If you have an old bank account in Spain that you no longer use, simply forgetting about it may eventually have consequences.
This is particularly relevant for foreign property owners who opened a Spanish bank account years ago to pay utility bills, local taxes or mortgage payments, as well as for families dealing with the estate of someone who owned property or other assets in Spain.
Under Spanish law, money held in a bank account may ultimately become the property of the Spanish State if no action involving the exercise of ownership rights over the funds has been taken for 20 years.
This does not mean that the Spanish Government can simply take the money from an account because it has been inactive for a few years.
There is a specific legal procedure, including notification requirements that banks must generally follow before the funds can be declared abandoned.
Here is how the Spanish 20-year rule works and why it can be particularly important for non-residents and heirs of people who held assets in Spain.
When Is a Bank Account Considered Abandoned in Spain?
The relevant rule is contained in Article 18 of Spanish Law 33/2003 of 3 November on the Assets of Public Administrations (Ley 33/2003, del Patrimonio de las Administraciones Públicas).
The law provides that money, securities, deposits and balances held with banks and other financial institutions can become the property of the Spanish General State Administration where, for a period of 20 years, no action has been taken by the interested parties involving the exercise of their ownership rights.
The important figure is therefore:
20 years.
An account does not become the property of the State simply because you have not used it for a few months or even several years.
Does “Inactive” Simply Mean No Transfers or Withdrawals?
Not exactly.
The wording of the legislation is broader than simply asking whether there have been transfers, direct debits, card payments or cash withdrawals.
The legal test refers to whether there has been any action by the interested parties that involves the exercise of their ownership rights over the funds.
Before reporting funds as abandoned, the financial institution must carry out the necessary checks to establish that no such action has taken place during the relevant period.
This distinction can be important where the circumstances surrounding an old account are unclear.
Must the Bank Warn You Before the Money Goes to the State?
Generally, yes.
The procedure is regulated by Order EHA/3291/2008 of 7 November.
At least three months before the 20-year period expires, the financial institution must generally notify the account holder that no action has been taken in relation to the funds and inform them of the time remaining before they may be considered abandoned.
The purpose of this notification is to give the account holder an opportunity to assert their rights over the funds before they are declared abandoned.
There is an exception where the expected cost of making the notification would exceed the amount of the funds concerned.
What Happens When the 20 Years Have Expired?
The bank does not simply keep the money.
Financial institutions are required to report qualifying abandoned balances and deposits to the Spanish authorities.
The competent authority may then issue a decision declaring the funds abandoned and incorporating them into the assets of the Spanish General State Administration.
Where the funds are held in cash or as a bank balance, the institution may subsequently be instructed to transfer the money to the Spanish Treasury.
So, strictly speaking, it is not the bank that benefits from an abandoned account.
The funds ultimately pass to the Spanish State.
How Much Money Does Spain Receive from Abandoned Bank Accounts?
This is not merely a theoretical provision.
According to information published by the Bank of Spain, the Spanish State received €18,334,607.99 in abandoned balances in 2024.
That is more than €18 million in a single year.
Old savings accounts, forgotten deposits and financial products that have not been dealt with by their owners or heirs can therefore represent substantial amounts of money.
An Unused Spanish Bank Account Is Not Necessarily a Closed Account
This is another important distinction, particularly for foreign property owners.
Taking all the money out of a Spanish bank account and ceasing to use it does not necessarily close the account.
If the account remains legally open, the contractual relationship with the bank may continue and charges or maintenance fees may still apply where permitted under the contract.
If you no longer require a Spanish bank account, it is therefore advisable to formally request its closure rather than simply withdrawing the balance and forgetting about it.
You should also retain evidence confirming that the account has been closed.
What Happens to a Spanish Bank Account When the Account Holder Dies?
Death does not automatically make a bank account “abandoned”.
Money and other financial assets belonging to a deceased person form part of their estate, and their heirs may acquire rights over those assets.
However, problems can arise when heirs do not know that an account exists.
This can be particularly relevant in international estates.
For example, a British, Belgian, Dutch, German or French national may have owned a property in Spain and maintained a Spanish bank account for many years to pay electricity, water, community fees, insurance and Spanish taxes.
The person may later return to their home country but leave the Spanish account open.
Years later, they die.
Their family may know about the Spanish property but may not know that there is still money in one or more Spanish bank accounts.
This is one of the reasons why identifying all Spanish assets can be an important part of dealing with a cross-border inheritance.
What Information Can Heirs Request from a Spanish Bank?
Once their status as heirs has been properly established, heirs are entitled to obtain certain information concerning the deceased person's banking arrangements.
Depending on the circumstances, this may include:
- a certificate showing the deceased's banking positions and balances at the date of death;
- transactions made after the date of death;
- certain transactions made before the death;
- and copies of contracts held by the deceased with the bank.
The certificate of banking positions at the date of death is particularly important.
It identifies the products and balances held by the deceased with that particular bank and is normally required in order to establish the estate and deal correctly with Spanish Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones).
What Documents Will Heirs Normally Need?
A Spanish bank must verify that the person requesting confidential information is legally entitled to receive it.
Depending on the circumstances, the documentation normally required may include:
- the death certificate;
- the certificate from the Spanish Registry of Last Wills (Certificado de Actos de Última Voluntad);
- an authorised copy of the deceased's last will; or
- where there is no will, the appropriate declaration of heirs.
Additional documentation may subsequently be required before the bank can release or transfer the inherited funds.
The inheritance itself must also be dealt with correctly from a Spanish tax perspective.
Can a Spanish Bank Charge for the Certificate of the Deceased’s Balances?
The Bank of Spain considers that charging a fee for issuing the certificate of the deceased person's banking positions is contrary to good banking practice.
The reason is important: this certificate is necessary for dealing with the estate and complying with the corresponding inheritance tax obligations.
Obtaining this certificate should also not be conditional upon instructing the bank itself to deal with the inheritance administration.
These are separate matters.
What If the Heirs Do Not Know Which Spanish Bank the Deceased Used?
This can make an international inheritance considerably more complicated.
The Bank of Spain does not maintain a general register that heirs can simply consult to obtain a complete list of all bank accounts held by a deceased person in Spain.
Consequently, where the family does not know which banks the deceased used, additional investigation may be necessary.
This is another reason why it is important not to assume that identifying the deceased's Spanish property means that all their Spanish assets have been identified.
Bank accounts, deposits and other financial assets should also be considered when establishing the Spanish estate.
What Should You Do If Your Spanish Bank Warns You That an Account May Be Declared Abandoned?
Do not ignore the letter.
The purpose of the advance notification is precisely to give you an opportunity to assert your rights over the funds before the legal abandonment procedure is completed.
You should contact the financial institution promptly, verify the account and establish what action is required to demonstrate your rights over the funds.
Waiting until the 20-year period has expired can make the situation considerably more complicated.
What If the Money Has Already Been Transferred to the Spanish State?
Spanish regulations also contemplate this situation.
If funds have already been delivered to the Spanish General State Administration, the financial institution must, at the request of the former account holder or their heirs, provide a certificate confirming that the funds were transferred to the State.
That certificate must identify the date on which they were declared and the relevant Economy and Finance Office to which the declaration was submitted.
At this stage, the legal situation is very different from simply dealing with an old but still active bank account.
It is therefore preferable to investigate an old account or an unidentified asset before the abandonment procedure has been completed.
Why This Rule Is Particularly Relevant to Non-Residents in Spain
Foreign nationals who own or previously owned property in Spain should pay particular attention to old Spanish bank accounts.
For many years, opening a Spanish bank account was a normal part of purchasing and maintaining a Spanish property.
The account might have been used for:
- electricity and water bills;
- community of owners' fees;
- property insurance;
- local property tax (IBI);
- mortgage payments; and
- other expenses associated with the Spanish property.
After selling the property or returning permanently to another country, the owner may simply stop using the account without formally closing it.
The problem may only emerge many years later.
The same issue can arise after the owner's death, particularly where the heirs live abroad and have limited information about the deceased's financial affairs in Spain.
Spanish Bank Accounts and Cross-Border Inheritance
For an international family, an apparently small Spanish bank account can become part of a much wider succession and tax issue.
Before completing a Spanish inheritance, it is important to establish as accurately as possible:
- what assets the deceased owned in Spain;
- which Spanish bank accounts and financial products existed;
- the balances at the date of death;
- how ownership of those assets passes under the applicable succession arrangements; and
- what Spanish inheritance tax obligations arise for each heir.
This is particularly important where the deceased was non-resident in Spain or where the heirs themselves live outside Spain.
An inheritance involving Spain should therefore not be treated merely as a matter of transferring a Spanish property into the heirs' names.
Bank accounts, investments, tax liabilities and other Spanish assets also need to be considered.
How to Avoid Problems with Old Bank Accounts in Spain
There are several sensible precautions that can prevent problems years later.
If you have or previously had assets in Spain:
- check which Spanish bank accounts remain open in your name;
- keep your postal address, email address and telephone number updated with the bank;
- formally close accounts that you no longer require;
- keep documentary evidence of the closure;
- maintain an up-to-date record of your Spanish assets and financial accounts;
- make sure that your family or the appropriate person can identify those assets if necessary; and
- when dealing with an inheritance, make sure that all relevant Spanish assets have been investigated before considering the estate completed.
Frequently Asked Questions About Inactive Bank Accounts in Spain
How long can a Spanish bank account remain inactive?
Spanish law establishes a 20-year period for the purposes of declaring qualifying funds abandoned where there has been no action by the interested parties involving the exercise of ownership rights.
Can Spain take money from my bank account after 20 years?
Potentially, yes. If the legal requirements for abandonment are satisfied and the prescribed procedure is followed, the funds can ultimately become property of the Spanish State.
Does the bank have to notify me first?
As a general rule, the bank must notify the account holder at least three months before the 20-year period expires. There is an exception where the expected notification cost would exceed the value of the funds.
Does an empty bank account close automatically in Spain?
No. Simply withdrawing the money or ceasing to use an account does not necessarily terminate the banking contract. If you no longer need the account, you should formally request its closure.
What happens to a bank account in Spain when someone dies?
The account does not automatically become abandoned. The deceased's rights over the funds form part of the estate and the heirs may claim them once they have established their entitlement and complied with the relevant inheritance and tax requirements.
Can heirs obtain information from a Spanish bank?
Yes. Once their status has been established, heirs can request certain information concerning the deceased's accounts and financial products, including the certificate of positions and balances at the date of death.
What if I live abroad and inherit a bank account in Spain?
Living abroad does not, by itself, prevent you from inheriting Spanish assets. However, a cross-border inheritance can involve Spanish succession formalities and Spanish Inheritance and Gift Tax obligations, so the circumstances of the deceased and each beneficiary should be reviewed individually.
Do You Have an Old Bank Account or an Inheritance in Spain?
An old Spanish bank account can easily be forgotten, particularly after a property has been sold or when the account holder has moved permanently to another country.
The issue can become more complicated following a death, when heirs living abroad may not know exactly what assets the deceased still held in Spain.
If you are dealing with an inheritance involving Spanish property, bank accounts or other assets, obtaining a complete picture of the estate before completing the succession can help prevent assets from being overlooked and ensure that the corresponding Spanish tax obligations are dealt with correctly.
Cervantes Alarcón Consulting assists non-residents and international families with Spanish inheritance taxation, the review of assets and tax obligations in Spain, and the administrative and tax procedures arising from cross-border estates.
Each case should be considered individually, particularly where the deceased or the heirs are resident outside Spain.