NLV and uk bank accounts

Some banks, like Barclays, do not allow an address in the EU, others allow it in some EU countries. I still have a NatWest account and get letters etc posted here and they use my Spanish phone for online banking. I think Nationwide do as well but you'd have to ask you bank if they have passporting rights in the EU.

No problems with interest as the bank will send you a form to have the interest paid tax free in UK but you will be liable to tax on all of it in Spain (there is no tax free up to 1,000 pounds in Spain). 

Same with any other income from UK but that has to go through HMRC with a Spain individual form (FD9). You will end up paying tax on that income in both UK and Spain for a while until tax years catch up with each other but HMRC will refund the tax you paid in UK (if you can get through to them, of course).

Here are the key points you need to take on board if you're planning to become a full resident from my own experience after five years.

Get a UK address (of a trusted relative, for example) and use it for your dealings with UK banks and building societies. Tell them you moved there to the new address before you come to Spain. Do NOT tell them you've moved to Spain.

Open a building society account (online ones are good, like Ford Money) for the best rates of interest on savings.

You will have to declare your whole worldwide income in Spain when you are tax resident. Decouple from the UK tax system asap (after your first Spanish tax return) so you can pay all your tax here, dealing with one authority only.

Forget UK based savings incentives like ISA accounts, they cease in the UK once you move over and they don't exist in Spain. There are normal personal allowances over here though.

Learn about the dreaded Modelo 720 form, on which you have to declare to the Spanish tax authorities any investments worth over €50,000 on Dec. 31 in any of three categories - savings and bank accounts, stocks and shares, property.

Transfer money from UK to Spain using the Wise exchange service. Open a Spanish bank account and have your state pension paid straight into it. Other income should continue to go into your UK bank account, then do with it what you will.

Learn how to do your own tax return online, its not too difficult.

Any questions, ask.

It is rather illegal to use a false address for a bank account etc and could lead to problems with credit scores for those whose address you are using.

Now I've got the pompous bit out of the way, I use my daughter's address for my Barclaycard so a bit hypocritical of me.

No need to do it with bank accounts. We moved over 15 years ago and NatWest told us nothing would change as they have passporting agreements with Spain but not, for example, the Netherlands. But they probably have so many customers in Spain and Portugal it is worth their while. Halifax wouldn't allow it but Nationwide does. In fact, NatWest an Nationwide allow you to open a UK bank account if you are non resident but you must have a UK passport and turn up in person to open it. 

Thank you, regarding the NLV money criteria, would we have to put the required amount of funds in a spanish bank account or is a UK or wise account acceptable?

Thanks Neil 

hello  ill be relying on savings to live and for NLV. Ive heard you only get taxed on any interest accrrued on any money in a spanish bank and that my savings wouldnt be taxed in spain as id be under the spanish wealth tax. Id be using currencies direct or wise to transfer a monthly amount into spanish bank account which after my allowance would take me over the personall allowance of 5k euros so some tax will be paid does that sound right

Well you've heard wrong. You will not get taxed on your savings but you will get taxed on the interest from those savings in Spain and your whole worldwide income is taxed in Spain as a resident. The only exemptions are crown pensions which continue to be taxed in UK.

Any other pensions, interest, dividends or any other income will be taxed in Spain from whatever source. Your savings will not be taxed unless you are a star footballer, ex director of a mega company and earning millions when it will be subject to the wealth tax.

You have to show an income of 28,800 euro a year for the first applicant and 7,200 a year for the second applicant in order to get a NLV. Your savings and income from any source must, therefore, exceed that amount for the first year to get the NLV, exceed that amount to renew it for year 2 and 3 and exceed that amount to renew the NLV for the 4th and 5th year. 

All your income will count towards your personal tax free allowance, not just the money you pay into your Spanish account. It is based on your entire income. 

thank you  for your reply, yes im ok for the money re NLV for 5 years so to be clear in my head my savings remaining in my uk bank account  will be taxed on the interest in spain as well. Its not a mega  amount with careful budgeting i will be able to live a simpler life in spain on them obviously not like a holiday maker.  So  the money in a spanish account again not loads  will only have the interest taxed is that right. as well Trying to get my head round everything. It seems that someone said i wouldnt be taxed as wealth tax allows for 700,00k and this was a financial adviser telling me this. I havent got any where near 700,00k if i had id be going for the golden visa. I was also told i could keep 50,000  that i dont have to delcare in a uk bank account.

Everyone has a standard €700,000 tax-free allowance, and homeowners are allowed a further €300,000 against the value of their main residence. For the 2022 and 2023, a solidarity tax for 'great fortunes' (ISGF) has been introduced for residents who have assets and holdings greater than €3 million. thats why i was thinking  i had a personal allowance free from tax but get it its the interest thats taxed from what youve said

You are confusing wealth tax (one that only the wealthy with diamonds and fine art and mega expensive houses pay) and the income tax which the rest of us hoi polloi have to pay. Wealth tax is nothing to do with your income tax.

Whatever your world wide income is then that is what you will pay income tax on. Strike the wealth tax and million odd euros out of your mind. It does not apply to people like you and me. The income tax does.

You must declare your world wide holdings in property, bank accounts, dividends, shares etc if any is valued at over 50,000 euro. You will not be taxed on them. Any income from them will be added together along with pensions etc. That is what you income is taxed on. Just like UK with different levels of tax the higher you earn. You get a tax free allowance of €5500 if under 65. €6700 over 65 and €8100 once you get to 75.

Any money over that will be taxed at 19% to 37% depending on the amount. But put wealth tax out of the picture entirely.

Savings are allowed in certain circumstances but they are looking at income to make up the 28,800 a year. If you have 28,800 x 5 (or 140,000 euro in savings) they could take that into account to meet the income of 28,800 if you have no other income like a pension.

I would normally say do the NLV application yourself but that would only be if you had an income of over 28,800 a year. If you are using savings to show the money you should really contact a solicitor in UK who knows about visa applications to press your case for you.