Which option is better? (Expat in Spain)

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whenpigsfly
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Which option is better? (Expat in Spain)

Post by whenpigsfly »

My wife and I are both expats in Spain. I'm from the UK and she is from Canada. I have a business here, so plan to stay in Spain until retirement. If we were to move after retirement it would be back to Canada because of family connections.

I’m 54 and the main earner so I’m looking at retiring in 2033 (12 yrs). I will be collecting a Spanish pension and small UK state pension but also want to start DIY investing or use a robo advisor.

I would like some advice on choosing between these three options to start investing:

Use a Spanish Robo advisor (deciding between Indexa and MyInvest)
*this option means using a platform in Spanish (my Spanish is advanced but not perfect)
*This is account would have to be closed and capital gains (19%) paid if we move to Canada.
*I like the idea of a robo advisor because there is no need to rebalance


Open an account with Swissquote Luxembourg or Interactive Brokers
*I would invest in 2 world ETFs (stocks/bonds)
*Pay CG tax and commissions to rebalance portfolio once a year
*I assume this account would have to be closed and capital gains (19%) paid and then the money reinvested with a broker in Canada if we moved there.


Open an account with a Spanish Broker
*I would invest in Index funds because there is no cost for rebalancing with index funds in Spain
*Of course this platform would be in Spanish and I would more comfortable dealing in English BUT not having costs to rebalance is great!
*This account would have to be closed and Capital gains paid if we moved to Canada.

Any thoughts that could help me make my decision easier AND FASTER? I’ve wasted too much time thinking about little things and need to get on with it but my brain keeps stopping me.

Many thanks for ANY advice on this.
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LadyGeek
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Re: Which option is better? (Expat in Spain)

Post by LadyGeek »

Welcome! May I suggest you post this same question in our brother Spanish forum? You'll get expert advice.

See: Foro Bogleheads® España - Inversión Pasiva, Indexada y Periódica
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Topic Author
whenpigsfly
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Joined: Tue May 11, 2021 9:00 am

Re: Which option is better? (Expat in Spain)

Post by whenpigsfly »

Thanks Lady Geek for the suggestion of posting in the brother group in Spain but I was hoping for an expat perspective on this. Crossed fingers!!!!!

I’m just wondering if most expats just take the hit and close their accounts when they repatriate or use a particular platform and funds so they don’t have to do this and cause a huge tax event.
assyadh
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Re: Which option is better? (Expat in Spain)

Post by assyadh »

I would go with option 2 and will sell only right after moving to Canada since Canada has a deemed acquisition rule. This would mean you can avoid paying capital gains tax, provided you don't trigger the Spanish exit tax (8M portfolio + residency length requirements).

I wouldn't sell before leaving.

If you have more than 100k usd to invest you can open an account with ibkr and just change your residency with them, keep the account in Canada or transfer the assets to Questrade.
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LadyGeek
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Re: Which option is better? (Expat in Spain)

Post by LadyGeek »

I would also suggest that your wife post in our sister Canadian forum, Financial Wisdom Forum. She'll get expert advice.

Disclaimer: I'm a member of both forums (Spanish and Canadian).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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whenpigsfly
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Re: Which option is better? (Expat in Spain)

Post by whenpigsfly »

Great. Thanks to everyone that responded. I appreciate it. I’ll tell my wife to post in the Canadian forum.

Cheers!
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LadyGeek
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Re: Which option is better? (Expat in Spain)

Post by LadyGeek »

^^^ Have her point back to this thread for reference. We post in both forums all the time - it helps put things in perspective and we'll know what was discussed.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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