Viewing posts categorised under: Moving to Spain

Are you thinking of moving to Spain

By Jeremy Ferguson
This article is published on: 23rd June 2022

23.06.22

“Its so nice holidaying here, I’d love to live here all year round…’’

If you are a UK resident and here on holiday, it is very often these times that get people thinking about retiring to Spain. The attractions of the slower pace of life, a completely different climate, all those extra hours of daylight and sunshine, a lower cost of living, ( depending on lifestyle!), eating out often – on and on the list normally goes.

When the UK was part of the European Union, taking the plunge and moving to Spain was relatively straightforward, aside from the obvious challenges of the actual move. You could sell up, jump on a plane and then when you were here, apply for residency, register at the town hall etc, and that was pretty much it.

Now however, that simply isn’t the case. There is the fact that as a UK citizen, you no longer have the freedom of movement within the EU, something many people still haven’t come to terms with. You can of course still come here to live, but you will need to make an application for a Visa. If you are looking to retire, then this needs to be a non lucrative Visa.

I work closely with experts who can assist with these applications, who know the process inside out and make this part all very straightforward for you.

The financial planning side of the whole process is also essential, and that of course is where I get involved. It is important you dispose of or organize your assets in the most tax efficient way you can before you leave the UK. For example, making sure your pensions are correctly dealt with and selling your main residence at the right time to name just a couple, and of course understanding the tax system and rates applicable once you are here.

One of the most important aspects of making your Visa application, (which has to be done at one of three Spanish embassies in the UK – London, Manchester or Edinburgh), is understanding what your finances need to look like to satisfy the Spanish requirements. These are mostly focused on the fact that they want to ensure you have enough money or income to live here self sufficiently.

Download our Guide - Moving to Spain, the money part

So you need to satisfy what is known as IPREM, literally translated this means “The Public Multiple Effects Income Indicator”. As a non EU member applicant ( Third country National ), you need to demonstrate you have 4 times the IPREM requirement, plus 100% extra per beneficiary. So in simple terms, if a married couple are retiring here you will need to prove income of €2,895.10 per month, or a lump sum of €34,741.20 for each year. It is also worth noting, your Non Lucrative Visa needs renewing after a year (for the next two years) and again after three years, again for the next two years. After the end of year five you will then obtain permanent residency. This all has an effect on what money they will want to see you have, be it in the form of Pension income, savings, cash in the bank etc. This not only applies when you make your initial application, but also for the following four years.

So if you are thinking about moving to Spain? You will need to make an application for a Visa. If you are looking to retire, then this needs to be a non lucrative Visa, it is really important to have a good handle on the financial requirements, not just for the initial application but also for the subsequent few years. Most of my work has changed significantly now when working with people who are planning their move here, as it is so much more complicated than it used to be.

As we are dealing with similar situations on a regular basis, it enables us to make the process as easy as it can possibly be for individuals.

If you would like to find out more about what planning would be needed to make living in Spain a reality, then please feel free to get in touch.

Removing Confusion on Spain and UK Tax Situation Especially Pensions

By Barry Davys
This article is published on: 23rd May 2022

23.05.22

It is clear from calls and messages to me from people seeking advice there is much confusion regarding taxation when we live in Spain and have income or capital gains in the UK. Sometimes, these calls happen when people have received a letter from the Agencia Tributaria (Hacienda).

My wish is to clarify the situation so that there are no back taxes, fines nor interest to pay in Spain.

This framework will clarify the position and I include specifics regarding pensions. Tax can be, well taxing, so this framework is to help with understanding the overall situation, not to provide specific advice for your situation.

Who’s this for?
This article is for all British people who live in Spain.

Overview
A framework to help explain how do we pay tax on pensions from the UK when living in Spain?

Why to read this article?
This article is written in response to a very sad situation where a pensioner here has been hit by fines, back tax and interest from four years ago because of a mis-understanding on how to organise his tax on his UK pension. It is likely that further fines will follow for other years. The total amount of fines and interest could amount to €21,000

Your commitment
Taking the time to read the article and requesting an initial telephone or Zoom meeting below, if you want help for your specific situation.

Yes, I would like to arrange a conversation about my situation

Your Tax Framework

Top of the framework is to understand that when we have taxable events in more than one country, the country of our residency is the “controlling tax authority”. They have the final say on what tax must be paid.

If you live in Spain more than 183 days in a calendar year your controlling tax authority is Spain. It does not matter if you also pay tax in the UK.

How this works is as follows:

Declare your worldwide gross income and capital gains on our La Renta (M100) Remember it is a self assessment form and so it is our responsibility to do so
At the end of the La Renta form is a box for entering tax paid in a country with a double taxation agreement with Spain. Put the tax paid in this box or insist your gestor does so. Even post Brexit the double taxation agreement is still in force
UK pensions gross income all have to be reported in Spain

If you live outside the UK and provide a certificate of tax residency in Spain you can claim dividends, bank interest and even private pensions without paying UK tax (because you will pay tax in Spain).

Pensions, however, are a great source of confusion. The UK retains the right to tax state pensions, military pensions, civil service pensions and a number of others. Previously these did not have to be reported in Spain. They do now!

Tips on pension tax

On private pensions and most company pensions ask the provider to pay you gross
If you have a UK pension where it is automatically taxed or is a state pension, record all tax paid in the UK and get proof of payment from the pension provider
Report the gross figures in Spain
Your state pension is paid weekly, not 12 monthly so remember to include all payments in the calendar year
Ensure that any tax paid is listed in the La Renta box for countries with double taxation agreements. Result – no double taxation
If the tax paid is missed off this box, try to make a Refund of Tax using UK HMRC form R43 and or form R40. It may be possible depending on your circumstances
One word of warning. Do not use companies offering to reclaim your tax for you. They are expensive, some may be improper and you can easily send the form yourself

For an initial call to find out more, choose a time for a phone call or Zoom meeting that is convenient for you CLICK HERE

In my profession as a financial adviser for international people living in Spain I have a clear understanding of tax rules and recommend that you employ a good local tax adviser. This article is not tax advice as it may not reflect your personal circumstances. It is merely a framework to help with your understanding. I hope this article provides more clarity on the issue and helps when you do go to a tax adviser.

I’m moving to Spain – When should I take financial advice?

By David Hattersley
This article is published on: 17th March 2021

Brexit removed the previous rules pertaining to “Freedom of movement, goods and services within the EU”. Those who now wish to move to Spain from the UK, making it their home as retirees or working here, newer and tougher rules apply.

Distance working has added a new dynamic, in particular for those in the technology sector who see that this is as an opportunity to work and live in a nicer environment. Speaking to a qualified financial adviser who is regulated here,in Spain is sometimes an afterthought . However, talking to an adviser before you embark on the journey can help avoid some of the issues which expatriates can find themselves encountering. Financial planning is complex, whichever new country one moves to, so a brief summary can help prepare for the future “devil in the detail” elements. Forewarned is forearmed and helps avoid basic pitfalls.

It makes sense to “disinvest” all UK held assets prior to becoming Spanish Tax resident. Timing and deferral is the key to planning a strategy. Note that due to Brexit, UK advisers are no longer allowed to offer continuity of advice Spain for those that become tax resident in Spain.

There are a number of rules regarding Spanish tax residence, which are briefly detailed below. You will be deemed tax resident in Spain in any one of the following cases:

1. Number days in Spain not to exceed 183 days and may include time spent in any EU member country,
2. Centre of Economic interest i.e. source of earnings is in Spain,
3. Spouse and minor children living in Spain.

With regards to your assets, without going into too much detail, the following will apply.

UK property: Disposal once tax resident will be subject to Spanish capital gains tax, even if it was one’s primary UK residence. If retained it will be subject to reporting on Modello 720, a record listing overseas assets. A 20% increase in value will mean a new Modello 720 report. Income derived from letting the property will be subject to Spanish “investment” tax.

UK Pensions: A Pension Comencement Lump Sum is tax free in the UK, it is liable to tax in Spain. So if nearing 55 wait till you take it and then become Spanish Tax resident.

ISAs: An ISA offers tax free growth or income in the UK. They are not tax free in Spain, but there is a Spanish equivalent.

Unit Trust, Shares, Investment & Insurance Bonds, NSI bonds etc: There are some tax breaks in UK but none in Spain.

Inheritance Tax: The UK rules apply to the residual estate whereas Spain applies it to the beneficiary. There is a strong possibility of being taxed twice as estate rules & beneficiary rules are not covered by double taxation agreements.Based on “domicile” there is a different law for bequests & inheritance in Spain. Also, unlike the UK, it has a the variety of laws for each autonomous area,affecting in particular the potential impact of Spanish succession tax. It makes sense to deal with a regulated adviser who is based in or near to an autonomous area you will be living in e.g. Madrid ,Andalucia, Murcia, Valencia.

Having a “ partner “ relationship as opposed to being married, brings its financial own risks in Spain, and arrangements must be considered.

Spanish Property: Some people come to Spain with plans of using their new Spanish property to retire to now or eventually. If it is the latter, the property maybe used to produce rental income either via summer rentals or long term rentals, but in this case there will be tax considerations.

Investing an hour of two of your time before you make the move to Spain can provide peace of mind and financial comfort when planning your new adventure. I can provide “Your guide to tax in Spain” that goes into greater detail. Whether you want to send the guide or speak to me directly, please call or email me on the contacts below & I will be glad to help you. We do not charge for reviews, reports or recommendations we provide.

A Spanish regulated adviser can ensure you are financially prepared for your move, in terms of any investments, savings and taxes which can become due on both income and windfalls you may be expecting after your move.

Please note, we are not accountants or lawyers, but we do work hand in hand with these professionals, and can be the “first port of call”.

Est-il préférable de rembourser votre prêt ou d’investir?

By Cedric Privat
This article is published on: 13th November 2020

13.11.20

Vous avez reçu un don, un héritage, un bonus ou avez accumulé de l’épargne sur vos comptes et vous vous demandez comment utiliser cette somme au mieux.Nous allons analyser ensemble les différents points à prendre en compte dans cette prise de décision.

Épargne de précaution :
La première règle sera de ne pas mobiliser toutes vos liquidités et de garder un capital libre.L’immobilier n’est pas un capital disponible rapidement; un bien peut prendre du temps à se vendre et le transfert de placements prendra plusieurs semaines avant d’être transféré sur votre compte bancaire.

Cette somme de précaution devra plutôt être disponible sur un compte courant pour vous permettre de couvrir vos frais réguliers (fond de roulement) et de faire face à un possible imprévu. Pour plus de sécurité, elle devra être équivalente de trois à six mois de salaire, surtout si vous avez des enfants.

Frais de remboursement anticipé :
Si vous choisissez de rembourser votre prêt, la première démarche sera de vérifier votre contrat (ou de contacter votre agence bancaire). Si le montant des frais du remboursement anticipé (ou pénalités de remboursement anticipé) est trop élevé, s’acquitter de cette dette pourrait s’avérer trop onéreux (en moyenne , les frais s’élèvent à 3 % du capital restant dû).

En revanche si vous aviez négocié des frais 0 à la signature du prêt, vous devrez alors confronter le taux de votre prêt et celui de vos placements.

Comparer les taux :
Si le taux de votre crédit est bas, il est surement intéressant de ne pas toucher à cet emprunt ; on peut alors le qualifier comme une bonne dette.

Néanmoins, le taux de rémunération de vos produits d’épargne se devra d’être supérieur à ce taux de crédit. Mais avec un Livret A ayant un taux de 0.75 % depuis 2015 et le rendement du fonds en euros de l’assurance-vie qui ne cesse de baisser depuis les années 2000 (placement 100 % fixe garanti), même surpasser l’inflation (évolution des prix à la consommation) peut s’avérer difficile.

Même les investisseurs les plus prudents se doivent désormais de choisir des placements avec (au moins) une partie variable, tout en s’adaptant à leur profil de risque, afin d’obtenir des rendements supérieurs qui couvriront les taux d’intérêts de l’emprunt et permettront de gagner de l’argent. (assurance-vie en unités de compte/SCPI/obligations/actions/fonds d’investissement, etc.)

Les avantages du crédit immobilier :
Un crédit immobilier peut vous permettre de développer votre patrimoine via un effet de levier.

Continuer de payer vos mensualités pourrait vous permettre de diversifier votre patrimoine vers des placements ou d’effectuer un nouveau prêt pour un nouvel achat immobilier (si possible locatif et avec des loyers égaux ou supérieurs à vos nouvelles mensualités).

Il est aussi possible de réduire son imposition grâce à la dette, notamment dans le cadre d’un investissement locatif ou dans le cas d’une succession.

Comme souvent on ne peut pas établir de règle générale pour répondre à ce type de question. Tout dépendra de votre situation, votre contrat bancaire, vos rendements de placement ou même de l’ancienneté de votre prêt (car vous remboursez beaucoup plus d’intérêt bancaire les premières années).

Se libérer de vos dettes peut psychologiquement être satisfaisant, mais dans de nombreux cas de figure, ce remboursement anticipé ne s’avèrera pas financièrement intéressant. Il sera important de ne pas prendre de décision rapide et émotionnelle mais de planifier et calculer ces décisions.

Le groupe Spectrum à Barcelone se propose d’étudier gratuitement votre situation afin de vous aider, de vous conseiller, de vous orienter ou de vous guider dans vos démarches patrimoniales.
De plus, en Espagne comme en France, Spectrum possède une section “courtier en prêt immobilier” pour vous aider à bénéficier des taux les plus avantageux.
N’hésitez pas à nous contacter afin d’obtenir les réponses d’un professionnel aux questions que vous vous posez.

How to avoid Spanish taxes on your UK property and investments

By John Hayward
This article is published on: 30th July 2020

30.07.20

Being tax resident in Spain is not your choice
once you have made the initial decision to move to Spain.

Generally, once you have spent 183 days (not necessarily consecutive) in Spain, you are deemed to be tax resident and have to declare income and assets to the Spanish tax office. The tax year in Spain runs from 1st January to 31st December. Unlike the UK, which works on a part tax year basis when someone leaves the UK, in Spain you are either tax resident for the whole year or you are not.

As soon as you know that you will be taking the step to eventually become tax resident in Spain, it is extremely important to make certain that you have arranged your investments and property(ies) in a way that isn´t going to open you up to unnecessary Spanish taxes.

A lot of people will be looking to become resident in Spain before Brexit on 31st December 2020, in case the process becomes more complicated after. However, for those who are worried that applying for a residence card will automatically make them tax resident, let me dispel this fear. It does not. Therefore, you have the opportunity to apply for a residence card whilst taking action to protect your assets free from Spanish tax for 2020, becoming tax resident in Spain in 2021.

UK Property & Tax in Spain

As a tax resident in Spain, a person has to declare all of their overseas assets (over certain levels) as well as the income from these assets. Anything sold, such as a property or investments (ISAs, shares, bonds, etc.), and even a lump sum from a pension which would be tax free in the UK, will be taxable in Spain and this is where there is a potential tax nightmare.

Our advice is usually to sell before becoming tax resident in Spain, if selling is feasible and practical. If you are eligible to take a tax free lump sum, do so before becoming tax resident in Spain. ISAs are also taxable in Spain and although there are ways to legally avoid taxes whilst holding this type of investment, things can become very complicated.

Let me make this clearer with examples of someone who has a UK property and sells it after becoming tax resident in Spain.

Example 1 – Property Purchase 1986

You move to Spain and become a permanent resident, and thus a tax resident, in Spain.
You own a property in the UK which has been your primary residence since you bought it in 1986.
As you have now moved to Spain, it is now a secondary property.
You bought it for £48,000. You are selling it for £600,000. As this is no longer your primary residence, Spanish capital gains tax is due on the sale.
Even with indexation (which only applies to pre-1994 purchases), the tax bill is over €50,000.

Example 2 – Property Purchase 2004

- You bought a property in the UK in 2004 for £150,000 and are selling it now for £250,000.
- The Spanish capital gains tax on the sale would be over €20,000.
- Unlike the UK, there are no capital gains tax allowances in Spain.

The same principle applies to shares, investment bonds, and ISAs.
You have to pay Spanish capital gains tax on the difference between what you paid for them and what you sell them for, again with some indexation for pre-1994 purchases.

Plan early: Before you move to Spain to help avoid Spanish Tax

You need to draw a line under your asset values now so that you can take advantage of the more beneficial capital gains and property tax rules in the UK and start afresh in Spain without the fear of unavoidable Spanish taxes in the future.

Contact me today to find out how we can help you make more from your money, protecting your income streams against inflation and low interest rates, or for any other financial and tax planning information, at john.hayward@spectrum-ifa.com or call or WhatsApp (+34) 618 204 731.

What is the point of having money?

By Barry Davys
This article is published on: 14th June 2020

14.06.20

The point of having money is personal to you. Looking after your money should always start with your requirements. Your life has its own twists and turns. Your hopes and dreams are just that; YOUR hopes and dreams. How you feel about money is personal to you.

In this article I give you a framework for why you may want money. Once you have the framework, you can colour in the detail in a way that suits your requirements.

Knowing your answer to the question, ‘What’s the point of having money?’ is the starting point. Money, savings, investments, whichever you wish to call it, provides you with choice. The reason for having money is that it gives you one of three things; security, freedom or opportunity. Which choice you choose is up to you. The answer may be correct for you but different for your neighbour, even if you live next door in the same size house.

Security
Security means that you have enough money to be able to settle your debts, pay nursing fees if required, pay for medical treatment and perhaps be able to help the children to buy a house. People who want security often have a home free of mortgage; their little piece of heaven that they own.

To settle on having security means you need capital. Often people choose not to take risk with their money because they want to be certain it is there if they need it. A fall in the stockmarket will not damage the security blanket of money in the bank. Your savings are just one big emergency fund. In these times of extremely low interest rates there are only a few places to get a little investment return for this option.

More and more, I see that this form of planning is undermined by long life expectancy and inflation. Hoarding the capital without making it work can lead to the erosion of the buying power of these savings. Sadly, insecurity comes after years in retirement when people realise that what they thought was enough money, is not.

Freedom
Freedom is gained when your savings are invested to provide you with sufficient income to live on, whether or not you continue to work.

To achieve this position depends on what lifestyle you have. The more flamboyant the lifestyle, the harder your money will need to work.

To achieve a feeling of freedom, money is required, and it needs to work hard. You yourself should feel in a “life is good” state of mind. Your money must be making money and it must later be able to provide you with income if you want or need it. Making money means that you need to invest in shares, bonds and perhaps some property (in addition to the home where you live). If you do not have the inclination or skill to do this yourself, you should work with a professional adviser or use funds. Some investments can provide you income now and others with capital growth. The growth parts will protect against inflation and can mean you can increase your income later.

Opportunity
Do you want your life to be full of opportunities? To be a space tourist? To ride a Harley Davidson to Lapland from Denmark like Steve Forbes (Forbes magazine) did, just to see the Northern Lights? Or both? What an opportunity that would be seeing the Northern Lights from earth AND then see them from space. Or to be one of the first investors in the company that makes the software for all the driverless cars in the world? As your world is a world of opportunity there are many, many more things that you can do with your life; most people will never ever get the opportunities you do.

To build this life takes more money. You may have sold a business, for example. Or received an inheritance. And this money will have to work hard for you. You may have some core holdings to give you a diversified portfolio, but you will also have to take some risks to make your money work hard enough to provide you with a life full of opportunities. Take more risk with your investments, but be able to withstand an investment that doesn’t perform well. In addition to the investments used by someone looking for freedom, you may also invest in a new business, for example. This takes skill to analyse the potential of investments and you will benefit by taking advice from qualified and experienced people.

Whether you need help with deciding on your choice or you wish to discuss how to execute your plan, please contact me for assistance. An understanding of your concerns when discussing your aims and choices together with the expertise to execute the plan for your benefit can make for a strong and trusting professional relationship.

7 Good Reasons to Retire in Andalucía

By Charles Hutchinson
This article is published on: 13th June 2020

13.06.20

There is currently a noticeable increase in the number of enquiries to estate agents in this area from abroad, the majority of which are from the UK.

If you are looking ahead to retirement and wondering where you might like to live when the time comes, you should consider putting Andalucía somewhere at the top of your list.

Lifestyle
The Spanish lifestyle is one of the most open and friendly in the world where coastal areas, in particular Andalucía, are most welcoming. Locals are well aware that the international market is all important to the economy and growth of the region, bringing prosperity to what was once the poorest part of the country.

Culture
The region is littered with places of historical interest and beautiful world heritage sites. The Arts play an important role in life here with great classical concerts and popular music shows. Every town and village in Andalucía has at least two ferias (festivals) a year and talented street performers are found everywhere. Every city has important galleries and museums reflecting its historical artistic contributions to the world.

Climate
Andalucía enjoys one of the mildest climates in Europe, especially in coastal regions where temperatures are not as extreme as in the interior. Having said that, the climate in the interior is dry, making the upper and lower temperatures more tolerable. The climate, outdoor life, healthy Mediterranean diet and generally relaxed atmosphere of the region can be counted among the many reasons why Andalucía enjoys the highest life expectancy in Europe.

Cost of Living
The benign climate makes for reduced heating, food and clothing expenses. It encourages outdoor living through more months of the year than you might enjoy in northern Europe or parts of the US. Spain is one of the largest producers of fruit and vegetables in Europe with much of these coming from Huelva and Almería and not far away, Murcia which is known as the vegetable garden of Spain. Eating out can also be very inexpensive and extremely good. In coastal areas and a little further inland there is no shortage of good places to eat. Spain is also one of the most important wine producers of the world and Spanish wines have come a long way, standing alongside some of the best in the world.

Sports & Outdoor leisure
There is a large variety of sporting activities to be enjoyed here. Apart from a huge number of golf courses and tennis clubs, there are excellent beaches, water sports, Whale/Dolphin watching, etc. You can snow ski and water ski within two hours of each other. We have the highest ski resort in Spain. Trekking and rambling is a pure joy through spectacular scenery.

Health Care
The state health care system in Spain is excellent and some of the best doctors and specialists can be found in this country, especially in Andalucia for they too want to live a good lifestyle! Health Insurance, if you do not qualify for state health care, is cheap when compared to northern Europe and many countries farther afield.

Communications
The larger cities in the region are very well connected with Madrid and other main Spanish cities. There are excellent coach and train services which are a joy to experience. Coach travel is inexpensive and always provides the bonus of being able to enjoy the view. Train travel also offers you the chance to enjoy the scenery and if you want added comfort and speed, the AVE is an excellent example of high-speed train travel with one of the best networks in Europe, which has halved train travel time around many parts of the country. It also compares favourably against air travel if, for example, you are travelling to Madrid, as you will be taken right to the city centre and you do not have to be at the station two hours before departure.

Capital cities in Andalucía also provide excellent connections by air with direct flights to 129 European cities as well as to numerous destinations elsewhere in the world. If you have family and friends back home, in the US or somewhere in northern Europe there are plenty of options when it comes to getting back to see them or having them come over to Spain for visits.

Things to consider before moving here

You will need to decide where you want to live. This is best achieved by renting short term somewhere first. Consideration should be given to any medical care needs, sporting facilities, schools (if you a younger retiree) and convenient distances to an international airport
You will need to decide how much time you want to spend here and whether to become tax resident. This is where I can give you in depth assistance with residency, permits and tax advice
Regarding tax, we would need to review any existing investments you may have to ensure they are tax efficient here in Spain. UK tax efficient investments are usually not tax efficient here
We would need to review your income situation in retirement and how best to achieve the required level with the least tax
We can assist you with a choice of medical insurance, if needed. Wills might have to be adjusted and Spanish ones drawn up

Please remember that if you already have a UK Financial Adviser, they will not be qualified or knowledgeable to give advice here.
By the same token, if one of our clients moves back to the UK or another country, it is essential they contact a local adviser there.

WISH YOU WERE HERE?
CONTACT ME NOW FOR FURTHER INFORMATION

The results are in…

By Chris Webb
This article is published on: 10th June 2020

10.06.20

I trust you are all safe and well and enjoying the additional bit of freedom that moving into Phase 1 has afforded us herein Spain. By the time you read this there is every chance we are into Phase 2 allowing even more freedom. It’s been a long haul for Madrid to get there and there are mixed feelings about how long it has taken…

Personally, I´d rather be safe than sorry, so whilst there have been frustrating times over the last few months, it is probably for the best. Recently I sent a survey out to my clients, who are based all over the community of Madrid. The survey was twofold:

Secondly, being in lockdown has given us all the time and opportunity to evaluate our personal situations. To address administrative tasks we had put on the back burner and to look at all aspects of our financial wellbeing, whether that be assessing emergency cash reserves, job security or even making sure an up to date will was in place.

The response to my survey was fantastic with many responses. Some just answered the questions but the majority also wrote additional comments, which gave a greater insight into their situation. It was interesting for me to read the results and compare the answers to how my family have felt and what we had looked at changing or updating.

I´d like to share some of the results from the survey, but I won’t detail all the questions as this Ezine would be never ending.

It might be beneficial for you to compare the data with your own situation or feelings.

1. Only 30% felt that lockdown was a struggle; the vast majority were not concerned by the restrictions.
2. 80% were comfortable with the transition to online communication, whether that be email or video calling.
3. 100% were concerned about their investments – completely natural when you were watching the fall out on the news.
4. 42% were concerned for their jobs.
5. 95% had sufficient emergency cash reserves to see them through – something we always encourage when dealing with our clients.
6. 50% had excess cash reserves sitting idle in the bank.
7. 62% believed that NOW was a great time to get invested and put more money into the markets. Of that number 55% proceeded and bought in at the discounted prices available.
8. 57% had an up to date will in place. Some admitting to doing it recently after my article titled “The Folder”.
9. 80% felt that their insurance policies were sufficient for their situation; however 40% of these people have requested further information and alternative quotes.

The results made for interesting reading and it was great to see that a lot of people had reviewed things and were keen to look at alternative options.

As a company we have a huge network of 3rd party companies that can assist our clients with all the points raised in the survey.

In Madrid I can recommend teams of lawyers who will offer a free initial

consultation and discounted rates, providing they come from me as a direct referral. This is great for anybody that needs to review their will – you can have the initial conversation at no cost and then pay for the will upon completion.I can recommend teams of accountants or gestors to assist with tax returns, inheritance, and other administrative issues.

During lockdown I also set up a collaboration with an expat insurance broker, which allows us to assist with health insurance, life insurance, car insurance, house insurance and more. The great thing about this relationship is that ALL quotations and policy documentation are in English. Whilst most of you will speak and understand Spanish perfectly well, there are times when something is easier “to get” when it’s in English.

If you want to review your insurances, or just obtain alternative quotes to compare with what you already have, get in touch – there is no charge for a quotation.

Do not delay reviewing your will, insurances, or investments.

Planning yesterday is better than today, which is better than tomorrow.

PS. If you did not receive the survey and want to complete it, send me an email and I´d be happy to share it with you.

Atypical expat family living in Spain

By Charles Hutchinson
This article is published on: 15th May 2020

15.05.20

Once upon a time there lived a British family in Southern Spain. I say British but in fact the wife had dual nationality, being both American and British. In fact they are still here.

They have 3 children, one adult son from her previous marriage living in the Middle East, their second son in boarding school in England and the youngest, their daughter, with them in Spain. His last position had been as an eminent surgeon in a well known teaching hospital in London. She had been a very successful realtor (estate agent) on the East coast of the USA. They had met through mutual friends when he was at medical conference in Boston. She brought with her to the marriage a respectably sized share portfolio which she had accumulated over the years.

They have a large five bedroom house in leafy suburbia in Surrey, UK. They have owned it since the arrival of their first child, several years after marrying. He sold his flat in central London a couple of years after their wedding and commuted to work every day from Dorking. Summer after summer brought nothing but rain and unpredictable weather. They finally decided to throw in the towel and move, lock, stock and barrel to Andalucia where they purchased a lovely house with gorgeous views over the Mediterranean. There in their retirement they play golf and have grown a circle of good friends, enjoying the lifestyle they had dreamt of in the UK. They rent out their Surrey home to visiting foreign film crews and have it managed by a competent agent.

They have a fair sized investment portfolio with a UK stockbroker who has underperformed their peers over the previous decade, which he learnt from talking to fellow golfers in the 19th hole at the club. He has become keen to change his broker and the portfolio, but is very concerned about the potential Capital Gains Tax.

Relations with their eldest son have become increasingly strained due to his stepfather’s disapproval of her son’s lifestyle in Dubai. It has reached a point whereby he has changed his English Will to exclude him from his half of the joint estate. The parents do not have Spanish Wills.

Also growing is the worry about their house in the UK with rising maintenance costs and property taxes. The decision has been made to sell it. In any event, over the years they have owned it they are sitting on a very fine profit. But it seems that they can no longer label it as their prime home. After all, they have been resident in Spain for some considerable years.

Brexit arrived rather suddenly and they have become aware of their potential position as non EU citizens after the final deadline in December 2020.

While they have appointed a UK estate agent to handle the sale of their UK home, Covid-19 has arrived on the global scene. They watch with horror as their portfolios tumble in value. Before the arrival of the virus, they had a sale agreed and their lawyer has taken a large deposit on exchange of contracts. Now the property market is falling away.

Several of their acquaintances both in the UK and in Spain have contracted the virus and they are getting nervous of their own position, their children’s and what to do if they catch it. He is over 65 and becoming more vulnerable as time passes.

This couple faces several significant problems:

She has a US share and bond portfolio which is fully exposed to US taxes
He wants to sell out their UK portfolio and change holdings. It still shows a considerable gain
They want to sell their UK home which is still showing a considerable gain
They have no Spanish Wills which would cause problems in the event of first death, not least if the eldest son invoked Spanish Succession Law, to inherit his share
Although resident in Spain from several angles, they are not actually tax resident here but still tax resident in the UK
Apart from tax considerations, their residence status would become questionable in December 2020 (if the Brexit negotiations deadline is realised)
They need to complete the sale of their UK home as soon as possible before the market falls much further and their buyer pulls out (despite the hefty deposit he has made)

You might think this is just a story, but with only a few changes this was the reality of two of my longest held clients. Not all of the above may apply to you, but I’m sure certain elements of this brief bio resonate with many of you. The important thing to remember is that every element of this situation has a solution. As advisers here in Spain, we are expats too, and over the past years we have come across all (and more) of these situations. And we have always delivered a solution.

Do you relate to, or are you faced, with any of these issues? Do you know someone who does? They all have a solution. Why not call me for a chat over a coffee? If we are still in lockdown, we can talk about it on the telephone, all in the strictest confidence, of course.

Moving to Spain – When should I take financial advice?

By David Hattersley
This article is published on: 2nd March 2020

02.03.20

For the majority of those who move to Spain, speaking to a qualified financial adviser, who is regulated where you plan to live, is something which happens after you have made the move. But, talking to one before you embark on the journey can help avoid some of the issues that expatriates can find themselves encountering.

Many UK based advisers are not fully regulated to offer advice for Spain and may not be aware of the most current regulations or tax efficient solutions for your needs. A Spanish regulated adviser can ensure you are financially prepared for your move in terms of any investments, savings and taxes which can be due on both income and windfalls you may be expecting after your move. A local adviser will also be able to clarify the potential impact of Spanish succession tax.

An additional complication in Spain is the variety of laws in each autonomous area. The classic example is the differing laws between Andalucia, Murcia & Valencia, so it makes sense to deal with a regulated adviser who is based in or near the autonomous area you are moving to.

Many people buy in Spain with plans of using their new Spanish property to retire to, either now or eventually. If it is the latter, in the interim period the property may be used to produce rental income, either via summer rentals or long term rentals, so there will be tax considerations. Depending on how long you are planning on living in Spain each year, residency may also become an issue. When holding property both here and in the UK, “Cross Border” regulations and differing types of tax are applicable to each country. Having a “Partner“ relationship brings its own complications.

Everyone’s situation is unique and there is no single ‘recipe’ that we can give to navigate buying a property in Spain. A regulated local adviser has no vested interest in which property you buy, yet will have a long history of experience of the path you are undertaking and will be able to help you create a plan to fit your own specific circumstances.

Investing an hour of two of your time to go over your project with an adviser before you make the move to Spain can provide direction, peace of mind and financial comfort when planning your new adventure. Rules and regulations can change. The potential impact of Brexit provides an example of how quickly this can happen, so consider taking action sooner rather than later.

Why don’t you contact me to arrange a free, no obligation discussion of your plans – either you will get confirmation that everything is in order, or perhaps some points will come up that you hadn’t thought about. Please call or email me on the contacts below & I will be glad to help you. We do not charge for reviews, reports or recommendations that we provide.