- September 16, 2013 at 4:58 am #57796
I’m not sure if this question belongs here or in the ‘everything else’ forum.
I have some accounts in the US that are similar to the ISA account in the UK. Deposits to the account are limited, made with after-tax money, and the interest/earnings on that account is tax-free.
I’ve recently discovered that these accounts are taxable in Spain.
1) How are these accounts taxes? Are they taxed on the interest earned each year, or is it on the interest that I withdraw from the account?
2) For Spanish taxes, is the taxable amount from the ISA just added to my income/earnings for tax purposes or is there a special rate (higher/lower) for this type of earnings ?
- September 16, 2013 at 2:16 pm #118225
All I know Gary and not much as no time to look up -but UK Govt start charging you 20% when you cease to be UK tax resident. When you make your Spanish tax return they charge you tax at 24% on the income received but deduct the tax you have paid the HMRC under the UK/Spain Double Taxation Agreement. Also you can keep the ISA going up to 5years or until it expires but you cannot buy any more.
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