Redr0bb0

Question regarding tax when we relocate.

Can anyone advise me if I draw savings from my UK account on a monthly basis if I will be taxed in Costa Blanca?

I am aware I will have to pay tax on my small pension (about 1000 euros monthly is it about 25%?) but want to top up from savings. Will that also be taxed? The pension will be in my name would it be better to draw the savings in my wife's?

Many thanks

missile

Is it your intention to open a Spanish current and/or savings account to deposit these savings?

You will not be liable to Spanish tax man on your income / savings in Spain until you become a fiscal resident. Until then, you will be liable to UK tax man for any interest accrued in Spanish accounts.

snikpoh

... and just to add ...

once you are fiscally resident in Spain, any income (savings or earned income) will be taxable in Spain.

marcbernard

Did not the UK budget (or the Autumn statement) declare that the rate of tax on savings income is to be zero?

Redr0bb0

Thanks for your reply missile.

The plan is to become a resident and to open a current account in Spain.

My intention was to send money to it from UK on a monthly basis or am I better off moving a chunk at a time (they will be modest chunks!) to an deposit in Spain.

Either way will the monthly drawdown be taxed?

Redr0bb0

Thanks snikpoh-that clears that up

missile

You do not choose when to become fiscal resident. I would suggest you search and read several other posts on this subject.

As and when you become fiscal resident, all of your income will be subject to tax in accordance with Spanish rules. You may wish to seek professional advice.


If you find it convenient transfer monthly, as on £1,000 / £10,000 makes little difference to charges. However currency fluctuations can make a significant variation to the amount you will receive. Think carefully how and when you transfer funds. You may find it convenient to use a low cost credit card, e.g. Halifax Clarity for small amounts.

Redr0bb0

Thanks again Missile. Yes I realise 183 days residency per year automatically makes you a fiscal resident so that's why I am doing my research. The intention is to be in Spain 350 days a year

missile

Exciting times ahead, enjoy your time in Spain.

Redr0bb0

Thanks missile can't wait. Plan is buy this year (low property values, good exchange rates)....holiday home 4 years...retire and move out.

Long dreamed of and touching distance now!

Dondurma

Why not just draw out money as required from a UK based bank ( Nationwide sterling withdrawals incur no charges) without all the hassle

Redr0bb0

Now that's a topnotch idea! Thanks

snikpoh

Not sure I understand.

Are you saying to transfer sterling from Nationwide in UK to a Spanish bank or are you suggesting something different?

Dondurma

No was just suggesting keeping only whats needed for day to day direct debits ( lecky etc) in a Spanish bank.

Otherwise keep your cash/ pension in Nationwide in UK and draw out in Sterling in Spain as required.

If you're a non working renter its a good way to operate

missile

I have never seen a Nationwide branch or a cash machine that pays out sterling in Spain