Rebalancing on MyInvestor: Complete Tax-Free Guide

MyInvestor has established itself as the platform of choice for index investors in Spain. Its catalogue of index funds from prestigious international fund managers such as Vanguard, iShares, and Fidelity, combined with zero custody fees, makes it an unbeatable option for applying the Bogleheads philosophy.

However, as markets fluctuate, your portfolio will inevitably drift from your original plan. In this detailed guide, we’ll look at how to rebalance your MyInvestor portfolio in a 100% optimal way and, most importantly, take advantage of the Spanish tax benefit to avoid paying a single euro in capital gains tax.

---

1. The Spanish Investor’s Secret Weapon: Tax Deferral via Fund Transfer

In most countries, rebalancing an investment portfolio requires selling assets that have risen too much and buying those that have fallen. This sale triggers a capital gain on which you must immediately pay tax.

In Spain, individual investors enjoy an exceptional competitive advantage: the fund transfer (traspaso) regime.

Under Spanish tax law:

• You can move capital (both the principal invested and accumulated gains) from one investment fund to another without paying tax on the gains.
• Taxation is deferred until you eventually decide to sell your funds to withdraw cash.
• This rule applies to both traditional index funds and actively managed funds, as long as the transfer is made directly between the entities without the money passing through your current account.

[!IMPORTANT] ETFs (exchange-traded funds) do not benefit from this exemption in Spain. If you rebalance by selling one ETF to buy another, you will have to pay between 19% and 28% on the capital gains generated. This is why, for portfolios based on traditional investment funds on platforms like MyInvestor, the fund transfer is the king of rebalancing tools.

---

2. Two Paths to Rebalance on MyInvestor

When your MyInvestor portfolio drifts from its target (for example, your global equities fund now accounts for 85% instead of your target 80%), you have two options:

Path A: Fund Transfer (When you have no new capital to invest)

Move money directly from the overweighted fund to the underweighted fund.

• Tax treatment: 100% tax-exempt.
• Time: Takes between 3 and 8 business days to complete. During this process, your money is sold from the source fund and subscribed into the destination fund.
• Ideal for: Large portfolios where drifts are significant and monthly contributions are not enough to correct the deviation.

Path B: Contribution-Based Rebalancing (When adding monthly savings)

Calculate the exact amount of your monthly savings to inject into each fund so that, when added to the existing balance, the portfolio rebalances naturally.

• Tax treatment: 100% tax-exempt (you sell nothing).
• Time: Almost instant (the usual fund subscription time, typically 1–2 business days).
• Ideal for: Regular contributions (monthly or quarterly) in portfolios in the accumulation phase.

---

3. Step-by-Step Guide: Calculating the Rebalance with CoreBalance

To avoid complex spreadsheets or mathematical errors, we’ll use CoreBalance. The process is extremely simple and respects your privacy (no financial data leaves your browser):

1. Get your balances on MyInvestor: Log into your MyInvestor app and note the current total value in euros of each of your index funds (for example, the Vanguard Global Stock Index and the Vanguard Global Bond Index).
2. Enter your funds and targets in CoreBalance: Create your portfolio in CoreBalance, entering your index funds, their ISINs (optional), and the target weight for each (e.g., 80% equities and 20% bonds).
3. Enter your actual balances: Type in the current value of each fund from step 1. The app will visually and in real time show you the exact deviation.
4. Calculate the rebalance:
   • If you’re adding new capital (Contribution Rebalancing): Enter the money you’ll invest this month (e.g., €400). CoreBalance will tell you exactly how many euros to put into each fund to balance the portfolio.
   • If rebalancing via transfer: Select the transfer tab. CoreBalance will tell you the exact amount to transfer from the overweighted fund to the underweighted one.

---

4. How to Execute the Transfer in the MyInvestor App

Once CoreBalance has given you the exact transfer figures, execute it in MyInvestor by following these steps:

1. Log in to the MyInvestor website or mobile app.
2. Go to the Investments > Investment Funds section.
3. Find the source fund (the overweighted one you want to take money from) in your positions and click Trade.
4. Select the Transfer option (careful — don’t choose Sell, as that will trigger the tax withholding).
5. Select the Destination Fund (the underweighted fund you want to inject the money into).
6. Enter the amount to transfer. You can select a partial transfer and enter the exact amount calculated by CoreBalance.
7. Confirm the transaction with your security code.

---

Frequently Asked Questions About Rebalancing on MyInvestor

How long will I be out of the market during the transfer?

During a domestic transfer between funds on the same platform (MyInvestor), the sale and purchase are usually chained almost consecutively. However, there may be a gap of 1 or 2 business days where that capital is not invested in either fund. In stable markets the impact is negligible, but it’s a factor to bear in mind during periods of extreme volatility.

Is there a cost to making transfers on MyInvestor?

No. MyInvestor does not charge any purchase, sale, or transfer commissions on its open-catalogue index funds. There are also no custody fees.

Can I transfer funds between different managers?

Yes. You can move money from a Vanguard index fund to an iShares one, or from Fidelity to Amundi, with no tax or commission restrictions.

Why use CoreBalance instead of a shared spreadsheet?

CoreBalance runs 100% in your local browser. It requires no registration, stores no data in the cloud, and shares no financial information with third parties. This avoids the privacy risk of uploading your portfolio to shared spreadsheets on Google Drive or web platforms that track your investment data.