Should I get a non-resident or resident bank account to buy a property in Tenerife?

[duncan-6]

Good afternoon everyone,
In the very near future, the Mrs and I, hopefully will buy a property in Tenerife, it will be a holiday home, not for rental, on a resedential complex.
The intention is to spend approx 7/8 months of the year there, but at no more than a maximum of 10 weeks at a time.
I understand the authorities say anybody here longer than 3 months must register as...resident.
But if the maximum we stay, in any one visit, is less than three months, which bank account is best for our situation?.....non-resident or resident?
Thanks.

[casabonny]

You would not be entitled to hold a Resident Bank account unless you had a residencia , so problem solved!
You do however need to ask non residents on here about charges relating to the different banks , service etc as they can vary quite a lot I understand.I cant help sorry as am Resident and different charges apply

[lovingtenerife]

Hi. I know the thread is quite old but it may interest someone who also want's to become a resident.

In my case I am also a resident but I deal with a lot of non-residents. There is a lot of talking around now that the rules have changed.

Bank accounts will be for resident if you not only have a residencia but also if you are a tax resident. This means, that if your intention is staying in Spain for more than 6 months in total per year, you must consider first the taxation you will have.

Becoming a resident in Spain means you will have to tell the Inland Revenue that you have become a non-resident in the UK. And in Spain taxes (especially income tax) have been raised for tax year 2012.

Of course, there is some benefits if you own a property and it is your residence, as for example that you won't pay any tax for that property (and if you are over 65 you are capital gains tax free if you sell the property one day in future), because non-resident property owners pay non-residents tax on the property.

And coming back to the bank thing, if you become a resident you will be taxed at source (now 21%) for any income this bank account produces. This is to be considered if you invest in any bank product that will throw out some interests.

Go see a reliable tax advisor if you have any doubt! :wink2: