Draw down of ISA whilst resident in Spain

Woodster123

Originally posted on the ISA thread-
Please can anyone confirm that this is the current situation:
I aim to be resident in Spain whilst drawing down a monthly income from the body of my ISA. I understand that any gains / interest will no longer be tax free and will be subject to taxation in Spain. The funds drawn down will not count towards annual income as it is money that i have already paid tax on in the UK prior to investing, in short there is no difference in drawing down from an ISA to withdrawing from a bank account.
I also understand that the total value of the ISA must be declared to Spanish authorities which then may be liable to Spanish wealth taxation.
Thanks very much-not so much of question just seeking confirmation i have got the general situation clear.

agrinnall

While you may be lucky and find that someone on here has a good enough knowledge of the Spanish tax system to answer those parts of your query you might be better to ask on an expat forum where people live with this stuff day in day out.

[Deleted User]

Dividends from the ISA (stocks and shares) will be taxable in Spain as I think savings income but they will be taxed
And any sale of funds again will be taxed at CGT rates in Spain.
Spain doesn't care what the tax situation was on the way in, unless its in a pensions wrapper
(then the drawdown of the pension is classified as income and taxed as income)
You can put things in order if you are not tax resident in Spain within the Spanish tax year (Jan to Dec)- ie you moved after 23 July 2019 (183 days resident) if you moved later be careful long holidays taken in the tax year but before you moved still count.
The big catcher (for info) is selling your UK house and not investing or planning to invest ALL of the proceeds in a Spanish property before moving to Spain but being tax resident. ie sold in January moved in June. You will pay CGT on the sale of your UK house. And naturally your pension TFLS is treated as income if you are deemed tax resident as well.
You don't go to Spain for the tax freedoms
Naturally you will need to confirm this with a Spanish tax accountant - this is just my reading of the laws. And yes I am planning to be a resident there soon - and am organising my finances so I don't get caught

Woodster123

Thanks very much, let me get this straight-lets say i have completely sold up in the UK at lets say £200,000, i then buy in Spain the following month at £150,000-are we saying that even though i am not yet resident in Spain i would be liable for CGT

[Deleted User]

Woodster123 wrote: »

Thanks very much, let me get this straight-lets say i have completely sold up in the UK at lets say £200,000, i then buy in Spain the following month at £150,000-are we saying that even though i am not yet resident in Spain i would be liable for CGT

Yes if you bought in the same Spanish tax year and were tax resident under the 183 day rule.
If you sold in August and bought in September - then you would be fine (but don't quote me ) - as you are not tax resident until the next year. If you bought in May then sold in June then you would be liable for Spanish CGT as you are tax resident that year - irrespective if you were still in the UK when you sold
To keep things on my aspect all sorted I am selling in Autumn and moving into rented until going to Spain and buying the next year
Please - comes with a stack of caveats as I am not a Spanish tax accountant just somebody who has done a lot of reading of forums, posts and the Blevins Franks Spanish tax book