Page 43 - Property Portfolio - November 2019

for example, become fully taxable for Spanish need to take extreme care here, so professional,
residents. Once resident in Spain, you gain access regulated advice is critical.
to investment opportunities that might provide
much better tax-efficiency alongside other Estate planning
advantages. None of us like to think about our departure
from this world, but there is no denying that
Locally compliant arrangements, such as a reaching retirement age does bring it closer to
suitable life assurance bond, can combine your home.
investment, tax and estate planning in one
exercise, grouping different investments together The key message here is not to risk leaving it too
under one tax-efficient roof. late. Decide who you want to leave your assets
to, how much and when. Then research the most
Pension plans effective way to achieve this, in the most tax-
This is the time you get to benefit from those efficient way, taking both the Spanish and UK
years of pension contributions; instead of paying rules into account. But don’t ignore your own
money in each month, you can start taking it needs in the process – look for arrangements that
out. provide tax-efficiency for you today as well as
your heirs in future.
There is no one-size-fits-all solution for
expatriates, but once you are no longer UK An integrated financial planning approach
resident it may become less beneficial to leave produces better results than just focusing on one
UK pensions where they are. element at a time. For example, the way you
hold your investments and pensions can affect
UK pension income is paid in sterling, so if your how much tax you and your heirs pay and how
key spending is in euros, this invites exchange the assets are passed to heirs.
rate risk. UK pensions also remain subject to UK
regulations, which are especially likely to change While some try a DIY approach, cross-border
for non-residents after Brexit. tax, wealth management, pensions and estate
planning is complex and it is difficult to
Many expatriates choose to transfer UK pensions objectively assess your own situation. For
to a Qualifying Regulated Overseas Pension ultimate peace of mind, talk to a specialist
Scheme (QROPS) or reinvest funds into more adviser who will take time to understand your
tax-efficient arrangements for Spain. As well as unique circumstances, needs and goals to help
reducing taxation, this can offer benefits such you secure a prosperous retirement in Spain.
as greater access to funds and more flexibility to
choose how it is invested and in what currency to The tax rates, scope and reliefs may change. Any
take income. statements concerning taxation are based upon
our understanding of current taxation laws
To protect your long-term financial security, and practices which are subject to change. Tax
make sure you research your pension options and information has been summarised; individuals
fully understand the various implications. You should seek personalised advice.
Keep up to date on the financial issues that may affect you
on the Blevins Franks news page at www.blevinsfranks.com

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