares any interest income from it in his Form 11 (annual income tax return). He should be filling one in for the rental income anyway.

I'm not certain but I've feeling there's a requirement to declare any new foreign deposit accounts in the Form 11 too. You just give the details one year and after that you just declare the income.

Generally, there's nothing with a bank account anywhere as long as you're not hiding it. Particularly anywhere in the EU (like Spain). If it was in Cayman Islands or Bermuda or Jersey we might have to start worrying!

axel rose

Thanks for that, they are soooooo not the dodgy politician type! They will probably transfer the funds back home so.

pigeonbutler

There isn't really any need to do that. If they own property in Spain it's probably convenient to have a bank account for rent and or expenses relating to it.