Non-resident investment options

Angelhoney

I am 55 y.o. non-resident  (Spain) with 40,000 to invest after selling a part share of flat in UK.  Already done capital gains declaration etc so all good with HMRC.  However, I am unclear about the best way to invest this sum.  I know that I can't have an ISA and that savings accounts are not keeping up with inflation. I already have an OEIC with about 15,000 and an Aviva pension plan (90,000) .  Also I will have need around 10,000 of this pot to pay Spanish tax bill (due at end of June).  The rest could go into a longer-term investment of around five years.  Would I be best to transfer it into the OEIC or is there another alternative (transferring to Spain)?  Should also point out that I invest ethically. I'm really keen to learn more about smart money management so I can get the best from my savings - and would appreciate any advice about my situation. Thanks in advance!

eskbanker

Five years is still quite a short period to be considering investing, but it depends on what sort of cash buffer you have in terms of emergency fund, etc.  Investing within the UK when non-resident isn't without its challenges, but where do you hold your existing OEIC?

Difficult to offer specific guidance about what to do with the money without greater knowledge of fuller financial circumstances - what do you anticipate needing the money for, what other assets do you have, are you employed, when do you anticipate drawing pensions, is the £90K all you have in pensions, etc, etc?

dunstonh

Would I be best to transfer it into the OEIC or is there another alternative (transferring to Spain)? 

There are not many UK investments available to residents in the EU.  Passporting permissions ended with Brexit and most firms decided to not open offices in the EU, or in some cases certain EU countries.

Spanish options may well be more sensible.

Angelhoney

Thanks for replying @eskbanker and @dunstonh.  

Spanish options may well be more sensible

I'll look into that and get some advice from my Spanish accountant.
where do you hold your existing OEIC?
It's with Janus Henderson Global Sustainable Equity Fund

 what do you anticipate needing the money for, what other assets do you have, are you employed, when do you anticipate drawing pensions, is the £90K all you have in pensions, etc, etc?

I will need part of the money for a Spanish tax bill in June and December of this year.  I can split the payments up so may be can use some of my income from work (see below). Not got exact figures yet but estimated total between 10,000 - 15,000.   

I have 50,000 coming from my sister (it's still in her name at the moment) She's a UK resident and we haven't decided what to do with this money - we thought it may be an option to put it in an ISA under her name (she hasn't got one as her money is tied up in UK properties) until I am clearer about what I am going to do.   Probably best to go to the pension fund!

I've been out of the loop over the last six years due to chronic health issues but now I am partly recovered and recently started to develop some online work (writing/VA).  Hopefully this will grow into a regular and sustainable source of income to support me for the next few years.. Not got figures for that yet as still in early stages and it's a bit of an experiment to see what I can create and manage.   During the period when I was really unwell I lost my job and had to give up my flat (rented in Spain).  At the moment, I don't have a permanent home as such (fiscal address in Spain) and move around - pet-sitting/exchanges/volunteering so my current overheads are low.  No children or partner and no debt.  
Not really got fixed age for retirement as I love writing and would be quite happy to carry on until I run out of steam! Plus I realize that I haven't got much of a pension pot so I looks like I'll need to keep going after 65. Basically plan would be to delay drawing down as long as possible. 
I had initially thought about trying to buy a small property (or tiny home!)in Spain by putting all the money together but I don't think that's an option with the current financial state.  I would prefer not to rent but I don't really think I can afford something of my own.  

eskbanker

Angelhoney said:

Thanks for replying @eskbanker and @dunstonh.  

Spanish options may well be more sensible

I'll look into that and get some advice from my Spanish accountant.
If you have a Spanish accountant then they're likely to be a better bet than UK-based forum posters, although accountancy and financial advice are different disciplines.

where do you hold your existing OEIC?
It's with Janus Henderson Global Sustainable Equity Fund
That wasn't really the question, I was meaning via which platform in which country.  If it's a UK platform, do they know you're not resident in the UK?

 what do you anticipate needing the money for, what other assets do you have, are you employed, when do you anticipate drawing pensions, is the £90K all you have in pensions, etc, etc?

I will need part of the money for a Spanish tax bill in June and December of this year.  I can split the payments up so may be can use some of my income from work (see below). Not got exact figures yet but estimated total between 10,000 - 15,000.   

I have 50,000 coming from my sister (it's still in her name at the moment) She's a UK resident and we haven't decided what to do with this money
Curious about the 'we' there, what role does she play in deciding what you do with your money?

 - we thought it may be an option to put it in an ISA under her name (she hasn't got one as her money is tied up in UK properties) until I am clearer about what I am going to do.
Not a good idea in general to blur boundaries about ownership of money, but doing so in a tax-privileged account is even less so.

Probably best to go to the pension fund!
If it's money intended for retirement then yes, that's what pensions are designed for!  Whether that should be the UK pension (if this is even possible) or a Spanish one is worth addressing, but I don't know enough about Spanish rules, and in particular how much of that money can go into a pension if you're not earning much.

I've been out of the loop over the last six years due to chronic health issues but now I am partly recovered and recently started to develop some online work (writing/VA).  Hopefully this will grow into a regular and sustainable source of income to support me for the next few years.. Not got figures for that yet as still in early stages and it's a bit of an experiment to see what I can create and manage.   During the period when I was really unwell I lost my job and had to give up my flat (rented in Spain).  At the moment, I don't have a permanent home as such (fiscal address in Spain) and move around - pet-sitting/exchanges/volunteering so my current overheads are low.  No children or partner and no debt.  
Not really got fixed age for retirement as I love writing and would be quite happy to carry on until I run out of steam! Plus I realize that I haven't got much of a pension pot so I looks like I'll need to keep going after 65. Basically plan would be to delay drawing down as long as possible. 
I had initially thought about trying to buy a small property (or tiny home!)in Spain by putting all the money together but I don't think that's an option with the current financial state.  I would prefer not to rent but I don't really think I can afford something of my own.  
No idea what buy-to-let conditions are like in Spain but it's less of a moneyspinner in the UK than it used to be - however, you obviously need somewhere to live, so that last sentence is key.

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