Last Updated on April 18, 2026 by Bruno Bianchi
Question
A question regarding tax: if you keep your money in an English bank, how do you pay your tax on it if you’re living in Spain?
Answers
These are the answers of Spainguru’s Facebook group members:
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Start the Moving to Spain Hub →“Spain has an agreement with the UK. You only pay tax once. We now live in Spain, and our accountant did our tax return. You only pay tax on the interest you make on your savings. We also had to declare our private pensions, but we left all that to the accountant.”
“In the US, I always did my own taxes using Turbotax, but here it’s much too complicated. Even the smallest mistake can land you hefty penalties. I spent hours researching and considered doing them myself by following the forms my Spanish tax firm provided, but it’s not worth the risk.”
“You have to declare all worldwide income and savings on your annual IRPF (Spanish tax return) Impuesto sobre la Renta de las Personas Físicas.”
“If you live in Spain and pay taxes there, it’s my understanding that you can’t have a UK ISA. It’s a tax-free saving/investment scheme for UK residents only.”
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Meet Tax Experts →“You declare your worldwide assets. Tax evasion is a big no-no in Spain. Failure to declare could work out costly!”
“Spain will have access to your worldwide income. I would get a good tax attorney to make sure you get the correct information. For U.S. citizens, for example, you file a special form every year. You pay Spain first and then the U.S., but since Spanish taxes are higher, you probably won’t pay the U.S. anything.”
“You don’t pay tax on savings, only on the interest that your savings generate. If you’re on an NLV, you will pay tax on pensions, but not twice due to the double taxation treaty between the UK and Spain.”
Conclusion
When living in Spain, you must declare and pay taxes on worldwide income, including interest earned on savings in a UK bank. Spain and the UK have a double taxation agreement, ensuring you pay tax only once.
However, tax laws can be complex, especially regarding savings, pensions, or specific financial products like ISAs.
It is highly recommended to seek the assistance of a tax professional or attorney to avoid penalties and ensure compliance with both countries’ tax regulations.
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