, last updated - Advice

Tax and financial planning for expats in Spain

financial planning

There is much uncertainty for British expats in Spain. Many expats invest their hard earned money for growth and or income, but what about the tax that needs to be paid? The Automatic Exchange of Information (AEOI) rules have made the need for financial planning and advice on avoiding Spanish tax and investing in Spain crucial. This ensures your assets are structured as tax efficiently as possible and your investment strategy is the correct one for you.

Tax in Spain

Expats in Spain need expert expatriate tax advice and guidance to achieve the full tax benefits. This is important as the tax rules frequently change in Spain.

Income Tax allowances can vary vastly in each region and this is often overlooked by expats in Spain and a review of how you are affected is a vital part of tax and financial planning.

In 2012 Spain introduced the Modelo 720. Everyone resident in Spain is now obliged to report all their overseas assets over €50,000 on Form 720. You need to ensure your assets are structured to be both compliant and tax-efficient in Spain. The new automatic exchange of information regime has now started on a global scale and affects everyone with cross-border interests.

It is more important than ever to take professional advice on your tax and financial planning in Spain. This also applies if you are buying or selling property in Spain ,or selling your UK house as part of your move to Spain.

Wills, Estate planning and inheritance taxes

Spanish succession tax works quite differently from UK inheritance tax, and it can vary across regions too. If you are living in Spain you need to understand how it will impact each of your heirs, including your spouse, and how it interacts with UK inheritance tax since they both apply to worldwide assets.

It is prudent to also consider the most effective way to hold your assets and investments so they can be easily transferred to your beneficiaries.

Investment advice

Harrison Brook offers a holistic cost effective solution to all aspects of financial planning and taxation for expats in Spain. We have access to some of the world’s best advisory and discretionary investment managers. However, the investment is only as good as the tax treatment it receives. With this in mind it is vital to receive advice that fits your needs.

Pensions planning

We receive many enquiries for pension planning since the new pension freedom rules came in to efffect. At Harrison Brook we have fully qualified advisers that specialise in pension planning. They review all your options under the new UK pension freedom. This includes QROPS and QNUPS, advising on the pros and cons of each one.  They also advise on the tax implications for expatriates in Spain, so you can make a fully informed decision on the best solution for you.

In summary, our aim is to provide you with peace of mind. We achieve this by structuring your financial affairs.  In this way you, legitimately, pay the least amount of tax possible, while maintaining the provision to provide for your investment objectives in the medium.

The information contained herein is for informational purposes only which is subject to change and should not be relied upon. You should seek advice from a professional adviser before embarking on any financial planning activity.

Related Posts

Novia Global Log in

Posted by Ryan Frost | Jan 12, 2024

Novia Global Login

International High Net Worth Financial Advice

Posted by Ryan Frost | Jan 10, 2024

International High Net Worth Financial Advice

One of our expert financial advisers will aim to get back to you within 12-24 hours.