Exclusively relevant information to Spanish residents
ETF has lots of advantages, but if you are a Spanish resident, and you want to open an account, you need to know the following.
- International transfer. ETF accounts are deposited outside Spain: in Interactive Brokers Ireland (for European Union residents) or Interactive Brokers LLC in the United States (for residents who live outside the European Union). The money transfer to start the investment and the additional deposit is settled to an account set up outside Spain.
- Parallel access to Interactive Brokers (custody entity). When your account is created with Interactive Brokers, you will have access to your Client Portal (in query mode). Therefore, when the first transfer completes and your account activates, you will receive a username (by email) and a password (by SMS), both different from the inbestMe ones. Even if it is not indispensable to enter for you to start investing, it will be necessary to access the Portal Client the first few days too:
- Change the temporary password.
- Answer the security questions (which will be used to recover the password in case you lose it).
- Notify your destination bank account in case you request a full or partial withdrawal. If you do not have one reported account in the Interactive Brokers Client Portal, inbestMe will be able to sell the EFT portfolio, but will not be able to transfer the cash to you.
- You have to control the access password to Interactive Brokers. For security and privacy issues, we cannot recover the Interactive Brokers password for you, although we can help you, by providing you the username you have with them. So, if you have lost your password to access the Client Portal, you must contact the Interactive Brokers Support Center by phone. It is not possible to recover passwords any other way, and it has to be the Client itself who contacts Interactive Brokers.
- D6 Model*. Currently, in Spain, the D6 model submission is required for those investors who hold a greater than 10% stake of the capital or voting rights in foreign listed companies. This one is an annual Investor's Register statement of the Spanish investments abroad and it does not substitute the 720 Spanish Tax Model, but it is complementary to it.
- 720 Model*. All the Spanish residents with a capital amount abroad, equal to or higher than €50.000, is required to fill out every year this tax model, which informs the capital amount. inbestMe will offer you all the necessary information to do it.
- Personal Income and Wealth Taxes*: Neither inbestMe nor the custody entity (Interactive brokers) reports your positions or movements to any Tax Agency. It is Client’s responsibility to fill the correct taxes with his tax residence place. We will offer you all the necessary information to do it.
If any of the previous points is an inconvenience for you, we recommend to open an Index Funds account, because they are deposited in GVC Gaesco, Spain.
* inbestMe is not authorized to give any tax advice to its client, nor to complete any tax document. If you are not sure about your portfolio’s taxes implications, we recommend you consulting with an specialized tax advisor.
The information models, and statements to be presented, will depend on the Client’s fiscal residence country.