# money/banking



## musie (Dec 23, 2014)

hi all 
we have put house up for sale stage 1 !
we are aware that we require a Spanish bank account to purchase property this we will set up in march when we go property hunting along with NIE ,but which is it better, to have my pension paid into English account or Spanish and do I have to pay tax on it 
cheers
musie


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## alborino (Dec 13, 2014)

musie said:


> hi all
> we have put house up for sale stage 1 !
> we are aware that we require a Spanish bank account to purchase property this we will set up in march when we go property hunting along with NIE ,but which is it better, to have my pension paid into English account or Spanish and do I have to pay tax on it
> cheers
> musie


Hi musie be careful you don't get taxed on house sale. You need to be a non Spanish tax payer for the year you sell unless you can show you are selling at a lose.

Which bank your pension goes in to is not important. What is important is the cost of the currency exchange. So ideally you want it into a UK account, then you exchange using a good, secure but cheap exchange, and the Euros can be paid directly to your Spanish account.

Yes you pay tax on it. Depends on type of pension but the UK most likely will pay net. Then you declare it in Spain and they won't tax you twice but depending on circumstances you be asked to pay a little more in Spain.

HTH

ps Hope Sean keeps you guys up. I'm Watford and we are still very fond of what Sean, a real gent, did with us  Apologies if football is not your thing.


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## snikpoh (Nov 19, 2007)

musie said:


> hi all
> we have put house up for sale stage 1 !
> we are aware that we require a Spanish bank account to purchase property this we will set up in march when we go property hunting along with NIE ,but which is it better, to have my pension paid into English account or Spanish and do I have to pay tax on it
> cheers
> musie


You certainly need income coming into a Spanish bank or you won't be able to get your 'certificate of registration' (residencia). These days one really needs this document to carry out many Spanish functions.

It really depends what type of pension you have (state, private, government etc.).


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## 90199 (Mar 21, 2010)

Pay your pension into a U.K. account, set up an account with a U.K. currency dealer, I use Smart Currency Exchange in London, but there are plenty to choose from, they will at your request transfer your money when you want, monthly or when the exchange rate is favourable. The commission is nil if you transfer over 3000 GBP and the exchange rates are far far better than Banks.

My Govt. pension is taxed in the U.K., my O.A.P. is declared for tax in Spain and because my income in Spain is low it is rare I pay tax here, however all my income is declared here. I pay an accountant to submit my tax return here, I don't have to fill one in for the U.K. tax authorities.


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## musie (Dec 23, 2014)

alborino said:


> Hi musie be careful you don't get taxed on house sale. You need to be a non Spanish tax payer for the year you sell unless you can show you are selling at a lose.
> 
> Which bank your pension goes in to is not important. What is important is the cost of the currency exchange. So ideally you want it into a UK account, then you exchange using a good, secure but cheap exchange, and the Euros can be paid directly to your Spanish account.
> 
> ...


i have a small NHS pension of 500 pound a month will i get taxed on that small amount ,yes Burnley doing well at the moment some good players ,good manager was a long time coming no stability for a while ,we live near where they train see them when i go running 
cheers


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## Alcalaina (Aug 6, 2010)

Have your State pension paid directly into your Spanish account, to get the best possible exchange rate and no delays. It will also enable you to get commission-free banking in Spain (known as a _cuenta nómina_, where they waive fees provided there is a regular monthly deposit of €600+). 

For anything else, do as Hepa suggests and transfer lump sums when the exchange rate is good.


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## Alcalaina (Aug 6, 2010)

musie said:


> i have a small NHS pension of 500 pound a month will i get taxed on that small amount


If that's your only income, you are well below the level at which you would be taxed.


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## snikpoh (Nov 19, 2007)

Alcalaina said:


> If that's your only income, you are well below the level at which you would be taxed.


... but you are still obliged to submit a tax return in Spain.


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## Alcalaina (Aug 6, 2010)

snikpoh said:


> ... but you are still obliged to submit a tax return in Spain.


True. And if you have paid tax on any savings interest (withheld by the bank), that's how you get it back.


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## stmary (Dec 30, 2012)

Hi,just picking up on what was said regarding paying Spanish Tax on UK sale of property,we are thinking of selling up next year and moving to Spain also,we bought our home for 135000 and are hoping to get 155000 for it when selling ,does this mean we have to pay Spanish govt Tax on the 20000 profit,and if so,at what percentage? Any advice on this would be appreciated.


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## snikpoh (Nov 19, 2007)

stmary said:


> Hi,just picking up on what was said regarding paying Spanish Tax on UK sale of property,we are thinking of selling up next year and moving to Spain also,we bought our home for 135000 and are hoping to get 155000 for it when selling ,does this mean we have to pay Spanish govt Tax on the 20000 profit,and if so,at what percentage? Any advice on this would be appreciated.


It's more complicated than that so my advice would be to take official advice.

If you are intending to buy again in Spain as your main home, then you won't pay any CGT (as I understand it).


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## alborino (Dec 13, 2014)

stmary said:


> Hi,just picking up on what was said regarding paying Spanish Tax on UK sale of property,we are thinking of selling up next year and moving to Spain also,we bought our home for 135000 and are hoping to get 155000 for it when selling ,does this mean we have to pay Spanish govt Tax on the 20000 profit,and if so,at what percentage? Any advice on this would be appreciated.


Basically yes but:

The profit is reduced based on inflation and investments made (like a value added new kitchen if you have the paper work).
Then you can carry forward the liability into your new purchase under the right circumstances but be aware that there is a time limit on this and you will likely need to pay an accountant to handle it.
And by carrying forward into your new property beware how that is handled if you leave the house as an inheritance (or want to sell it in the future).

Of course the above I have extracted from 'official advise' as snikpoh puts it. Personally based on the limited info I have I'm getting rid of my CGT issues prior to being tax resident in Spain. 

You can find on various forums comments like "well I didn't pay any and I didn't need to declare it". Sadly in Spain it is your problem to declare and pay taxes and they can come and get you any time so as snikpoh says get advise (if you can, it isn't easy) and always play safe. Good luck


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