Page 51 - Property Portfolio - March 2020

the way you are taxed. Residents in Spain can Once you are living in Spain, it is sensible to
take advantage of highly tax-efficient investment hold some savings and investments in Euros
opportunities that may also provide further to minimise exchange rate risk. However, you
benefits such as currency and income flexibility, may also have expenses in the UK or intend to
wealth tax mitigation and estate planning return someday, so want to keep something of
advantages. value in Sterling. Explore investment structures
that offer flexibility to hold investments in more
UK pensions after the transition period than one currency and convert when it suits
UK nationals settled in the EU before 31 you. Transferring UK pensions into a suitable
December 2020 can continue to receive yearly QROPS could also provide currency flexibility
cost-of-living increases to their State Pension for your retirement income.
payments, even if you start claiming your
pension after the transition ends. When exploring the best currency and
As things stand, Brexit should not affect how investment mix for you, make sure your
you can withdraw or transfer other UK pensions. investments are well-diversified, tax-efficient and
However, once the UK government no longer offer the right balance of risk and return for your
has to abide by EU rules in 2021, they gain peace of mind.
more freedom to recoup taxes from expatriate
pensions. While the transition offers a welcome period of
certainty for UK nationals living in Spain, the
One target could be Qualifying Recognised clock is ticking to secure your position and take
Overseas Pension Schemes (QROPS). Currently, advantage of suitable opportunities. A locally-
Spain residents can transfer to a QROPS tax-free based adviser with cross-border experience is best
if it is EU/EEA-based, otherwise a 25% ‘overseas placed to help you prepare appropriately for the
transfer charge’ applies. Many expect the UK post-Brexit world.
may extend this to within the EU once it sheds
its current obligations. Tax rates, scope and reliefs may change. Any
statements concerning taxation are based upon
Take personalised, UK-regulated advice before our understanding of current taxation laws
taking any action with your pensions to establish and practices which are subject to change. Tax
the most suitable approach for your personal information has been summarised; individuals
circumstances and goals. should seek personalised advice.
www.blevinsfranks.com
Currency considerations
During recent Brexit uncertainty, the value of
sterling has experienced much volatility. While
more settled now, like any currency, it is always
variable.

Keep up to date on the financial issues that may affect you
on the Blevins Franks news page at www.blevinsfranks.com

Portfolio 51