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Money in the UK will it be taxed in Spain

Money in the UK will it be taxed in Spain

Postby Redr0bb0 » Sun Nov 27, 2016 11:39 am

Hi

I am reading in various places that when I take tax residency in Spain next year I will need to declare savings which will remain in UK bank accounts and some QROPS investments in Malta.

Will there be Spanish Tax payable on the Capital? What about taxation of interest on savings and growth on the investments?
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Re: Money in the UK will it be taxed in Spain

Postby scubydoo » Sun Nov 27, 2016 12:30 pm

I am sure you will get some advice on the forum but it is best to seek advice from an up to date profesional on the subject as the laws change constantly.
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Re: Money in the UK will it be taxed in Spain

Postby mondo » Sun Nov 27, 2016 12:33 pm

I think that is the case at the moment...

Seek professional advice..

..
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Re: Money in the UK will it be taxed in Spain

Postby marcliff » Sun Nov 27, 2016 12:44 pm

Once you become a resident, all your worldwide "income" will be taxable in Spain apart from some government pensions. If you have overseas savings (or any assets) over the value of €50,000 then you have to declare it. You will not be taxed on the savings or the assets but will be taxed on any income accrued from it, for example interest on savings.
However, in some cases the tax already paid in UK will be offset on what you pay in Spain. For example, my UK bank won't pay interest free of tax (after the new government regulations on not paying tax up to a certain amount). I therefore list the interest and then the amount of tax paid on it which is taken off any tax liability I may have in Spain.
I have a government pension in UK and tax is taken from source. This is declared in Spain but I have no tax to pay under the dual taxation agreement (which is between UK and Spain, not the UK and the EU). It does, however, get added to my worldwide income to assess the tax rate. The only downer for me is that, now I get the UK state pension which is paid free of tax, I do get taxed on that in Spain.
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Re: Money in the UK will it be taxed in Spain

Postby Redr0bb0 » Sun Nov 27, 2016 11:57 pm

Thanks marcliff and everyone else. That is very helpful information.
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