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Hello all we have just moved to Spain and now have residence. Back in the UK have savings in ISA and Premium Bonds. I think this is not a good idea as it look like these will be taxed here. I have read about the Spanish Compliance Bond. Has any one got advice on tax free savings in Spain.
Dave.
Posted: Thu Aug 25, 2022 9:28pm
Legendary helpful member
Hi Dave,
You're correct, ISAs are not tax-free in Spain. Have you completed a Modelo 720, Declaration of (Worldwide) Assets yet? If you have assets exceeding €50,000 in any one of 3 asset classes, i.e. bank/savings accounts, property, and pensions/investments, you will need to complete a Modelo 720 and declare your ISAs. If you only became resident in the second half of this year and so won't need to complete your first 720 until January 2024, I assume you're looking to move your ISAs to an alternative scheme this year, such that they won't need to be declared in Spain. What's interesting about Spain's Compliance Bond is the suggestion that it may not need to be reported on the Modelo 720:
Regarding your Premium Bonds, there may also be difficulties with you holding them in Spain, depending on your circumstances in the UK:
https://www.nsandi.com/help/join-nsandi/using-nsandi-outside-uk
I'm afraid that I can't help with tax-free savings in Spain - and that's not for the want of looking!
Kind regards,
Kim
Kimmy11 wrote on Thu Aug 25, 2022 9:28pm:
Hi Dave,
You're correct, ISAs are not tax-free in Spain. Have you completed a Modelo 720, Declaration of (Worldwide) Assets yet? If you have assets exceeding €50,000 in any one of 3 asset classes, i.e. bank/savings accounts, property, and pensions/investments, you will need to complete a Mod...
Read more...
...elo 720 and declare your ISAs. If you only became resident in the second half of this year and so won't need to complete your first 720 until January 2024, I assume you're looking to move your ISAs to an alternative scheme this year, such that they won't need to be declared in Spain. What's interesting about Spain's Compliance Bond is the suggestion that it may not need to be reported on the Modelo 720:
Regarding your Premium Bonds, there may also be difficulties with you holding them in Spain, depending on your circumstances in the UK:
https://www.nsandi.com/help/join-nsandi/using-nsandi-outside-uk
I'm afraid that I can't help with tax-free savings in Spain - and that's not for the want of looking!
Kind regards,
Kim
Hello Kim
Thank you for you answer it makes things a little bit clearer. We moved here start of April so works out well with UK tax so it look like need to sort out Spanish tax for Jan 2023 we have a little time to sort things out but dont want to leave it to long.
Regards
Dave
Posted: Thu Aug 25, 2022 9:58pm
Legendary helpful member
Mav wrote on Thu Aug 25, 2022 9:41pm:
Hello Kim
Thank you for you answer it makes things a little bit clearer. We moved here start of April so works out well with UK tax so it look like need to sort out Spanish tax for Jan 2023 we have a little time to sort things out but dont want to leave it to long.
Read more...
Regards
Dave
Hi Dave,
OK, so that means you'll be doing your Modelo 720 in the first quarter of 2023, not 2024. As the Spanish tax year runs from 1 January to 31 December, you'll need to declare your ISAs, or whatever investment vehicle you move them into before year end.
Kind regards,
Kim
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