Monday, 9 August 2010

Financial News: Spain is a Tax Haven

·        Is it really?
·        How can I benefit?
·        You need to be Spanish Tax Resident

It’s an odd fact, but true, that a country like Spain can be regarded as a tax haven. Yes, it is, really. But to gain the benefit, you need careful planning and expert advice.

When I was planning to move to Spain, a few years ago, I came to the conclusion that, in tax planning terms, the UK was a good place to accumulate wealth, including pensions and Spain was good for retiring and spending the wealth. The same is true to some extent, even though the UK Budget 2009 (Labour) and the 2010 version (Coalition) may change that in future years.

The best firms of advisers will always offer a financial review based on all circumstances. It can be very misleading to deal with pensions, tax and even mortgages in total isolation from other financial issues.
Of course, larger firms may have specialists, but I would always prefer, and recommend, an overall review not one issue in isolation.
This statement, in my view is always true. But for tax planning and taking advantage of the Spanish system, it is must that your financial adviser, takes into account, all of your financial plans.

The key issues are;

  • Residential status and domicile
  • Where your assets are held
  • The nature of your current and future income

I recently came across a financial adviser who could not even distinguish between residency and domicile, when I checked the advice he gave one of my readers I was horrified. There are still advisers giving misleading, bogus and poor advice.

It is imperative that you seek out a professional adviser. I can help if you need me to recommend the right adviser . Email

Spain can be a tax haven but you will only benefit through sound professional advice.