“Over the next 10 years, the rich should give up a portion of their assets.”So stated one of German Chancellor Angela Merkel’s chief economic advisers. And he is not talking about Germany, but rather about southern European states which need economic help.If Germany gets its way (and it did with Cyprus), expatriates li ... read more ...

We have discussed in previous articles how the Spanish government and other European authorities have been stepping up their crackdown on tax evasion as part of their efforts to raise revenue to bring down their budget deficits. The Spanish authorities, in particular, have raised their game over recent years, impleme ... read more ...

The UK finally has a Statutory Residence Test, which came into effect at the beginning of the new UK tax year on 6th April. This is important for all British expatriates who spend time in and/or maintain ties with the UK. If the test establishes that you are UK resident, then you are liable to pay income and capital ... read more ...

Jersey and Guernsey have joined the Isle of Man in agreeing to automatically disclose tax information with the UK. Luxembourg has suggested it will consider easing its banking secrecy rules. From next year the US will start to receive information on all its citizens’ overseas bank accounts. Automatic exchange of inf ... read more ...

The 30th April deadline for submitting your first declaration of offshore assets is now just one month away. If you are resident in Spain and own assets worth over €50,000 in a single category, you cannot ignore this deadline. The consequences for failing to report are very high, and the authorities have an increasin ... read more ...

The government is aiming to increase tax revenues by 30% this year. Although it clearly needs the revenue, it means all Portuguese taxpayers will lose more of their income to tax. Portugal’s tax burden is now higher than in the UK, France, Spain, Germany and Italy. Remember, if you are resident in Portugal you have t ... read more ...

The events in Cyprus shocked bank depositors across Europe and beyond. It was a wake-up call for anyone who still thought of cash as a ‘risk free’ option. The first meeting between Cyprus and the Troika (the European Commission, European Central Bank and International Monetary Fund) on 15th March proposed to impose a ... read more ...

The UK budget on 20th March contained no real surprises, as the measures delivered had been in the pipeline for some time. Here is a summary of some of the measures that may interest expatriates.No safe havens The Government’s plans to combat offshore tax evasion by clamping down on those who conceal income, assets an ... read more ...

The UK Pensions Regulator has launched a campaign to warn consumers and pension professionals about so called “pension liberation schemes”. These schemes are promoted as a means of allowing Britons to release cash from their pension schemes early, but carry a number of undisclosed risks.The regulator cautions: “Peop ... read more ...

The Isle of Man has agreed to automatically exchange information with the UK on tax matters. The agreement is backed by a form of tax amnesty to allow UK taxpayers to regularise their affairs if necessary.The agreement was initialled on 19th February, following three months of intensive negotiations. An HM Revenue &am ... read more ...

Provided we are of sound health and mind, most of us would relish the prospect of a nice long life. We would have more time to enjoy the company of our loved ones, see our family grow as our grandchildren have children of their own etc. Those who moved away from the UK retirement will wish to have as much time as poss ... read more ...

We have just passed the four year anniversary of the 0.5% UK interest rate. Back on 4th March 2009, few people predicted that the Bank of England would leave its base rate unchanged for four years. Not only has that happened, but many market commentators predict there will be no increase either this year or next year. ... read more ...

Most of us have worked hard to build up our savings. When contemplating the options for investing and holding their money, most people’s first concern is to look at the level of risk. However many only really consider market risk, that is, how market volatility could affect their capital.It is therefore common for r ... read more ...

If you wish to receive BlevinsFranks French Tax Updates CLICK HERE_________________________________________________________If you are moving to France or returning to the UK, the proceeds from any property sale often plays a large part in establishing your future quality of life. Besides determining what property you ... read more ...

As European countries struggle to rebuild their economies and reduce their deficits, many are relying on their wealthier residents to provide more tax revenue. Higher earners are being hit with higher taxes, and governments are also looking for other ways to tax the rich.Besides raising tax rates, governments are taki ... read more ...

You will soon be able to file your first declaration under Spain’s new overseas asset reporting law. While the deadline is 30th April, forms can be submitted anytime in March and April. The official form, Modelo 720, is now available and will need to be submitted online. This year you need to declare your assets as ... read more ...

UK inheritance tax bills could rise, and more families dragged into the inheritance tax net, over the next six years. We have warned for some time that increasing longevity will lead to higher taxes, and the UK government has now taken the step to increase revenue as part of its reform of the cost of social care for t ... read more ...

Register your interest for a seminar about subject here, or request call_backIf you live or own property in Spain, it is your responsibility to establish what your tax liabilities are and submit tax returns correctly each year. Residents now have the added responsibility of declaring the assets you own outside Spain. ... read more ...

When you move from one country to another, or buy and spend time in a property abroad, your first tax consideration should be to establish where you are resident for tax purposes.The most well-known rule is the 183-days-a-year rule, which many countries use. Spend 183 days in a country in one tax year and you are tax ... read more ...

By 30th April, you need to declare all your offshore assets to the Spanish authorities under the new reporting obligation, or face costly penalties.This is Spain’s latest initiative to increase tax revenue, which it is doing with both higher tax rates and a crackdown on tax evasion - a trend we are seeing in many Europ ... read more ...

The new tax agreement between the UK and Switzerland is already reaping dividends for the Treasury. Within a month of it coming into force, HM Revenue & Customs has recouped £342 million in unpaid tax from Swiss banks.The tax accord started on 1st January this year. It enables the British authorities to tax the i ... read more ...

Register your interest for a seminar about subject here, or request call_backSpain’s new asset reporting law, with the first deadline of 30th April this year, applies to anyone who is resident in Spain and who owns assets outside the country worth €50,000 or more in each of the three listed categories. As this is a com ... read more ...

Register your interest for a seminar about subject here, or request call_backAre you ready to declare your offshore assets under Spain’s new reporting obligation? Do you understand exactly how the new law impacts you? There may be a couple of months to go until the 30th April deadline, but since this is the first tim ... read more ...

What does 2013 have in store, for Portugal, tax wise?2013 is going to be expensive, tax wise, as the biggest tax hikes in modern history come into effect.The 2013 State Budget was approved at the end of November, and the government hopes to increase tax revenues by 30% this year through the various tax increases. KPMG ... read more ...

One of the greatest issues which investors face is understanding risk. So many investors say they do not want to take any risk, or only a very low level, but in most cases they are only worried about how volatile an asset could be. They fail to consider other types of risk that could affect their capital and which ca ... read more ...

If you wish to receive Blevins Franks Spanish Tax Updates CLICK HERE___________________________________________________________New reporting lawThe big story here in Spain is the new asset reporting law. This is a significant game changer. The government warned that it would get tough on tax evaders once the amnesty ... read more ...

The Isle of Man has agreed to automatically exchange tax information with the UK. Jersey and Guernsey want to make this a global initiative. The US is forcing financial centres to automatically report on American clients. Spanish residents need to get ready to report their overseas assets to the Spanish government.W ... read more ...

Here we are at the beginning of another year again, a time when many people reflect on the previous 12 months and look ahead to what they can improve over the coming year and beyond. Do you already have a considered, strategic wealth management plan in place? If not, this is a good time to stop and review your invest ... read more ...

If you are a British expatriate planning to return to the UK, in order to lower your UK tax liabilities it is important to seek advice and start planning before you leave your current country of residence and become resident in the UK. In Part 1 we discussed income and capital gains tax, this week we look at UK inheri ... read more ...

As a British expatriate living in countries like Spain, France, Portugal and Cyprus, you probably know someone who has decided to return to the UK. There are various reasons why people return “home”. Sometimes it is because they miss their family, or because their family need them nearby, or because as they get older ... read more ...

The UK Chancellor of the Exchequer, George Osborne, delivered his Autumn Statement (‘mini budget’) on 5th December. The draft Finance Bill for 2013 was then published on 11th December. Our article this week summarises some of the key tax and pension announcements which could affect British expatriates and those retur ... read more ...

Domicile is a very important issue for British expatriates. You remain liable to UK inheritance tax on your worldwide assets for as long as you are domiciled or deemed domiciled in the UK. While changing your domicile is not impossible, it depends on your circumstances and intentions and needs to be a carefully consi ... read more ...

The UK tax authority HM Revenue & Customs issued another warning against hiding assets offshore, and this includes overseas property. Many British residents own property in countries like Cyprus, but not all of them fulfil their tax obligations in the UK and/or here in Cyprus. Both countries are now taking a clos ... read more ...

Are you resident in Spain? Do you own any assets outside Spain worth over €50,000? If so you will need to declare them in 2013 under a new reporting requirement. Failure to do so would have very costly consequences.You also need to consider whether your assets are in the most tax-efficient vehicles or you could be p ... read more ...

Over the years, we have followed the ongoing story of how the UK’s Crown Dependencies of Jersey, Guernsey and Isle of Man have had to adjust their practices to cooperate with UK, European and international calls for tax transparency. The story is not yet over.There is a move towards automatic exchange of information a ... read more ...

No sooner was the US Presidential election done and dusted than attention turned to the looming “fiscal cliff”. Over in the US it is big news, with the financial markets and commentators following the story closely. It is also causing concern here in Europe, since damage to the US economy could have worldwide implica ... read more ...

The start date for the new tax agreement between Switzerland and the UK, 1st January 2013, is fast approaching. HM Revenue & Customs has issued a factsheet to advise Swiss account holders of their options. Swiss banks are also beginning to write to UK resident clients.Any UK resident with assets in Switzerland mu ... read more ...

Information on over 8,000 HSBC Jersey clients has been leaked to the tax authorities. Half of the names on the list are UK residents, while the rest are based in various other countries. We had a similar situation with HSBC Geneva a few years ago. This enabled the tax authorities in the UK and elsewhere to trace tax ... read more ...

Back in April, the Spanish government announced details of its draft new anti fraud plan. One of the proposed measures related to assets held outside Spain and would affect most expatriates living here. We have been waiting ever since for confirmation that this is going ahead, and finally received it at the end of Oc ... read more ...

The UK tax authority HM Revenue & Customs has issued another warning against hiding assets offshore, and this includes overseas property. Many British residents own property in countries like Portugal, but not all of them fulfil their tax obligations in the UK and/or here in Portugal. Both countries are now takin ... read more ...

Many British readers own property here in France but remain resident in the UK. For many of them it is a holiday home, which they may also rent out from time to time. For others it is an investment property. Either way, you need to understand what all your tax liabilities are on the property, bearing in mind that it ... read more ...

Arguably, the most important aspect of portfolio planning is your asset allocation – how much of your investment capital is allocated to equities, to bonds, to property, to cash etc. Before you buy or sell investments you need to have established the most appropriate asset allocation for your personal circumstances an ... read more ...

The UK is officially out of recession. It is still early days, but the economy is showing signs of progress. As this continues, it will lead to improved confidence among businesses, households and investors and help drive longer term growth.Figures released by the Office for National Statistics reveal that the econom ... read more ...

The UK tax authority HM Revenue & Customs has issued another warning against hiding assets offshore, and this includes overseas property. Many British residents own property in countries like Spain, but not all of them fulfil their tax obligations in the UK and/or here in Spain. Both countries are now taking a cl ... read more ...

The last potential obstacle to the tax deal between Switzerland and the UK has been removed. The landmark agreement does not need to be approved by referendum in Switzerland and will therefore start on 1st January 2013 as planned. Switzerland has signed similar agreements with Germany and Austria, and deals with Ital ... read more ...

Taxes have been rising across Europe this year, and it looks increasingly like we need to prepare ourselves to pay more tax here in Cyprus too. Cyprus is on the verge of being the next Eurozone country to receive a financial aid package from the “Troika” of the European Central Bank, European Commission and Internatio ... read more ...

When the Spanish budget for 2013 was announced on 27th September, most Spanish taxpayers were hoping it would not include any more tax rises, following the hikes to income and savings taxes already imposed on this year’s income.It turned out to be fairly innocuous tax wise (unless you are liable for wealth tax), though ... read more ...

As expected, when the 2013 Budget was announced by the French government on 28th September it contained a number of tax rises, which will raise an additional €10 billion in tax revenue for the state. These are on top of the tax reforms introduced earlier in the summer. The key measures are summarised below. They sti ... read more ...

How much real return are you earning from your bank savings? Any at all? With interest rates stuck at historic lows, tax rates rising and inflation eroding the value of your savings and income, it is currently extremely difficult to earn a real return from cash.Too many savers only look at their nominal returns, that ... read more ...

Is Spain a high tax country?When we think of high tax countries in Europe, places like Sweden, France, Belgium and maybe the UK come to mind. Until recently Spain would not have been on the list. When people weighed up the pros and cons of moving to Spain, few were put off because of the amount of tax they would have ... read more ...

The writing has been on the wall. Although taxpayers in Portugal may feel they are already paying more than enough tax, some form of further tax rises was inevitable. In early September Prime Minister Pedro Passos Coelho acknowledged that he could not rule out more tax rises, even though the tax burden on Portuguese ... read more ...

Earlier in the year we reported on the Spanish tax ‘amnesty’ and as we get closer to the deadline of 30th November, we thought it would be worthwhile to provide a recap of the main points. Many other countries have benefited from disclosure facilities and the Spanish government is hoping to recoup a sizeable amount of ... read more ...

“Because that’s where the money is”. So replied the infamous US bank robber, Willie Sutton, when asked why he robbed banks (according to legend anyway). There are many European leaders who could give the same reply today when asked why they are raising taxes for their wealthier citizens. From Germany to Greece, as t ... read more ...

In July, the President of the European Central Bank, Mario Draghi, promised to do “whatever it takes” to save the Euro. On 6th September he took action, announcing a new programme which could see the central bank spending billions of Euros to support troubled Eurozone countries. It was seen as the biggest step so far ... read more ...

Do you remember John Major telling us that he wanted “to see wealth cascading down the generations” in the UK? All these years later and inheritance tax is still with us. It remains with us even when we leave the UK to live abroad - you cannot leave inheritance tax behind you as easily as many other taxes.Your liabil ... read more ...

Swiss banking security has once again been compromised. While Switzerland’s banking secrecy has been under attack from international tax authorities, it has also been facing a second threat – stolen data. What typically happens is an employee copies confidential client data onto a disc and then either hands it over t ... read more ...

Many people have heard of double tax treaties, and some may know that the UK has an extremely sophisticated and large network of double tax treaties. But how much do you really know about what a double tax treaty is there for? And do you understand how they affect you as a British expatriate?One myth we often hear is ... read more ...

Recently, we have been asked our opinion of Fonds en Euros, which are French Euro funds held by life assurance companies, which pay a guaranteed return. The contracts can be quite long, eight years or more, depending on the objective of the contract. The return is usually based on the government bonds which the insure ... read more ...

This is the time of year when many British people on holiday fall in love with the Spanish lifestyle and start making plans to move here. Or perhaps you are at the final stages of your move, or have recently arrived in Spain. There are many important financial considerations to plan for, and the sooner the better. H ... read more ...

The first round of M. Hollande’s tax reforms have been approved by parliament and have come into effect this year. The three main areas of reform were to wealth tax, succession tax and social charges on property owned by non-French residents.Wealth tax has been changing one year to the next lately, and there are more ... read more ...

EU, EEA (European Economic Area) and Swiss nationals have the right to reside in Spain for more than three months a year. This is provided they apply in person at their local Oficina de Extranjeros or a designated police station, within three months of arrival. They are then registered in the Central Register of Fore ... read more ...

“Is this a good time to invest?” This is one of the questions wealth advisers are frequently asked, and the answer is “yes” more often than not. In order to protect the value of your savings from inflation, it is generally better to be invested for the long-term rather than wait in the sidelines for a ‘right time’ to ... read more ...

If you have ever had the feeling that you spent half your working life just to pay tax, you are probably not far wrong. What with income tax, national insurance/social security, capital gains tax, VAT, council tax, excise duties etc, a considerable amount of our hard earned income is lost in tax each year. If you are ... read more ...

In our experience, many British expatriates living in Spain do not understand where they have to pay tax. They either mistakenly believe they have a choice, or they decide not to declare themselves for tax in Spain. The irony is, it is often more beneficial to pay tax in Spain than in the UK. If you live or own prope ... read more ...

HM Treasury has now released draft legislation for the new UK Statutory Residence Test. It will come into effect on 6th April 2013, after being delayed a year, and determine whether or not an individual is UK resident and therefore liable for UK tax on income and capital gains, wherever they arise. There have not bee ... read more ...

One question we have been asked over and over again this year is whether savings are safe in a Spanish bank. Some people are also concerned about whether the situation in Spain and Greece could impact the stability of UK and offshore banks. Confidence in the financial strength of institutions like banks has been seve ... read more ...

Taxpayers in Spain started the year knowing their income tax bills were going to rise, with higher earners facing a significant increase. The scale rates of income tax have increased across the board, ranging from an additional 0.75% for income below €17,007 to an extra 7% on income over €300,000. This takes the top ... read more ...

Last year, the Spanish government reinstated wealth tax by cancelling the 100% credit that had applied since 2008. At the time, the Comunidad Valenciana (Valencia, Alicante and Castellón provinces), Islas Baleares and Madrid decided to continue to apply the credit, so that residents in these Autonomous Communities esc ... read more ...

With most of us glued to the television watching the Olympics, I thought it was a good time to use a sporting analogy to explore a popular investment approach. One event that combines all the qualities listed in the Olympic motto Citius, Altius, Fortius (Faster, Higher, Stronger) is the decathlon. Decathletes have to ... read more ...

Countries across Europe have been stepping up their fight against tax evasion in order to make sure they receive all monies due from their taxpayers, including on capital held abroad. While European efforts against hidden offshore assets go back well over 10 years, the international crackdown intensified after the fin ... read more ...

Everyone’s tax bill is going up in Spain this year, and now your cost of living is about to increase too. The EU may have granted Spain more time to reduce its public deficit, but this will not make life any easier for either the government or Spanish residents. It is the opposite, in fact, as the conditions mean mor ... read more ...

The Bank of England (BoE) has announced another round of quantitative easing. At its meeting on 5th July the Monetary Policy Committee voted to pump £50bn of extra stimulus into the economy. At the same time the base interest rate was kept on hold at 0.5%.The decision to launch this third round of quantitative easing ... read more ...

American author and humorist Sam Ewing said that inflation is “when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair”. Most of us will smile in recognition at this statement, but yet too many people do not take inflation seriously as a threat to their wealth. I sho ... read more ...

The Bank of England and Chancellor of the Exchequer recently announced measures to kick start the economy. The objective is to protect UK banks against an escalating Eurozone crisis, pump cash into the financial system and boost lending to businesses and households.Bank of England (BoE) governor Mervyn King and Chance ... read more ...

After the Spanish government finally admitted that it needed help to prevent its banking sector collapsing, at an emergency discussion on 9th June Eurozone finance ministers agreed to lend Spain up to €100bn to recapitalise its banks. The Eurogroup statement explained that the €100bn total would be to cover estimated ... read more ...

The banking crisis in 2008 undermined the financial strength of institutions such as banks and insurance companies, and people are now once again concerned about the safety of their savings. The only certain way for investors to achieve security from institutional failure is through a state controlled investor protect ... read more ...

After the Spanish government finally admitted that it needed help to prevent its banking sector collapsing, at an emergency discussion on Saturday 9th June Eurozone finance ministers agreed to lend Spain up to €100bn to recapitalise its banks. The Eurogroup statement explained that the €100bn total would be to cover ... read more ...

If you are investing to grow your money, I normally recommend three main principles: (1) time in the market; (2) spread the risk and (3) regular reviews. In Part 1 I discussed how time in the market is usually more beneficial for individual investors rather than timing the market. I now move on to look at the other ... read more ...

The Eurozone crisis has been causing concern and uncertainty for long enough. We have witnessed various attempts to resolve the crisis, but recent events in Greece, not to mention growing fears over Spain, only confirm that it is far from over. The coming months will be critical.We can only hope that we will see a re ... read more ...

An investor’s portfolio should be built around their specific objectives. While these vary considerably between investors they often fall into two broad categories – investment to generate an income and investment for growth for wealth preservation or to accumulate money to meet a future goal.Unfortunately too many in ... read more ...

The Sterling interest rate has been held at the all time low of 0.5% for over three years, and many savers have been earning negative real rates of return. According to Bank of England figures in March, over £100 billion was sitting in bank accounts not paying any interest. This compared to levels of £15 billion and ... read more ...

The banking sector in Spain is right back in the spotlight, causing concern throughout Europe. 16 banks have been downgraded; the government has effectively nationalised Bankia and many banks have been left with large portfolios of repossessed or unsold property after Spain’s property bubble burst. According to the B ... read more ...

The top rate of income tax in the UK may be dropping from 50% to 45% next year, but lower rate taxpayers are not so lucky. Almost a million people have been pushed into higher tax bands than previously, with over four million now caught in the higher rate tax trap.HM Revenue & Customs (HMRC) data reveals that 3.8 ... read more ...

The UK Financial Services Authority (FSA) is warning over 75,000 people that they could be, or have been, targeted by fraudsters. Victims lose tens of millions of pounds to investment fraud each year and the FSA urges investors to be vigilant and protect themselves from investment scams. The FSA has recovered lists – ... read more ...

The investment, tax and general wealth management landscape has changed considerably over the last decade or two. Here in Malta, a new tax residence scheme was announced last year for foreign nationals living here.In the 1990s stockmarkets appeared to be heading ever upwards. The Bank of England Sterling base rate ra ... read more ...

Life expectancy is increasing. While this is good news for us as individuals, longevity will place a heavy burden on the state – and the state is not prepared, warns the International Monetary Fund. In its latest Global Financial Stability Report, the IMF advises that longevity risk is large and affects all of societ ... read more ...

The usual advice for British expatriates is to match the currency of their assets to that of their liabilities, so if you live in France your savings and investments are in Euros. This avoids both currency exchange risk and costs. You may also have other considerations however and wish to keep some savings in Sterlin ... read more ...

Is the worst of the economic downturn behind the UK? The Organisation for Economic Co-Operation and Development (OECD) said on 9th April that the UK economic may have turned a corner and appeared to be on the road to recovery.Its composite leading indicator (CLI) for Britain, which is designed to show early signs of e ... read more ...

The UK and Germany signed tax deals with Switzerland last year to ensure they will receive tax from any undisclosed assets held by their taxpayers in Swiss banks and financial institutions. After the European Commission objected that the deals undermined EU law, the UK revised its deal by signing a Protocol of Amendme ... read more ...

The UK’s March budget confirmed that the government will introduce a statutory definition of tax residence on 6th April 2013. This will not be a moment too soon for many British expatriates who have had to deal with uncertainty over UK tax residence issues for too many years. While the Gaines-Cooper residence case is ... read more ...

Unlike other taxes, UK Inheritance Tax (IHT) follows you around the world, regardless of where you may reside. This is because it is based on domicile, not residence, and it can be harder than you realise to shake off your British domicile status. Many British expatriates remain liable to IHT even if they have lived ... read more ...

2011 saw the introduction of some tax rises for Portuguese residents as part of the austerity measures, and taxpayers are faced with some more increases this year. In Portugal, as elsewhere in Europe, we may find that austerity measures are kept in place for longer than currently expected. Tax planning has become mor ... read more ...

Was the UK budget a case of robbing Peter to pay Peter, or robbing Peter to pay Paul, or robbing Paul to pay Peter?One of the key features was the reduction of the top rate of income tax from 50% to 45%, with chancellor George Osborne saying that he can raise five times as much revenue from the rich through measures li ... read more ...

Switzerland and the UK agreed a landmark tax agreement in August 2011 which was then formally signed in October. At the time the UK Treasury said it would “resolve the long-standing abuse of Swiss banking secrecy”. Germany signed a similar agreement with Switzerland, but the European Commission challenged both deals, ... read more ...

Tax rises are an inevitable part of austerity measures and Cyprus is no exception. Cyprus has been under pressure from the EU to reduce the public deficit and the government introduced a number of measures last August, with more in December as part of the 2012 State Budget. Income taxAs announced in August 2011, a new ... read more ...

Whether your investment objective is to preserve your wealth, provide an income or generate capital growth, for the most effective results you need to protect your capital and income from being eroded by taxation. Many investors pay more tax than strictly necessary because they have not structured their investable ass ... read more ...

When the Bank of England voted to keep interest rates on hold at their March monetary policy meeting, it marked three years since the rate was reduced to the historical low of 0.5%. We have now entered a fourth year of rock bottom interest rates, and there is still no light at the end of the tunnel for savers.Savers w ... read more ...

Tax increases are impacting most of us in Europe, but the extent to which they affect you often depends on how much attention you pay to tax planning. It still surprises me sometimes how some people worry about every little fall in their investment returns but fail to consider what detrimental impact tax is having on ... read more ...

In February the Organisation for Economic Co-Operation and Development (OECD) praised the tax measures introduced in Spain as a crucial first step to bringing the country’s finances onto a sustainable footing. Taxpayers in Spain may be less complimentary when they receive their tax bills for 2012. The European Commis ... read more ...

Here we go again. Last year we had four rectified Finance Bills for 2011, on top of the original one, and now the French government has already published a supplementary Finance Bill for 2012. What tax changes do we have this time?First of all, a change that affects most people is an increase in the rate of social ch ... read more ...

Just days after the Spanish government revealed the tax rises for 2012, it announced a new crackdown on tax evasion as another measure to help it rein in the budget deficit. You need to make sure that you declare everything you are obliged to in Spain if you are resident here or own Spanish assets, and if you are look ... read more ...

The lead story in our last quarterly newsletter last year was the reintroduction of wealth tax in Spain. In December 2008 the Spanish government had approved a measure to apply a 100% tax credit against an individual’s wealth tax liability from 1st January 2008, effectively abolishing wealth tax from that date. In Se ... read more ...

A statutory residence test is long overdue in the UK. Expatriates have had to rely on guidance rather than law to determine where the line between being resident and non resident in the UK for tax purposes lies. A number of court cases demonstrate just how fine this line is and HM Revenue & Customs’ guidance on t ... read more ...

“Is this a good time to invest?” This is one of the questions we are frequently asked, and the answer is “yes” more often than not. If you need to protect the value of your savings from inflation, it is generally better to be invested for the long-term rather than wait in the sidelines for a “right time” to invest or ... read more ...

As part of our strategy to provide local support to our clients, we are pleased to announce the opening of a new office in Nerja, Andalucía, which enables us to provide a more dedicated service to our clients in this area. Last year we appointed a new Partner, Steve Langford, who is now based at the new Nerja office. ... read more ...

If you are resident in Spain you need to be prepared for a higher tax bill this year and next. At the end of 2011 the new Spanish government announced austerity measures which included the second largest tax hike in Spain’s history. While many of the tax increases we have seen imposed around Europe over the last coup ... read more ...

On 20th February 2012 it was reported that the UK Financial Services Authority (FSA) has fined Santander £1.5 million for failing to confirm the circumstances under which its structured products would be covered by the UK Financial Services Compensation Scheme (FSCS).In the US, the law firm Gilman and Pastor LLP, state ... read more ...

Taxpayers are facing higher tax liabilities in Spain, sometimes considerably higher, depending on how much worldwide income and gains you receive. More people will be looking for ways to reduce their tax bills, but you need to be very careful about the methods you use and be sure your tax planning is compliant in Spai ... read more ...

It is perhaps surprising how many people still get caught out by investment fraud. Regulation has tightened considerably over the last decade or two, but unfortunately this is not enough to stop some investors losing money to unauthorised sales people. The latest fraud to be reported on is a particularly personal one ... read more ...

When was the last time your reviewed your investment portfolio? I mean, sat down and looked at all the assets you own, whether individual shares, funds, investment wrappers, property, cash holdings etc, at the same time considering your current circumstances, objectives and time horizon, not to mention today’s investm ... read more ...

Prior to September 2007, not many savers gave much thought to bank deposit guarantees. After the collapse of Northern Rock and the following banking crisis compensation limits became rather more important. Nevertheless research from the UK Financial Services Compensation Scheme (FSCS) at the end of last year found th ... read more ...

You’re probably familiar with the Benjamin Franklin quote “in this world nothing is certain but death and taxes”. I fear we’ll soon be able to change it to “nothing is certain but death and rising taxes”. You may think we’ve had more than enough tax increases in France, but with France having lost its valued AAA cred ... read more ...

UK Labour leader Ed Miliband ruffled a few feathers when he attacked the British crown dependencies for being “tax havens” and called for action to be taken against them. This is rather familiar territory as we’ve seen the previous Labour government commission reviews into the tax practices of Jersey, Guernsey and the ... read more ...

The Bank of England has announced another round of quantitative easing. At its meeting on 9th February the Monetary Policy Committee voted to pump £50bn of extra stimulus into the economy. I thought it would be useful to take a closer look at quantitative easing at this point.What is quantitative easing?Normally when ... read more ...

If you are a British expatriate planning to return to the UK, in order to lower your UK tax liabilities it’s important to seek advice and start planning before you leave your current country of residence. In Part 1 of this article I discussed income and capital gains tax; here I look at other issues you may need to co ... read more ...

January was a very positive month for the major equity markets as they enjoyed a strong start to 2012. The FTSE 100 index posted its best monthly performance since October, helped by strong corporate results, higher oil prices and improved risk appetite. European shares had reached a 6-month high by 1st February. Ove ... read more ...

While the number of expatriates moving back seems to have increased over recent years, contrary to media reports it’s not always because of the financial climate. There are various reasons why people return “home”. Sometimes it’s because they’ve been missing their family too much, or because their family need them ne ... read more ...

The UK taxman has announced his latest initiative in his ongoing battle to prevent tax evasion and recoup lost taxes. HM Revenue & Customs is launching another disclosure facility, and this time it just offers protection from prosecution rather than reduced penalties. The Contractual Disclosure Facility (CDF) sta ... read more ...

2011 was the year of increased austerity measures including exceptional tax increases across the board. Regrettably, there may be more to come in 2012 and beyond. Whilst investment opportunities will still be available tax mitigation has rarely been more important. The French Finance Act for 2012 was approved on 21s ... read more ...

HM Revenue & Customs issued draft legislation on 6th December 2011 amending the rules applied to Qualifying Recognised Overseas Pension Schemes (QROPS). The new legislation, once approved, will come into effect on 6th April this year.The aim of the legislation is to - - Stop people taking 100% of their pension fun ... read more ...

Qualifying Recognised Overseas Pension Schemes (QROPS) were introduced in April 2006 on the back of EU directives on pension harmonisation. The intention was to enable British expatriates to simplify their affairs by taking their pension savings with them by transferring to a new scheme in their new country of residen ... read more ...

I wrote an article in December 2011 about how austerity is becoming the “new normal” in many European countries and that this means that we are going to have to get used to higher taxes. Spain had actually been better off than countries like Portugal and France when it came to tax rises, but this was never going to l ... read more ...

Many of you may have read on the internet about the UK Financial Services Authority’s (FSA) decision to “…strongly recommend that Traded Life Policy Investments (TPLIs) should not reach ordinary investors in the UK. We are telling firms that they should not be marketing, recommending or selling these products to the m ... read more ...

Although there are certain exceptions, two of the many rules and regulations controlling UK pensions are that you can only take 25% of your pension funds as a cash lump sum, so that the balance can be used to provide you with an income for life, and that you must now be at least 55 years of age before you take any pens ... read more ...

With everything that's been going on in the Eurozone, economy and financial markets, and the media taking every opportunity to sensationalise each bit of news, it’s worth taking a step back and try to see the wood for the trees again.The first question is: why should people consider investing in stocks and shares ... read more ...

I wrote articles at the end of 2009 and 2010 commenting what taxing years they were as governments have been intent on reducing their huge budget deficits, and the trend has continued this year. 2011 was the year when austerity measures became the “new normal” – and it looks like they could be around for longer than e ... read more ...

According to the Organisation for Economic Co-Operation and Development (OECD), Switzerland has made “considerable progress” when it comes to tax transparency: “There has been a massive change and the difference between 2009 and now is like night and day.”The result of this is that more and more people who have used S ... read more ...

A statutory definition of tax residence is long overdue in the UK. Expatriates have had to rely on guidance rather than law to determine where the line between being resident for tax purposes in the UK and being non resident is. A number of court cases demonstrate just how fine this line is. In October a Supreme Cou ... read more ...

Do you own property in Spain? If you are resident in Spain, have you submitted your Spanish tax return each year? If you are not resident, have you submitted your non-resident tax declaration each year? Do you know that the tax authorities now have records of your property and are checking if you have filed tax retu ... read more ...

One of George Osborne’s early decisions as Chancellor was that there would be no more Pre-Budget Reports. Instead, the tradition of the Autumn Statement was to be reintroduced, allowing the Chancellor to give an interim view of the UK’s finances.However, the Chancellor’s 2011 Autumn Statement looked very much like a P ... read more ...

Like many other countries in Europe France has had to put up some taxes over the last year in order to bring in more revenue for the state. It did however also reduce wealth tax for the majority of taxpayers, but even without this change, many people are often surprised to find that their tax levels in France could be ... read more ...

Maltese-domiciled residents are liable to Maltese taxes on their worldwide income and gains. In many countries, foreign nationals living there also have to pay tax on their worldwide income and gains, but Malta offers a favourable tax regime for non-domiciled resident individuals, depending on the manner in which resi ... read more ...

When countries across the western world began implementing austerity measures it was hoped they would only be needed for a short time while economies got back on track. However with slow economic growth and high debt levels it looks like we’ll have to get used to austerity measures as they’ll be around for a while.UKC ... read more ...

£43 billion will reportedly be wiped off the value of UK savings over the next year thanks to record low interest rates and high inflation, according to This is Money, based on calculations by campaign group Save Our Savers.The last year has not been much better. Moneyfacts reports that the number of UK savings accoun ... read more ...

The European Commission has referred Spain to the EU’s Court of Justice over its succession tax rules. The Commission argues that the rules are discriminatory because they require non-residents to pay higher taxes than residents, even if they live elsewhere in the EU.It remains to be seen how Spain responds – it does ... read more ...

While I am not in the habit of writing about politics, it is hard at the moment to separate it from financial news when it comes to the Eurozone crisis and the effect this is having on investment assets. European politics have again been dominating the investment scene and recent events could have an influence on the ... read more ...

In April next year the Lifetime Allowance applied to UK pensions will be reduced from £1.8 million to £1.5 million. If your total pension savings exceed or are likely to exceed this limit you need to take action now to protect yourself from unnecessary tax charges.The Lifetime Allowance (LTA) is a limit on the value o ... read more ...

The taxman certainly has wealthy taxpayers in his sights this year. Not only is he raising their taxes, he also seems to be assuming that they are potential tax evaders if they use offshore bank accounts. While we all know why governments need to increase tax revenue at this point in time, you would be forgiven for f ... read more ...

Are you a UK resident who owns property abroad? HM Revenue & Customs (HMRC) has announced its latest tax evasion crackdown, and this time the focus is on taxpayers who own property abroad. If you are a higher rate UK taxpayer, you could be affected if you own a holiday home, investment property or land outside t ... read more ...

A team from the Blevins Franks Côte d’Azur office are getting out from behind their desks and putting on their running shoes to raise money for charity by running the Marathon des Alpes-Maritimes (www.marathon06.com) on Sunday 20th November. The whole 42km is a bit too ambitious for them to do individually so they wil ... read more ...

Many British expatriates have been following the Gaines-Cooper UK residency case and we now have the latest ruling in this long-running saga. The courts have again ruled in favour of HM Revenue & Customs (HMRC) and against international businessman Robert Gaines-Cooper.The issue was whether Gaines-Cooper, who had ... read more ...

Inflation in the UK has hit a shocking 5.2% and it is also above target in the Eurozone. We all need to be aware of the detrimental impact inflation can have on our savings and income, particularly if you are retired. If you ignore the inflation threat you run the very real risk of losing spending power year after ye ... read more ...

There have been a number of tax reforms in France this year, with changes introduced in both the supplementary Finance Bill for 2011 which was finalised at the beginning of summer and the austerity budget measures announced in late August. France’s wealthier residents have been particularly hit as the government looks ... read more ...

Corporate bonds play an integral part in many investment portfolios. This is partly as a diversification measure to lower overall risk, but also, in many cases, to provide regular income. Bonds generate a natural income, which means you can receive regular payments without touching the capital. They also have the po ... read more ...

As part of its concerted crackdown on offshore tax evasion, in the UK HM Revenue & Customs (HMRC) has announced that it is writing to 6,000 Swiss bank account holders to give them one last opportunity to fully disclose their accounts. HMRC has received information on the accounts, and after comparing it to the hol ... read more ...

These are difficult times for banks. Some European banks have suffered credit downgrades and the French and Belgium governments had to step in to rescue Dexia. With all this going on I think it would be useful to revisit the subject of deposit guarantee schemes and investor protection.Bank deposit guarantee schemes r ... read more ...

On 6th October 2011 the UK and Swiss Governments signed a deal to tax undeclared Swiss Bank Accounts. The agreement had been reached and initialed on 24th August 2011. It affects any individual who is resident in the UK, or has given the Swiss Bank the UK address, or holds a UK passport.HM Revenue & Customs (HMRC) ... read more ...

With the Euro so much in the news at the moment and concerns about its future, I thought it would be helpful to discuss a very interesting research note which was published by the Swiss bank, UBS in September. It was written by their leading European economist and generated quite a lot of interest amongst market comme ... read more ...

Many retired British expatriates in Spain are now familiar with QROPS (Qualifying Recognised Overseas Pension Schemes) which were introduced in 2006 and used by many retirees to gain more flexibility for their private pension funds. QNUPS (Qualifying Non-UK Pension Schemes) are a newer ‘cousin’, and an attractive reti ... read more ...

If you have UK pension funds you can start to draw income from age 55, a regime now known as “drawdown pensions”. The alternative is to buy an annuity. Drawdown provides an ability to take income from the underlying investments, allowing personal investment control of the funds and flexibility of the income drawn. T ... read more ...

As part of the amended Finance Act for 2011, which came into force on 30th July 2011, the French authorities have introduced legislation relating to the taxation of Trusts, in an attempt to clarify existing practice and set out rules covering certain specific situations.The aim of the legislation is to treat Trusts as ... read more ...

Expatriates are used to counting days to establish their tax residency. Many countries including the UK have the “183 days a year rule”, while the UK also has the “90 days a year over four years” rule. It is not always as simple as day counting, however, and many countries also stipulate other situations which would ... read more ...

Once you reach retirement age you need to carefully consider all your options for receiving pension income, and how these options affect the transfer of any balance to your spouse and heirs on your death. If you are non-UK resident you have the further option of QROPS to consider, and obviously you need to take your l ... read more ...

The UK government published a consultation paper in June outlining its proposals to introduce a statutory definition of tax residence from 6th April 2012. It is based on the principle that where someone is resident is more than just a question of where they spend their time. While the proposed tests do not completely ... read more ...

These are taxing times across Europe as governments impose austerity measures to enable them to meet their ambitious, but imperative, deficit reduction targets. The wealthy are bearing much of the tax burden. Here are a few examples:Portugal - An increase in the top rate of income tax of 2.5% on income over €150,000 ... read more ...

The usual advice for British expatriates is to match the currency of their assets to that of their liabilities, so that if you live in the Eurozone your savings and investments would be in Euros. This reduces both currency exchange risk and costs. You may also have other considerations however, for example:• You are ... read more ...

Once you reach retirement age you need to carefully consider all your options for receiving pension income, and how they affect the transfer of any balance to your heirs on your death. You also need to take the local tax implications into account, and if you are a British expatriate you have the further option of QROP ... read more ...

In a landmark deal Switzerland has agreed to start deducting tax from all accounts owned by British taxpayers for the UK government. The agreement is expected to come into force at the beginning of 2013 and to earn the Treasury up to £6 billion a year. The deal takes precedence over the EU Savings Tax Directive and c ... read more ...

The UK government published a consultation paper in June outlining its proposals to introduce a statutory definition of tax residence from 6th April 2012. It is based on the principle that where someone is resident is more than just a question of where they spend their time. While the proposed tests do not completely ... read more ...

The Spanish tax system is very different from that in the UK and many other countries. Many people who have moved to Spain or are planning to do so inadvertently find it complex and potentially expensive from a tax perspective. In our experience, however, when you understand all the intricacies of the Spanish tax rul ... read more ...

The usual advice for British expatriates is to match the currency of their assets to that of their liabilities, so that if you live in Spain your savings and investments would be in Euros. This avoids both currency exchange risk and costs. You may also have other considerations however, for example:• You are concerne ... read more ...

2011 saw the introduction of significant changes to the UK pension legislation. While most were welcomed and do provide a little more flexibility, many expatriates still find that the UK rules restrict their options and would like more control over their pension funds. The key changes are:- Alternatively secured pens ... read more ...

We have had several of our French resident clients contacting us recently to say that their local tax inspector has written to them telling them that the double tax treaty between the UK and France changed as of 1st January 2010. This is correct, the new treaty came into force for French purposes on that date.What the ... read more ...

These are taxing times in France, as well as the rest of Europe. The ink had barely dried on the amended Finance Act for 2011 and its tax reforms when the government unveiled a further €12 billion austerity budget. These fiscal measures are intended to enable the government to meet its ambitious deficit reduction t ... read more ...

The UK government published a consultation paper in June outlining its proposals to introduce a statutory definition of tax residence from 6th April 2012. It is based on the principle that where someone is resident is more than just a question of where they spend their time. While the proposed tests do not completely ... read more ...

Many British people have, or would like to have, a trust for the various benefits they provide. While tax mitigation is often a key reason for setting up a trust they can also offer many other benefits for you and your family. The French authorities have however become wary of trusts in recent years, viewing them as ... read more ...

The UK and Germany signed tax deals with Switzerland this summer whereby Swiss banks will deduct both retrospective and withholding taxes from accounts held by British and German taxpayers. The deals will provide much needed revenue for the UK and German governments but allow Switzerland to retain its prized banking s ... read more ...

In our article UK and French Tax Residence Issues we touched on the UK and French tax residency rules, which leads to the question: where are you better off being resident - in the UK or France? France does have a reputation for being a high tax country, but in our experience, when you understand all the intricacies o ... read more ...

2011 saw the introduction of significant changes to the UK pension legislation. While most were welcomed and do provide a little more flexibility, many expatriates still find that the UK rules restrict their options and would like more control over their pension funds. With life expectancy increasing you may need yo ... read more ...

The recent tax deal between the UK and Switzerland is quite an achievement for the UK Treasury. It will receive both retrospective and future tax on all bank accounts and other investments held by UK residents in Swiss financial institutions, and is expected to earn £6 billion a year out of the agreement – perfect tim ... read more ...

2011 is turning out to be an excessively taxing year in France, with its seemingly endless and less welcome tax changes. No sooner had the Finance Bill for 2011 been passed than the government began discussing the supplementary budget. And then, almost immediately afterwards, even more tax rises were announced. Whe ... read more ...

Stockmarkets have been having a tough time recently, with share prices rocked by uncertainty and investor fear. Investors tend to fear losses more than they crave gains, and it’s certainly no fun watching your investments fall. During times of volatility those who are already invested get tempted to sell to prevent f ... read more ...

In a landmark deal Switzerland has agreed to start deducting tax from all accounts owned by British taxpayers for the UK government. All UK domiciled tax residents who have not declared their Swiss bank account to HM Revenue & Customs (HMRC) will lose up to a third of their Swiss accounts to the taxman and face ta ... read more ...

It’s the time of year when many people visit countries like Spain, France, Portugal, Cyprus and Malta, fall in love with the lifestyle and start thinking about living there. Or perhaps you’ve already decided to move to one of them and are house hunting. Or perhaps you own a holiday home and hope to move over permanen ... read more ...

One of the hot investment topics of conversation at the moment is gold. It’s been a sought after commodity for centuries and has become even more popular as an investment asset over recent years. This year it seems to be breaking records nearly every day. But is there any value left in this asset class or is it ove ... read more ...

Hands up anyone who thought, back when the Bank of England cut its interest rate to 0.5% in March 2009, that it would remain 0.5% for over two and a half years? I think most of us expected rates to have improved by now, but although savers had some false hope along the way, the rate remains steadfastly firm at 0.5% an ... read more ...

It never stops amazing me that, over the years, each time we have a financial crisis a myriad of investment funds hit our desks purporting to be financial alchemy in that they seem risk free, not correlated to stockmarkets and with a promise of good potential returns.We’d surely be mad not to invest – wouldn’t we?As ad ... read more ...

The new pension legislation that came into effect in the UK in April 2011 included some welcome changes. In particular it gave us more flexibility regarding annuities. There is no longer an age limit to annuitise and you are not penalised as much as you were with higher taxes if you do not buy one at all, albeit not ... read more ...

The problems in the Eurozone, not to mention the US, are creating much uncertainty. While company fundamentals remain positive, stockmarkets themselves tend to react adversely to uncertainty, as we’ve seen happen recently. So what should you do if you have money to invest? For people who are not yet invested, a fall ... read more ...

The UK rules as to when you are tax resident in the UK or not if you live abroad but spend time in, or have strong ties with, the UK are notoriously complex and have caught people out. There is currently no statutory definition of UK tax residence and though HM Revenue & Customs does a booklet on the subject (HMRC ... read more ...

Many readers who have retired abroad or are planning to do so will have worked hard to achieve their dream of living abroad. They will want to know that their savings and investments are on the right track to allow them to be financially secure throughout their retirement years. It’s understandable if they keep a clo ... read more ...

Thanks to improved medical science and healthier lifestyles we are living longer and, while most of us consider this good news, it will put increasing strain on already stretched public coffers. Government spending on health, long-term care and state pensions will shoot up, and this at a time when less people are work ... read more ...

Many people who move to Spain rely to a certain extent on their savings to provide an income, or at least to have as back up if needed. It is therefore important to understand how various savings and investments are taxed in Spain so that you can factor in how much you will lose in tax. Understanding how the system w ... read more ...

Taxes have been on the rise across Europe as governments aim to repair their budget deficits. After having been forced to accept a €78 billion bailout from the EU and International Monetary Fund, the Portuguese government has no choice but to implement further tax hikes.It has now announced plans to impose an “extraor ... read more ...

Following recent press articles, this is a good time to remind savers and investors to establish what level of investor protection they have.Stress tests on European insurersThe European Insurance and Occupational Pensions Authority (EIOPA) has published the results of its second insurance stress tests, designed to ass ... read more ...

The UK continues to lead the way in the fight against offshore tax evasion. HM Revenue & Customs has been clawing back millions of pounds of unpaid tax for the Treasury, launching criminal investigations and civil cases against tax evaders, promising more investigations and implementing cutting edge technology. O ... read more ...

There has been much debate about the latest round of tax reforms and the draft Finance Bill has now been approved by the Senate. The definite adoption of the Bill is expected soon.Wealth tax – are you a winner or a loser?With effect from 2011, the wealth tax threshold increases from €800,000 to €1.3 million, though th ... read more ...

We all want to leave our spouse or partner financially secure following our death, not to mention as worry free as possible, but one particular French law can catch out Britons living here – succession law. Under its Napoleonic code, your children (including those from previous marriages) are ‘protected heirs’ and tak ... read more ...

On 1st January 2011 French tax law changed to make pension lump sums taxable in France for the first time. This could affect you if you are already living in France and have not yet taken your pension commencement lump sum. There is some debate about the tax treatment of lump sums received from UK pensions, with some ... read more ...

With effect from 6th April 2011 there are new rules on taking retirement income from UK pension funds.There is no longer an age limit to buy an annuity and no tax disadvantages if you never buy one at all. The age limits for drawing an income and taking most pension commencement lump sums have also been removed. UK i ... read more ...

As an expatriate you are likely to have assets in more than one country. Besides those in France you may have retained assets in your home country. Any overseas bank accounts (eg Isle of Man) or investments located elsewhere mean you have another country or countries to consider. On your death probate may therefore ... read more ...

Here is some really good news for retired UK expatriates who have been struggling with the UK’s average 90 days residence over 4 years rule. Under Treasury proposals, the rule could become much clearer and much easier. If they are approved, most retired expatriates will be able to spend up to 119 days in the UK in ea ... read more ...

It is the responsibility of everyone living in Spain or owning property here to establish exactly what the tax rules are and how they apply to them, and then to complete their tax return correctly and fully each year. The Spanish government has become much more vigilant about enforcing its taxation laws and increasing ... read more ...

With effect from 6th April 2011 there are new rules on taking retirement income from UK pension funds.There is no longer an age limit to buy an annuity and no tax disadvantages if you never buy one at all. The age limits for drawing an income and taking most pension commencement lump sums have also been removed. UK i ... read more ...

Do you own property in Spain and spend a lot of time here, but either limit the number of days to avoid becoming tax resident or believe you are not tax resident and so have not submitted tax returns in Spain? In either case, have you considered your succession tax position? Can your spouse afford for you to be non-r ... read more ...

British expatriates who presume that they are no longer liable to UK inheritance tax (IHT) because they are tax resident in Spain risk leaving their heirs an unexpected tax bill. It is domicile, rather than residence, that determines your liability to UK IHT. The basic rule is that you are domiciled in the country w ... read more ...

As an expatriate you are likely to have assets in more than one country. Besides those in Spain you may have retained assets in your home country. Any overseas bank accounts (eg Isle of Man) or investments located elsewhere mean you have another country or countries to consider. On your death probate may therefore b ... read more ...

For many people, the term “offshore banking” has been synonymous with paying less tax…. or no tax at all. While there are practical reasons for expatriates to have an offshore bank account, it’s fair to say that for many the tax side of things was the key attraction. Who would have thought that the time would come wh ... read more ...

The combination of low interest rates and rising inflation means that most savers are earning negative real rates of returns on their cash deposits and the value of their savings is gradually being eroded. Bank interest is also liable to tax whether you withdraw it or not. In the UK, Moneyfacts calculates that to ear ... read more ...

Here is some really good news for retired UK expatriates who have been struggling with the UK’s 90 days residence rule.Under Treasury proposals, the rule is being made much clearer and much easier. Most retired expatriates will now be able to spend up to 119 days in the UK in each UK tax year, yet remain outside of HM ... read more ...

From July this year, if you are an EU resident and have not elected for disclosure of information to the taxman of the country in which you are living, then any offshore interest attributed to you (whether you withdraw it or not) will be liable to a withholding tax of 35% under the Savings Tax Directive. In a large nu ... read more ...

On 6th April 2011 new rules were introduced which affect the way you take retirement income from your UK pension funds. The rules apply regardless of your country of residence when taking your pension.There is no longer an age limit to buy an annuity and no tax disadvantages if you never buy one at all. You can now l ... read more ...

Most of us want the peace of mind of knowing that our spouse/partner and children will be well looked after when we’re gone. We want them to inherit as much of our wealth as possible; to manage their inheritance wisely and for our assets to be distributed as per our wishes.To this end, your estate planning needs to ta ... read more ...

British expatriates who presume that they are no longer liable to UK inheritance tax (IHT) because they are not tax resident in the UK risk leaving their heirs an unexpected tax bill. It is domicile, rather than residence, that determines your liability to UK IHT. The basic rule is that you are domiciled in the coun ... read more ...

As an expatriate you are likely to have assets in more than one country. Besides those in your country of residence you may have retained assets in your home country. Any overseas bank accounts (eg Isle of Man) or investments located elsewhere mean you have another country or countries to consider. On your death pro ... read more ...

One of the key rules of investing is that you need to diversify your assets to spread risk and potentially increase prospective returns. The fewer assets you own, the more chance there is that the capital value will drop if a particular company, sector or country goes through hard times. Another key rule is to set up ... read more ...

Many British expatriates living in Spain have taken advantage of the opportunity to move their UK private pensions into a Qualifying Recognised Overseas Pension Scheme (QROPS). QROPS offer many advantages to non-UK residents, including currency choice which enables the protection of pension income from fluctuations br ... read more ...

If you ever had the feeling that you spent half your working life just to pay tax you’re probably not far wrong. What with income tax, national insurance/social security, capital gains tax, VAT, council tax, excise duties etc, a considerable amount of your hard earned income is lost in tax each year. If you’re lucky ... read more ...

While Switzerland once had the reputation as the place to keep savings out of reach of the taxman, those days are all but over.In 2005 Swiss banks began taxing accounts owned by EU residents as part of the EU Savings Tax Directive, even though it is not an EU Member itself. The withholding tax rate was initially 15% b ... read more ...

As another team of fraudsters have been arrested for scamming retirees out of their savings, this is a good time to remind readers that in spite of increasing regulation the dangers of being defrauded still exists. Frauds can range from deliberate misrepresentation through to outright theft and it can be easier to get ... read more ...

The draft French Finance Bill for 2011 proposes some important new tax changes which will offer opportunities for both French tax residents and non-residents. This article considers existing or forthcoming French tax residents. A separate article has been written about non-French tax residents.Wealth Tax (ISF)Althoug ... read more ...

The 2011 Budget proposes some tax changes for non-French tax residents who own French property. Tax on Second Homes Owned by Non-French ResidentsThe government had proposed a new annual 20% tax rate on the letting value of second homes in France owned by non-resident (regardless of nationality or where they live) and ... read more ...

On 6th April 2012 the lifetime allowance for UK pension schemes will be cut from £1.8 million to £1.5 million. Critics have described the lifetime allowance as an effective tax on investment performance, penalising people whose fund perform particularly well. The cut was announced last October along with a reduction ... read more ...

One of the basic rules of successful investing is diversification. International investment is a well-established concept in investment management and most investors appreciate the opportunities for increased sources of return and risk management through diversification.Key areas of diversification within an asset cla ... read more ...

The Revenue’s Booklet HMRC 6 HMRC 6 replaced IR20 in 2010. It emphasises that many different factors apply to determine whether or not you are a UK tax resident: it is not simply a matter of day counting.The withdrawn IR20 leaflet is subject to a judicial review in the Supreme Court due to be heard in July 2011. It ... read more ...

One question we wealth managers often get asked is if there are any risk free investments. I’m afraid the short answer is no, as all investment involves some degree of risk. Risk and reward go hand in hand in the investment world and you cannot have one without the other. Since different assets have different levels ... read more ...

While the Bank of England interest rate has remained stubbornly unchanged since March 2009, the same cannot be said for interest rate forecasts which have been changing from one month to the next, sometimes from one week to the next. The lesson to be learned here is that we cannot rely on such forecasts and if you nee ... read more ...

Tax inspectors take more tax out of the richHM Revenue & Customs set up its High Net Worth Unit in 2009 specifically to investigate the tax affairs of the UK’s wealthiest citizens. So far it is proving a great success for the Treasury.The High Net Worth Unit replaced the Complex Personal Tax Team which used to bri ... read more ...

The recent sudden fall in commodity prices led to headlines asking if the commodity boom was over; if commodities were the next tech; if the bubble was bursting etc. A sustained fall may be welcomed by consumers but would be worrying for investors. However when asset prices fall like this it does not usually signal ... read more ...

The French Finance Bill containing the wealth tax reforms has just been presented to parliament – and it contained an unwelcome surprise for owners of holiday homes in France.If you are not tax resident in France but own a holiday home here, under the proposals to be debated in parliament you will start to pay a new ex ... read more ...

The Finance Bill covering the latest tax reforms in France was presented to the Council of Ministers on Wednesday 11th May 2011. The measures will be voted on in July and are as follows.Wealth Tax• Abolition of Bouclier Fiscal, except for people on very low incomes whose taxe foncière on their main home exceeds 50% of ... read more ...

1st July this year will introduce two significant changes to the EU Savings Tax Directive. While many expatriates will not be affected, for many others the changes could have a significant impact. It depends on whether you have offshore bank accounts and how they are set up. With less than a month to go, there is li ... read more ...

UK inheritance tax is one of the most unpopular taxes in Britain and yet, even though it can often be mitigated or avoided, relatively few people bother to take steps to do so. Are you one of the 12% who have made an effort to reduce the amount of tax your heirs will have to pay, or one of the 88% who hasn’t? Being a ... read more ...

The UK government is about to sign a landmark agreement with Switzerland which will oblige Swiss banks to tax interest payments made to UK taxpayers. As part of the deal thousands of Swiss bank account holders will probably also pay millions of pounds to HM Revenue & Customs (HMRC) in backdated taxes on previously ... read more ...

The UK March Budget included the announcement that the government is consulting on linking the state pension age to longevity in order to “constrain future spending pressures from our ageing society”. This issue of longevity has serious implications for governments across Europe as the costs of caring for an increasin ... read more ...

The following reforms are to be voted on by Parliament in June.Wealth TaxIndividuals whose total wealth is below €1.3m will be exempt from wealth tax.Those with wealth of between €1.3m and €3m will be taxed at 0.25% on the full amount (not on wealth falling between these two figures).Those with wealth greater than €3m ... read more ...

The battle between the taxman and taxpayer is one of the longest-running sagas of the ongoing development of human society. It has intensified over recent years and governments are developing new weapons to reduce financial privacy in their bid to prevent tax evasion and increase tax revenue. Never mind that financia ... read more ...

The UK rules for determining whether or not an individual is tax resident in the UK or not are notoriously complex and unclear. HM Revenue & Customs has argued that its own IR20 and HMRC6 booklets (HMRC6 replaced IR20 in 2010) only provide guidance and are not binding – though this is now subject to a judicial rev ... read more ...

1) Change your domicile Unlike any other tax, UK Inheritance Tax (IHT) follows you around the world, regardless of where you may reside. That’s because it is based on your domicile, not residence. So you need to change your domicile in order to shrug off IHT. If you really have made a permanent move to a new country, ... read more ...

On 7th April the European Central Bank became the first major western economy to increase interest rates since July 2008. It is too early to call it the end of the era of low interest rates but the move is certainly a step in the right direction for savers who have been earning negative real rates of return for too lo ... read more ...

In Spain, inheritance and gift tax is governed by both the state and the Autonomous Communities. There are 17 Autonomous Communities in Spain, and each has the right to amend the state rules, but only to make them more beneficial, not more punitive.Over the past few years, several Autonomous Communities (in particular ... read more ...

The most effective way to protect the buying power of your wealth for the longer term is to be invested in a wide spread and have a diversified portfolio of assets such as equity funds, fixed interest bond funds and real assets (example property funds). This article explores a technique known as Pound or Euro Cost Ave ... read more ...

Back in July last year the UK Treasury published a consultation paper on reforming the UK pension system with the aim of abolishing the annuity deadline. The 2011 Finance Bill draft legislation published in December confirmed the proposals, but we had to wait until the Budget on 23rd March 2011 for the Treasury to giv ... read more ...

It can be more difficult than you realise to establish one’s tax residence in certain circumstances. The onus is on the taxpayer to get it right. It is important to fully understand the tax residency rules of both Cyprus and your home country (this article covers expatriates out of the UK) to make sure you apply the ... read more ...

Whenever you take any wealth management decisions, whether it’s investment, tax planning or pensions, they should be based on your personal circumstances and objectives. If you’ve moved abroad, for example, from the UK to here in Cyprus, I recommend that you review your wealth management arrangements to make sure they ... read more ...

It is never too early to start tax planning, whether you are moving abroad for the first time, or moving on to another country, or returning back to your home country after years of living here in Cyprus. Advance research and planning gives you reassurance that your wealth is structured to be as tax efficient as possi ... read more ...

Unlike many other UK taxes, UK inheritance tax (IHT) will follow you around the world. You cannot leave it behind as easily as the British weather or even most other UK taxes. As a British expatriate living here in Cyprus, depending on the value of your estate it could easily still fall into the IHT net, leaving less ... read more ...

Chancellor George Osborne’s second budget came against an unfavourable economic backdrop so it was never going to be a give away, but he also had to take steps to encourage economic growth and help families being hit by the high cost of living. Most measures do not directly affect expatriates - although they are a sig ... read more ...

1) Beware of the DIY Approach. When you first think about moving abroad, begin by listing in order of preference the countries in which you and your partner would be happy to live. Ignore the tax systems for the moment – assume that they are all the same. Then discuss your choices with an experienced tax adviser. ... read more ...

The hard line stance against tax evasion by tax authorities across Europe shows no sign of abating. Indeed it is only likely to increase. The UK seems to be leading the way and just a couple of months into 2011 various new initiatives to help its efforts have already been announced.Writing in Accountancy Age on 22nd ... read more ...

Spanish succession tax (SST) is charged on inheritances and gifts. This article mainly covers inheritances, so if you wish to make a gift you should look into the specific rules for this. The Spanish term for this tax is Impuesto sobre Sucesiones y Donaciones, and it becomes due in the following situations - 1)The as ... read more ...

Do you own property in Spain and spend a lot of time here, but believe that you are not tax resident and so have not submitted tax returns in Spain? It can be surprisingly difficult to establish one’s tax residence in certain circumstances. The onus is on the taxpayer to get it right in order to avoid potential penal ... read more ...

If you are a Spanish resident, you are liable to pay tax in Spain on your worldwide income and gains, including those from offshore financial centres like the Isle of Man and Switzerland.Income and capital gains taxSince 2007 income (including capital gains) has been split into general income (renta general) and saving ... read more ...

Whenever you take any wealth management decisions, whether it’s investment, tax planning or pensions, they should be based on your personal circumstances and objectives. If you’ve moved abroad, for example, from the UK to here in Spain, I recommend that you review your wealth management arrangements to make sure they ... read more ...

Unlike many other UK taxes, UK inheritance tax (IHT) will follow you around the world. You cannot leave it behind as easily as the British weather or even most other UK taxes. As a British expatriate living here in Spain, depending on the value of your estate it could easily still fall into the IHT net, leaving less ... read more ...

Trusts are an increasingly invaluable legal instrument for British expatriates’ wealth management needs, including asset protection, tax mitigation and estate planning. They are successfully used by many expatriates and could potentially also benefit you and your family.Trusts have been around for centuries. They wer ... read more ...

It is never too early to start tax planning, whether you are moving abroad for the first time, or moving on to another country, or returning back to your home country after years of living here in Portugal. Advance research and planning gives you reassurance that your wealth is structured to be as tax efficient as pos ... read more ...

Whenever you take any wealth management decisions, whether it’s investment, tax planning or pensions, they should be based on your personal circumstances and objectives. If you’ve moved abroad, for example, from the UK to here in Portugal, I recommend that you review your wealth management arrangements to make sure th ... read more ...

Unlike many other UK taxes, UK inheritance tax (IHT) will follow you around the world. You cannot leave it behind as easily as the British weather or even most other UK taxes. As a British expatriate living here in Portugal, depending on the value of your estate it could easily still fall into the IHT net, leaving le ... read more ...

Many foreign nationals, including Britons, living in Spain fail to declare themselves to the tax authorities. This is sometimes because they do not realise they meet the tax residency criteria - they may, for example, incorrectly believe they are fiscal nomads. Others simply do not want to pay tax in Spain. It is th ... read more ...

While most people know they are obliged to declare all their income on their tax return, not everyone does – but the story of what happened to one tax evader in the UK should make them think twice. In many countries tax evasion is a criminal offence and in the UK, a British small time trader could find himself in jail ... read more ...

Unlike many other UK taxes, UK inheritance tax (IHT) can follow you around the world. You cannot leave it behind as easily as the British weather or even most other UK taxes. As a British expatriate living in countries like Spain, Portugal and Cyprus, depending on the value of your estate it could easily still fall i ... read more ...

If you own, or are thinking of buying, property in Portugal, you need to be aware of all the tax implications and what your tax liabilities are. These vary, depending on where you are tax resident and what you intend to do with the property: holiday home, to rent out, an investment to be sold on, or as a future main h ... read more ...

Last year we had the Court of Appeal ruling in the high profile UK tax residency case of Robert Gaines-Cooper, where the Court of Appeal upheld the High Court decision that he had not left the UK “permanently or indefinitely”. It deemed he had been UK tax resident, even though he claimed he was not, and potentially li ... read more ...

According to a February survey, investors are currently the most “bullish” on global equities than they have been over the last decade. They are positive on strong economic growth in spite of rising inflation. The survey was carried out by BofA Merrill Lynch between 4th and 10th February and is considered a reliable ... read more ...

At the end of November 2010 Nicolas Sarkozy announced that he would get rid of the Bouclier Fiscal (which limits taxation to 50% of an individual’s taxable income) and wealth tax. With wealth tax bringing in an estimated €3.9 billion, with a cost of €700 million for the Bouclier Fiscal, abolishing both measures would ... read more ...

In all of the years that Blevins Franks have been giving tax and wealth management advice to expatriates around the globe, there is a common theme which keeps repeating itself – that of people making decisions about where to become resident based on their perception of the local tax rules rather than the actual facts. ... read more ...

None of us want to think about the day we will shuffle off this mortal coil, but on the other hand most of us do want to make life as easy as possible for our family when we do finally go to meet our Maker. If you spend a little time now, planning ahead and reviewing how all your assets will be passed on to your spous ... read more ...

Whenever you take any wealth management decisions, whether it’s investment, tax planning or pensions, they should be based on your personal circumstances and objectives. If you’ve moved abroad, for example, from the UK to here in France, I recommend that you review your wealth management arrangements to make sure they ... read more ...

We’ve written in previous articles about how the Spanish government, along with other European authorities, have stepped up their crackdown on tax evasion as part of their efforts to raise revenue to bring down their budget deficits. According to preliminary figures released by the Spanish government, their efforts ha ... read more ...

A good and long relationship with your wealth manager can be very rewarding for you, financially and also emotionally. It gives you peace of mind, both that he will continue to look after your affairs as long as needed, and that also that if necessary help your spouse and family with the transfer of your assets when y ... read more ...

Until now, foreign pension lump sums received by French residents were not taxed in France. However, starting 1st January 2011, lump sum payments from pension funds (whether local or overseas) are now taxable in France. If you take your lump sum because of an ‘accident of life’ (unemployment, invalidity, death of a s ... read more ...

Bank interest rates in both the UK and Europe remain at record lows, where they been since spring 2009, and where it looks they will stay for the foreseeable future. There was a brief glimmer of hope that the Bank of England would lift its base rate sooner rather than later, but that was dashed by the publication of w ... read more ...

This article is a round up of pensions news which could potentially affect British expatriates. Changes to UK pension regulationsIn December the UK government issued a further draft of the Finance Bill 2011, which includes changes to its pension regulations. Unless there are further amendments, the following will appl ... read more ...

The news that UK inflation had risen even more than expected re-ignited the debate as to when the Bank of England (BoE) will increase its base interest rate. Since the traditional weapon to fight high inflation is high interest rates, many then expected interest rates to rise sooner than expected, possibly in the spri ... read more ...

The crackdown on offshore tax evasion is intensifying in the UK. Arrests have been made; the Liechtenstein Disclosure Facility is proving successful; similar deals could be signed with other countries and a withholding tax agreement with Switzerland could be signed by April. WikiLeaks may also hand over details of su ... read more ...

Whenever you take any wealth management decisions, whether it’s investment, tax planning or pensions, they should be based on your personal circumstances and objectives. If you’ve moved abroad, or are planning to do so, we recommend that you review your wealth management arrangements to make sure they are suitable for ... read more ...

On 6th April this year new regulations for UK pensions come into effect. All UK pension holders will be affected, including expatriates. While the increased flexibility is very welcome, millions will start to receive a lower income and see the death charges on the balance of their funds jump from 35% to 55%.The 2011 ... read more ...

The austerity budget for 2011 was passed by Spain’s parliament just before Christmas by the thin margin of 177 votes against 171. Although it is very unpopular it is necessary both to improve the public finances and to restore market confidence in the country. The cuts included in the budget include a 7.9% cut in sta ... read more ...

Here we are at the start of another New Year, a time where we tend to wonder what the next 12 months will have in store for us. Many of us also evaluate where we are and where we want to be and perhaps make New Year resolutions to help us achieve our aims. From an investment point of view, I am cautiously optimistic ... read more ...

Now that we are in 2011 it should be a fair enough assumption that the bank failures we saw back in 2008 have been relegated to history, but European and British banks are still facing various risks this year. While bank failures are rare and the authorities are unlikely to allow it to happen, you should know what lev ... read more ...

If you own, or are thinking of buying, property here in Spain, you need to be aware of all the tax implications and what your tax liabilities are, both in Spain and your home country if you are not resident in Spain. These vary depending on where you are tax resident and what you intend to do with the property: holida ... read more ...

2010 started with the Bank of England and European Central Bank base interest rates at the historic lows of 0.5% and 1% respectively. Savers would have hoped to see an improvement by the end of year, but not only has this not happened, rates are also expected to remain low for a while yet. Can you afford to put up wi ... read more ...

At the end of last year I wrote an article on how 2009 would go down in financial history as being a very taxing year, and the trend continued in 2010. Following on from the global economic crisis, governments have been intent on reducing their huge budget deficits through spending cuts and tax increases. Focus has con ... read more ...

Following on from the global financial crisis, in 2010 countries worldwide began the painful process of slashing their budget deficits with spending cuts and increased taxation, mainly targeting wealthier taxpayers. In Part 1 of this article I looked at the key tax issues over the first six months of the year which in ... read more ...

As we approach the start of another new year, what new taxes or changes do we have to contend with in France in 2011? French taxationDepleted tax revenues following the financial crisis and the cost of bailing out banks and quantitative easing resulted in countries around Europe starting to increase taxation or reduce ... read more ...

If the start of the festive season is not enough to put a smile on your face, perhaps these encouraging predictions for equity markets in 2011 will do the trick? The head of equities at Schroders reckons UK shares can rise 20-25% next year. The North America fund manager at Cavendish Asset Managers says US equities c ... read more ...

The future of the Eurozone and its single currency was squarely back in the spotlight following the €85 billion bail out of Ireland and fears that contagion will spread to Portugal, Spain and Italy. Risk premiums on Spanish and Italian bonds reached record Euro highs and Portugal also warned about risks facing its ban ... read more ...

A Tax Information Exchange Agreement (TIEA) between Spain and Gibraltar has been agreed and is awaiting final adjustments before being signed, possibly early in 2011. The aim of the agreement is to reduce tax evasion and end the Spanish government’s view of Gibraltar as a tax haven for Spanish residents.The tax treaty ... read more ...

There are various ways of buying stocks and shares. It is of course possible to buy and sell individual shares (equities), picking and choosing which company to buy shares in, how many to buy and at which point to sell. This would mean relying on others to give you good advice or spending much time doing research you ... read more ...

If you own investments including shares, OIECS, investment trusts and property, the major changes proposed in the French Finance Bill for 2011 are likely to impact on your income and wealth. The proposed changes not only increase the tax rate on capital gains but also remove a valuable exemption which has to date prot ... read more ...

IntroductionInvesting to generate income in a Western world dominated by near-zero interest rates has become a key challenge. In the past it has been possible to draw sufficient income from a number of lower risk assets such as traditional bank deposits or government debt. As a result, it has historically been relati ... read more ...

Tax evasion stories concerning bank accounts in Switzerland are coming at a fast rate. It seems that no sooner does one story break then another hits the headlines – a rather clear sign that hiding money in Switzerland is an increasingly risky pursuit. Now the UK government has brokered a deal to start negotiations w ... read more ...

Global food supplies are still worrying low and pushing up the price of not only corn and cotton, but as a knock on effect of meat and textiles too. Economists had predicted that price rises would be temporary following drought and floods in wheat and cotton producing countries but considering other factors the outloo ... read more ...

After much speculation it came as no surprise when the US Federal Reserve Bank (Fed) announced that it was embarking on a second round of quantitative easing. The news came the day after the Democrats lost control of the House of Representatives and both these events should be positive for the stockmarkets. Just the ... read more ...

Dementia will cost the world £388 billion in 2010, the equivalent of 1% of global gross domestic product (GDP), the World Alzheimer Report 2010 on the Global Economic Impact of Dementia reveals. The cost will soar as the number of sufferers doubles by 2030 and more than triples by 2050. Governments around the world wil ... read more ...

The UK tax free allowance on annual contributions to a pension plan has been slashed to £50,000 from £255,000 in a bid to raise £4 billion a year for the cash strapped Exchequer. The maximum amount that a person can save in a pension pot tax free over their lifetime, the lifetime allowance, has been cut to £1.5 millio ... read more ...

More than 200 “extremely wealthy” UK taxpayers suspected of “heavy-duty” tax evasion amounting to “millions of pounds” have been sent letters related to serious cases of tax fraud from HM Revenue & Customs (HMRC). The letters were sent under Code Practice 9 (COP9), inviting the recipient to a meeting with HMRC to m ... read more ...

With the UK government applying unpopular spending cuts left, right and centre to rein in the deficit, it is essential that it also does everything it can to raise revenue in other ways. Taxation is the key source of revenue, but while the government has implemented some tax rises and may have to announce more in the ... read more ...

The French Finance Bill put before the Council of Ministers on 29th September 2010 contained expected tax hikes which focused on wealthier taxpayers and cuts to existing tax breaks. The budget aims to reduce the public deficit from 7.8% of gross domestic product in 2010 to 6% in 2011 and to 3% in 2013. Tax breaks which ... read more ...

The Spanish government has approved its budget for 2011 which sees tax rises for the wealthy and spending cuts of €122 billion, or almost 8%. The tax rises are expected to boost revenue by €170-€200 million. Readers who are high net worth taxpayers should review their tax planning to see what steps they can take to pr ... read more ...

UK (returns are in £)The FTSE All Share Index enjoyed a very strong quarter, climbing significantly on increased merger and acquisition activity and more positive macroeconomic news from the US. Index returns were helped by a strong rally in September as risk appetite increased. Leading performers over the period inclu ... read more ...

British expatriates do not necessarily escape the attention of the UK tax authority just because they spend less than 91 days in the UK, and the existence of a double tax treaty does not provide as much protection as you may imagine. It is possible for an individual to be initially classed as a tax resident in both t ... read more ...

Local governments, the G20 and the Organisation for Economic Co-Operation and Development (OECD) have all been taking increasingly successful steps to prevent tax evasion. Now the International Monetary Fund (IMF) has called for the global crackdown on tax evasion to be intensified. The director of the IMF’s fiscal a ... read more ...

“Double dip”. How many times have we heard this phrase over recent months? As the fall out from the financial crisis continues to be felt, the media and financial commentators have caught onto this catchy warning phrase and repeated it over and over again with increasing frequency. We believe, though, that the risks ... read more ...

Qualifying Recognised Overseas Pension Schemes (QROPS) are pension schemes located in a jurisdiction outside the UK and which HM Revenue & Customs (HMRC) has approved to receive transfers from UK registered pension funds. They provide many benefits for British expatriate retirees.Most UK private pension funds can ... read more ...

Trusts can be particularly useful for British expatriates who live in Spain for tax mitigation purposes and also for arranging your wealth for the benefit of your family. What is a trust?A trust is a legal relationship which exists between the settlor, the beneficiaries and the trustees. For tax purposes, a trust is ... read more ...

British expatriates living in Spain want to feel confident that their wealth will last them for the rest of their retirement and keep them in a comfortable lifestyle. Paying less tax is one way to protect your assets and legitimate tax planning methods can help with this. The latest arrangement available to British e ... read more ...

The Attali Commission on Economic Growth, set up by President Nicolas Sarkozy to establish a programme to boost economic growth, has recommended that the government cuts tax breaks available in France (le niches fiscales et sociales) by €25 billion over the next three years. The government has recently announced the r ... read more ...

Growth in the UK economy hit a nine year high in the second quarter of 2010 having expanded at an even faster pace than economists had previously predicted. Gross domestic product (GDP) grew at 1.2% between April and June, according to the Office for National Statistics’ (ONS) revised report on the quarter. This was ... read more ...

With bank interest rates stuck at historic lows, many investors are looking for alternative ways to generate income. When investing your capital, it is important that your portfolio is designed around your specific needs for income and growth.Many portfolios focus on growth even if income is a requirement. In this ca ... read more ...

There has been some positive news on the banking industry recently. 84 out of 91 banks passed the EU stress tests and UK banks posted much improved half yearly profits. Sovereign debt fears for ‘Club Med’ countries have receded from the headlines. We should not however forget that governments around the world ran up ... read more ...

Prior to the UK General Elections, both the Conservatives and Liberal Democrats had pledged to end compulsory annuitisation. In the June Budget the age by which a pension holder needs to buy an annuity was increased from 75 to 77. A consultation paper published by the Treasury on 15th July goes even further by saying ... read more ...

The UK tax authority has been hard at work targeting tax evasion over the last few years. Many readers will be aware of the drive to recoup unpaid tax revenue, particularly from assets held in offshore bank accounts. Some may think it doesn’t affect them while others may feel that they have ‘got away with it’. Bewar ... read more ...

In August each year UK banks publish their reports on the first half of the year. Between them, Britain’s five biggest banks reported over £15 billion in pre-tax profits for the first six months of the year. This is good news for shareholders and the markets in general. It’s good news for British taxpayers who are p ... read more ...

India is one of the world’s fastest growing major economies. It is Asia’s second largest economy and is expected to enjoy strong growth during 2010 along with other emerging markets. India’s economy is diverse and large with a number of major sectors including manufacturing industries, agriculture, textiles and handi ... read more ...

UK (all returns are in £ unless otherwise stated)The FTSE All Share Index enjoyed a positive month in July, rising 6.9%, boosted by largely positive results from the stress tests on European banks, increased confidence in the global economic recovery and a change in leadership at BP. Waning concerns over sovereign deb ... read more ...

At its August meeting, the Bank of England’s Monetary Policy Committee voted to keep the UK interest rate at 0.5% for the 17th consecutive month. In all likelihood we have many more months of low rates to come. Roger Bootle, one of the City’s best known economists, has again warned that “interest rates could stay at ... read more ...

On 23rd July the results of the much anticipated stress tests on European banks were published. There were no surprises, with just seven out of the 91 banks tested across the 27 EU Member States failing. But does this mean that European banks are safely out of the woods? While the results will hopefully give the mar ... read more ...

The president of the European Central Bank (ECB), Jean-Claude Trichet, has called for an immediate increase in taxes and spending cuts across the world’s industralised nations. Trichet urged major economies to follow Europe’s lead in raising taxes and cutting public spending. In the current environment, tax planning ... read more ...

Few expatriates used to think twice about opening an offshore account. They provide a means of keeping Sterling outside the UK (useful to help prove your UK-non residency status); you can usually open and use them from anywhere in the world; interest rates were often higher than their onshore counterparts and they hav ... read more ...

Liechtenstein has made marked strides in its aim to discard its reputation as a notorious tax haven. Much of this has been driven by Liechtenstein’s ruling royal family and since the concerted international crackdown on tax evasion began around the G20 summit in April 2009, Liechtenstein has transformed itself conside ... read more ...

Following the UK’s emergency Budget in June many of the headlines focused on the spending cuts and tax hikes, with much debate on how they would affect economic growth. Another issue – one which affects many expatriates who keep savings in Sterling - is the impact the Budget measures will have on UK interest rates, wi ... read more ...

More and more foreign banks are closing their doors to US citizens after a new law demands that “international foreign institutions” disclose the names of their US clients with deposits of more than $50,000, otherwise they will be subject to a withholding tax of 30% of all payments made to them in the US. While this a ... read more ...

While longer lives are good news for most people they are creating a major headache for European governments. People living longer require more health and social care as well as pension payments over a longer period of time. All this has to be paid for and as governments juggle finances to reduce their budget deficit ... read more ...

Many people who move overseas from the UK leave it until they have become resident in their new destination before seeking advice on the most tax efficient manner in which they should hold their assets and investable wealth. If they are lucky, in certain jurisdictions this does not create too much of an issue but in o ... read more ...

The question of longevity is now a major issue which governments across Europe need to address as increasing life expectancy places a heavy burden on treasury resources. Welfare and social benefits for the elderly as well as pension payments spanning 20 to 30 years are no longer sustainable, even more so following the ... read more ...

On 17th June 2010 the Swiss parliament agreed to allow the hand over of names and details of 4,450 bank accounts belonging to American UBS clients to the US tax authorities.On 24th June 2010 the Spanish government announced that it has received details of around 3,000 Swiss bank accounts owned by Spanish taxpayers and ... read more ...

The French government has announced its proposals to reform the state pension system. Under the proposals, the legal retirement age will rise progressively from 60 years to 62 years by 2018. From 1st July 2011 it will rise by four months for each year, with everyone born in or after 1956 affected. The age at which a ... read more ...

On 4th June 2010, the EU approved guidelines towards a single EU law to override the different laws operated by each EU country in order to give a single court the authority to determine succession.The UK, Ireland and Denmark will not recognise these proposed new laws.It does not mean that there will be one law through ... read more ...

Just under seven weeks after being elected, the new coalition government in the UK has delivered an emergency Budget designed to cut the massive government deficit of £156 billion. The Budget follows the pattern of similar austerity budgets across Europe and involves a mixture of 77% spending cuts and 23% higher taxati ... read more ...

Britons who move abroad to live need to be able to show that they have made a “distinct break” with the UK if they wish to ensure that they cannot be treated as UK tax resident after leaving UK shores. If you do not clearly sever ties with the UK, HM Revenue & Customs (HMRC) could argue that you are liable for tax ... read more ...

Luxembourg’s reputation as a leading financial centre is unblemished despite the global financial crisis. Over the last few years when governments worldwide have been in hot pursuit of tax evaders and focused on recovering tax revenue undeclared in “tax havens”, and banking stability has been brought into question, Lu ... read more ...

In May 2008 the European Commission issued a press release entitled “10 years of Economic and Monetary Union: a resounding success but testing times ahead”. Just two years later, many would question the “resounding success” statement - and probably also consider the “testing times” warning to be rather an understateme ... read more ...

The last 35 years have seen unprecedented change in the financial world; in particular recently through the global financial crisis. We have entered an era where we have less confidence in the banks than we used to have; we have seen some very high profile financial frauds; taxes are on the rise as governments try to ... read more ...

Do you ever get the feeling that out of all the hours you spend (or spent if you are luckily enough to be retired) at work, half of them were just so that you could cover your tax bill? What with income tax, national insurance/social security, capital gains tax, VAT, council tax, excise duties etc, just how much of yo ... read more ...

The markets have suffered a number of mainly politically induced hits recently. Sovereign debt fears about the southern Eurozone countries reverberated across the globe. There were concerns over what impact banking reform in the US could have on the banking sector and broader financial markets. In Germany, the gover ... read more ...

The Organisation for Economic Co-operation and Development’s (OECD) released its latest report Promoting Transparency and Exchange of Information for Tax Purposes on 27th May. It reveals that since the G20 summit on 2nd April 2009 when world leaders vowed to crackdown on tax evasion, more than 400 agreements have been ... read more ...

Wealthy individuals living in Spain need to brace themselves for an unexpected tax shock. Spanish prime minister, José Luis Rodríguez Zapatero, has announced an imminent tax increase for “those who actually have more”. Whether this is the last of the tax rises or there are more to follow remains to be seen. It raises ... read more ...

To say that markets have been volatile over recent weeks is a bit of an understatement, with equities coming under selling pressure throughout May. Share prices fell enough to be officially in ‘correction’ territory and we cannot rule out further short-term falls. The markets have been driven by fear and uncertainty ... read more ...

The scenes of long queues of people outside Northern Rock have faded somewhat from memory. While not completely forgotten, they seem a long time ago now – it was in September 2007 after all. The following autumn then saw the collapse of Lehman Brothers and less than a month later Icelandic banks Kaupthing and Landsba ... read more ...

Swiss banks are tightening up on Europeans whom they suspect may be evading taxes in their home jurisdiction. It is Switzerland’s latest quest to shake off implications of being known as an “unco-operative tax haven” and pursued by governments in their clampdown on tax evasion. From now on European clients will find i ... read more ...

The new UK Conservative-Liberal Democratic coalition government has as a priority the task of slashing the massive budget deficit of around £165 billion. The new alliance has agreed to “significantly accelerate” its attack on the deficit. There will have to be the toughest spending cuts for decades and tax increases ... read more ...

A growing number of investors we meet are aware that they need a well diversified spread of assets to protect their wealth over the longer term. Generally, we are living longer and for many the impact of financially caring for elderly parents, as well as any children who still need financial help to get on the propert ... read more ...

With inflation edging up again and interest rates still at record lows, many savers are now earning lower real returns from their bank deposits than they were a few months ago. Even putting the current environment aside, if you want to ensure that your money lasts for the rest of your life and you can maintain a decen ... read more ...

Consumer price inflation rose sharply between February and March in the Eurozone and UK. In Europe, year-on-year inflation increased from 0.9% to 1.4% and in the UK from 3% to 3.4%. In both cases it was higher than economists had expected. The key culprit was fuel costs, with transport inflation at 11.3% in the UK a ... read more ...

Many British expatriates arrive in Spain to live without fully understanding the local tax situation or any obligations that may remain to the UK taxman. There are quite a few myths around and unless you are properly informed you may get your tax planning wrong. This article looks at some of the common misconceptions ... read more ...

Blevins Franks Financial Management is pleased to announce that it has increased its presence in Mallorca with the appointment of Tony Cartwright as an additional local Partner. Tony has assumed responsibility for the Firm’s clients in the North of Mallorca. He is working alongside Peter Worthington, the Blevins Fran ... read more ...

While it has been over a year since share prices picked up, interest rates are still languishing at record lows (0.5% for Sterling, 1% for the Euro). In the UK, the Office for National Statistics has confirmed that last year British savers earned over 50% less than they did in 2008. The way things are looking, there ... read more ...

Inflation has been thrust back in the spotlight with higher than expected increases for the UK and the Eurozone in March.This is yet another blow for savers. Their cash deposits have been earning meagre returns for some time and the increased cost of living means they will now receive less interest in real terms – i.e ... read more ...

A new tax year has just begun in the UK, bringing with it a new top rate of income tax. What further tax rises can Britons expect over the next few years? The general election in the UK is set for 6th May and with UK election fever underway, speculation surrounding potential tax rises abounds as arguments about taxat ... read more ...

We have asked Russell Investments for a summary of global stockmarket performance over the first three months of the year and their commentary is below.UK (all returns are in £ unless otherwise stated)After a slow start, the FTSE All-Share Index gained 6.4% during the first quarter of 2010. Markets sold off early-on a ... read more ...

Over the last three years, the currency story for British expatriates has all been about the Pound Sterling and its fall from grace - it lost around a third of its value against the Euro and a fifth against the US Dollar. This year, however, the focus is shifting from Sterling to the Euro, with the outlook now also lo ... read more ...

When people leave the UK to live in Spain, they worry about leaving the system they know, moving to a place with a strange system in a strange language, or whether the Spanish system will be exactly the same as the UK one. Others worry that they will pay more taxes in Spain than the UK, or are concerned that they will ... read more ...

Switzerland has a long tradition of banking secrecy, which, until recently, made it very easy for the wealthy to store their financial secrets away from the tax authorities. Over the last few years however, Switzerland has been under pressure to conform to international tax regulation and, despite its adamant desire t ... read more ...

In Part 1 I looked at some of the ways in which Switzerland’s long held principle of banking secrecy is being undermined by various means. The Swiss government realises that it has to change its attitude – so what has Switzerland done and what is it planning, to conform to banking openness?In March last year in the le ... read more ...

While Chancellor Alistair Darling’s last Budget under the current administration contained few direct tax increases, it was nonetheless a budget designed to increase tax revenue. Considering Britain’s record debt levels, it is hardly surprising that the Chancellor is seeking to improve Treasury coffers. He was not in ... read more ...

The Court of Appeal has released its judgment on UK tax residency in the Gaines-Cooper case. This is probably the most important case on UK tax residency for a generation.The short background is that an entrepreneur, Robert Gaines-Cooper, asserted that he had become non-resident in the UK.He had set up businesses with ... read more ...

The Spanish gains tax regulations can provide relief on the sale of the main home for Spanish tax residents whose property qualifies as their habitual main residence. If you are 65 years or older the gain is tax free even if you do not buy another property. If you are under 65, the exemption only applies if you reinv ... read more ...

The world’s worst financial crisis in living memory created a roll-on effect that will test governments for years to come as they struggle to pay back the huge debts they owe. It is not only governments that will be tried because the fact is that at the end of the day it is the taxpayer who will have to bear the brunt ... read more ...

A surprising twist has come to light two years after an informant stole data foreign account holders from a bank in Liechtenstein and sold it to the authorities in Germany who used it to trace tax evaders. It could open the floodgates for claims on banks that are victim to whistle-blowers and ensure that from now on e ... read more ...

One of the great myths of tax planning is that spending less than 91 days (or nights) in the UK is sufficient for an individual not to be treated as resident there. The reality is that this is not and never has been the case and the test of whether or not an individual should cease to be treated as UK resident is much ... read more ...

Throughout Europe economies are buckling under the weight of swollen budget deficits. Besides the costs of the financial stimulus measures introduced during the financial crisis, the economic downturn drastically reduced tax revenue, exacerbating the situation as did the lost tax on bank interest. Governments through ... read more ...

When you move from one country to another, you should review your wealth management arrangements to ensure they will work effectively for your new lifestyle and that they are suitable for the investment and tax regime of your new country of residence. You will also want to establish if your expatriate status and/or th ... read more ...

When you compare the financial planning landscape we had in the 1990s to what we have today, a decade into the 21st century, the amount of change is quite staggering.In the 1990s stockmarkets appeared to be heading ever upwards and everyone wanted a piece of the action. The Bank of England base rate ranged between 5% ... read more ...

Just as forward tax mitigation and wealth planning is advantageous before you leave the UK to live overseas, it is equally important to plan ahead if you are planning to return to the UK, or indeed move to any other country. You may be able to take advantage of your current expatriate status and carry out tax and weal ... read more ...

Germany has agreed to pay €2.5 million to purchase stolen data on around 1,500 suspected tax evaders who are believed to be holding undeclared bank accounts in Switzerland. It again raises not only the highly controversial question of the ethics of governments buying stolen data, but also how long can Swiss banks clin ... read more ...

At last the global downturn seems to have turned a corner as official figures indicate that the global economy is recovering faster than previously anticipated. This could be a good time to review your investments to see if they are ideally placed to make the most out of the situation.In its World Economic Forecast, p ... read more ...

We saw the encouraging 50% or so rises between March and the end of last year. We know stockmarkets still have further to climb before they pass their previous highs, and so there is further profit to be made. When market pundits gave their predictions for equities in 2010 they were overall encouraging. The global e ... read more ...

Emerging markets performed well in 2009 and continue to lead the world in the global economic recovery. Their economies are growing faster than industrialised ones, boosted by the increasing demand for infrastructure, property and commodities, and as the expanding population - in particular the middle classes - develo ... read more ...

The application period for the UK’s second offshore tax “amnesty” - the New Disclosure Opportunity (NDO) - has come to an end. Around 10,000 tax offenders notified the tax authority of their intention to make a disclosure, with a last minute rush of 1,100 people coming forward on the final deadline day.At its launch H ... read more ...

It is estimated that approximately half the independent wealth in the world is held in one form of trust structure. Trusts can provide tax efficiency during your lifetime and also when capital and income is transferred to the next generation. However, while tax mitigation is often a key element in setting up a trust, ... read more ...

For many people, their pension fund/s is one of the biggest assets, one which you’ll have worked hard to build up during your working life. But how much of the balance will you be able to leave to your family as an inheritance? What happens when you buy an annuity, and how much will be lost to the UK taxman?UK pensio ... read more ...

As expected, the Bank of England (BoE) voted to keep the base interest rate at 0.5% at its January meeting. The rate has been held at this historic low since last March, a situation which has left savers earning negligible income. Many will have been earning negative real rates of return after inflation has been fact ... read more ...

The Bank of England’s Financial Stability Report (FSR), published in November, stated that the global financial system is significantly more stable than six months ago but will need a considerable amount of time to adjust after such a prolonged period of exuberance earlier in the decade. The sector had been helped by m ... read more ...

The Double Tax Treaty between France and the UK has entered into force for French residents. It became effective on 18th December 2009 and contains some significant tax changes, including an exchange of information article, which will affect British expatriates living in France.The treaty was signed on 19th June 2008 ... read more ...

The Centre for Economics and Business Research (CEBR) has forecast that parity between the Pound and the Euro could be reached in 2010. How the markets react to the UK’s public finances will be the main determining factor as to whether Sterling falls below the Euro.Much depends on the forthcoming general election. The ... read more ...

It’s that time of the year where we tend to evaluate where we are and where we want to be with regards many aspects of our life, including our finances. While of course any time of the year is a good time to evaluate your wealth management, if you haven’t done so for a while you could take this ‘New Year’ opportunity ... read more ...

Bank confidentiality has suffered another knock after it is revealed that a whistle-blower obtained the names of 130,000 clients of a Swiss bank and passed them onto the French tax authorities. This is yet one more nail in the coffin for bank confidentiality and all account holders are at risk of having their details p ... read more ...

It was a year of what seemed like relentless news on the crackdown on offshore banks and tax evasion; national budgets in deficit (due in no small part to falling tax revenues) and proposals for tax increases. Yes, 2009 was a very taxing year! It started to take off in February when Britain’s prime minister, Gordon Br ... read more ...

In Part 1 of this article I gave a snapshot of key tax issues during the first half of 2009 – a very taxing year. The clampdown on offshore tax intensified with many Offshore Financial Centres (OFCs) agreeing to the Organisation for Economic Co-Operation and Development’s (OECD) tax standard on exchange of information. ... read more ...

Are you aged between 50 and 54 and do you have pension benefits held in a UK pension plan or scheme? If you do fall into this category, then now might just be the perfect time to review your pension options.This is because on the 6th April 2010 the UK minimum retirement age increases from 50 to 55, so there is a very s ... read more ...

The eagerly awaited UK Pre-Budget Report (PBR) was less startling than many expected. Perhaps the most surprising aspect of Chancellor of the Exchequer, Alistair Darling’s speech was that the public finances were in a worse state than previously predicted. With a maximum of six months to go before the next general ele ... read more ...

Just as forward tax mitigation and wealth planning is advantageous before you move overseas, it is equally important to plan ahead if you are planning to return to the UK, or indeed move to another country. You may be able to take advantage of your current expatriate status and carry out tax and wealth management plan ... read more ...

The deadline for the UK offshore tax “amnesty” - the New Disclosure Opportunity (NDO) - has been extended by five weeks to allow more time for taxpayers to come forward. The announcement came just days before the registration deadline of 30th November. Taxpayers who wish to take advantage of the scheme now have until ... read more ...