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Old Dec 31st 2017, 10:30 am   #1
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Default Tax Free Investments in Spain

If I retire in Spain, the benefits of my UK ISAs will fall away. Has anyone experienced this and found any suitable Spanish Investments as there seems to be no equivalent of the ISA but there are trusts? Given the low personal allowance and the lack of any annual capital gains allowance for, say, share trading, it looks like my tax could increase dramatically in Spain.

Unfortunately, the 'Beckham Law' applies only to workers and not retirees.
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Old Dec 31st 2017, 10:39 am   #2
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Default Re: Tax Free Investments in Spain

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Originally Posted by Johnboyuk View Post
If I retire in Spain, the benefits of my UK ISAs will fall away. Has anyone experienced this and found any suitable Spanish Investments as there seems to be no equivalent of the ISA but there are trusts? Given the low personal allowance and the lack of any annual capital gains allowance for, say, share trading, it looks like my tax could increase dramatically in Spain.

Unfortunately, the 'Beckham Law' applies only to workers and not retirees.
Yes you are absolutely right . One of the few options in Spain is a private pension plan which allows you to defer tax by contributing up to €8,000 a year. Obviously you get taxed on it as income when you start to drawdown but it does delay tax for some years.
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Old Dec 31st 2017, 11:50 am   #3
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Default Re: Tax Free Investments in Spain

Don't forget you can KEEP any ISA's you have - you just can't add to them.

Look at a Spanish compliant bond - very tax efficient.
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Old Dec 31st 2017, 12:11 pm   #4
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Default Re: Tax Free Investments in Spain

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Don't forget you can KEEP any ISA's you have - you just can't add to them.

Look at a Spanish compliant bond - very tax efficient.
Many thanks to both of you, I will look at the compliant bond.

The problem is, despite the various tax treaties, there is no recognition of tax free investments throughout the different countries in the EU. It is all on a domestic level but I do see that a compliant bond can be restructured and transferred to another country and in a range of currencies so this looks like the way to go. The money I have accumulated in any ISAs in the UK must be declared in Spain and the profits will be taxable in Spain like any other investment. And vice versa for anyone returning to the UK. I suppose, at the end of the day, this all has to be balanced out with the general cost of living and being where you want to be.

Last edited by Johnboyuk; Dec 31st 2017 at 12:40 pm.
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Old Dec 31st 2017, 3:35 pm   #5
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Default Re: Tax Free Investments in Spain

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Many thanks to both of you, I will look at the compliant bond.

The problem is, despite the various tax treaties, there is no recognition of tax free investments throughout the different countries in the EU. It is all on a domestic level but I do see that a compliant bond can be restructured and transferred to another country and in a range of currencies so this looks like the way to go. The money I have accumulated in any ISAs in the UK must be declared in Spain and the profits will be taxable in Spain like any other investment. And vice versa for anyone returning to the UK. I suppose, at the end of the day, this all has to be balanced out with the general cost of living and being where you want to be.
Move to Portugal..Pensioners 10 years tax free
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Old Jan 1st 2018, 9:31 am   #6
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Default Re: Tax Free Investments in Spain

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Move to Portugal..Pensioners 10 years tax free
Probably not a bad idea. According to this article, Spain is one of the least tax-friendly countries but they talk mostly about private pensions and not other investments. Forget the paella, pass me the piri-piri.

The ultimate pension freedom: Retire in Portugal and reduce your tax - Telegraph
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Old Jan 2nd 2018, 1:41 pm   #7
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Default Re: Tax Free Investments in Spain

Sabadell Bank offers a tax-free savings account but of course, interest rates are low.
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Old Jan 3rd 2018, 10:58 am   #8
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Default Re: Tax Free Investments in Spain

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Sabadell Bank offers a tax-free savings account but of course, interest rates are low.
Many thanks. Now I am starting to understand why the Spanish stuff their money in their mattresses.
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