Banks and Bank of Spain/Hacienda ????

[Jool]

If I transfer more than 3000 euros in to my own bank account via a currency broker do I need to inform the Bank of Spain or does my bank do this automatically? Do they also advise the spanish tax man? Is the limit 6000 if account is a joint one? Would I then become liable for any kind of tax on that amount in Spain even though it is not earned income?

[pigs-might-fly]

Earned, unearned, or an inheritance (even if inherited money is not taxable under UK tax law, by virtue of being under the UK inheritance tax threshold) - Hacienda will want their pound -or kilo- of flesh.
If it is capital from your own resources in the UK, I think it should be OK.
Be careful what you let the Spanish system know.

[annfoto]

If you are just moving capital in there is no tax to pay and no limit and you don't have to do anything. Spanish and UK banks regularly communicate with the tax authorities. I transfer 10K twice a year, done so for many years now without problems. The capital is in UK banks, I declare the intrest and pay the tax on that in Spain.

[gus-lopez]

It's 3000€ & over that is reportable coming from anywhere. That's why the spaniards , if they can, ask for cheques for 2999€ . When I used to bring money over I used to have to trawl through A4 sheets in the bank ( La caixa ) & find the nearest reason as to what it was for. All transactions are coded as to what they are for.

[annfoto]

I normally transfer money using Currencies Direct, they ask what its for and transmit the purpose of the money to the Spanish bank, in my case "Living Expenses" It is transferred electronically no need to visit the bank.

[Julie]

I have transfered amounts well over 3k without telling anyone and never had problems, I was told that you can take up to 10k euro cash without problems, but anything over that you have to prove that it came out of your bank account if stopped by customs. I took 10k and was worried, but was told that was the limit.

[Enrique]

Hi,
I suggest we wait on A.com members who have connections to the Mob , they will be able to inform us on how to move vast sums between accounts with the minimum of hassle.

[tjtops]

How about large transactions the other way...(Spain to UK)...eg proceeds from sale of house?? What is the best way to do it?

[pigs-might-fly]

I'll let you know in a couple of weeks!
We have registered with both HiFX & Moneycorp; the best rate on the day gets the business.

[tjtops]

Too true.... but I was wondering more about the actual mechanics of it...ie, how the buyer physically pays, and what do you do with it?? (eg presumably not by cheque which you pay into your Spanish bank account......or yes??)

[pigs-might-fly]

You sign the sale agreement in the notary's office.
You are handed a Spanish bank draft for the net proceeds of sale: you hand over your keys.
Deal done. You are now homeless!
You rush over to your bank and pay it in, not forgetting to have a serious haggle, well in advance, over the commission charge (0.35% of the draft's value is the norm, but you should negotiate a lower rate than that).
You transfer your funds, preferably by internet banking, in wodges of less than 50,000€ (most banks won't charge for E.U. euro to euro transfers under this figure) to your chosen money exchange firm's euro account.
Watch the exchange rates, choose your time, phone your FX broker and instruct him/her to make the transfer to your U.K bank, obviously in GBP.

[tjtops]

Aha.....there speaks one who knows! Many thanks...now to keep everything crossed!

[pigs-might-fly]

Sign up with a couple of FX transfer companies, well in advance, as you need to provide them with the usual identification because of money laundering regulations.
Google for them:

HiFx,
Moneycorp,
Currencies Direct,
XE.com
are amongst the better known, who have all been established some years.

[tjtops]

Thanks...I'm lucky tho cos already have a good one....corporate FX!

[katy]

We got bankers drafts (3) all drawn on different spanish banks and left the country 2 hours later. Didn't pay anything in in Spain. I could never trust a currency broker with that amount. If you speak to your UK bank they will do a good deal for large sums. Only snag it takes longer to clear. Though it can work to your advantage. We gained about 4p to £ by waiting as the euro fell from 1.15 to 1.9.

Good luck with it

[Julie]

Thanks...I'm lucky tho cos already have a good one....corporate FX! its still worth playing one off against the other, no matter how good you think they are, you might get a better deal tht way !

[tjtops]

True......

[tjtops]

They've suggested doing it on a 'limit' basis....ie wait for a certain rate before transferring....??
(I'll still be here for a while afterwards!)
And Katy...I'm probably being dense, but why 3 separate drafts??

[katy]

Perhaps because we did not use a Lawyer to co-ordinate everything, not sure. 1 draft from bank supplying mortgage, 1 from buyers personal account, 1 from his families company account. Worked well for us as we were able to put some offshore

[Enrique]

Nice one katy..........I knew we had some members that have Mob connections.