Transferring funds from the UK.

marcliff wrote on Mon Dec 16, 2024 6:52pm:

1. When you become residents in Spain you will be liable to tax on all your worldwide income no matter where you get it paid into. You must inform the UK HMRC that you are now resident in Spain with a Form Spain Individual so that UK stops charging you tax. You could be liable to pay tax in both ...

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...countries if you do not, the only exemptions being Crown pensions (Forces, police, civil service pensions etc) which remain liable to tax in UK.

2. Pensions paid directly to a Spanish bank do not generally attract a transfer fee if paid by the pension company. Your state pension can be paid direct to the bank account with no charges and private pensions will not attract a fee if paid by the pension company.

3. If you transfer your current joint account to a Spanish branch it could attract a fee for doing so as it is not a pension or money from employment. However, Santander may be different so check with the branch manager first and ask for their T&Cs.

4. You will not be charged in Spain for any money you hold in a UK bank account. You need to declare it annually on a Form 720 if over 50,000 euro (along with property and investments if over 50,000 euro but the only tax will be on any interest you earn as interest is included in your world wide income. 

5. If you are selling property in UK make sure you do not sell it in the same year you become tax resident in Spain, that is, the year you  spend more than 6 months in one calendar year here as you will be liable to Capital Gains Tax on the sale, if you've sold it this year and move to Spain to become resident next year then there will be no CGT to pay. Sell it in the first 6 months of the year and become resident in the first 6 months of the year then CGT, at quite a high rate, will be liable. (Spain doesn't do part years for tax status, over 6 months liable for the entire year, under 6 months not liable until the following year.)

Best of luck.

marcliff wrote on Mon Dec 16, 2024 6:52pm:

1. When you become residents in Spain you will be liable to tax on all your worldwide income no matter where you get it paid into. You must inform the UK HMRC that you are now resident in Spain with a Form Spain Individual so that UK stops charging you tax. You could be liable to pay tax in both ...

Read more...

...countries if you do not, the only exemptions being Crown pensions (Forces, police, civil service pensions etc) which remain liable to tax in UK.

2. Pensions paid directly to a Spanish bank do not generally attract a transfer fee if paid by the pension company. Your state pension can be paid direct to the bank account with no charges and private pensions will not attract a fee if paid by the pension company.

3. If you transfer your current joint account to a Spanish branch it could attract a fee for doing so as it is not a pension or money from employment. However, Santander may be different so check with the branch manager first and ask for their T&Cs.

4. You will not be charged in Spain for any money you hold in a UK bank account. You need to declare it annually on a Form 720 if over 50,000 euro (along with property and investments if over 50,000 euro but the only tax will be on any interest you earn as interest is included in your world wide income. 

5. If you are selling property in UK make sure you do not sell it in the same year you become tax resident in Spain, that is, the year you  spend more than 6 months in one calendar year here as you will be liable to Capital Gains Tax on the sale, if you've sold it this year and move to Spain to become resident next year then there will be no CGT to pay. Sell it in the first 6 months of the year and become resident in the first 6 months of the year then CGT, at quite a high rate, will be liable. (Spain doesn't do part years for tax status, over 6 months liable for the entire year, under 6 months not liable until the following year.)

Best of luck.