The Spectrum IFA Group again co-sponsored an excellent Arts Society de La Frontera lecture on the 15^thNovember at the impressive San Roque Golf & Country Club on the Costa del Sol.  We were represented by one of our local and long-serving advisers, Charles Hutchinson, who attended along with our co-sponsors Currencies Direct represented by Ignacio Ortega and Carol Schleisman. 

The Arts Society is a leading global arts charity which opens up the world of the arts through a network of local societies and national events throughout the world. With inspiring monthly lectures given by some of the UK’s top experts, together with days of special interest, educational visits and cultural holidays, the Arts Society is a great way to learn, have fun and make new and lasting friendships.

At this excellent event, over 80 attendees were given a talk on The Real Richard III by Tobias Capwell. Tobias is the curator of Arms and Armour at the Wallace Collection in London and an internationally acknowledged authority on Medieval and Renaissance armour and weapons. He is the author of numerous books on the subject and has been involved in many television programmes on BBC4 and Channel 4. In 2015, Toby had the unusual honour of serving as one of the two fully armoured mounted knights escorting the remains of King Richard III from the battlefield of Bosworth Field to their final resting place in Leicester Cathedral.. It would be no exaggeration to say that his lecture was incredibly gripping and interesting and at times very amusing. His knowledge of his subject was responsible for him being closely involved in the recent feature film “The Lost King” together with all the TV programmes of how they found and identified the king’s remains.

The talk was followed by a drinks reception which included a free raffle for prizes including CH supplied book The Search for Richard III and a large decorative candle. Currency Direct also supplied a Cava presentation case and 2024 diaries.

All in all, it was a very good turnout and a successful event at a wonderful venue. The Spectrum IFA Group was very proud to be involved with such a fantastic organisation and we hope to have the opportunity again at the February 2024 lecture.

Spain is an interesting and beautiful country with a fantastic lifestyle and very hospitable people. I have been in business here with my family for nearly 30 years and have learnt to identify the pitfalls. Here’s how to avoid some of them so you don’t spoil your early days here:

1. Visa and residency permits. It is important to seek advice from a lawyer, gestor or financial adviser specialising in assisting expatriates in Spain as to which visa or permit you need. Since Brexit this has become essential, especially for UK nationals who no longer have the right of abode in the EU.

2. Residency. Again, it is important to consult on the various ramifications of residency, particularly the timing of physically moving from your previous jurisdiction (such as the UK) to Spain. For example, the UK has the 90 day rule whereby if you spend more than 3 months there in any 12 months, you are deemed to be tax resident. In Spain, it is the 183 day rule. However, should your “centre of vital interests” be deemed to be here (if you have children in school here or you are running a business from here), then despite being physically here less than 183 days, you may well be deemed to be a fiscal resident.

3. Foreign pensions and tax efficient investments. While they may be tax efficient in your country of origin, they may not be here. For example, if you are about to draw down on your pension where there is a 25% PCLS (cash lump sum) available tax free, it may not be so here and could be taxed at full income tax rates. Likewise, UK ISAs and some UK National Savings products will probably not be tax free here. You should consider encashing these while UK resident and switching into tax efficient alternatives here (more on that later).

4. Choice of new country of residence. For me this is a no brainer. Over the years I have met many potential and future clients who let taxation rule their lives and dictate where they should live. I genuinely feel that if you and your partner (and children) want to be happy, choose the place that offers what you and yours need for a happy life. There are still too many people who choose their new home on the basis that there is less or no taxation. A frequent typical example would be a couple who spend 180 days in Spain, then 90 days in the UK, one month on a cruise and one month in Florida. While the husband might be rubbing his hands in “Fiscal Nomad” glee, his poor wife is just fed up wandering the world as Mrs Nomad and not being able to call anywhere “home” (please also remember my earlier reference to “centre of vital interests”).

5. Taxation. There are certain taxes in Spain which are foreign to many from other jurisdictions. Typically this might be wealth tax or inheritance tax (IHT) between spouses or common law partners. Please see an earlier article I wrote about how Andalucia might currently be considered a tax haven. The threshold on wealth tax has now been raised here (and in Madrid) so that most couples can avoid it. In Andalucia, there is effectively no more inheritance tax – if you plan carefully. By selecting the correct structure in which to hold your investments, IHT no longer applies between partners (more on this later).

6. Tax returns and declaration of foreign assets. Timing is all important. When you arrive here, it is important to seek advice as to when you should make your first tax return. As usual in Spain, there is the official rule and the unofficial version. As long as there is a provable intent to make one’s first return, one is not breaking the law. It is always easier to make a return for the tax year beginning after you arrive. This often coincides with the fact you have not been here for more than 183 days prior to the beginning of the tax year (1st January). Returns are made by end of June of the following year, so there is plenty of time to decide when to start. You can of course make a return for a period beginning part way through the tax year. This is sometimes done to coincide with date you left your country of previous tax residence but it is not essential. Modelo 720 (Declaration of Foreign Assets) is always made in March of the following year, with regard to the previous tax year. Note that certificates of tax residency here are only issued after you have made your first return.

7. Capital gains tax (CGT) timing. Whenever possible, dispose of any assets which are either CGT free in your previous country or attract a lower tax rate than here while still tax resident in your previous country. For example, your main residence in the UK is free of CGT when disposed of as a UK tax resident, but when you are tax resident here it would be regarded as a second home, even if you are only renting here. Your Spanish home in turn has special tax privileges as a Spanish resident when you come to eventually dispose of it (as an owner).

8. Health insurance. It is important to remember that since Brexit, UK nationals no longer have the privilege of cross border health care. It is however the rule that to obtain a resident permit or visa you must have Spanish recognised health insurance. To avoid stress, investigate options as early as possible.

9. Spanish compliant investment bonds. These are not only recognised here, but also across many EU countries and the UK (where they were pioneered). They are an incredibly effective tax efficient structure provided by several major insurance companies outside of Spain and with offices within the EU. Here in Spain, they are a flexible, 100% secure (under EU law) means of holding investment funds and cash almost without tax exposure. Only when making regular (income) or lump sum withdrawals is there a withholding tax on the growth element of the withdrawal. Even then, the tax rate is far lower than normal income tax. IHT can also be avoided and you can retain your previous investment manager to manage your portfolio. You should consult your new financial adviser in Spain for details.

10. Happiness is where the heart is. Observe these steps and you will begin with less stress and hopefully continue to happily live your lives here for the rest of your days. There is no place like Spain to have a satisfying and rewarding life (just beware when grandchildren heart strings begin to tug if they live somewhere else!)

In recent years, the debate surrounding wealth tax has gained significant attention, especially in the context of Spain’s Andalucia region. Andalucia is one of the most populous regions of Spain and has a strong agricultural and tourism-based economy. In September 2022, the Andalucian government announced the abolition of wealth tax.

The decision to abolish wealth tax in Andalucia was based on the regional government’s belief that it was an unfair tax and discouraged investment and economic growth in the region. The tax was seen as a deterrent for high-net-worth individuals (HNWIs) and business owners, who were seen as crucial for job creation and economic stimulation.

However, critics of the decision argued that wealth tax was an important source of revenue for the government and helped to reduce inequality in the region. They argued that the abolition of wealth tax would only benefit the rich and widen the gap between the rich and poor in Andalucia.

To address these concerns and also that it was unfair to all other autonomous regions (except Madrid which also scrapped wealth tax), the Federal government introduced a new tax called solidarity tax. Solidarity tax is a progressive tax that aims to reduce inequality and generate revenue for the government. It is applied to all autonomous regions. If a region has no wealth tax, then the solidarity tax is applied. If, however, a region already has wealth tax in place, then the solidarity tax is removed. The tax is based on a sliding scale, starting with HNW individuals with assets of €3m and above. There are three bands, the lowest rate being 1.7% which rises to 3.5% on assets worth €10m and above.

The introduction of solidarity tax was seen as a positive step by many, as it addressed concerns about inequality and raised much-needed revenue for the government. However, some critics argued that the tax was not enough to make up for the loss of revenue from the abolition of wealth tax. However, it has allowed many to escape wealth tax on assets under €3m, especially if those assets are held jointly. This is seen as attractive by many resident expatriates as it mitigates the impact of wealth tax (in effect there is no wealth tax for a couple on assets below €6m).

In the case of Andalucia, the abolition of wealth tax and introduction of solidarity tax highlights the ongoing debate about the role of taxation in reducing inequality and promoting economic growth. While some argue that wealth tax is an important tool for reducing inequality, others argue that it discourages investment and entrepreneurship. What is clear is that it is part of a concerted move to make the region attractive to those who would stimulate economic growth. For example, inheritance tax has been removed and capital gains tax scrapped on all first homeowners over the age of 65. Income tax is being lowered by at least 4% and water tax has also been abolished. All of which represents a strategic move to lure back permanently those who had moved away, including to nearby Portugal for example. Ten of the top 20 wealth tax payers in 2019 left Andalucia in 2020, resulting in a loss of income for the region of nearly 18 million Euros (3.5 m in wealth tax and 14m in personal income tax).

The Spectrum IFA Group is committed to helping expatriates navigate their way through the taxation minefield. Our disciplined financial advice process ensures that valuable planning opportunities are fully utilised, for optimal tax efficiency on assets, income, investments and, eventually, inheritance for your beneficiaries. By doing so, we can demonstrate, perhaps surprisingly to some, that Andalucia truly is a tax haven, not just in Spain but in a wider European context.

Whether you are planning to move here or are already a full time or part time resident, please contact me for a no fee and no obligation chat – perhaps over a coffee?

The ongoing Ukraine conflict has had a significant impact on global financial markets and the value of investments. While it is difficult to predict the exact outcome and duration of the conflict, there are several strategies investors can employ to protect their investments during this uncertain period. Here are some suggestions:

1. Diversify your portfolio: One of the most important strategies for protecting your investments during a period of geopolitical uncertainty is to diversify your portfolio. By investing in a variety of asset classes such as stocks, bonds, commodities, and real estate, you can spread your risk and reduce the impact of any one investment being affected by the conflict.

2. Avoid investments in affected regions: If you are concerned about the impact of this conflict on your investments, it may be wise to avoid investing in companies or industries that are directly impacted. For example, companies that do business in Ukraine or Russia, or companies that rely heavily on imports or exports from these regions, may be more vulnerable to a serious and sustained downturn.

3. Consider safe-haven assets: During times of geopolitical uncertainty, investors often flock to so-called “safe-haven” assets such as gold, US Treasuries, and the Swiss franc. These assets are generally considered to be less risky than other investments and, depending on wider market conditions, can provide a hedge against volatility.

4. Keep an eye on news and developments: It is important to stay informed about developments which may affect financial markets. By keeping a close eye on political and economic news, investors can make informed decisions about their investments and, if necessary, adjust their portfolios accordingly. Note that becoming overly reactive to short term events will usually be counter-productive, but staying informed will also often present valuable opportunities for tactical portfolio adjustments.

5. Take a long-term view: While it can be tempting to react to fluctuations in the financial markets, it is important to remember that successful investing almost always relies on patience and taking a long-term view. Rather than trying to pre-empt short term market direction, it is often more prudent to focus on your long-term investment strategy and stick to your plan.

6. Consult with a suitably experienced financial adviser: If you are uncertain about how to best protect your investments, it may be helpful to consult us. A professional adviser can help you navigate the complexities of the financial markets and provide personalised advice based on your individual goals and risk tolerance.

Points 1 to 4 above are actually the responsibility of the fund managers whom we select for their prowess, long term performance and consistency. It is their job to navigate your investments through uncertain times. Point 5 is vital and it is important to remember the adage “It’s not timing the market, but time in the market, which matters”.

In conclusion, the ongoing conflict in Ukraine presents a challenging environment for investors, but there are strategies that can be employed to protect investments. By diversifying your portfolio, avoiding investments in affected regions, focusing on safe-haven assets, staying informed about the latest developments, considering the long-term and consulting with a financial adviser, you can help protect your investments during this uncertain period.

The Spectrum IFA Group again co-sponsored an excellent Arts Society de La Frontera “Live” lecture on the 15th March at the newly renovated San Roque Golf & Country Club on the Costa del Sol. We were represented by one of our local and long-serving advisers, Charles Hutchinson, who attended along with our co-sponsors Currencies Direct represented by Ignacio Ortega, Carol Schleisman and Cristina Ruiz. Also present was the society’s European Chairman Jo Ward.

The Arts Society is a leading global arts charity which opens up the world of the arts through a network of local societies and national events throughout the world.

With inspiring monthly lectures given by some of the UK’s top experts, together with days of special interest, educational visits and cultural holidays, the Arts Society is a great way to learn, have fun and make new and lasting friendships.

At this event, over 50 attendees were entertained by a talk on The Manufactured Woman which is the story of Pandora, her box and the reasons for her creation by Mary Sharp of BBC Radio 4 fame. She gave an interesting talk showing comparisons with other created female characters such as Eve in the Bible and Eliza Doolittle in Pygmalion and the later My Fair Lady.

The talk was followed by a drinks reception which included a free raffle for prizes including CH supplied book on Dutch Art and Champagne. Smart Currency Exchange also supplied wine presentation cases with glasses and Brandy.

All in all, it was a good turnout and a successful event at a wonderful venue. The Spectrum IFA Group was very proud to be involved with such a fantastic organization during its current global expansion and we hope to have the opportunity again at the November lecture.

The Spectrum IFA Group again co-sponsored an excellent Arts Society de La Frontera lecture on the 18th May at the newly renovated San Roque Golf & Country Club on the Costa del Sol. We were represented by one of our local and long-serving advisers, Charles Hutchinson, who attended along with another Costa del Sol based partner Jeremy Ferguson and his wife Michelle in her role as his personal assistant.

The Arts Society is a leading global arts charity which opens up the world of the arts through a network of local societies and national events throughout the world.

With inspiring monthly lectures given by some of the UK’s top experts, together with days of special interest, educational visits and cultural holidays, the Arts Society is a great way to learn, have fun and make new and lasting friendships.

At this event, over 180 attendees were entertained by a talk on the fabulous Spanish painter Joaquin Sorolla “Master of Light” by Arantxa Sardina from the Tate Gallery in London. She gave an impressive lecture, revealing what a true master he is amongst the other well known impressionists of the early 20th century.

The talk was followed by a drinks reception with a musician and youth art exhibition which included a free raffle for prizes including Charles´s gift of a book on the artist, champagne, orchids and Jeremy supplied liqueur.

It was the best turnout we have had for a few years, which was largely due to it being the last lecture of the season combined with the art exhibition and relaxation of Covid rules. A very successful event at a wonderful venue.

The Spectrum IFA Group was very proud to be involved with such a fantastic organization during its current global expansion and we hope to have the opportunity again in the next season.

After a gap of nearly two years due to Covid, The Spectrum IFA Group again co-sponsored an excellent Arts Society de La Frontera “Live” lecture on the 19th January at the newly renovated San Roque Golf & Country Club on the Costa del Sol. We were represented by one of our local and long-serving advisers, Charles Hutchinson, who attended along with our co-sponsors Smart Currency Exchange represented by Dean Biddulph. Also present was the society’s European Chairman Jo Ward.

The Arts Society is a leading global arts charity which opens up the world of the arts through a network of local societies and national events throughout the world.

With inspiring monthly lectures given by some of the UK’s top experts, together with days of special interest, educational visits and cultural holidays, the Arts Society is a great way to learn, have fun and make new and lasting friendships.

At this event, over 50 attendees were entertained by a talk on the 1920’s Dustbowl of California, Oklahoma and Texas by John Francis, who is one of the UK’s top experts on this subject. He gave an excellent lecture, revealing to us how this terrible time in US history spawned a number of well known artists and singers, as part of the aid package produced by President Franklin Roosevelt to stimulate recovery.

The talk was followed by a drinks reception which included a free raffle for prizes including CH supplied lovely Art Deco flower vase, a book on the subject and Brandy. Smart Currency Exchange also supplied champagne and a crystal decanter and glasses.

All in all, considering many people are still nervous about large events, it was a good turnout and a successful event at a wonderful venue. The Spectrum IFA Group was very proud to be involved with such a fantastic organization during its current global expansion and we hope to have the opportunity again at the March lecture.