Savings when moving from the UK to Spain
 

We'll be moving to Spain in the new year via DNV. I wondered what others experiences are regarding savings - whether retaining in a UK savings account (on one of the few that permit), moving to Wise etc or to a Spanish savings account ?

Re: Savings when moving from the UK to Spain
 

Savings account interest rates in Spain are very low typically 2% or less. Best to open a UK savings account in the UK before you move. UK offshore accounts are an option. Skipton is a popular option. You will pay tax on it in Spain. You can usually keep an existing UK ISA account but they are taxable in Spain as well.

Re: Savings when moving from the UK to Spain
 

One problem with Spain is that savings accounts etc are nothing like in UK. Most Spanish simply invest in property. Some UK banks allow you to keep an account if you move to Spain but many won't. Similar savings accounts tend to prevent you using them if you are not a UK resident. National Savings products are available but again no tax free situations exist so all premium bonds need to be declared in Spain. Off shore accounts are available but again you need to declare in Spain. The disparity between Spain and UK when it comes to savings and investments is one of the main disadvantages of living in Spain. Of course many will say that the lifestyle is so much better that it's worth the tax however the one issue is that if you return to UK you can find that your investments and savings have been hit hard compared to people you know. This can impact old age finances.

Re: Savings when moving from the UK to Spain
 

Most banks (and building societies) allow you to keep accounts even whilst living in Spain

Re: Savings when moving from the UK to Spain
 

Barclays and Halifax are reported exceptions. From personal experience, Natwest are OK with expat accounts. NS&I are OK and allow new accounts so long as you have a UK bank account.

Re: Savings when moving from the UK to Spain
 

Thing to remember with cash ISA's is yes if you have one before you leave the UK you can keep it. However often after a little while you find the interest rate has fallen to very little and if in UK you could simply transfer to another ISA paying better interest, once you are non UK resident you are not allowed to transfer. I had this issue and ended up closing the ISA and putting the savings into an NS&I green bond which gave decent interest at the time.

Re: Savings when moving from the UK to Spain
 

Wise offer 'cashback' (not the same as UK cashback) and interest options which you can check out here

https://wise.com/us/blog/wise-as-bank-account

Re: Savings when moving from the UK to Spain
 

You can add to that Lloyds and Nationwide but for the latter be sure to install their app on your phone whilst still in UK because it's not accessble in the PlayStore in Spain.

That's Android of course, not a scooby about CrApple!

Re: Savings when moving from the UK to Spain
 

This bit is only true if you hold more than €50,000 as you then have to report it on the 720.
We had a few grand shy of this when we moved over, and the accountant (Spanish) didn't understand what they actually were, and he contacted the tax office, and it was confirmed that they are not cash or shares. If they had of been included in the cash pot then we have declared them.
You do have to pay tax on any 'winnings' even if reinvested iin more bonds.

I still havemy Nationwide accounts, including a credit card (even though they said they would not renew it). If I were the OP I would be opening a few accounts before coming over. The NS&I savings account pays good interest if you can tie it up for a year or two.

One thing for the OP to remember is to cash out as much as possible in the year before they come over (tax year here is 1st jan to 31st Dec) or there may be tax or CGT to pay.
So dont sell a house the same year you come here.
I took my 25% tax-free amount from my personal pension, and it hit the bank on the 31st Dec 2019. We moved for good in August 2020 (yes I know the 182 day thing, but we were originally scheduled to get here in early May. Something happened that delayed us)

Re: Savings when moving from the UK to Spain
 

You can install the app in spain and I did it a year or so ago with Nationwide. Just sign up for a free trial with a VPN and then download the app. Then turn it off once you have done all the security checks, they don't care about using a Spanish phone number either, as that is all I have.
But I will agree, you should do as much as you can before leaving the UK.

Re: Savings when moving from the UK to Spain
 

You'll probably need a Spanish account for your bills, payments, etc... although there are those that say a Wise account will do.

If you play the game right you can get up to €760 when you open an online account with BBVA. Unfortunately the offer finishes on the 8th of January.

Re: Savings when moving from the UK to Spain
 

Android problems, lol. Apple users have no such issues - they can continue using their UK appstore account in Spain indefinitely. And if they need Spanish apps that are unique to Spanish appstore accounts then they can set up a new one and... use both (Android devs just froze and need a hard reboot).

Barclays is apparently the worst. I know people who have had their accounts pulled by these clowns just for moving to another country. No wonder people are moving to the likes of Wise/Revolut to bypass the banking circus that used to think they can do what they want... and get away with it.

Re: Savings when moving from the UK to Spain
 

I have retained my current account and instant access savings account with First Direct throughout my 19 years in Spain to date, without any problems and they send replacement cards and statements to my Spanish address. I find them very helpful as if I have any problems or queries I can just pick up the phone and speak to a human, 24/7 and 365 days a year. A couple of years ago I opened a longer notice savings account, online, with Skipton International, based in Guernsey, as I wasn't able to open another savings account in the UK as a non resident. They have been very easy to deal with too. All the accounts have been reported on Modelo 720s.

Re: Savings when moving from the UK to Spain
 

Wise is NOT a bank, but money transfer service. You will have zero protection if things go wrong.
You should plan to open saving and current accounts before move to ES, as afterwards you will not be allowed new financial products as non-resident.
Make sure you get your NT tax code, or you will keep paying tax in UK.

Re: Savings when moving from the UK to Spain
 

This!

In the event of a bank failing in the UK, your first £120,000 per person per bank (so £240,000 for a joint account with two account holders) is covered by deposit insurance. The corresponding protection limit in the euro-zone banks is €100,000 per person per bank.

Because Wise is not a bank, if the bank where Wise holds "your" money (Wise is holding your money somewhere in a bank, they have to, as they are not a bank, they need to have a bank account) fails, your "deposit" with Wise is not covered by deposit insurance. Wise's web site says that money with them is "segregated", and segregated is a good thing (solicitors and accountants who hold client monies use segregated accounts), but segregation is not the same as, nor equivalent to, deposit insurance.