Money etc
Oct 10th 2004, 3:16 pm
#1
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Joined: Oct 2004
Posts: 14
Money etc
This is the first time I have used this site so be gentle.We are moving to live/retire in Spain early next year. I have worked out most of the details but the best way of handling our money is still a bit foggy. We will have our savings in a Uk bank earning 4/5% gross, we will be in Spain and will need a bank account nr to our home. How did most of you find it when you needed money, do you use the internet to transfer it or by phone, is it best not to have money invested in the uk. Any advise would be helpful.Thanks Mike
Oct 11th 2004, 7:49 pm
#2
RETIRED ;-))
Joined: Jul 2003
Location: Benalmadena Pueblo,Spain
Posts: 20,156
Re: Money etc
Originally Posted by boldlygoes
This is the first time I have used this site so be gentle.We are moving to live/retire in Spain early next year. I have worked out most of the details but the best way of handling our money is still a bit foggy. We will have our savings in a Uk bank earning 4/5% gross, we will be in Spain and will need a bank account nr to our home. How did most of you find it when you needed money, do you use the internet to transfer it or by phone, is it best not to have money invested in the uk. Any advise would be helpful.Thanks Mike
Everytime you transfer money is going to cost you, do it in big amounts, 20 quid for quick transfer, Lloyds to Bancopopular with best exchange rate i could find at the time....lots of offers but check out the real deal you get.
Read old posts on this site, like this one....they may help
http://britishexpats.com/forum/showthread.php?t=253049
Oct 11th 2004, 9:12 pm
#3
Just Joined
Joined: Aug 2004
Posts: 28
Re: Money etc
Originally Posted by boldlygoes
This is the first time I have used this site so be gentle.We are moving to live/retire in Spain early next year. I have worked out most of the details but the best way of handling our money is still a bit foggy. We will have our savings in a Uk bank earning 4/5% gross, we will be in Spain and will need a bank account nr to our home. How did most of you find it when you needed money, do you use the internet to transfer it or by phone, is it best not to have money invested in the uk. Any advise would be helpful.Thanks Mike
We're in much the same situation as you. But finding an independent financial advisor isn't as simple as it seems.
We have been unable to find an IFA, at least in London, (and yes, these are bona-fide ones registered with the Financial Service Authority!) who charges less than £1000
for a consultation, which we think is an out and out rip off. Wish I earned that per hour!So we are having to do some research of our own (there are very helpful people on this forum!) and are learning a lot in the process - perhaps these extortionate fees have been a blessing in disguise as they have made us get off our backsides and wise up on a subject that we might not have otherwise bothered with, if we had someone to hold our hand all the way.
At least when we do finally seek financial advice (probably when we get to Spain) we will have a better control over our financial affairs as we'll have a bit of knowledge and will be going into it with our eyes open.
We were recommended a book "You and the Law in Spain" by David Searl (Santana Books £19.99) which we have just ordered and which apparently covers all tax, financial matters, house purchase, etc. in a user-friendly style.
Will see what it's like when it arrives.
The British Consulate website http://www.ukinspain.com/english/con...ar_offices.asp has a list of approved lawyers, plus I believe, tax advisors who may be able to advise you once you are in Spain, hopefully for less than £1000
per hour!It has been suggested to us that the most tax-efficient place for a lump sum is in an offshore account, where interest is paid gross, plus an 'everyday' bank account in Spain which you would top-up as and when you needed to.
I believe that almost all the major British banks have offshore divisions and/or some kind of banking facilities in Spain and I imagine that having these facilities would make it easier and cheaper to transfer money between accounts as and when you need it.
As far as I can gather though, these offshore divisions are not covered by the UK guarantees we take for granted; I believe liability in each case is limited to only £15,000 but presumably you can spread your savings around if they total more than this.
I have just opened a Halifax current account here in the UK in preparation for our move to Spain next year, when I hope to open a Banco Halifax a/c in Spain.
Banco Halifax also has a panel of approved lawyers (for property purchase, etc.) and tax advisors, but I imagine the financial advice would be tied to their own products.
I do know that the Halifax doesn't charge to transfer money between their UK and Spanish accounts (from sterling into euros) but I'm not certain if you are actually allowed to hold a UK bank account as a non-UK resident. I'm sure someone will be along soon to put this right.
The Halifax also has an offshore division (jointly with the Bank of Scotland) in Jersey and the Isle of Man, as do Nationwide and HSBC so maybe sometime in the near future when all the online facilities are up & running (I think the Spanish/offshore ones are coming soon) it will be possible to transfer money between accounts at the click of a mouse.
I have also heard good things about Solbank and am tempted by this too, so lots to think about!
If you are buying a property in Spain, it might be an idea though to use a currency broker for buying euros as banks don't give as high an exchange rate.
Good luck with the move - keep us posted. And in the meantime, if you find a good IFA/tax planner in the UK who charges realistic fees, please let us know!
C-Cat
Oct 12th 2004, 12:48 pm
#4
RETIRED ;-))
Joined: Jul 2003
Location: Benalmadena Pueblo,Spain
Posts: 20,156
Re: Money etc
Originally Posted by C-Cat
We were recommended a book "You and the Law in Spain" by David Searl (Santana Books £19.99) which we have just ordered and which apparently covers all tax, financial matters, house purchase, etc. in a user-friendly style.
Will see what it's like when it arrives.
C-Cat
Will see what it's like when it arrives.
C-Cat
Oct 12th 2004, 9:34 pm
#5
Just Joined
Joined: Aug 2004
Posts: 28
Re: Money etc
Originally Posted by jdr
Laws change in Spain quicker than people can write and print books, so dont take it as gospel.......
Of course such books are inevitably a bit out of date by the time they are published, but the only other alternative is to do nothing at all!
Whilst it is of course ideal to be able to "seek professional advice from a tax planning specialist" (in quotes as this is a sentence used time and time again by well-meaning people) no one ever seems to be willing or able to suggest how to find an advisor who is not only reputable but also charges something resembling a realistic fee. Even then, there is no guarantee that their knowledge will be any more up to date (or indeed trustworthy) than the book you're reading.
So until I find one, I'll just have to do the best I can with a book; whilst a little knowledge may be a dangerous thing, it's surely better than no knowledge at all.
Oct 12th 2004, 11:50 pm
#6
Maño-Americano
Joined: Apr 2003
Location: In the heart of the Ozarks
Posts: 10,216
Re: Money etc
Originally Posted by C-Cat
Point taken, jdr.
Of course such books are inevitably a bit out of date by the time they are published, but the only other alternative is to do nothing at all!
Of course such books are inevitably a bit out of date by the time they are published, but the only other alternative is to do nothing at all!
Oct 13th 2004, 9:07 am
#7
Just Joined
Joined: Aug 2004
Posts: 28
Re: Money etc
Originally Posted by ironporer
In Spain hey have the BOE (Boletin Oficial del Estado...Official State Bulletin) Which updates all existing 'lawbooks'. I can't believe that with millions of Brits in Spain there are no/sufficient IFA's with good Spanish Law knowlwdge ...perhaps it's growth field. What an opportunity- legally fleece the Brits while pretending to be their best friends! If Kerry wins, maybe I'll think about it!
We already have a supply of authorised IFA's with knowledge of Spanish Law who do fleece the Brits for £1000 plus before we even walk through their door.
And this is before they get time to be our best friends and give us the benefit of any 'investment advice.' These are not difficult to find.
(I could name a highly-respected and authorised City of London firm who 'estimated' and expected a £1057 fee in advance of an appointment for some basic tax advice, but I won't.)
Presumably these astronomical charges are based on the opinion that anyone who moves to Spain is a cash-cow and must be mega-rich and stupid. Well, no, no and no. You can almost see the £-signs dinging up in their eyes.
The problem is finding one who doesn't think in this way. There is indeed a gap in the market for such IFAs.
Love your location, ironporer - bet you have good IFA's in Alabamastan!
C-Cat
Oct 15th 2004, 6:55 pm
#8
Just Joined
Joined: Oct 2004
Posts: 2
Re: Money etc
We recently bought a house near Figueres, for money transfer weused hifx.co.uk
very pro. in their dealings with us best rates no additional costs at their end, transfer cost included.
They can contract exchanges for 12 month period for mortgage or pension transfer. We are trying to transfer large enough sums to cover major spends like building projects and living expences at one go to keep down costs.
Spanish bank charges are high get a quote for their commision on receiving transfers in.
Once you are up and running small amounts via your cash card from an offshore account may look tempting; but check out commision charges for using spanish bank machines, on top of hidden exchange rate costs any advantage may disapear.
very pro. in their dealings with us best rates no additional costs at their end, transfer cost included.
They can contract exchanges for 12 month period for mortgage or pension transfer. We are trying to transfer large enough sums to cover major spends like building projects and living expences at one go to keep down costs.
Spanish bank charges are high get a quote for their commision on receiving transfers in.
Once you are up and running small amounts via your cash card from an offshore account may look tempting; but check out commision charges for using spanish bank machines, on top of hidden exchange rate costs any advantage may disapear.
Oct 19th 2004, 7:37 pm
#9
Just Joined
Thread Starter
Joined: Oct 2004
Posts: 14
Re: Money etc
Hi C-Cat. Thanks for the info on banks etc. Since my first message I have received some more information which I am in the throws of checking out. I believe the Nationwide do an account that allows you to draw money at any cash mashine in the world and has no charges (Free). I dont know the full detail yet but if it is true then it has got to be a good deal. Also Im not sure if it was you but someone mentioned opening a Halifax account because they have a Spanish section department and it would be easy to transfer money etc. This maybe true but check that it is definately the same company as there is a Barclays in Spain but they are not connected to the British company, they just have the right to use the name.Also I have been told that if I open an account with Banco Sabatal in London then use the same bank in Spain(apparently they are in every town/city) then it is only £5 to transfer money to Spain from the UK.As far as offshore banking goes, I thought the Spanish goverment had brought in some new laws to stop people avoiding tax by using them, not sure though. I am still working on the best way forward but these are some of the options I have so far. Look forward to any further sugestions.
Originally Posted by C-Cat
Hi Mike,
We're in much the same situation as you. But finding an independent financial advisor isn't as simple as it seems.
We have been unable to find an IFA, at least in London, (and yes, these are bona-fide ones registered with the Financial Service Authority!) who charges less than £1000 for a consultation, which we think is an out and out rip off. Wish I earned that per hour!
So we are having to do some research of our own (there are very helpful people on this forum!) and are learning a lot in the process - perhaps these extortionate fees have been a blessing in disguise as they have made us get off our backsides and wise up on a subject that we might not have otherwise bothered with, if we had someone to hold our hand all the way.
At least when we do finally seek financial advice (probably when we get to Spain) we will have a better control over our financial affairs as we'll have a bit of knowledge and will be going into it with our eyes open.
We were recommended a book "You and the Law in Spain" by David Searl (Santana Books £19.99) which we have just ordered and which apparently covers all tax, financial matters, house purchase, etc. in a user-friendly style.
Will see what it's like when it arrives.
The British Consulate website http://www.ukinspain.com/english/con...ar_offices.asp has a list of approved lawyers, plus I believe, tax advisors who may be able to advise you once you are in Spain, hopefully for less than £1000 per hour!
It has been suggested to us that the most tax-efficient place for a lump sum is in an offshore account, where interest is paid gross, plus an 'everyday' bank account in Spain which you would top-up as and when you needed to.
I believe that almost all the major British banks have offshore divisions and/or some kind of banking facilities in Spain and I imagine that having these facilities would make it easier and cheaper to transfer money between accounts as and when you need it.
As far as I can gather though, these offshore divisions are not covered by the UK guarantees we take for granted; I believe liability in each case is limited to only £15,000 but presumably you can spread your savings around if they total more than this.
I have just opened a Halifax current account here in the UK in preparation for our move to Spain next year, when I hope to open a Banco Halifax a/c in Spain.
Banco Halifax also has a panel of approved lawyers (for property purchase, etc.) and tax advisors, but I imagine the financial advice would be tied to their own products.
I do know that the Halifax doesn't charge to transfer money between their UK and Spanish accounts (from sterling into euros) but I'm not certain if you are actually allowed to hold a UK bank account as a non-UK resident. I'm sure someone will be along soon to put this right.
The Halifax also has an offshore division (jointly with the Bank of Scotland) in Jersey and the Isle of Man, as do Nationwide and HSBC so maybe sometime in the near future when all the online facilities are up & running (I think the Spanish/offshore ones are coming soon) it will be possible to transfer money between accounts at the click of a mouse.
I have also heard good things about Solbank and am tempted by this too, so lots to think about!
If you are buying a property in Spain, it might be an idea though to use a currency broker for buying euros as banks don't give as high an exchange rate.
Good luck with the move - keep us posted. And in the meantime, if you find a good IFA/tax planner in the UK who charges realistic fees, please let us know!
C-Cat
We're in much the same situation as you. But finding an independent financial advisor isn't as simple as it seems.
We have been unable to find an IFA, at least in London, (and yes, these are bona-fide ones registered with the Financial Service Authority!) who charges less than £1000
for a consultation, which we think is an out and out rip off. Wish I earned that per hour!So we are having to do some research of our own (there are very helpful people on this forum!) and are learning a lot in the process - perhaps these extortionate fees have been a blessing in disguise as they have made us get off our backsides and wise up on a subject that we might not have otherwise bothered with, if we had someone to hold our hand all the way.
At least when we do finally seek financial advice (probably when we get to Spain) we will have a better control over our financial affairs as we'll have a bit of knowledge and will be going into it with our eyes open.
We were recommended a book "You and the Law in Spain" by David Searl (Santana Books £19.99) which we have just ordered and which apparently covers all tax, financial matters, house purchase, etc. in a user-friendly style.
Will see what it's like when it arrives.
The British Consulate website http://www.ukinspain.com/english/con...ar_offices.asp has a list of approved lawyers, plus I believe, tax advisors who may be able to advise you once you are in Spain, hopefully for less than £1000
per hour!It has been suggested to us that the most tax-efficient place for a lump sum is in an offshore account, where interest is paid gross, plus an 'everyday' bank account in Spain which you would top-up as and when you needed to.
I believe that almost all the major British banks have offshore divisions and/or some kind of banking facilities in Spain and I imagine that having these facilities would make it easier and cheaper to transfer money between accounts as and when you need it.
As far as I can gather though, these offshore divisions are not covered by the UK guarantees we take for granted; I believe liability in each case is limited to only £15,000 but presumably you can spread your savings around if they total more than this.
I have just opened a Halifax current account here in the UK in preparation for our move to Spain next year, when I hope to open a Banco Halifax a/c in Spain.
Banco Halifax also has a panel of approved lawyers (for property purchase, etc.) and tax advisors, but I imagine the financial advice would be tied to their own products.
I do know that the Halifax doesn't charge to transfer money between their UK and Spanish accounts (from sterling into euros) but I'm not certain if you are actually allowed to hold a UK bank account as a non-UK resident. I'm sure someone will be along soon to put this right.
The Halifax also has an offshore division (jointly with the Bank of Scotland) in Jersey and the Isle of Man, as do Nationwide and HSBC so maybe sometime in the near future when all the online facilities are up & running (I think the Spanish/offshore ones are coming soon) it will be possible to transfer money between accounts at the click of a mouse.
I have also heard good things about Solbank and am tempted by this too, so lots to think about!
If you are buying a property in Spain, it might be an idea though to use a currency broker for buying euros as banks don't give as high an exchange rate.
Good luck with the move - keep us posted. And in the meantime, if you find a good IFA/tax planner in the UK who charges realistic fees, please let us know!
C-Cat
