Can a refund be deposited to a bank account in Spain?

[giogis245]

 I had a few clients that have returned to their country of Spain, they contacted me asking if I can file the last return that they will be filing in the USA.  I was wondering if this possible for them to get their refund in a bank account in a different country?  I know I will need a routing and account number and that it will look different than ours here in the USA, has anyone experienced this before? 

Thank you!  

[Catherine]

In theory it is possible - my software (Drake) specifically asks if the bank is located in a foreign country.

However, there is another question here:  is this *really* the last US return they'll need to file?  The rules say that if you are subject to US taxation, you file a return based on world-wide income.  That applies to US citizens *and* to permanent legal residents (green card holders).  Don't let your clients be so sanguine about "we're outta here; no more US taxes!" quite yet.  

[Pacun]

8 hours ago, Catherine said:

In theory it is possible - my software (Drake) specifically asks if the bank is located in a foreign country.

However, there is another question here:  is this *really* the last US return they'll need to file?  The rules say that if you are subject to US taxation, you file a return based on world-wide income.  That applies to US citizens *and* to permanent legal residents (green card holders).  Don't let your clients be so sanguine about "we're outta here; no more US taxes!" quite yet.  

OR if they earn money directly linked to the USA in the future (regardless of US citizenship or Green Card "holdance"). Yes, you can deposit on any bank but you have to disclose it by checking the box.

[Max W]

I can understand the clients concern as mail goes missing a lot there.  I found that out when I lived in Spain for a number of years, 

Direct deposit has a lot of problems too, as you can see in the link.  

Frankly, I would not want o get involved with any foreign direct deposit.

https://tipalti.com/global-ach-international-ach/

 

[Max W]

One solution is to have the client open a US bank account at a bank that has branches in Spain, to deposit the funds. Bank of America is one.  There are also Spanish banks here - Santander, Bilbao.   Then have a corresponding account in the same bank in Spain.  There would probably be some fee charged to transfer the money, but it should be less than the fee for interbank transfer.