Should you keep hold of UK investments in Spain?

however well we have settled into our new lives in Spain, most UK nationals living here maintain some British habits. Whether it is a Sunday roast or watching British soaps, there are some ties we do not want to lose.

the same often applies for UK savings and investments. While many expats prefer to stick with what’s familiar, just how suitable are these arrangements for Spain?

Premium Bonds and ISAs launched 65 years ago, around 23 million Britons have over £100 billion in premium Bonds today. even though they do not provide any interest earnings or capital growth – which means their value will be eroded over time by inflation – the possibility of winning a large prize continues to appeal.

in Spain, investment income is added to your general income for the year and taxed at the scale rates of tax of up to 54% in the Valencian community.

iSas too are fully taxable in Spain in the hands of Spanish residents at the corresponding savings income tax rates up to 26%. this applies to income and gains from cash and share iSas. Some expats mistakenly think that since they are UK investments they do not need to be declared in Spain, but if you are tax resident here they need to be declared and taxed.

Bank interest if you would like to see how Seagate can help you achieve your financial goals, then please give us a call.

Similarly, although bank interest in the UK is taxfree under a certain threshold for UK residents, it is taxable for Spanish residents at the savings rates between 19% and 26%.

With interest rates for savings still very low and while the cost of living creeps up, many UK savings accounts are failing to outpace inflation, so it is worth exploring alternative structures for your money.

Alternative investment structures for Spain highly tax-efficient opportunities are available to residents of Spain. at Seagate we have a range of tax efficient products designed for Spanish residents, from household names such as prudential international.

For a no-obligation chat, call 965 704 338 or email: contact@seagatewealth.es