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NIRP Strikes: Spain To Create Tax On Bank Deposits

Tyler Durden's picture


It was a little over a year ago, just as the Cyprus deposit confiscation aka "bail in" was taking place, when we asked, rhetorically, if "Spain is preparing for its own deposit levy" when an announcement by Spain's Finance Minister, Montoro, hinted at the imminent arrival of just that.

Specifically we said:

While Spain's economy minister Luis De Guindos proclaimed in the Senate today that bank deposits under EUR100,000 are "sacred"and that "Spanish savers should stay calm," Spain, it would appear, has changed constitutional rules to enable a so-called 'moderate' levy on deposits - as under previous Spanish law this was prohibited. For now, they claim the 'levy' will be "not much higher than 0%" and is mainly aimed at regions in Spain that have "made no effort to collect taxes" based on new revenue expectations.


As El Pais reports, the minister of finance and public administration, Cristobal Montoro, defends the need for such a 'levy' in their constitution on the basis of standardizing taxes across regions (and is preparing a proposal on the amounts to be paid) and although it would appear that while the European Commission could previously argue that such a 'tax' would violate the free movement of capital in Europe, it now leaves the door open to eventually effectively taxing the deposits.

Of course, back in March 2013 imposing such a tax would immediately bring up images of parallel bank runs in Cyprus and visions of confiscated deposits, culminating in an immediate collapse of the otherwise already insolvent Spanish banking system. In other words, the timing picked by Montoro to reveal what was coming couldn't have been worse.

Now, however, things are different.

Not only is Europe supposedly recovering, not only is the Cyprus bail in a distant memory (until it comes back front and center with a bang), but it was only a few weeks ago when the ECB - desperate to crush the same EURUSD which just two years ago seemed would implode under the weight of Europe's artificial political and monetary union - revealed NIRP, aka ZIRP on steroids: a negative deposit rate.

Or, as Spain may have called it, a tax on deposits. Because some 16 months after it was first hinted, its time has finally come, and as Bloomberg reported a few hours ago:


The details are along the lines of what is already known:

  • Advances to be boosted by almost EU3.9b, Budget Minister Cristobal Montoro tells reporters in Madrid.
  • Tax on bank deposits to be created: Montoro
  • Tax rate on deposits to be determined: Montoro
  • Montoro and regions’ budget chiefs to meet in July

Or just as El Pais reported over a year ago:

The Minister of Finance and Public Administration, Cristobal Montoro, has advanced on Tuesday that the government will impose a type "moderate" to bank deposits to compensate communities that saw their tax autonomy canceled after the Executive created a state tax 0% rate.  This tax on bank deposits, which has nothing to do with Cyprus, does not affect savers but requires credit institutions to pay for that capture deposits.


"The autonomous communities receive timely and therefore financially compensation shall implement a moderate rate in the state tax on bank deposits," said the minister, adding that this kind "will not be much higher than 0%" .


The Minister of Finance has clarified that such "moderate" will have no tax collection effort, "but that these regions serve to offset the revenue loss to see."  So, he assured that the amount will correspond to the amount "exact has been undermined by the cancellation of regional taxes".




The Government announced in November 2012 the creation of a tax on bank deposits with type 0%, with implementation on 1 January 2013, to prevent the regions implement your own.  A week earlier, the Constitutional Court had endorsed the tax on deposits of Extremadura, which launched in 2001 and turned in the day the government of José María Aznar.


Thus, this tax was in force before the imposition of the 0% and in the case of Andalusia, the Canary Islands in 2010 and established, who created it in June 2012.  Only after it established Asturias.  So this type Montoro 0% justified by the need to standardize the tax system and maintain the unity of the internal market, after the European Commission will send a letter to the Government on the grounds that these taxes in the regions could violate the free movement of capital.  While leaving the door open to eventually effectively taxing the deposits.

In other words, the funding of the Spanish regions is now in the hands of those dumb enough to work hard and save their money. Because it is only "fair" that they - not the banks that year after year are bailed out by the ECB - end up with the short stick. 

But please don't be surprised: after all as we said on June 5 when Draghi revealed that "NIRP Has Arrived" when we said that "Europe Officially Enters The "Monetary Twilight Zone." It is all downhill from here.

And yes: coming to an insolvent country near you... everywhere.

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Thu, 06/26/2014 - 20:49 | 4900495 max2205
max2205's picture

Oh boy

Thu, 06/26/2014 - 21:04 | 4900511 ZerOhead
ZerOhead's picture

Dame mi dineros en euros ahora gracias...

Thu, 06/26/2014 - 21:21 | 4900608 Skateboarder
Skateboarder's picture

Llegando a un teatro cerca de usted.

Thu, 06/26/2014 - 21:48 | 4900720 mjcOH1
mjcOH1's picture



Easy solution.  

- write a check : memo "because it's mine and not yours"
- buy gold
- take the gold boating
- let the looters recalculate the required tax to account for the shrinking deposit base

Thu, 06/26/2014 - 21:50 | 4900729 ACP
ACP's picture

Ai! Que la CHINGA!!!

Thu, 06/26/2014 - 23:03 | 4900937 7.62x54r
7.62x54r's picture

The hint means that not all of his friends have their cash into hard assets yet.

This is a clue.

Thu, 06/26/2014 - 23:09 | 4900957 nink
nink's picture

This of course is compound negative interest. They don't take the money out until you actually withdraw it (even though the bank has it) and then charge you compound interest back to the date of the highest amount you had deposited.  

Fri, 06/27/2014 - 00:37 | 4901073 TeamDepends
TeamDepends's picture

If you willingly "deposit" your "money" into Crazy Clown Bank and expect a "return" on/of your "money", you's a sucka chump, Puta !!!(puta, wait a second, isn't that "faggot"?) (don't want to be offending anyone)(this is way too complicated, going to have another beer, because beer is a gift from God and can't possibly be wrong).

Fri, 06/27/2014 - 00:40 | 4901162 y3maxx
y3maxx's picture

...Obambo will never allow "Direct Govt. Bail Ins"

He will utilize a safer method to protect American Citizen's savings....like "MYRA".

sarc off

Fri, 06/27/2014 - 02:50 | 4901267 Oracle of Kypseli
Oracle of Kypseli's picture

Heads up: Any US citizen/resident with a foreign bank account in excess of 10k collectively has until July first to file an electronic disclosure online.


Fri, 06/27/2014 - 04:34 | 4901329 Confused
Confused's picture

And what if you don't keep it in the bank? Do you still have to disclose? Is there a method for detection? (ie paystubs reported to IRS or some such nonsense)


Edit: This is all hypothetical of course. So, NSA, you have no reason to follow up. ;-) 

Fri, 06/27/2014 - 07:23 | 4901453 Indian_Goldsmith
Indian_Goldsmith's picture

So the "banksters" want the common folks to not deposit their money into banks anymore? This is too confusing..

Fri, 06/27/2014 - 08:21 | 4901581 Lynn Trainor
Lynn Trainor's picture

Exactly.  They sure know how to drive depositors away.  What are they gonna do then?

Fri, 06/27/2014 - 09:33 | 4901881 PT
PT's picture

They don't need depositors.  Depositors were a liability (until they invented bank fees, which itself wouldn't have done too well before the invention of direct deposit).

Don't you know?  Banks borrow at 3% and lend at 6% and that's how they make their profits.  Hehehehe ... did I say 3 and 6?  What is it these days?  Borrow at 0.25 and lend at 5,13,18 and 30?  Sorry, I'm not a banker, I'm a little out of touch.

Oh yeah, and then they sell the piece of paper so some other shmuck carries the risk - probably your pension fund ...

Fri, 06/27/2014 - 02:52 | 4901268 jez
jez's picture

"puta" is "whore", isn't it? Or used to be. I think it is now a sort of general all-purpose bad word.


So, jolly rude, TeamDepends. Wash your filthy mouth out with beer.

Fri, 06/27/2014 - 03:56 | 4901300 Starkiller
Starkiller's picture

Whore = Puta
Faggot = Maricón
Beer = Cerveza

And the word you need there is "Gilipollas", witch is kinda like Asshole, but a bit stronger.

Fri, 06/27/2014 - 10:01 | 4902003 PT
PT's picture

The true tragedy is that all this theft solves nothing.  The depositor's stash is insignificantly small when compared with the problem it is supposedly solving.  The debt will still be there and growing.  Did I say growing?  Well, when the plebs have less with which to repay their debts that's two lots of compounding going on.

On another level:  The thieves got away with it, no-one tried to stop them, they will come back for more.

Thu, 06/26/2014 - 23:07 | 4900952 BringOnTheAsteroid
BringOnTheAsteroid's picture

OK, so Spanniards should take their money out of the banking system and crash the fucking banks. How long are people going to continue getting fucked squarely up the arse by the financial oligarchy?

Fri, 06/27/2014 - 00:16 | 4900977 COSMOS
COSMOS's picture

Same thing happening here except they are printing the money and devaluing the dollar while it sits in the bank.  No difference from taking money out of your deposits by taxing it lol.  In Spain they can't print extra money so this is how its done.  Endgame is the same.  Time to buy an 'old' boat and a high quality life vest and go fishing wearing all your gold chains, and take some pics of yourself dockside with a few pounds of gold chains around your neck lol before the terrible accident.

Fri, 06/27/2014 - 04:02 | 4901307 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

The term "banksters" has never been more appropriate.

Fri, 06/27/2014 - 04:36 | 4901331 Confused
Confused's picture

'I pity the fool' who lost their gold chains in a boating accident. 



Copyright: Mr. T (for Tungsten)

Fri, 06/27/2014 - 06:23 | 4901402 Oracle of Kypseli
Oracle of Kypseli's picture

BTW: Don't forget to claim the loss of your gold from yout tax return. If you are in the 30% bracket, you can recover 30% of its curent value.

Fri, 06/27/2014 - 09:28 | 4901865 zjxn06
zjxn06's picture

Any links on how to make gold chains out of 1Kilo bars?

I want to look like that Indian dude before the trajic capsize event.

Thanks in advance.

Fri, 06/27/2014 - 01:59 | 4901233 Tall Tom
Tall Tom's picture



Replied to your serious question. Post #4900439 I hope that you got it.


Humans are animals. However it seems that a major difference is that we are "self aware" whereas other animals are generally not.


Read it. You may be surprised.


That is WHY Isaac Newton died as a virgin as he read it in Greek with the understanding.




Best regards.

Fri, 06/27/2014 - 06:15 | 4901396 BringOnTheAsteroid
BringOnTheAsteroid's picture

Yep, got it TT. I don't think you quite answered my question, or was the answer to my question reflected in Corinthians 7?

Self-aware extends to the great apes and dolphins and jeez it'd be fascinating to understand how they perceive the world. I wonder what notion, if any, they have of their existence. I wonder if the great apes ever had the equivalent of an Issac Netwon, an ape so smart that it sat there and contemplated why it was here. It'd be difficult I would have thought to have any coherent, logical thought processes without language, but that is for another discussion.

You know for those people who attend Trinity college, they may well sit in the very same seat Issac Newton sat in as a student. Pretty cool when you think about it.

Kind Regards mate.


Fri, 06/27/2014 - 03:58 | 4901302 nixy
nixy's picture

>>OK, so Spanniards should take their money out of the banking system and crash the fucking banks.<<

But do banks actually need depositors these days? Isn't that a rather old fashioned view.

Fri, 06/27/2014 - 09:52 | 4901969 PT
PT's picture

Correct nixy.  Banks will only need depositors if they can not get unlimited, cheaper funds from elsewhere.  HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA ...

So why do banks need depositors???  Well, when you borrow money to buy a house, the bank likes to "encourage" you to repay by getting control of every single cent you earn before you do ...

... and while I'm here, perhaps we can ponder the meaning of direct deposit and electronic money ... in a cashless world, the banks have 100% of the money 100% of the time, depending on the accounts of you and your local shops the money may not even change banks when you buy stuff ...


Fri, 06/27/2014 - 04:11 | 4901314 jonytk
jonytk's picture

no no, they made illegal any +2500 cash payment, your cash is worthless.

this possible negative interest rate will only apply to rich (+100k)people.

Fri, 06/27/2014 - 01:34 | 4901215 Kirk2NCC1701
Kirk2NCC1701's picture

You ain't seen nothing yet.  Wait till they get rid of all Cash, and get you to use only electronic devices or microchip implants.

Eternal global slavery, via digital currency tracked in real time -- that is their penultimate goal.

Fri, 06/27/2014 - 02:28 | 4901253 dojufitz
dojufitz's picture

And that will be the checkmate move for Gold.....Gold will then become the Ultimate black market money......

Fri, 06/27/2014 - 04:12 | 4901315 jonytk
jonytk's picture

i think you mean bitcoin, right? get bitcoins

Fri, 06/27/2014 - 06:09 | 4901391 margaris
margaris's picture

everything outside their control is fine with me... gold, silver, bitcoins, who knows what else the free market comes up with in the future, etc...

That's right... if the free market is left trying to experiment with new forms of money we will get innovation and privacy (the ultimate goal of every money).

If we let bureaucrats and sociopaths define what our money is, we get slavery.

Fri, 06/27/2014 - 08:54 | 4901713 gobsmack
gobsmack's picture

penultimate means second to last.  totally not what it sounds like fyi

Thu, 06/26/2014 - 21:46 | 4900718 Dickweed Wang
Dickweed Wang's picture

Silencio por favor

Fri, 06/27/2014 - 05:28 | 4901362 Bag Of Meat
Bag Of Meat's picture

I love the picture's URL: "banksters_robbing_sheeple.jpg"

Fri, 06/27/2014 - 01:30 | 4901211 Kirk2NCC1701
Kirk2NCC1701's picture

Hey, los Españoles, utilice "Banco de Serta, Sealy y Posturepedic"
Sin preguntas, sin cuotas, completa privacidad, Acceso 24/7.

Thu, 06/26/2014 - 20:56 | 4900517 knukles
knukles's picture
Oh, mi pequeño hijo, por favor nos lleva a un reino de la cordura lejos de los idiotas
Thu, 06/26/2014 - 21:12 | 4900580 DoChenRollingBearing
DoChenRollingBearing's picture

Lamentablemente, un reino así no hay...

Thu, 06/26/2014 - 22:09 | 4900785 lasvegaspersona
lasvegaspersona's picture


Thu, 06/26/2014 - 22:49 | 4900902 MontgomeryScott
MontgomeryScott's picture

'Get down'.


The Spanish people are being forced to 'Assume The Position'.

This reminds me of an old metal song from the 1980's.


That shit didn't work out too well, in 2005, when they burned the Torre Windsor building (36 hours, no collapse...):


The sparks of the Tempest are being ignited.

FUCK the bankers who tax savings and try to give negative interest!

Thu, 06/26/2014 - 23:46 | 4901065 graneros
graneros's picture

To make your post in English press ocho.

Thu, 06/26/2014 - 22:53 | 4900908 Hulk
Hulk's picture

en boca cerrada, no entran moscas

/ I have no idea on what this  means. some spanish chick kept repeating this to me on our first and only date...

Fri, 06/27/2014 - 04:01 | 4901304 Starkiller
Starkiller's picture

It means that the only way you have not to say something stupid is bein quiet.

Fri, 06/27/2014 - 04:01 | 4901305 Starkiller
Starkiller's picture

It means that the only way you have not to say something stupid is bein quiet.

Fri, 06/27/2014 - 12:22 | 4902579 Not My Real Name
Not My Real Name's picture

Gracias a Dios por el traductor de Google!

Thu, 06/26/2014 - 21:15 | 4900587 pakled
pakled's picture

I don't speak Spanish, but I understand that.

Thu, 06/26/2014 - 21:18 | 4900596 Grande Tetons
Grande Tetons's picture

The most used verb in spanish in chingar.  The lead that chingar holds will only multiply. 

Thu, 06/26/2014 - 21:38 | 4900677 CheapBastard
CheapBastard's picture

What a phucked up World.

Thu, 06/26/2014 - 21:46 | 4900714 Grande Tetons
Grande Tetons's picture

I fucked up. The verb is actually chingarse. It is a second language...what the fuck are you going to do. 

Thu, 06/26/2014 - 22:27 | 4900827 MontgomeryScott
MontgomeryScott's picture


it is the present-tense base verb, I think. The 'root word' you might say...


'Chingarse' is the present-tense verb root meaning '(to) fuck'. For example, in formal Castillian, 'Tu chingas su Madre' means, I think, 'You (are) (currently) fuck(ing) your mother' (present tense). THIS is also used as an insult, as well (as in, 'you mother-fucker' [present tense, of course]).

No, you didn't fuck up (I don't believe).

'Oy, mi chingaran Dios!' sounds the same when she comes for you as ''Oh, my fucking God!' does, when doing the baser things. Well, I'm not Spanglish, so perhaps my transliteration is incorrect; but you get the idea.


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