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Banking- setting up an account

Posted: Mon Aug 8, 2022 8:06pm
13 replies263 views7 members subscribed
Sherwood LaCala

Posts: 3

Location: La Cala De Mijas

Joined: 8 Aug 2022

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.

Tworowans

Posted: Mon Aug 8, 2022 8:46pm

Posts: 36

27 helpful points

Location: Álora

Joined: 23 May 2020

Posted: 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

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

Andrew14

Posted: Tue Aug 9, 2022 8:16am

Andrew14

Helpful member

Posts: 145

52 helpful points

Location: Vélez-Málaga

Joined: 26 Mar 2019

Posted: Tue Aug 9, 2022 8:16am

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

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

Sherwood LaCala

Posted: Tue Aug 9, 2022 9:02am

Sherwood LaCala

Original Poster

Posts: 3

Location: La Cala De Mijas

Joined: 8 Aug 2022

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...

...

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.

Holaitsdavid

Posted: Wed Aug 10, 2022 4:58am

Holaitsdavid

Helpful member

Posts: 1000

365 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: 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. 

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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Kerri

Posted: Wed Aug 10, 2022 5:30pm

Kerri

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Posts: 433

173 helpful points

Location: Casares

Joined: 5 Sep 2018

Posted: Wed Aug 10, 2022 5:30pm

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

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.

Sherwood LaCala

Posted: Wed Aug 10, 2022 8:57pm

Sherwood LaCala

Original Poster

Posts: 3

Location: La Cala De Mijas

Joined: 8 Aug 2022

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. ...

...

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

Holaitsdavid

Posted: Thu Aug 11, 2022 2:49am

Holaitsdavid

Helpful member

Posts: 1000

365 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Aug 11, 2022 2:49am

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...

...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/



Kerri

Posted: Thu Aug 11, 2022 4:41am

Kerri

Helpful member

Posts: 433

173 helpful points

Location: Casares

Joined: 5 Sep 2018

Posted: Thu Aug 11, 2022 4:41am

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...

...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?

Holaitsdavid

Posted: Thu Aug 11, 2022 1:58pm

Holaitsdavid

Helpful member

Posts: 1000

365 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Aug 11, 2022 1:58pm

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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