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 questions.
- International transfer. ETF accounts are guarded outside Spain: in Interactive brokers Ireland (for European Union residents) or Interactive brokers LLC of 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, 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.
- Write 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 in the Interactive Brokers Client Portal, inbestMe will be able to sell the portfolio’s ETF, 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 with 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 get back the password 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 10% greater stake of the capital or voting rights of foreign listed companies.
This one is an annual Investor's Register statement of the Spanish investments in foreign (it does not substitute the 720 Spanish Tax Agency model, but it complements it).
- 720 model*. Every Spaniard resident with a capital amount in foreign, equal to or higher than €50.000, is required to comply every year with this tax model, which informs the capital amount. inbestMe will offer you all the necessary information to do it.
- Personal income tax and Patrimony: either inbestMe or the custody entity (Interactive brokers) inform about your positions or movements to any Tax Agency. It is our Client’s responsibility to fill the correct tax return 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 you to open an Index Funds account, because they are settled in GVC Gaesco and, therefore, the only point that applies to them is the last one on the previous list (Personal income tax and Patrimony).
* inbestMe is not authorized to give any tax advice to its client, either to complete any survey or tax return. If you are not sure about your portfolio’s tax implications, we recommend you turn to a professional specialized tax adviser.
The information models, and statements to be presented, will depend on the Client’s fiscal residence country.