Payments in kind

Banks may sometimes offer you a gift when you open an account. Technically, however, this is a ‘payment in kind’.

Goods or products offered may be attractive, but bear in mind that: 

  • It is not really a ‘gift’, but income subject to personal income tax (known as IRPF in Spain). 
  • You should compare the value of the gift with the cash interest you would receive on the same amount of money deposited in an interest-bearing account.
  • A number of conditions must be met in order to receive the gift item. Failure to comply with these conditions after having received the gift may result in a penalty charge.


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