Hypothetical question. Someone 66 moves to camposol with £100,000 in savings and in receipt of UK state pension as only income. Are they liable to any taxes on their money and if so, why and more importantly, how much? Thanks in advance for the information.
Posted: Mon Mar 15, 2021 7:42am
Super helpful member
Best to ask a tax expert in Spain. We use corral and alcaraz and they have been brilliant.
Posted: Mon Mar 15, 2021 8:31am
Super helpful member
tax only on interest on savings ...add that to your pension income and roughly anything over about 5500€ will be taxed...
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crissywissy wrote on Mon Mar 15, 2021 8:31am:
tax only on interest on savings ...add that to your pension income and roughly anything over about 5500€ will be taxed...
Yes that is correct you only pay tax on the interest of your savings and only pay tax if is the amount is over the amount you are allowed. If you hold premium bonds with £50k in then you have to declare any winnings within that year as this is deemed as earnings. If you are resident here in Spain and have assets or savings over £50k outside of Spain then you have to declare this re Declaration 720 which would mean you have to provide BIC, IBAN, bank address, account number, date account opened for every single account you hold outside of Spain and each year you have to declare again if the amounts increase/decrease by £20k (I even had to declare all details for an account I forgot I had which only had 66p in it). If not you just say "no change".
Karenp wrote on Mon Mar 15, 2021 9:40am:
Yes that is correct you only pay tax on the interest of your savings and only pay tax if is the amount is over the amount you are allowed. If you hold premium bonds with £50k in then you have to declare any winnings within that year as this is deemed as earnings. If you are resident here in Spai...
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...n and have assets or savings over £50k outside of Spain then you have to declare this re Declaration 720 which would mean you have to provide BIC, IBAN, bank address, account number, date account opened for every single account you hold outside of Spain and each year you have to declare again if the amounts increase/decrease by £20k (I even had to declare all details for an account I forgot I had which only had 66p in it). If not you just say "no change".
Hi Karen, do you know why you have to state premium bond winnings, as I thought that those winnings in the UK were tax free, so is this just classed as extra earnings for Spain only, as it wouldn't be classed like this in the UK, I don't think so anyway, or have I got this wrong?
Posted: Wed Mar 17, 2021 7:16pm
Super helpful member
Any lottery winnings over a small amount are taxable in Spain, but winnings on Spanish lotteries are paid out with the tax deducted - no dodging ot then!
Winnings from outside Spain are supposed to be declared. but so far information on Premium Bond holdings and winnings has not been shared by the UK to the Hacienda...
Take professional advice on taxation as we paod around 20 cents last year each and get Crown and State pensions plus a private pension.
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