# UK Bank but living in Spain



## nearly (Jul 28, 2015)

Hi,
Can someone advise, if i am living in Spain full time and have a spanish bank account, but also have a UK bank account for spending when i visit, how do i get on with not having an address in UK for bank to link account to and tax purposes.

Thanks
Neil


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## baldilocks (Mar 7, 2010)

nearly said:


> Hi,
> Can someone advise, if i am living in Spain full time and have a spanish bank account, but also have a UK bank account for spending when i visit, how do i get on with not having an address in UK for bank to link account to and tax purposes.
> 
> Thanks
> Neil


Most UK banks will allow you to keep an existing UK bank account open when you move to Spain BUT, you can't open new account without a UK address. I have a Spanish account into which my OAP is paid direct but I also have a couple of piddly little occupational pensions that it would cost more than they are worth to transfer/have paid into a Spanish account so I leave them in a UK account to pay for purchases in UK (Amazon, e-bay, Boots, etc) and occasionally transfer a lump sum to Spain.


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## nearly (Jul 28, 2015)

baldilocks said:


> Most UK banks will allow you to keep an existing UK bank account open when you move to Spain BUT, you can't open new account without a UK address. I have a Spanish account into which my OAP is paid direct but I also have a couple of piddly little occupational pensions that it would cost more than they are worth to transfer/have paid into a Spanish account so I leave them in a UK account to pay for purchases in UK (Amazon, e-bay, Boots, etc) and occasionally transfer a lump sum to Spain.


Thank You 

I was concerned, once i sold my house that i would have to find a relative to have my post and register bank to them.

So, if we were to keep UK bank accounts and transfer lump sums each month to pay for bills in Spanish account, do we get penalised in any way because of UK taxes and then Spanish taxes.


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## mrypg9 (Apr 26, 2008)

nearly said:


> Thank You
> 
> I was concerned, once i sold my house that i would have to find a relative to have my post and register bank to them.
> 
> So, if we were to keep UK bank accounts and transfer lump sums each month to pay for bills in Spanish account, do we get penalised in any way because of UK taxes and then Spanish taxes.


It's simple....if you are resident for more than 183 days in one year you are deemed a Spanish tax resident and you need to see an accountant or gestor to arrange this for you. As in the UK, you must declare all income from any sources.
If you have a UK pension which is subject to a Double Taxation Order then you will pay tax on that in the UK and not in Spain although you must declare it to Hacienda with any other income.
Where you keep your money is a separate issue. You can have accounts in any country in the world and move your money as you wish.
Any assets you hold anywhere must be declared to Hacienda if over 50k euros, Modelo 270, but any revenue they should be declared as part of your income.


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## baldilocks (Mar 7, 2010)

nearly said:


> Thank You
> 
> I was concerned, once i sold my house that i would have to find a relative to have my post and register bank to them.
> 
> So, if we were to keep UK bank accounts and transfer lump sums each month to pay for bills in Spanish account, do we get penalised in any way because of UK taxes and then Spanish taxes.


As I understand it, you shouldn't do. The income is received in UK so will be subject to UK taxes but since you are taxed by the Spanish authorities on your world-wide income, the tax in UK should be offset against that payable in Spain. HOWEVER, if you are tax resident in Spain, (i.e. your centre of economic interest is in Spain or you are here for more than 183 days in a calendar year [Jan - Dec]) then you can apply to HMRC to have your income in UK paid tax free.

I am no tax expert so you should seek professional advice.


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## Overandout (Nov 10, 2012)

There are sterling bank accounts in the UK for non-UK residents. These will also let you be paid gross interest (no tax deductions).


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## Lynn R (Feb 21, 2014)

Overandout said:


> There are sterling bank accounts in the UK for non-UK residents. These will also let you be paid gross interest (no tax deductions).


I know that not all banks are williing to do this, but the bank where I have my current account and a savings account (First Direct) also pays the interest gross after I obtained the right form from HMRC (sorry I can't remember the form number). That's for ordinary accounts not special ones for non-UK residents.


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## Goatherd (Feb 19, 2010)

You will be pleased to know that from next year you will be able to open a bank account in the UK whilst living in Spain..... New law.


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