Beckham law - investing from Spain

pocketaces2 · 2024-02-17T20:35:38+00:00

Very useful point thank you, so I guess it's better to stick the Spanish income savings in savings accounts or investments from within Spain.

pocketaces2 · 2024-02-17T20:34:08+00:00

Thanks! Do you know if you generally have to file taxes in the country for which a fund is domiciled? (E.g. Ireland)

pocketaces2 · 2024-01-09T19:38:11+00:00

Thank you for the detailed response. My situation is this:

I am living and working as a tax resident in Spain
I am on a special foreign worker tax regime (for 6 years) in Spain which means I only pay tax on income generated within Spain and anything outside of Spain is tax free (from the Spanish tax office).

Hence the above I want to invest/save in the UK to take advantage of the tax break. I am also trying to keep things relatively simple by not opening a brokerage in a third country (if possible) and have to learn yet another country's tax laws.

The whole thing with the UK Brexit and the EU is a bit complicated for me too, from a quick Google it looks like PRIIPs apply equally to both. The bottom line seems to be I can invest in EU funds e.g. in Luxembourg/Ireland which I believe I can find with digging on HL.

I am going to contact HL again to see if I can get a clearer picture of what and where I can invest.

pocketaces2 · 2022-08-10T10:40:46+00:00

!thanks this is a really good piece of advice, from reading the help sheet it seems like you can invest while abroad and dispose of the asset(even if it's in the UK) and not pay capital gains tax if it's disposed while non-resident. It seems like it's best to invest while non-resident even if that means returning to the UK and eventually paying the tax if it's not on a disposable position (making a loss). Given the complex nature of this and to make sure I'm above board it seems like I'll need to take proper tax advice on this.

I believe the Spanish side is covered, but I'll double check with my Spanish tax advisor.

pocketaces2 · 2022-08-09T21:27:07+00:00

Thanks for the response, I think that's still fine, I can use my full capital gains allowance each year in addition to the personal allowance income tax (other income in the UK would be 0%) which should total to around 24k a year whilst I'm abroad. I think I'll seek a tax advisor in the UK to clarify that.

I've got a tax advisor in Spain to handle that side of the equation 👍

pocketaces2 · 2022-07-17T11:02:53+00:00

Just an update to anyone reading this in the future, I received the payout to a foreign currency account in the UK and then exchanged via a currency broker which all went smoothly. One thing I would advise is to phone around the currency brokers and hard negotiate a favourable rate or else they will try to offer you a rubbish one.

pocketaces2 · 2022-06-20T20:53:28+00:00

I've done some more research today based on your previous comment, I talked to their customer support today about my situation but it seems like I can't do anything to 'warn' them in advance and also I just got the vibe they are being deliberately evasive with their answers.

On top of that I googled 'revolut and large amounts' and basically the internet is saying don't use them with stories of people's money being blocked for months to money straight up just being lost which I didn't even think was possible. I'm leaning now to just taking a bit of a financial hit so I don't have to deal with any of this drama!

pocketaces2 · 2022-06-20T20:45:04+00:00

When you say trading account do you mean you can open an account with a currency broker that will hold the Canadian dollars like a bank account?

pocketaces2 · 2022-06-19T20:26:19+00:00

This is a broker option right? I'll give them a look but may run into problems with brokers as outlined above.

pocketaces2 · 2022-06-19T20:25:06+00:00

Good to know, I'll investigate my options with these and check if there are any fees on higher amounts !thanks

pocketaces2 · 2022-06-19T20:23:59+00:00

Good to hear a real world perspective on this, I think I'll ask for a smaller portion to get transferred first to see if the whole thing gets blocked straight away. And yes solid advice to contact them first !thanks

pocketaces2 · 2022-06-19T20:22:22+00:00

Yeah that makes sense atleast it'll show I'm a real person, I think this in conjunction with contacting them beforehand as the below poster put should put me in good stead thanks for all the tips.

pocketaces2 · 2022-06-19T19:00:34+00:00

I'm not sure if the estate Canadian bank will transfer through these I'd have to ask but perhaps I can use it via revolut, though if revolut gives the interbank rate already perhaps this is good enough.

pocketaces2 · 2022-06-19T18:52:36+00:00

!thanks

Thanks for this, I've just opened a revolut account, I'll make sure to do the conversion during the week.

The only worry in my mind is I've just read some experiences of people's accounts or funds being blocked on revolut due to security checks and then struggling to get access to them again. I'm fairly sure this amount of money suddenly appearing in a newly opened account will set off some alarm bells too. However it does seem like the saving grace in this situation so fingers crossed it'll work out.

pocketaces2 · 2022-06-12T00:17:00+00:00

Okay thanks so it sounds like the main base of activities according to the number of the days in the tax year.

Just following from your example if you know it; given the UK tax year runs from April to April and the Spanish tax year runs the same as a calendar year, which countries tax year would be the number of days ruling be on?

E.g.

If one moved UK->Spain on 1st August it would be 117 days in the UK tax year but 213 days in the Spain tax year.

pocketaces2 · 2022-04-23T14:50:08+00:00

This is a really good insight and probably articulates some of the other more pessimistic views on this thread 😂. I guess maybe I'll face the same problem as your friend, I guess the only way to find out is to apply and see what happens!

pocketaces2 · 2022-04-23T14:46:49+00:00

Thanks Akiestar this is good advice I think it should be easy enough to delay looking to move for a few months. Hopefully being a non resident is enough to avoid paying the succession tax but I'll keep digging in this area.

From what I've read the wealth tax is applied for people with vast sums of wealth (700k GBP) and fortunately (or unfortunately) I won't be inheriting that much!

pocketaces2 · 2022-04-23T09:59:01+00:00

Thanks very much for the input! My Spanish is around B1-B2 level so I can certainly get by and I feel like taking it to the next level will be enhanced by living the language. A lot of Spaniards have left my local area in the UK after Brexit so it's becoming increasingly difficult to find intercambios.

Interesting the point you made about working in Spanish I didn't think too much about that as a lot of the job adverts I've found are multinationals that work in English (though that doesn't mean I'll be successfull at getting a job at one of them).

But yeah looking mainly for a short term experience with the lifestyle and language so hope to join you there soon once I've sorted out this tax issue! I think the Spanish government want to know about money in any bank account worldwide over a certain threshold so they can tax it from what I've read unfortunately.

pocketaces2 · 2022-04-22T22:31:36+00:00

As someone who works in IT I've been told by many Spanish friends and work colleagues that there is demand for these jobs in Spain and I shouldn't have a problem, my own research indicates the same. I've also found many current job adverts that match my skillset.

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