# Transferring money to Spain



## Gipsy (Nov 20, 2017)

I would like to know the laws, taxes and conditions regarding transferring money to Spain (from Australia),once starting to be a resident as a Spanish citizen... 
Any advices, link or sharing relevant experience? What professional should i consult if necessary.. an accountant or a lawyer... Thanking you in advance.


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## Alcalaina (Aug 6, 2010)

I don't think there are any conditions, unless you are talking very large amounts? Use an online currency exchange broker such as CurrencyFair, who will transfer funds from your AUD account into your Spanish euro account and do the conversion at a rate that is better than most banks will give you, for a flat-rate €3 fee. You will have to indicate the source of the money, e.g. savings, property sale, pension, salary ... That's because of anti-money laundering legislation.

Once you are living in Spain, you will of course have to declare your income for tax purposes wherever it comes from, but there is no tax on the actual transfer.


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## Barriej (Jul 23, 2012)

I use XE and have transferred monies from the UK to Spain and from the UK to Australia and each time I have had no issues.
XE do not charge because they make their money on the spread and on the time of transfer. 

And like other currency exchange companies you have to give a reason for the transfer.

I also use it to move money from my bank account here in the uk to my Spanish bank account just to save on the charges and exchange rates.


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## Gipsy (Nov 20, 2017)

Alcalaina said:


> I don't think there are any conditions, unless you are talking very large amounts? Use an online currency exchange broker such as CurrencyFair, who will transfer funds from your AUD account into your Spanish euro account and do the conversion at a rate that is better than most banks will give you, for a flat-rate €3 fee. You will have to indicate the source of the money, e.g. savings, property sale, pension, salary ... That's because of anti-money laundering legislation.
> 
> Once you are living in Spain, you will of course have to declare your income for tax purposes wherever it comes from, but there is no tax on the actual transfer.


Thanks Alcalaina... the last info... this is what i am after, so i guess i wasnt clear and should edit my question...

How much will i be taxed on that money once on a Spanish bank account? And are there any other rules & conditions i should be aware... we are not talking of millions of euros here, but it will be the money from selling a house...

??


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## Gipsy (Nov 20, 2017)

Gipsy said:


> I would like to know the laws, taxes and conditions regarding transferring money to Spain (from Australia),once starting to be a resident as a Spanish citizen...
> Any advices, link or sharing relevant experience? What professional should i consult if necessary.. an accountant or a lawyer... Thanking you in advance.





Barriej said:


> I use XE and have transferred monies from the UK to Spain and from the UK to Australia and each time I have had no issues.
> XE do not charge because they make their money on the spread and on the time of transfer.
> 
> And like other currency exchange companies you have to give a reason for the transfer.
> ...


Thanks Barriej. Is XE the name of the actual company? How does it compare to Transferwise, do you know?


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## Lynn R (Feb 21, 2014)

Gipsy said:


> Thanks Alcalaina... the last info... this is what i am after, so i guess i wasnt clear and should edit my question...
> 
> How much will i be taxed on that money once on a Spanish bank account? And are there any other rules & conditions i should be aware... we are not talking of millions of euros here, but it will be the money from selling a house...
> 
> ??


Unless you are over the threshold for Spanish wealth tax (€700k per person with an additional €300k allowance for your principal residence) you will not be taxed on capital in the bank, only on any income derived from it. Any interest should be declared on your annual Spanish tax return, along with any earnings or pensions.

If you will still have at least €50k in any asset class (property, shares, funds in bank accounts, etc) in Australia, you will have to submit a declaration of overseas assets (the Modelo 720) each year in addition to your income tax return, and declare any interest/dividends/rental income derived from them on your tax return.


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## Michael Kelly (May 30, 2017)

AFAIK you need the permission of the Banca de Espana if the amount is over a certain limit but I can't remember how much. ( I think it is 10,000 euro )


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## Gipsy (Nov 20, 2017)

Lynn R said:


> Gipsy said:
> 
> 
> > Thanks Alcalaina... the last info... this is what i am after, so i guess i wasnt clear and should edit my question...
> ...


Thank you so much Lynn, exactly the info i need 🙏🙏

What does mean : 
'with an additional €300k allowance for your principal residence' ??

Also, do i understand well that i could still have some income in Australia while residing in Spain, under 50k per year, and not be taxed?


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## Gipsy (Nov 20, 2017)

Michael Kelly said:


> AFAIK you need the permission of the Banca de Espana if the amount is over a certain limit but I can't remember how much. ( I think it is 10,000 euro )


Thank you Michael.
What does mean AFAIK?

I guess i could find the max amount on internet doing some research...


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## xabiaxica (Jun 23, 2009)

Gipsy said:


> Thank you so much Lynn, exactly the info i need 🙏🙏
> 
> What does mean :
> 'with an additional €300k allowance for your principal residence' ??
> ...


No. All worldwide income is taxable in Spain, subject to any bilateral tax agreements.


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## Gipsy (Nov 20, 2017)

xabiaxica said:


> No. All worldwide income is taxable in Spain, subject to any bilateral tax agreements.


Ok..

(I doubt Spain and Australia would have such an agreement)

Thanks


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## xabiaxica (Jun 23, 2009)

Gipsy said:


> Ok..
> 
> (I doubt Spain and Australia would have such an agreement)
> 
> Thanks


You might be surprised

http://internationaltaxtreaty.com/download/Australia/dtc/Australia-Spain-DTC-Mar-1992.pdf


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## Lynn R (Feb 21, 2014)

Gipsy said:


> Thank you so much Lynn, exactly the info i need 🙏🙏
> 
> What does mean :
> 'with an additional €300k allowance for your principal residence' ??
> ...


It means that you and your husband could jointly own a property worth up to €600k without it counting towards your assets for the purposes of wealth tax. If the property is owned in a single name then only the named owner would benefit from the €300k allowance.

No, as others have said, income from Australia, however much it may be, would need to be declared on your Spanish tax return and the amount of tax payable would depend on any dual taxation treaty between the two countries. It is the ASSET (ie property, shareholdings, funds in bank accounts, etc), not the income derived from them, which must be declared on the Modelo 720. This is so that the Spanish tax authorities can check that any income from those assets is being declared as it should be. The financial penalties for failure to declare or under declaring such assets are very high.

By the way, be careful about the timing of your move to Spain if you sell your property in Australia in the same Spanish tax year (1 January - 31 December) as you become tax resident in Spain. As you probaby know, you are considered tax resident if you have spent 183 days or more in Spain during the tax year (and that period does not have to be consecutive so a number of shorter visits added together all count). If you sold between 1 January and 30 June, for example, it would be better not to move to Spain until 2 July or later, otherwise you would be potentially liable for Spanish capital gains tax on the sale of your property in Australia (and as was pointed out earlier in the thread you would have to declare the source of your funds when transferring them to Spain). If you move after 2 July (provided you haven't spent any other time in Spain earlier in the year) then you wouldn't become tax resident until 1 January the following year.


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## Gipsy (Nov 20, 2017)

Lynn R said:


> Gipsy said:
> 
> 
> > Thank you so much Lynn, exactly the info i need 🙏🙏
> ...


Very precious info and details Lynn. I understand better. Thank you so much.


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## Gipsy (Nov 20, 2017)

xabiaxica said:


> Gipsy said:
> 
> 
> > Ok..
> ...


Thank you very much xabiaxica !!!


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## Barriej (Jul 23, 2012)

Gipsy said:


> Thanks Barriej. Is XE the name of the actual company? How does it compare to Transferwise, do you know?


Sorry for the delay.

Yes they are XE they are part of a group of companies run from Canada.

The one thing to remember is who ever you use make sure that they are authorised by the Financial Conduct Authority (FCA). That way you know your money is safe should anything happen.

I can't comment on any of the others as Ive only ever used XE.


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