[GarySFBCN]

Hello,

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.

My questions:

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 ?

Thanks!

[Anonymous]

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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