Key considerations before opening an ETF portfolio

ETFs offer numerous advantages. However, if you are a tax resident in Spain and wish to open an account for us to manage an ETF portfolio on your behalf, it is important to consider the following points:

1. International transfer.
   ETF accounts are held outside Spain: with Interactive Brokers Ireland (for residents within the European Union) or Interactive Brokers LLC in the United States (for residents outside the European Union). The transfer of funds to start investing, as well as any additional contributions, is made to an account located outside Spain.
   
   
2. Parallel access to Interactive Brokers (Custodian Entity).
   When you create your securities account with Interactive Brokers, you will also receive view-only access to their Client Portal. Once your first transfer is completed and your account is activated, you will receive a username (by email) and a password (by SMS), which are different from your inbestMe credentials. 
   You should access the Interactive Brokers Client Portal as soon as possible to:
   - Change the initial temporary password
   - Set up security questions (used to recover your password if lost)
   - Register your destination bank account to receive partial or full withdrawal transfers
   ⚠️ Very important: If you do not register a destination bank account in the Interactive Brokers Client Portal, inbestMe can sell the ETFs in your portfolio, but cannot transfer the cash proceeds.
   
   
3. Keeping control of your Interactive Brokers password.
   For privacy and security reasons, inbestMe cannot recover your Interactive Brokers password. We can provide your username if needed. If you lose access to your Interactive Brokers Client Portal, you must contact their Support Center directly by phone. Passwords cannot be recovered through any other channel, and the client must contact Interactive Brokers directly.
   
   
4. Form D6*.
   Currently, in Spain, Form D6 must be submitted by investors holding more than 10% of the share capital or voting rights in foreign listed companies. This form is an annual declaration to the Spanish Register of Foreign Investments and does not replace the Spanish Tax Agency Form 720.
   
   
   
5. Form 720 – Declaration of assets and rights held abroad*.
   Form 720 is an informative declaration required for tax residents in Spain who hold assets or rights abroad (accounts, real estate, securities) exceeding €50,000. Once filed, it must be submitted again only if there are changes in the valuation of the declared assets. Failure to submit or incorrect submission may result in penalties for each omitted, undeclared, or inaccurate data item.
   
   
6. Personal Income Tax and Wealth Tax*.
   inbestMe reports to the Spanish Tax Agency the transactions carried out in the portfolio for both residents and non-residents in Spain. It is the client’s responsibility to file the applicable tax returns according to their country of residence and tax situation. Additionally, we provide clients with the annual reports required for filing Personal Income Tax and, where applicable, Wealth Tax.

If you hold a valid Spanish ID (DNI) or are a tax resident in Spain (valid NIE), you also have the option to open an Index Funds account. Securities accounts for portfolios managed with Index Funds are held with GVC Gaesco Spain, therefore some of the points mentioned above do not apply.

*inbestMe is not authorized to provide tax advice or to complete any tax forms or filings on behalf of clients. If you are unsure about the tax implications of your portfolio, we recommend consulting a specialized tax advisor. Reporting requirements and tax obligations depend on the client’s country of tax residence.