# Spanish, UK, Offshore ACs, tax, etc?



## brocher (Mar 21, 2011)

Well, my daughter is really enjoying life and work in Spain - and will definitely be staying for another year or two! After that, who knows!

This means that a little more attention is required to get "her affairs in order."

Meantime, savings are all in ISA's but I've just realised (from another thread) that they can't be transferred into another ISA if the account includes a bonus interest period before falling to zilch. 

I'm thinking she could open another Uk savings account now, while she is still UK tax resident, to transfer ISA's or other savings into in due course. 

Or-open a Spanish savings account. This may not be such a good idea with the state of the euro and because she is not, at this stage, necessaarily planning to stay in Spain for life!

Or - open an offshore account, but I seem to recall several of you expressing dis-satisfaction with the banks operating your accounts. I also notice that with most of them, your money is not protected should the bank fail.

Any thoughts based on your experiences - and anything else worth doing while still UK tax resident (this will cease for her this April). 

Thanks


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## Lucie123 (Dec 7, 2011)

Does she have alot of money in the ISA ie more than one years allowance. cause if you close the isa's theres the issue of losing the tax free status. if theres only one years allowance in them maybe best to just close them and open a new normal savings account just before her tax status changes and have the bonus for another year which will cover her while shes away


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## brocher (Mar 21, 2011)

No, like you there's a bit built up over the years and luckily, most of it is in an ISA which has a permanent good rate. 

Only a little bit in an ISA which includes the one year bonus nusiance type account! Won't be closing it early -just looking at the alternatives for when it does drop - and at any other good tips others have picked up along the way in terms of savings, tax, etc!


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## Stravinsky (Aug 12, 2007)

As far as interest is concerned you can probably do better in Spain, according to my recent research

Theres also Banco Sabadell, where they were offering 5% last time I looked, andf they have both Sterling and € accounts

In theory offshore doesnt help you tax wise, because as a Spanish resident your worldwise income is subject to Spanish tax, but there again I guess it depends what you declare to the authorities


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## snikpoh (Nov 19, 2007)

Stravinsky said:


> As far as interest is concerned you can probably do better in Spain, according to my recent research
> 
> Theres also Banco Sabadell, where they were offering 5% last time I looked, andf they have both Sterling and € accounts
> 
> In theory offshore doesnt help you tax wise, because as a Spanish resident your worldwise income is subject to Spanish tax, but there again I guess it depends what you declare to the authorities


Do you know which account this was as the best I can find with them is 3% and has some restrictions.


For the OP, as far as I know, banks in Spain now guarantee up to 85k euros.


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## Lucie123 (Dec 7, 2011)

brocher said:


> No, like you there's a bit built up over the years and luckily, most of it is in an ISA which has a permanent good rate.
> 
> Only a little bit in an ISA which includes the one year bonus nusiance type account! Won't be closing it early -just looking at the alternatives for when it does drop - and at any other good tips others have picked up along the way in terms of savings, tax, etc!



i guess re the money thats in the one year bonus account it depends when the bonus runs out and if she will still be a uk tax resident at the time. also depends on how long she intends to be in spain.aslong as she does something with it before she loses her tax status the question is whether she goes maybe for a two year fixed rate for example to tide her over if shes gonna be in spain for that time or just put it in a variable account which will prob have a one year bonus

the money thats got a permanant goid rate. i presume thats a fixed rate account for x amount of years?


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## Stravinsky (Aug 12, 2007)

snikpoh said:


> Do you know which account this was as the best I can find with them is 3% and has some restrictions.
> 
> 
> For the OP, as far as I know, banks in Spain now guarantee up to 85k euros.



Yes they always have restrictions, as in the UK. I think it is guaranteed for 6 months and reviewed. It was 5% last time I looked for those 6 months, maybe its dropped


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## 90199 (Mar 21, 2010)

Why not seek advice from a financial advisor? I use one, the returns in recent years have been 10 to 14%.


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## brocher (Mar 21, 2011)

Lucie123 said:


> i guess re the money thats in the one year bonus account it depends when the bonus runs out and if she will still be a uk tax resident at the time. also depends on how long she intends to be in spain.aslong as she does something with it before she loses her tax status the question is whether she goes maybe for a two year fixed rate for example to tide her over if shes gonna be in spain for that time or just put it in a variable account which will prob have a one year bonus
> 
> the money thats got a permanant goid rate. i presume thats a fixed rate account for x amount of years?


No, Lucie, there are some decent accounts that have no fixed term, if you have a hunt around the comparison sites. Of course there is no guarantee they won't drop rates in the future.


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## Lucie123 (Dec 7, 2011)

Yeah but they are just variable accounts so the rate could drop at any time. or they have a bonus for one year. only a fixed rate will hive u a long term decent rate


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## brocher (Mar 21, 2011)

Hepa said:


> Why not seek advice from a financial advisor? I use one, the returns in recent years have been 10 to 14%.


Of course we can use a financial advisor - probably need an introduction to yours if you're still making those kind of returns!

I wasn't really looking for that kind of advise here - more the kind of " avoid so and so - they have been a real pain and charge a fortune for transfers" or "we thought it would be a good idea to do such and such but with hindsight it would have been better to do this other thing) - if you get my drift?!? 

I have seen people here moan about such things, but sadly, didn't pay enough attention!


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