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  • FIRST POST
    • arnhemrd
    • By arnhemrd 6th Aug 18, 3:18 PM
    • 39Posts
    • 3Thanks
    arnhemrd
    Spanish tax on UK ISAs.
    • #1
    • 6th Aug 18, 3:18 PM
    Spanish tax on UK ISAs. 6th Aug 18 at 3:18 PM
    I posted the following on the saving and investment forum but didn't generate any relevant replys, so apologies for doubling up on the post.
    I am a UK citizen, retired, and turn 65yrs in June 2019. I have a property in Spain and also in the UK.
    I am looking to sell the house in the UK next year and become Spanish resident and move over to Spain full time.
    At the moment I am a non tax payer on my private pension, but may pay a small amount of tax, at UK allowances, when my state pension kicks in. I realize that i will have to declare this income to the Spanish taxman and pay Spanish tax instead.
    I have stocks and shares ISA's amounting to around 350k, plus around 40k cash, and will also have the proceeds from the UK house sale. I understand that I may have to pay Spanish capital gains tax on this sale
    My question is, what is the best way to keep my stocks and shares ISA's tax free, if any?, as i understand that these will become taxable on my being resident in Spain.
    Hopefully i will never need to touch these ISA's so is there any way that these could be 'frozen' for example, no money in and no money out, just let the funds accumulate, until i return to live in the UK or upon my demise.
    I would obviously like to keep the UK tax free investments wrapper if possible, or is there any sort of alternative investments to keep from paying tax on these investments. I don't want to cash these in after years of ISA contributions to keep in a bank account paying little interest.
    If it isn't possible to keep the tax free wrappers on the ISA's, how would the tax on the gains, or indeed the losses, be worked out. Are the dividends and capital growth still classed as a gain if i don't actually draw anything out whilst I'm a Spanish resident?
    I don't imagine that i am unique in this situation, especially with so many expats that have moved to Spain, and so I would be interested to know it there is an easy or alternative solution that anyone has found.

    Thanks in advance,
    John
Page 1
    • xylophone
    • By xylophone 6th Aug 18, 4:09 PM
    • 26,788 Posts
    • 15,966 Thanks
    xylophone
    • #2
    • 6th Aug 18, 4:09 PM
    • #2
    • 6th Aug 18, 4:09 PM
    My question is, what is the best way to keep my stocks and shares ISA's tax free, if any?, as i understand that these will become taxable on my being resident in Spain.


    https://www.blevinsfranks.com/news/blevinsfranks/article/spain-uk-investments-taxation

    It would seem so.
    Last edited by xylophone; 06-08-2018 at 4:18 PM. Reason: add bold
    • kidmugsy
    • By kidmugsy 6th Aug 18, 8:19 PM
    • 11,703 Posts
    • 8,229 Thanks
    kidmugsy
    • #3
    • 6th Aug 18, 8:19 PM
    • #3
    • 6th Aug 18, 8:19 PM
    ... will also have the proceeds from the UK house sale. I understand that I may have to pay Spanish capital gains tax on this sale
    Originally posted by arnhemrd
    Couldn't you time the sale to avoid this? If you sell the house while you are a tax resident in the UK, and before your first Spanish tax year begins, why would you owe tax in Spain?
    Free the dunston one next time too.
    • xylophone
    • By xylophone 6th Aug 18, 8:26 PM
    • 26,788 Posts
    • 15,966 Thanks
    xylophone
    • #4
    • 6th Aug 18, 8:26 PM
    • #4
    • 6th Aug 18, 8:26 PM
    If you sell the house while you are a tax resident in the UK, and before your first Spanish tax year begins, why would you owe tax in Spain?
    See post 4 - OP may be selling after he leaves the UK.

    https://forums.moneysavingexpert.com/showthread.php?p=74624290#post74624290
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