I am considering Spanish residency in early retirement (from UK). A basket of ISA and SIPP would be used for income. As I would be Spanish tax resident I expect to pay tax in Spain.
I assume I could draw down on a lump sum realised in UK prior to moving tax free and not earning any money? From PPR or 25% tax free prior to Spanish tax year
Presumably, also, income distributed outside of a fund (interest or dividend) is taxed as "income" prior to consumption.
However, how about income held on and re-invested, or year-on-year accumulation fund growth?
In short, can capital formation continue unhindered by tax until it is "realised" or does the annual tax return demand payment based on investment value change. In other words, can I manage my income/gains to be more tax efficient?
Many thanks for any thoughts
I assume I could draw down on a lump sum realised in UK prior to moving tax free and not earning any money? From PPR or 25% tax free prior to Spanish tax year
Presumably, also, income distributed outside of a fund (interest or dividend) is taxed as "income" prior to consumption.
However, how about income held on and re-invested, or year-on-year accumulation fund growth?
In short, can capital formation continue unhindered by tax until it is "realised" or does the annual tax return demand payment based on investment value change. In other words, can I manage my income/gains to be more tax efficient?
Many thanks for any thoughts
