Join Talk Quesada
Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!
What's best to have your pension sent to a Spanish bank
What's best to have your pension sent to a Spanish bank
by tel49 » Wed Jul 05, 2017 11:14 pm
What's best to have your pension sent to a Spanish bank direct from DWP in euros or leave the pension in an UK bank and transfer with a cheap or free transfer company to a Spanish bank account to pay rental and utility charges. Both ideas merit I believe no Spanish bank charges so I am hoping for a few wise members thoughts on the favoured route of action. Cheers
- tel49
- Posts: 326
- Joined: Fri May 05, 2017 11:19 pm
- Which part of Spain are you from?: Dona Pepa
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by marcliff » Wed Jul 05, 2017 11:27 pm
The pension people don't charge to send the money across and, due to the amount they transfer, will normally have a better exchange rate. There's no such thing as a "free" transfer company otherwise they'd go broke pretty quickly
Plus, if it's a pension, just 200 euro a month gives you free banking with Bankia.
You take a chance on the exchange rate on the day the pension is paid but, unless you have nothing else to do, trying to work out the best days for doing the exchange is pretty time consuming.
With direct payment by DWP you also know the exact date the money will go in so it's always there when you need it.
Plus, if it's a pension, just 200 euro a month gives you free banking with Bankia.
You take a chance on the exchange rate on the day the pension is paid but, unless you have nothing else to do, trying to work out the best days for doing the exchange is pretty time consuming.
With direct payment by DWP you also know the exact date the money will go in so it's always there when you need it.
-
marcliff - Posts: 9694
- Joined: Sat Mar 03, 2012 4:41 pm
- Location: Doña Pepa 2
- Which part of Spain are you from?: Dona Pepa 2
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by tel49 » Wed Jul 05, 2017 11:55 pm
Food for thought Marcliff, thanks. A friend said Currencies Direct are free but they may keep your money for five days.
All advice gratefully appreciated including if you have residency what's the best way to go with the tax angle.
All advice gratefully appreciated including if you have residency what's the best way to go with the tax angle.
- tel49
- Posts: 326
- Joined: Fri May 05, 2017 11:19 pm
- Which part of Spain are you from?: Dona Pepa
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by Ron Hill » Thu Jul 06, 2017 6:12 am
I think DWP also give a slightly better rate than currency exchange co's I've been here 18 months now and thinking of a regular transfer now but I'm also wondering bout the tax situation. I'm also told that if you die in Spain and have more than 2,500 € in the bank here then that is taxed before being passed on in your will
-
Ron Hill - Posts: 1253
- Joined: Thu May 14, 2015 11:48 am
- Location: Entre Naranjos
- Which part of Spain are you from?: Entre Naranjos
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by marcliff » Thu Jul 06, 2017 7:34 am
Ron Hill wrote:I think DWP also give a slightly better rate than currency exchange co's I've been here 18 months now and thinking of a regular transfer now but I'm also wondering bout the tax situation. I'm also told that if you die in Spain and have more than 2,500 € in the bank here then that is taxed before being passed on in your will
You really shouldn't listen to that bloke up the pub, you know.
-
marcliff - Posts: 9694
- Joined: Sat Mar 03, 2012 4:41 pm
- Location: Doña Pepa 2
- Which part of Spain are you from?: Dona Pepa 2
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by Ron Hill » Thu Jul 06, 2017 7:50 am
Actually I think I read it on here marcliff
-
Ron Hill - Posts: 1253
- Joined: Thu May 14, 2015 11:48 am
- Location: Entre Naranjos
- Which part of Spain are you from?: Entre Naranjos
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by tel49 » Thu Jul 06, 2017 11:54 am
Thanks Ron.
I don't like the sound of the death tax bit huh. I usually like to keep my money in the country I live in, not the UK. But I heard the tax allowance is lower in Spain also, but the way the pound has decreased since I arrived last year I wish it was in Euros. I think it will be years before the pound rallies. We will be close to Quesada living before this month ends, so I guess I shall have to seek some advice about tax matters. The forum is a god send and a mine of information to which I truly thank all contributors who assist with their experience and help. cheers
I don't like the sound of the death tax bit huh. I usually like to keep my money in the country I live in, not the UK. But I heard the tax allowance is lower in Spain also, but the way the pound has decreased since I arrived last year I wish it was in Euros. I think it will be years before the pound rallies. We will be close to Quesada living before this month ends, so I guess I shall have to seek some advice about tax matters. The forum is a god send and a mine of information to which I truly thank all contributors who assist with their experience and help. cheers
- tel49
- Posts: 326
- Joined: Fri May 05, 2017 11:19 pm
- Which part of Spain are you from?: Dona Pepa
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by marcliff » Thu Jul 06, 2017 12:08 pm
Inheritance tax in the Valencia Region will be virtually nil as the allowances are so great. If you are over 65 and have been a resident for more than 3 years then there are no death duties to pay at all. Other regions. like Murcia, are not so generous.
If you live here permanently as a resident then you cannot pick and choose where you pay your taxes, it is Spain. If you have government pensions (like police, forces, civil service etc) then they are taxed in UK and you can't change it. You can't be taxed on those in Spain but they can take them into account to work out the level of the tax band you are on.
The OAP is, sorry, retirement pension is not taxed in UK but is taxable here.
The tax exempt band is quite high here as well.
For example, if you have a property in joint names and one dies, the surviving spouse inherits 50%. If the property is worth €250,000 then that is tax on €125,000. If the surviving spouse continues to live there for at least 5 years then the tax to pay works out at €120. If they decide to sell the property, the tax to pay would be around €550.
If it goes to a spouse and 2 surviving children over 21 then the taxable base would be 83000 (ish) and there would be no taxes to pay as the allowance of 100,000 more than covers that.
If you live here permanently as a resident then you cannot pick and choose where you pay your taxes, it is Spain. If you have government pensions (like police, forces, civil service etc) then they are taxed in UK and you can't change it. You can't be taxed on those in Spain but they can take them into account to work out the level of the tax band you are on.
The OAP is, sorry, retirement pension is not taxed in UK but is taxable here.
The tax exempt band is quite high here as well.
For example, if you have a property in joint names and one dies, the surviving spouse inherits 50%. If the property is worth €250,000 then that is tax on €125,000. If the surviving spouse continues to live there for at least 5 years then the tax to pay works out at €120. If they decide to sell the property, the tax to pay would be around €550.
If it goes to a spouse and 2 surviving children over 21 then the taxable base would be 83000 (ish) and there would be no taxes to pay as the allowance of 100,000 more than covers that.
-
marcliff - Posts: 9694
- Joined: Sat Mar 03, 2012 4:41 pm
- Location: Doña Pepa 2
- Which part of Spain are you from?: Dona Pepa 2
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by Ron Hill » Thu Jul 06, 2017 1:17 pm
Any State Pension you receive is liable to income tax but it's paid to you gross (without any tax deducted). ... If your gross income is more than your personal allowance, you're liable to pay income tax on the amount that exceeds the personal allowance.
-
Ron Hill - Posts: 1253
- Joined: Thu May 14, 2015 11:48 am
- Location: Entre Naranjos
- Which part of Spain are you from?: Entre Naranjos
- Gender: Male
Re: What's best to have your pension sent to a Spanish bank
by marcliff » Thu Jul 06, 2017 2:31 pm
Ron Hill wrote:Any State Pension you receive is liable to income tax but it's paid to you gross (without any tax deducted). ... If your gross income is more than your personal allowance, you're liable to pay income tax on the amount that exceeds the personal allowance.
Not if you do it properly and send a certificate of tax residency in Spain to the HMRC in UK.
-
marcliff - Posts: 9694
- Joined: Sat Mar 03, 2012 4:41 pm
- Location: Doña Pepa 2
- Which part of Spain are you from?: Dona Pepa 2
- Gender: Male
Page 1 of 3 • 1, 2, 3
29 posts
• Page 1 of 3 • 1, 2, 3
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Spanish bank accounts
by YogiBear39 » Wed Apr 24, 2024 4:20 pm in Quesada general discussion - 7
- 328
-
by 300TDi
Thu Apr 25, 2024 9:53 am
-
Spanish bank accounts
-
-
Opening of first Spanish bank account
by Luckjockey » Fri Jan 12, 2024 8:03 am in Quesada general discussion - 8
- 373
-
by suzi wong
Sat Jan 13, 2024 12:17 pm
-
Opening of first Spanish bank account
-
-
Spanish tax on overseas bank account
by Brewingdog » Thu Jan 25, 2024 1:30 pm in Quesada general discussion - 8
- 371
-
by billogs
Fri Jan 26, 2024 7:36 pm
-
Spanish tax on overseas bank account
-
-
TRANSFER OF MONEY SPANISH BANK ACCOUNT TO UK
1, 2 by panchotaff » Wed Mar 13, 2024 11:08 am in Quesada general discussion - 17
- 531
-
by panchotaff
Fri Mar 15, 2024 9:20 am
-
TRANSFER OF MONEY SPANISH BANK ACCOUNT TO UK
-
-
UK Pension up
1, 2, 3 by Chrisdee » Wed Nov 22, 2023 3:12 pm in Quesada general discussion - 27
- 1099
-
by JCoop
Thu Nov 30, 2023 2:12 pm
-
UK Pension up
Return to Banking and finances
Who is online
Users browsing this forum: No registered users and 1 guest
Login
Find in Quesada
Quesada pages
Quesada discussion
- Quesada general discussion
- Banking and finances
- Broadband, Wifi, Phone and TV
- Buses and public transport in and around Quesada
- Driving to Spain / Car hire in Spain / Buying and owning a car in Spain
- Fiestas in Quesada
- Flights, baggage and airports
- Health services in Quesada
- Insurances and wills in Spain
- Items for sale and wanted in and around Quesada
- Interesting articles about Spain
- Jobs and careers in Quesada
- Lost and found in Quesada
- Market days
- Places to go for free Wi-Fi
- Recommended restaurants / cafes / bars
- Recommended Tradesmen and Companies
- Residency in Spain: padron, residencia and passport advice
- Safety / security information and property in Spain hints and tips
- Taxes in Spain: Suma, NIE and general tax advice
- Taxis in Quesada
- Things to do and places to go in and around Quesada
- Utilities in Spain: Electric, gas and water recommendations and advice
- Weather in Quesada
- Where to buy things in and around Quesada
- Where to hire things in and around Quesada
Properties discussion
Businesses and places in Quesada
- Bars and pubs in Quesada
- Beaches near Quesada
- Beauticians / Beauty salons in Quesada
- Bedding and soft furnishings shops in Quesada
- Butchers in Quesada
- Car dealers in Quesada: new and used car dealers
- Car garages, mechanics, tyre fitter centres in Quesada
- Car hire in Quesada
- DIY / Bricolage / Ferreteria stores in Quesada
- Equipment hire centers in Quesada
- Estate agents in Quesada
- Furniture shops in Quesada
- Garden centres and garden furniture shops in Quesada
- Golf Courses in Quesada
- Grills / gates / metal items shops in Quesada
- Hairdressers in Quesada
- Hotels, guest houses and bed and breakfasts in Quesada and nearby
- Internet service providers that cover Quesada
- Launderettes / dry cleaners in Quesada
- Markets in Quesada
- Medical / Health centers in Quesada
- Pet shops in Quesada
- Pharmacies / Chemist shops in Quesada
- Restaurants in Quesada
- Shopping centres in Quesada
- Sports centres and gyms in Quesada
- Supermarkets in Quesada
- Swimming pool services in Quesada
- Town Halls (Ayuntamientos) in Quesada
- Waterparks/Aquaparks in Quesada
- TalkQuesada » Board index
- The team • Delete all board cookies • All times are UTC [ DST ]
- Our other websites:
- Costa Blanca forum
- Costa Calida forum
- Costa del Sol forum
- Costa de Almeria forum
- Costa de la Luz forum
- Costa Dorada forum
- Costa Brava forum
- UK forum
- Jobs in the UK
- Our policies:
- Privacy policy
- User agreement
- Content policy
- Website created and operated by JSM Forum Websites