FranE

Hello everyone. Hubby and I are part timers in Peniscola (Castellon). When we bought our house just over a year ago part of the solicitor's service was to open a bank account for us. We had no reason to use it for the purchase because we'd already transferred the purchase price to the solicitor's bank by the time our account was opened.


It costs something like 75 euros a year to maintain it including one debit card (we do have some cash in there), and I am beginning to wonder what the point of it is? We have NO utility bills here as we have no services connected to our campo property. I haven't yet paid any IBI as the seller paid it for last year, and I haven't yet taken the plunge into investigating Renta/income tax! I have had to pay a couple of small town hall charges connected with the purchase but just paid them in cash at the bank.


It might be different in different regions, but would appreciate any advice on whether there are any taxes etc that HAVE to be paid by standing order or eg bank transfer from a Spanish bank? Or is there some other reason to keep the account? We manage perfectly well while in Spain with our UK accounts, online banking, and a credit card with no foreign transaction fees.


Many thanks all.

missile

If you have never used your Spanish bank account for 12+months, I guess you have proven that you don't need it.

Culebronchris

Do you definitely need a bank account in the UK? It may be possible to get away without one?

I suppose it's the same living in Spain. It's probably possible to find a way around if you don't have an account but, when you live here, life would be much more complicated without one.

And don't forget that sometimes people need to give you money.

mikelincs

But they haven't had to pay IBI yet, and to set up DDs they will need a Spanish account.

missile

For your info:

bobd22

As Missile says so far you have proved you don't need it. I doubt there is anything that you MUST pay by standing order, rather that it can be more convenient. We get the local taxes every 2 months bassura water etc, we are not there all the time so convenient to use DD. Same with our IBI and electric (i know you mention you are not connected). But what if something occurred preventing you visiting for a relatively long term? That could be an issue but on the other hand may never happen. We did reduce our bank charges as much as possible. One final thing you could recoup some of the cost by savings with careful money transfers to Spanish bank for stays versus costs re using UK credit/debit card for cash in Spain?

FranE

Thanks everyone. There's definitely some food for though there - especially the issue of paying eg IBI if we should be prevented from coming over when payment is due. And it's just occurred to me that we have "road tax" to pay annually too. We'll have to sit and work out the pros v the cost.


BTW, we usually bring a few hundred euros over with us for small cash purchases, but otherwise rely on our Nationwide credit card which has no foreign transaction fees (hubby switched banks especially to get it!) and also gives a good exchange rate on our euro purchases. Whenever we use it we immediately transfer the money across from our current account so we never pay interest.


Thanks again everyone.

Eric S

If you're just concerned about the maintenance fees, you could try switching to a bank account with no fees. We use the BBVA online account, which has no maintenance fees. Info here.

- Eric S.

davidinspain

https://en.wikipedia.org/wiki/Single_Euro_Payments_Area
Although in a little less than two years it may not be an option.

Loafing Along

You will need to do a Spanish tax declaration as there is an imputed tax on your property which you will have to pay on annual basis. The amount is not significant but it exists, a form of nominal rent . If someone does your tax return for you, no problem as your representative they can pay and you pay them so not essential to have a bank account for it just useful.
Suggest best route is advice from previous participants, look for a better deal from another bank.

Of course through your account now you can set up DDs for road tax and IBI, much more convenient

bobd22

The non resident tax you mention is very easy to complete online so long as you have your last ibi bill to obtain the current valor catastral from. Once completed simply print it off sign it take it with you next time you visit Spain and pay it in cash at any bank.

Eric S

Right. And you have a whole year to pay the imputed tax. So as long as you visit once per year, you should be good there.

- Eric S.

bobd22

Yes Eric correct the tax has to be paid by 31 Dec for the previous year so non resident tax due from 1 Jan to 31 Dec 2016 is due payment by 31 Dec 2017. Just look up Form 210 lots of info. I have just completed mine ready to pay in summer when over. Also bear in mind solicitors/gestors charge quite a bit to do something that is very easy, often their charges are more than the tax. If you can't be bothered doing your own this guy does them for £29.95 that is per property not per person because every person on escrutira must submit forms (tax split proportional) so if 3 persons 3 sets of forms, solicitors/gestors charge for each form. Also this guy can if needs be and for a small fee submit and pay them. I used to use them before learning how to do them. Good service you don't even pay him until you receive your forms by email or post your choice. Spanish Tax Forms Ltd: Spanish Tax made easy!: Home

tuhler

If you use a DD for road tax they take the money on the first day it is due..pay by yourself at bank and you have 8 weeks to pay..and then if you are later than that they will charge you 5€..

FranE

Wow thanks everyone for such useful advice!

We paid last year's IBI today, cash at the bank, no problems. (Our solicitor suggested we pay 2016 IBI as we completed in March and it wasn't worth apportioning it because, he said, it was only about 50 euros. However he failed to mention the basura and reciclada (recycling charge) so it was actually closer to 200 AND we had to pay late fees and interest! We tried to pay last September but couldn't because they don't change the names at the catastro on a sale until the end of the year! If anyone would like the name of a solicitor to avoid do please PM me! )

I did know about income tax and imputed rental income, but do we have to declare for 2016, having bought the property in March 2016? I had assumed we'd be doing it for this year and I'm happy to have a go at anything myself, so thanks for the info re forms bobd.

Still thinking about the bank account. If we do everything in cash we'd have to bring over quite a lot, but if we do it via a bank account we need to consider getting money into it. Will check out the link Davidinspain, thanks for that.

Can't thank you all enough!