Inheritance

noh

With the exchange rate at the moment we would lose a considerable amount by transferring the money over here.

You are not losing anything.
You will get a less favourable rate than say a year ago but you didn't have the money then.
Do you know which way the GBP EURO exchange rate is going? If you wait before exchanging it will you be better or worse off?

JamesU

RayWolfe wrote: »

If you consider yourself to be Spanish to all intents and purposes, invest the money in Spain. No conversion problems, no further UK ties. Sorted!

RayeWolfe’s reasoning makes a lot of sense. I do not understand why you have a problem here.

In the UK, Barclays could easily meet your needs. It is straightforward to hold balances in both Euro and Sterling accounts, transactional costs on the exchange between currencies in the accounts are competitive relative to other high street banks, and the whole process is easy to do any working day over the phone using a dedicated number. Very importantly, the exact rate of exchange is specified on the phone there and then, a serious consideration on larger currency transactions. Some banks e.g. Lloyds provide a similar facility but the exchange rate you get on the day can be less well-defined and you can loose out a lot during the currency exchange due to their "minor fluctuations" during the day when the cash is switched, and this always work to the bank’s advantage. Others may recommend alternative UK banks on the transactional side, just be sure you choose one that accurately defines the exchange rate. Obviously, deciding on which currency to hold as the best option depending on future exchange rate prospects is a personal choice. Barclays is well established in Spain and it is quite likely you can set up a similar facility there, Spanish link to Barclays below.

As a UK non-resident I guess you must be already familiar with any tax efficient strategies for minimizing income tax and CGT between the countries. Post inheritance, CGT may be relevant when you are exchanging between the currencies and make a profit. And of course, from the UK perspective there is IHT to consider despite the fact you are UK non-resident, as the property is situated in the UK. The transactional side is pretty trivial, but the tax considerations are probably more important. Link below on an excellent book on the taxation of UK non-residents which may help if you need clarification on any of these matters.

JamesU


https://www.barclays.es/publico/contents/particulares/particulares_home.jsp?lang=en_UK

http://www.taxcafe.co.uk/non-resident-offshore-tax.html