Hi, I am trying to set up a bank account in Spain and, as I have retired but not drawing a pension yet - I have no proof of income. The bank are asking for a document from HMRC to say I dont not need to pay tax in the UK.I am not exactly sure what they are asking for to be honest? I have an NIE number which we applied for recently- Anyone any ideas as to how I get over this hurdle? Many Thanks.
If you are a UK resident you have to make an HMRC return annually
If you are applying for Resident status on top of NIE status your worldwide income will become taxable in Spain under the 183 Day Rule. Hence they want to know your notional tax liability
By offering (cash) source of funds statements along with evidence of (say) undrawn personal pension scheme entitlements from your pensioner trustees you can make a case. But in my opinion you should hire a decent English/Spanish law firm to manage the application
Posted: Tue Aug 9, 2022 8:16am
Helpful member
Tworowans wrote on Mon Aug 8, 2022 8:46pm:
If you are a UK resident you have to make an HMRC return annually
If you are applying for Resident status on top of NIE status your worldwide income will become taxable in Spain under the 183 Day Rule. Hence they want to know your notional tax liability
Read more...
By offering (cash) source of funds statements along with evidence of (say) undrawn personal pension scheme entitlements from your pensioner trustees you can make a case. But in my opinion you should hire a decent English/Spanish law firm to manage the application
Not entirely correct. Many UK residents are not required to make an annual HMRC return, for example those in regular employment &/or receiving pension, as the employer/pension provider notifies HMRC of payments
You will receive an annual tax/earnings statement from HMRC & are required to declare incorrect / additional income. Stay silent & HMRC take it that the original statement of earnings is correct. There are of course consequences for undeclared income
Posted: Tue Aug 9, 2022 9:02am
Andrew14 wrote on Tue Aug 9, 2022 8:16am:
Not entirely correct. Many UK residents are not required to make an annual HMRC return, for example those in regular employment &/or receiving pension, as the employer/pension provider notifies HMRC of payments
You will receive an annual tax/earnings statement from HMRC & are required to declare incorrect / additional income. Stay silent & HMRC take it that the original statement of earnings is correct. There are of course consequences for undeclared income...
Read more...
...
Thank you ...Exactly my position. The only thing I have is a download from my HMRC account , with all my details on but it just states for the past few years..
No PAYE income Tax history for this year.
So I'm hoping that will suffice ?
Thank you for your comments, much appreciated.
Posted: Wed Aug 10, 2022 4:58am
Very helpful member
For a start you don't need a Spanish high street bank account, just a Euro account, all you need is an NIE number and address in Spain to set up an account on line, this can pay all bills https://n26.com/en-eu/open-bank-account-in-spain
Are you now living in Spain? with a 'non- lucrative visa', or are you still in the UK? You need to fulfil the below reequipments.
https://balcellsgroup.com/non-lucrative-residency/
The above applies if you are a third country like UK and not an EU citizen, such as Irish.
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Tworowans wrote on Mon Aug 8, 2022 8:46pm:
If you are a UK resident you have to make an HMRC return annually
If you are applying for Resident status on top of NIE status your worldwide income will become taxable in Spain under the 183 Day Rule. Hence they want to know your notional tax liability
Read more...
By offering (cash) source of funds statements along with evidence of (say) undrawn personal pension scheme entitlements from your pensioner trustees you can make a case. But in my opinion you should hire a decent English/Spanish law firm to manage the application
It is not correct that all your worldwide assets are taxed. The Spanish government wishes to know what your worldwide assets are through a Modela 720 document ...however...you are only taxed if the total amount is over a certain number which is approximately 800,000 euro. Check the current details because there has been extortionate fining by the govt which has recently been squashed by the Supreme Court but the expectation to complete the 720 is still in place. Paying tax on it depends on the value of those assets.
Gotta love the tax departments of the worlds we live in.
Posted: Wed Aug 10, 2022 8:57pm
Holaitsdavid wrote on Wed Aug 10, 2022 4:58am:
For a start you don't need a Spanish high street bank account, just a Euro account, all you need is an NIE number and address in Spain to set up an account on line, this can pay all bills https://n26.com/en-eu/open-bank-account-in-spain
Are you now living in Spain? with a 'non- lucrative visa', or are you still in the UK? You need to fulfil the below reequipments. ...
Read more...
...
https://balcellsgroup.com/non-lucrative-residency/
The above applies if you are a third country like UK and not an EU citizen, such as Irish.
Thanks for your response....not so sure about N26, a lot of bad press following the US & UK closures... so will leave that one alone. As for the 'non- lucrative visa', no.. we still live in the UK and dont plan to move- We believe or led to believe that we need a Spanish bank account to pay utility bills etc?
Thanks John
Posted: Thu Aug 11, 2022 2:49am
Very helpful member
Sherwood LaCala wrote on Wed Aug 10, 2022 8:57pm:
Thanks for your response....not so sure about N26, a lot of bad press following the US & UK closures... so will leave that one alone. As for the 'non- lucrative visa', no.. we still live in the UK and dont plan to move- We believe or led to believe that we need a Spanish bank accou...
Read more...
...nt to pay utility bills etc?
Thanks John
N26 did shut UK due to Brexit issues and no longer being in the SM. true they did not find a market in the US for digital banking, however, they handle over 200 billion worth of annual transactions and are valued at 9 billion. They have over 7 million customers and offer a fantastic service in Europe. There are other digital banks of course, however, but you can pay all utilities in Spain with an account like N26, it's not true has to be an actual Spanish bank, but must be a Euro account, based in the EU, N26 is also registered in Madrid https://www.einforma.com/informacion-empresa/n26-bank-gmbh-sucursal-espana
There are others on this Forum who use N26 and their service and App is brilliant and charges very low compared to Spanish Banks.
https://www.businessofapps.com/data/n26-statistics/
Holaitsdavid wrote on Thu Aug 11, 2022 2:49am:
N26 did shut UK due to Brexit issues and no longer being in the SM. true they did not find a market in the US for digital banking, however, they handle over 200 billion worth of annual transactions and are valued at 9 billion. They have over 7 million customers and offer a fantastic service in Eu...
Read more...
...rope. There are other digital banks of course, however, but you can pay all utilities in Spain with an account like N26, it's not true has to be an actual Spanish bank, but must be a Euro account, based in the EU, N26 is also registered in Madrid https://www.einforma.com/informacion-empresa/n26-bank-gmbh-sucursal-espana
There are others on this Forum who use N26 and their service and App is brilliant and charges very low compared to Spanish Banks.
https://www.businessofapps.com/data/n26-statistics/
Heh David,
Do you think that N26 could completely replace Sabadell for Spanish residents?
Posted: Thu Aug 11, 2022 1:58pm
Very helpful member
Kerri wrote on Thu Aug 11, 2022 4:41am:
Heh David,
Do you think that N26 could completely replace Sabadell for Spanish residents?
Hi Kerri. Yes I do think the likes of N26 could replace using Banks like Sabadell, its great since been here 2020 I have not been in a Spanish Bank, they partner with 'Wise', for international transfers combined all you need. https://www.exiap.com/reviews/transferwise
This a good write up about N26 service. https://www.barcelona-tourist-guide.com/en/expats/money/n26-bank-account-for-spain-detailed-review.html
Above states you cannot pay your taxes, but I have not problem, perhaps a more recent feature - link. https://n26.com/en-es/blog/filing-tax-return
Talking of taxes this is also a great online service, who give good advice and enable people to pay their taxes, run by Scandinavians based in Malaga, first class. https://taxadora.com/
The head guy has an MBA in finance from Manchester perfect English and has a team of experts in Spanish taxation.
https://es.linkedin.com/in/vilho-heiskanen-13273613?original_referer=https%3A%2F%2Fwww.google.com%2F
Have a nice Day - David
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