Quote:
Originally Posted by kelly
Thank you very much for your knowledgeable replies. As I understand it, my friends teachers pension, which is taxed here, could become exempt from UK tax with the appropiate forms. Are you suggesting ,therefore, that the best way forward would be for him to open a spanish bank account and get his uk pension transfered directly there. Or does it really not matter if he keeps his Uk bank account.
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Well, as I understand it, it is possible to have a state pension paid to a Spanish Bank, but there are numerous currency exchange companies that will do it free of charge.
Currencies direct is one.
I currently have funds paid to a UK bank and draw it accross, but he will need a Spanish bank over here anyway just for day to day living. I'd keep a UK bank account and credit card, as you won't be able to open one in the UK with ease (if at all) once he is resident in Spain.
You are correct, the Teachers Pension will become tax free in the UK.