Wednesday, 17 November 2010

Spain is a Tax Haven

It’s an odd fact, but true, that a country like Spain can be regarded as a tax haven, given careful and accurate tax planning.

·        Professional financial advice needed
·        How can I benefit?
·        You need to be Spanish Tax Resident


When I was planning to buy a house in 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 great for retiring and spending the wealth.

The same is true to some extent, even though the UK Budget 2009 (Labour), the 2010 version and Comprehensive Spending Review 2010 (Coalition) may change that in future years. In addition, Spain has stubbornly high unemployment and a constant cloud over the euro. My initial thoughts are however still true.

It is, however, essential 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. If you would like a comprehensive review of your finances, please remember that I only recommend advisers who are regulated by one or more of the following;

CNMV
Comision Nacional del Mercado del Valores is the principal financial services regulator in Spain and responsible for authorising investment products. A CNMV adviser can be recommended, please click here

DGS
Direccion General de Seguros y Fondos de Pensions is the Spanish regulator for insurance products which can be marketed in Spain. Email me to be referred to an authorised adviser.

FSA
The Financial Services Authority is the UK's financial services regulator. Many British clients prefer a UK adviser and have dealt with FSA regulated advisers in years gone by. For an introduction to recommended adviser, with experience in Spain, please click here .


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. Please don’t get caught out.

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

One final thought. I had correspondence from a reader who has plans to move to Spain when he and his wife retire. They approached one of the most recognised and leading International Financial Advisers operating in Spain, via their London HQ. Before they could even be ‘granted’ an appointment this firm wanted £1,000 up front!

I never recommend advisers who charge up front fees

That client is now dealing with a different adviser.

Spain can be a tax haven but you will only benefit through sound professional advice. Please ask for a referral by email