If you have settled in Spain for your retirement and are concerned about how to invest appropriately, receive regular income, protect your cash from the effects of inflation and the relatively small danger of a bank collapse, a Spanish compliant bond may be the right solution for you.
The Hacienda has agreed a favourable tax regime for certain savings & investment plans held by Spanish Tax Residents. The advantages of such plans are cemented by the distinctly unfavourable tax regime for non-compliant plans. See the below scenario that compares the tax regimes for a 2 Spanish Tax Residents; the first has invested €200,000 in a compliant overseas bond and the second who has invested in a non-compliant overseas bond:
· Funds held do not need to be declared on the Modelo 720 – the form that needs to be completed by all Spanish Residents with assets worth over €50,000 held overseas.
· Any tax due is paid by the Bond so you do not need to pay it yourself or pay someone to do it on your behalf.
· They are inheritance tax efficient (We would recommend that you seek regulated tax-advice regarding this.)
· If you do decide to live somewhere else, the bond can “move with you” to suit where you relocate to.
EFPG has a partnership with a household UK insurance company that provide a Spanish Complaint Bond with a suite of investments available that suit a wide range of needs to match your goals and plans.
If you would like to review your current tax residency status and see if you would benefit from a Spanish compliant bond, please contact us and we will get back to you during office hours.