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Selling house in the UK. What to do with the money?

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I'm selling a house in the UK. This will leave me with a respectable amount of pounds sterling. I now wonder whether to leave that money in the UK or to move it to Germany or any combination of both. As I am tax resident in Germany, I wonder about the implications too. Any advice welcome.

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Wouldn't move it out of the country unless you actually need it now. You will pay a duff bank rate at the moment (although who knows if it will just get worse) - GBP doing a nose-dive - and the banks will take a healthy commission...

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22 minutes ago, optimista said:

Wouldn't move it out of the country unless you actually need it now. You will pay a duff bank rate at the moment (although who knows if it will just get worse) - GBP doing a nose-dive - and the banks will take a healthy commission...

Re commission you do not have to use the bank to transfer the money here.  My bank limits free daily withdrawals to 20K.  I use Transferwise, their rates are very good.

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23 minutes ago, optimista said:

Wouldn't move it out of the country unless you actually need it now. You will pay a duff bank rate at the moment (although who knows if it will just get worse) - GBP doing a nose-dive - and the banks will take a healthy commission...

 

I was thinking of using Revolut or (Transfer)Wise to move money if needed. I would be OK leaving a significant chunk there. I have looked into opening an account with Vanguard and they state on their website that it is only open to British tax residents. So, I wonder what options I have to put the money to use there instead of waiting for inflation and negative interest rates to slowly but steadily reduce its value.

 

19 minutes ago, RedMidge said:

I hear Gibraltar and the Isle  of Man have  interesting banks!

 

Unfortunately, I am not ultra high net worth. ;)

 

@snowingagain Any reason for TransferWise over Revolut? What about financial protection with these fintechs?

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8 minutes ago, Chris Marston said:

So, I wonder what options I have to put the money to use there instead of waiting for inflation and negative interest rates to slowly but steadily reduce its value

 

Please let me know when you have this bit worked out.  

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Whichever way you cut it, you carry the current and future exchange risks, so a key question is, where do you think you'll need/want the money in the future - UK or D?

Subject to being able to open an account in the UK, you could achieve about 1.3% to 1.5% if you fixed for 3 or 5 years and 0.5% with Marcus for instant access.  This compares to negative interest on over 50K Euro in Germany.

 

Another alternative would be to invest through one of the platforms in managed funds at whatever risk level you want, or to keep the property and let it through an agent...

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1 minute ago, snowingagain said:

 

Please let me know when you have this bit worked out.  

 

I have put my Euros into an all world ETF. So far, so good.

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4 minutes ago, Chris Marston said:

 

I have put my Euros into an all world ETF. So far, so good.

 

Is what you have straightforward for German tax return?  I have some old accumulating funds in the UK which do not earn that much but are a PIA to report.  And yes, I realise I should get rid of them.

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40 minutes ago, snowingagain said:

 

Is what you have straightforward for German tax return?  I have some old accumulating funds in the UK which do not earn that much but are a PIA to report.  And yes, I realise I should get rid of them.

 

Yes. As long as it is a German (investment) bank, they automatically deduct taxes and provide a Jahressteuerbescheinigung.

 

I wonder whether having money parked in the UK is a good idea given the PIA of reporting it. Good point you raised there.

 

I have sold my former underperforming funds a while ago when I made the switch to ETF. It is probably worth doing so for you too.

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