# Tax Efficient Savings in Spain?



## RPW (May 20, 2011)

Hi All,

After two years of working on our house, it looks like the major work is coming to a close, which means that we should have some cash to save. My question is, are there any, good, forms of tax-efficient savings here in eSpain? Or is our only option a cuenta naranja with ING? 

Looking at some of the rates around now, I'm wondering if we should just start putting stuff under the mattress to be honest!

Thanks,


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## Pesky Wesky (May 10, 2009)

RPW said:


> Hi All,
> 
> After two years of working on our house, it looks like the major work is coming to a close, which means that we should have some cash to save. My question is, are there any, good, forms of tax-efficient savings here in eSpain? Or is our only option a cuenta naranja with ING?
> 
> ...


Be careful with ING direst. Their great rates are only valid for the first few months!


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## Alcalaina (Aug 6, 2010)

Bank managers seem to have a lot more discretion here. You can often negotiate a better rate than the advertised rate for a fixed term bond, especially if you hint that you might be moving your money elsewhere!


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## 90199 (Mar 21, 2010)

I use a financial advisor, last time I checked the gain was averaging around 14%. However my advisor in in the U.K. but the investments are world wide.


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## snikpoh (Nov 19, 2007)

Hepa said:


> I use a financial advisor, last time I checked the gain was averaging around 14%. However my advisor in in the U.K. but the investments are world wide.


The real question that you should be asking is "are my investments held within a Spanish wrapper" even if the investments are world wide. 

If they aren't, then due to the new legislation updated recently, you can/will be stung very hard for Spanish tax.


Only wrappers that are approved for use in Spain are tax efficient - I know to my cost!

I now use an IFA in Spain who is up-to-date with the new legislation! I too have international investments but they are held in an approved, Spanish wrapper and so are extremely tax efficient.


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## 90199 (Mar 21, 2010)

My problem is that I have to pay U.K. tax on my income, I have no choice it is deducted at source. I do not have any income in Spain and therefore have never had to pay Spanish Tax. We have not yet succeeded in submitting a Spanish Tax return. If we have no income they are just not interested.

The investments were taken out over 15 years ago, long before I moved to Spain and any profits from them would also be taxed in the U.K. In view of what you say I shall have to take advice.


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## Stravinsky (Aug 12, 2007)

Hepa said:


> My problem is that I have to pay U.K. tax on my income, I have no choice it is deducted at source. I do not have any income in Spain and therefore have never had to pay Spanish Tax. We have not yet succeeded in submitting a Spanish Tax return. If we have no income they are just not interested.
> 
> The investments were taken out over 15 years ago, long before I moved to Spain and any profits from them would also be taxed in the U.K. In view of what you say I shall have to take advice.


I submit nil tax returns in Spain every year
If you are a tax resident here (which you automatically become after a period when you live here) then you are required to lodge an annual return.

Theoretically even your UK income is subject to Spanish tax, i.e. the difference between UK and Spanish tax


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## Goldeneye (Nov 12, 2011)

I read JSmineset most days and have followed him pretty much since 2001..
When he explained that the financial system would come under severe strain, countries will go bankrupt, property prices collapse, and on and on!!

In The News Today « Jim Sinclair's Mineset

The following was something he wrote last week..

According to Dean Harry Schultz, the way to live your life involves the following:

- Money in one country
- Citizenship in a different country
- Body in another country where neither your citizenship nor money resides.


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