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Sunday, March 11, 2007
Roger Davis
 Apartamento

I'm in 15.54 Sierra Golf , Balsicas , Near Los Alcazares , COSTA CALIDA
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Does anyone know if Spanish Income Tax is payable by people taking up residence in Spain , on the Tax-Free Interest they receive from their ISA's.??
Regards,
Roger and Fran
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11 Mar 2007 6:57 PM
jhousden
 Parcela
I'm in High Halden, near Ashofrd, Kent
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The ISA's tax exemption is given by UK tax legislation. In Spain you cannot expect an exemption under UK tax law to apply, so the interest will be taxable.
However, ISAs tend to pay good rates of interest because they are 'sticky' money from the banks' viewpoint. I'd suggest transferring to a new cash ISA just before you go to Spain (Halifax are paying 6% for 4 years fixed). That way you crystallise the tax free interest while you are still UK resident, start with a clean slate in Spain and still have an ISA with its UK tax benefits if you return to the UK at a later date. _______________________
John Housden
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01 Feb 2008 7:38 PM
fpegman
 Parcela
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I would check with your ISA provider as I believe that you need to be a UK resident with UK address to continue holding ISA
Fpegman
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01 Feb 2008 11:30 PM
morerosado
 ** EOS Superstar **

I'm in Somerset, UK / Guardamar Del Segura on the Costa Blanca (Completed April 2005)
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Fpegman
Taken from this pdf file http://www.hmrc.gov.uk/leaflets/isa-factsheet.pdf
Moving abroad
You can only open an ISA if you are resident and ordinarily resident in the UK for tax
purposes. If you are unsure about this, call our Centre for Non-Residents on
0845 070 0040 (UK)
+44 151 210 2222 (from abroad)
If you open an ISA and then move abroad, you are no longer classed as a UK resident.
So you cannot put money into the ISA.
You can still keep your ISA open and you will still be entitled to the tax benefits on
investments held in the ISA. If you become UK resident and ordinarily resident, you
can start putting money in again.
This message was last edited by morerosado on 2/1/2008. _______________________
My blog>>> Our experiences of buying in Spain
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