Recommend a Tax/Financial advisor Spain/UK

Hi all,

Looking specifically for somebody who knows the tax laws of both countries affecting a move to Spain from the UK (EU Passport holder). Particularly in regards having savings in the bank and all the various traps, etc.

I already know lump sums and UK house sales in the same Spanish tax year are targets, but want to make sure I am aware of everything.

Many thanks,

Mac

Once you become tax resident in Spain, be aware that all interest on savings etc must be declared and will be taxed. That includes any money you hold in isas, premium bond wins etc. Things that are tax free in the uk are not tax free here.Having said that, savings interest etc is taxed in a specific way, ( @19%, 21% etc) it is not lumped in with your general income, so depending on your personal circumstances you may be paying a lower rate on the interest than you pay onyour employment/pension income.

Also if you cash in or drawdown money from a money pot pension you wont get the 25% tax relief you would get in the uk. Ditto for any lump sum from an occupational pension. Not tax free here.So if you are going to be taking money from a pension, bear that in mind when planning the timing of your switch of tax jurisdictions.

Also as well as your annual tax return, if your assets held outside Spain ( property, savings, investments etc) amount to more than £50k in value you need to declare these to the Spanish tax office, possibly as often as every year, in excruciating detail. ( The notorious ' modelo 720'.) You are not taxed on the existence of the assets but you have to declare them. Fortunately the EU courts forced Spain to abolish its punitive approach to any omissions or errors in the declaration , but there are still penalties for non compliance. There is a Wealth tax as well but you dont need to worry about that too much unless all your assets ( individual, not joint) exceed c £1m. There are allowances for main residence etc.

It may be difficult to find someone ( and I mean even among the paid professionals) who truly understands all the complexities of BOTH jurisdictions. You will be able to find a good Spanish tax advisor to help with spanish tax return, modelo 720 etc ( Esther at SGM Abogados is pretty good , and helpful) but they won't necessarily grasp all the intricacies of HMRC.

If you have a lot of assets and your personal situation is complex, the likes of Blevins Franks would probably be able to deal with the two jurisdiction knowledge but they will of course charge you an arm and leg. Or you can have two advisers, the spanish one and a separate uk one.

The European passport or nationality doesn't really matter in any of this. Makes no difference in relation to tax residency. ( Of course there can be some issues to do with tax domicile etc if your situation is complex, but thats more linked to if your situation is complex and there's a question over your primary tax residency etc, which wont be relevant for most people.)

Thanks, Shiva.

No, my situation is far from complex; pretty simple really. Following a change of plan, I will have my pension pot lump sum and the sale money from my house and just want to make sure I don't fall into any traps once I move to Spain, so I will be making sure I move to Spain in a different tax year.

As I see it, I will pay Spanish tax on my work pension and the interest from my savings once I become a Spanish resident. Especially if I leave my money in a UK savings account (bearing in mind the £85,000 FCSC, so it will be in a couple of banks) and do not indulge in shares or ISAs, etc. From my homework I believe the Spanish tax would be 23% I also assume this is subject to the Double Taxation Convention, but would want that clarified.

I have pathetic shares in Santander and National Grid and they genuinely pay a Starbucks Coffee in dividends (they were free when Abbey was bought out).

I am already in touch with SMG as I was going to get my NIE later this month when I am over and I guess when the time comes I would be happy to use them for the Modelo 720 and my taxes.

Best,

Mac

look up UK TAX REFUNDS in Campello, they have both UK and Spanish tax experts and are brilliant.
As an example, for newly registered residential Expats, they can obtain refunds of up to the last 5 years of uk tax charges.
They will deal with both UK and Spanish taxes and the F790 and their charges are reasonable.

eboracum wrote:look up UK TAX REFUNDS in Campello, they have both UK and Spanish tax experts and are brilliant.
As an example, for newly registered residential Expats, they can obtain refunds of up to the last 5 years of uk tax charges.
They will deal with both UK and Spanish taxes and the F790 and their charges are reasonable.

Thanks!