Financial Pages in Spain - Key Issues

Since starting in August 2010, Financial Pages in Spain has grown to over 150 posts. Whilst time moves on, many of the issues remain the same, but need updating. This is a summary of the most popular posts over the last year, by important categories;

Pensions

• UK Pension Scheme but you Live in Spain

This post lists 30 different types of UK Pensions Schemes to help readers understand what the might have. There are then a series of questions and answers

http://expatsfrombritain.blogspot.co.uk/2011/08/uk-pension-scheme-or-plan-but-you-live.html

• QROPS – Comparing Jurisdictions

Following very substantial changes to the rules and regulations, in April 2012, QROPS (Qualifying Recognised Overseas Pension Schemes) have changed substantially. Here is an update of the key jurisdictions for QROPS

http://expatsfrombritain.blogspot.co.uk/2012/08/qrops-2012-comparing-jurisdictions.html

• QNUPS (Qualifying Non-UK Pension Schemes)

These were introduced in 2010 under arrangements to shelter retirement income producing assets from UK Inheritance Tax (IHT). British nationals who are Spanish residents often, mistakenly, think that IHT doesn’t apply to them

http://expatsfrombritain.blogspot.co.uk/2012/07/qnups-qualifying-non-uk-pension-schemes.html

• UK Overseas Pension Schemes

This summary will be of interest to expats who work, are near retirement or already retired. It includes a summary of Section 615 schemes for those who work in Spain.

http://expatsfrombritain.blogspot.co.uk/2012/08/overseas-pension-schemes-updated.html

Our hard earned pensions are often our second biggest asset (even if you didn’t know it). You need PROFESSIONAL ADVICE to look after your future income and protect its capital value. Please email to be referred to an adviser I have thoroughly checked.

Taxation

• Tax Avoidance and Tax Evasion

These issues are topical though I am regularly annoyed that newspapers, broadcasters and politicians confuse the two. Its easy to deal with tax evasion – it’s illegal. Tax avoidance is legal but much more complex. Seems to me that most taxpayers, in any country, want to AVOID tax as long as they are not illegally EVADING tax!

http://expatsfrombritain.blogspot.co.uk/2011/04/tax-avoidance-and-tax-evasion.html

• Five Non-Resident Taxes

This is an issue which never fails to amaze me.  I’ve produced a PDF which anyone can request. I suspect that everyone who owns property in Spain should be checking out. Just email me

http://expatsfrombritain.blogspot.co.uk/2012/04/five-spanish-non-resident-taxes.html

• Spanish Inheritance Tax (ISD) - Impuesto sombre sucesiones y donaciones

The first important fact that expats and property owners should know is that UK IHT and Spanish ISD are not covered by a Double Taxation Agreement or Treaty. British nationals are often shocked to learn that ISD is payable on the death of the first spouse or partner.

http://expatsfrombritain.blogspot.co.uk/2011/06/spanish-inheritance-tax-isd.html

Whatever your taxation position and even your liability in the future, planning is key. Email and I’ll link you to a professional if you give me a brief outline.

Investment Planning

• Why Invest Offshore?

Well certainly NOT for tax evasion! Offshore investment suits a surprisingly large number of expats and property owners. It’s certainly worth investigating but only through professional advice.

http://expatsfrombritain.blogspot.co.uk/2012/07/why-offshore-financial-planning.html

• Tax Efficient Savings for Expats

This includes long term investments as well as traditional savings. For the expat there is often the added complication of foreign exchange differences too.

http://expatsfrombritain.blogspot.co.uk/2012/03/tax-efficient-savings-for-expats.html

Other Important Issues

• 10 Things that some advisers won’t tell you

When someone first told me, I didn’t believe it! Many advisers, even those saying they are regulated by FSA, refuse to disclose commission which has been a UK rule since 1993. These nine other abuses too. I can refer you to advisers I have carefully checked if you email me.

http://expatsfrombritain.blogspot.co.uk/2012/09/ten-things-some-advisers-wont-tell-you.html

• Getting a Second Opinion

Financial Pages in Spain will gladly give a second opinion to any advice received – just ask!

http://expatsfrombritain.blogspot.co.uk/2012/09/getting-second-opinion.html

• La Torre Fx – Foreign Exchange

It’s online and available 24 hours per day, every day of the year. After setting up the account, it can be used over and over again. Your first use takes a little longer to comply with necessary ID checks, but after that it’s super-quick! The rates offered have been specifically targeted at beating the banks and giving you the bonus

http://expatsfrombritain.blogspot.co.uk/2012/05/unrivalled-foreign-exchange-la-torre-fx.html

Enjoy Spain – avoid the usual pitfalls and can I suggest that you follow ‘Financial Pages in Spain’

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David Goodall

Financial Pages in Spain

Getting a Second Opinion

I recently looked at correspondence received from readers of ‘Financial Pages in Spain’ and can tell you the majority are summarised as;

Can you give me a Second Opinion?

For QROPS, QNUPS, UK Pensions, Investments and tax issues they are unhappy with the advice they have been given and send me examples.

Rather than guesswork people also ask me to recommend Accountants, Lawyers, Surveyors, tax advisers and other professionals. Any professional advice can be sought from ‘Financial Pages in Spain’

Some of the things people have said to me:

• ‘ It  looked like a mass produced report with just my name and personal details changed’

• ‘ They wanted an up front fee even to talk to me, funny they never mention that in their adverts’

• ‘ I was convinced the advice was wrong’ (by the way – it was!)

But they trust ‘Financial Pages in Spain’ and I am receiving comments which show a great deal of respect.

I’ll try to help. Email me

Can you help me to help you?

• Please send me both good and bad examples of reports you have received, from financial advisers, I’ll respect your privacy

• Tell me the names of Advisers who refuse to disclose commissions

• If the fees, charges and commissions are hidden in a report and not openly disclosed, please send examples

This sort of information will help everyone and help eradicate some of the greedy practices.

I may not have intended it when I started out but it seems that Financial Pages in Spain is becoming the respected second opinion.

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Whatever your query, please write to me. My email is on this link

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

Why go to Seminars?

'Free cheese is just a mousetrap'

All of the seminars I see advertised in the Expat Press might be better described as ‘Starting up the Sausage Machine’ It’s time to be aware – the big, impersonal firms call this ‘Seminar Season’.

Let me explain;

The primary purpose for holding the seminar is to maximise on telephone numbers, email and addresses. The more the better! It’s just the start of a predictable process.

The seminar is ‘informative’ but the commencement of a product sale. Imparting knowledge is completely dedicated to the aim of selling a specific product.

You are encouraged, whilst you drink their coffee or eat their cakes to see their ‘local expert’. His title (I’m not sexist but they are) could be all manner of exaggerations like Director, Partner, Regional Manager or Financial Planning Consultant. The only title he won’t have is actually what he really is – Salesman. He’s not an adviser, he doesn’t act as an agent, he represents the company as a salesman.

You complete a Fact Find. Most likely called Financial Planning Questionnaire or something equally pretentious but it comes to the same thing. The salesman will come back to you with a Report, just for you, within two to three weeks.

Remember that the salesman won’t tell you he is giving advice because if it all goes wrong later, somebody else is responsible!

Your Report, the one especially for you, is produced in what can best described as a Factory. It has pre-produced products called reports, which have six or seven changes added to match your circumstances. That’s why you completed the Fact Find, not to give you advice or plan your future requirements but for the Factory to produce your Report.

Most Reports you get will not disclose the commission being paid. This may come as a surprise, as in the UK, mandatory disclosure of commission has existed since 1993. Even if the company is FSA registered, they rarely disclose commission!

The Report may seem very professional but you were part of THEIR PROCESS not YOUR NEEDS.

I regularly recommend advisers and if you want individual financial planning please email me

The advisers I recommend will give you all of the following;

• An individual and appropriate process to establish your needs and an individual recommendation
• Always disclose commission and fully explain the charges associated with their advice
• Give you a NAMED individual who will be your adviser and who is ultimately RESPONSIBLE for the advice given
• Assess your attitude to investment risk and match that to any advice given
• Not charge an up front fee

Give me a few brief details of what you seek and I’ll be happy to make the appropriate recommendation to a Professional, Regulated and Qualified Financial Adviser. Just email me

You may wish to look at some other Posts from my Blog

Getting Professional Advice

http://expatsfrombritain.blogspot.co.uk/2012/01/getting-professional-advice.html

Getting a Second Opinion (important if you’ve had a ‘Report’)

http://expatsfrombritain.blogspot.co.uk/2012/01/getting-second-opinion.html

Tax Avoidance and Tax Evasion

http://expatsfrombritain.blogspot.co.uk/2011/04/tax-avoidance-and-tax-evasion.html

If there is just one major element of the 'Seminar' process it is this - FSA regulated firms who REFUSE to openly disclose commissions & charges - it's YOUR cash. Ask up front if they will declare all the commissions, in their Report. 

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

August 2012 Review – Financial Pages in Spain

On 9^th August 2012, the blog celebrated it’s second anniversary. At the end of the calendar month, I thought I would reflect on the main issues and topics on ‘Financial Pages in Spain’ during August.

• UK Pension Schemes

• QROPS

• QNUPS

These are the issues that contributed the most feedback. I’m always pleased to receive emails either to seek further advice or to comment on my articles.

Using the statistics provided by my service contractor, I can also indicate the most popular posts in terms of the number of people who visited the pages. They were, in order;

1. QROPS – Comparing Jurisdictions

      QROPS (Qualifying Recognised Overseas Pension Schemes) are set up to allow a transfer of UK pension rights, abroad, with the full approval and authority of the UK Tax Authorities (HMRC).

      QROPS - comparing jurisdictions

      QROPS changed significantly from 6^th April 2012, when the UK Tax Authorities (HMRC) altered the rules. The major jurisdictions are now Switzerland, Malta and New Zealand. The new rules have highlighted the need for professional advice. I only recommend fully authorised advisers. Email me for an introduction.

2. QNUPS – Qualifying Non-UK Pension Schemes

QNUPS were brought about in 2010 in a UK Statutory Instrument called ‘The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations. I think it’s important to highlight that because although QNUPS are and must be seen as Pension Schemes, they are often set up alongside Inheritance Tax (IHT) planning.

QNUPS

I was pleased, during the last month, to have my article, in full, repeated by a UK lawyer based in Spain and by a UK SIPP specialist. In order to receive the required specialist advice, please email me.

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3. UK Pension Scheme or Plan but you live in Spain

Expats with pensions often believe that they are ‘stuck with’ the rules as they understood them in the UK. This post deals with alternatives. Overseas Pensions come in many guises. For example, there are QROPS, QNUPS, International Annuities and Section 615. The first step, however, is to understand what you have got.

UK Pension Schemes

Write me an email , tell me what type of scheme you’ve got and I’ll make sure you are given the right fully authorised advice.

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Financial Pages in Spain continues to grow, as I can see from the statistics. Whilst Spain and UK dominate the views of both the Website and Blog, there have been readers from 41 other countries including New Zealand, Malta and Switzerland, which is easy to explain but also the USA and Canada!.

Any issues which arise can be answered on an individual basis if you email me. I’m happy to receive questions from anywhere but my real expertise relates to the UK and Spain.

I am happy to take suggestions from readers about future articles. Please email me with your own ideas or issues that you think need raising.

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

July 2012 Review - Financial Pages in Spain

Taxation, Pensions and Positive Spain were the most popular posts during July 2012

Positive Spain? You may justifiably ask ‘why’ but it’s what the readers made the number one read post during July. ‘Spain – The Sun still Shines’ looks through the economic gloom at life in Spain

http://expatsfrombritain.blogspot.co.uk/2012/06/spain-sun-still-shines.html

There were two outstanding Taxation issues which were most popular in the last month

Spanish Inheritance Tax (ISD)

This detailed post sets out the essential differences between Spanish ISD and UK Inheritance Tax (IHT). It goes into detail of how the ISD works and the fundamental need for professional advice

http://expatsfrombritain.blogspot.co.uk/2011/06/spanish-inheritance-tax-isd.html

Five Taxes which affect Non-Residents

Originally written in April 2012, its popularity was maintained through July 2012. ‘Financial Pages in Spain’ can provide a PDF version, if required, by sending an email request. The full post is;

http://expatsfrombritain.blogspot.co.uk/2012/04/five-spanish-non-resident-taxes.html

Making up the top five read posts during July 2012 were two very relevant and current Pensions matters

UK Pension plan or scheme but you live in Spain

In many respects, this article is essentially about knowing your rights and what your options are. Many people who have contacted me are very pleasantly surprised about their choices.

http://expatsfrombritain.blogspot.co.uk/2011/08/uk-pension-scheme-or-plan-but-you-live.html

Additional QROPS – Update

Reading the popular and free press naturally limits information that the advertisers want to feed you. Readers of ‘Financial Pages in Spain’ have expressed surprise at finding a high quality (low volume) alternative. Maybe it’s in part as I have an exclusive arrangement which will NEVER be advertised in the Press.

http://expatsfrombritain.blogspot.co.uk/2012/07/additional-qrops-update.html

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‘Financial Pages in Spain’ continues to grow, as I can see from the statistics. Whilst Spain and UK dominate the views of both the Website and Blog, there have been readers from 49 other countries including New Zealand, Malta, France and also Russia. The growth in Ireland has been very noticeable.

Any issues which arise can be answered on an individual basis if you email me. I’m happy to receive questions from anywhere but my real expertise relates to the UK and Spain.

I am happy to take suggestions from readers about future articles. Please email me with your own ideas or issues that you think need raising.

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

Spain – The Sun still Shines

Someone in the UK said to me ‘Not sure I’m going to Spain this year, due to the Economic mess’

The beaches are clean, the Mediterranean is still blue, the food is cheaper than last year, lots of cheap flights, great deals on hotels and apartments but forget all that the headlines are bad!

Spain is still a great place for holidays, working, living and retirement!

We bought our first house in Spain on 7^th June 2002; it was memorable for another reason. It was the World Cup in Japan and South Korea, England played Argentina and won 1 – 0 thanks to a penalty by David Beckham.

We forgot to have our 10 year party!

I thought I’d write down a few reasons why we bought and let you, the reader, decide whether some, all or none of the factors still apply. This is random in no particular order;

• The climate is great and the sun shines all year round
• It’s two and half hours from home
• The flights are cheap if your dates are flexible
• We love the lifestyle, street markets, restaurants, entertainment, the beach and I could go on
• House prices are cheap compared with the UK
• A second home is for the long term, especially retirement
• The exchange rate is favourable
• We needed and easily got a 50% mortgage
• We found someone reliable to look after the place when we are not there, giving peace of mind
• The family think it’s a great idea

I could go on but I think those 10 reasons cover most of why we bought in Spain.

The fundamentals haven’t changed, there are bargains to be bought BUT without question the biggest factor affecting the property market is a LACK OF CONFIDENCE.

So here are three ideas

• Rent before you buy in Spain

http://expatsfrombritain.blogspot.co.uk/2012/02/rent-before-you-buy-in-spain.html

• Always get Professional Advice

http://expatsfrombritain.blogspot.co.uk/2012/01/getting-professional-advice.html

• You can get better rates for foreign exchange

http://expatsfrombritain.blogspot.co.uk/2012/05/unrivalled-foreign-exchange-la-torre-fx.html

Viva Espana

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

May 2012 Review – Financial Pages in Spain

Topical issues

May 2012 was the second best month in the history of ‘Financial Pages in Spain’. There are many changes taking place which affect property owners and expats in Spain. Following this blog is a great way of keeping up to date.  Follow

At the end of the calendar month, I like to reflect on the main issues and topics on ‘Financial Pages in Spain’ during May 2012. The issues which were most read during the month covered these subjects

• QROPS 2012

• Non-Resident Taxes in Spain

• Tax Avoidance and Tax Evasion

These are the issues that contributed the most readership. I’m always pleased to receive emails either to seek further advice or to comment on my articles.

Using the statistics provided by my service contractor, I can also indicate the most popular posts in terms of the number of people who visited the pages. They were, in order;

1. New Generation QROPS 2012

Major changes have been made by the UK Government to the rules and regulations about Qualifying Recognised Overseas Pension Schemes (QROPS). Though only formally announced on 21^st March 2012, these changes became effective from the start of the new UK Tax Year on 6^th April 2012.

New Generation QROPS shows more detail.

2. Five Non-Resident Spanish Taxes

It has been gratifying to see this post as a popular selection since it shows that it is read not only by expats who have become Spanish residents but also Non-Resident Property Owners. One disturbing aspect is that I have had people say that they ‘did not know’ about taxes that are due until they received final notices or maybe worse, letters to their UK address!

Non-Resident Taxes in Spain

I was also contacted by a responsible Estate Agent who is using the information for his clients. I can send a .pdf format leaflet for anyone who asks. Just email me

3. Tax Avoidance and Tax Evasion

Question: What is the difference between Tax Avoidance and tax Evasion?

Answer: A prison cell

Somewhat dramatic but since tax evasion is illegal and can lead to a prison sentence (in Spain or the UK) well worth remembering. Tax avoidance, though not illegal does sometimes come into sharp focus, as organisations seek to find loopholes in legislation.

Tax Avoidance and Tax Evasion is the detailed post, including definitions

* * * * * * *

Financial Pages in Spain continues to grow, as I can see from the statistics. Whilst Spain and UK dominate the views of both the Website and Blog, there have been readers from many other countries including France, Malta and Canada. There is also a big readership in Ireland.

Any issues which arise can be answered on an individual basis if you email me. I’m happy to receive questions from anywhere but my real expertise relates to the UK and Spain.

I am happy to take suggestions from readers about future articles. Please email me with your own ideas or issues that you think need raising.

REMINDER from Financial Pages in Spain

I’ve owned property in Spain since 2002 and hate to think how much I’ve wasted on exorbitant bank charges on foreign exchange of the years!

So I’ve linked up for a new foreign exchange service. It is available in any major currency around the world but doesn’t offer cash transactions. This is a bank to bank arrangement and is priced to beat the major banks.

But you can test it for yourself! Get a quote from your normal supplier, and then get a quote from La Torre Fx.

Even on a transfer from the UK branch to the Spanish branch of my own bank, I made a big saving using La Torre Fx. It costs nothing to get a quote. But if it’s a better deal for YOU the application process is quite straightforward. Check here

Thank you for previous feedback and requests for referral. I’m looking forward now – June is my favourite month of the year in Spain

Recuerdos

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com