Is your financial planning ready for 2026 and aligned with your retirement goals in Spain? Take time now to confirm that your tax planning, investments, pensions and estate arrangements are structured to protect your family’s wealth. This is especially important following recent UK tax reforms.
The New Year is the perfect time to review your financial health. Make it a resolution to ensure your wealth management is up to date and designed to provide long-term financial security and peace of mind.
Why regular reviews matter
It is important to keep ahead of any developments that may affect you, for better or worse. Tax rules and financial regulations change frequently; staying ahead helps maintain compliance and tax efficiency while uncovering new opportunities. A professional review can highlight issues you may not even know exist.
Your personal circumstances may also change. Life events such as inheritance, property sales, retirement or relocation can all warrant adjustments.
For a truly effective review, and to ensure it is suitable for your life in Spain, consider how your tax planning, investments, pensions and estate planning work together.
Tax planning
Are your investments and wealth structured in the most effective way to minimise taxation – in Spain, the UK and anywhere you have financial interests – while still meeting your tax obligations? Are you taking advantage of the tax planning opportunities available in Spain?
If you still have assets in the UK, weigh up the pros and cons of retaining them. Many of the UK tax reforms and increases announced over recent years also impact British expatriates.
Property and landlords, for example, have been in the firing line for UK taxation. Coupled with regulatory reforms, the costs have increased, tax efficiency has reduced, and greater administrative and compliance burdens have been introduced. Your capital could now be invested more effectively elsewhere.
The UK also introduced inheritance tax reforms which reduce how much wealth is passed down to heirs for business and agricultural assets Tax allowances, thresholds and exemptions for earned and investment income have been frozen or cut, while tax rates are rising on investment income.
Cross-border tax planning is complex. Take specialist advice to achieve peace of mind and potentially secure significant tax savings.
Pensions
Deciding what to do with your pensions could be one of the most important financial decisions you make, so care must be taken.
Are you up to date on the reforms impacting your pension funds and income? In particular, the majority of UK pension funds become subject to UK inheritance tax from April 2027 and living in Spain does not protect you. Take professional cross-border advice now to identify what options are available and most suitable for your circumstances and objectives.
Estate planning
It is vital to review and adjust your estate planning for living in Spain. Spanish succession law and tax differ greatly from the UK, and British expatriates can face inheritance taxes in both countries.
UK inheritance tax (IHT) receipts have been rising for two decades and will accelerate over the coming years with nil-rate bands remaining frozen and pensions about to often form part of estates.
On the other hand, the UK’s new long-term residence approach to inheritance tax is beneficial for British expatriates. Once you have been out of the UK for 10 years, only UK-situated assets remain subject to this tax.
Spanish succession tax will apply to your worldwide assets if the beneficiary is resident in Spain. It also applies to all Spanish assets regardless of where the beneficiary lives. However, in a positive move, Andalucía, Balearic Islands, Canary Islands, Madrid, Murcia and Valenciana have all virtually eliminated inheritance tax for spouses and children over recent years.
When leaving wealth to your children, these Spanish regions now offer a much more welcoming inheritance tax environment than the UK. To fully benefit, keep UK assets below the £325,000 IHT threshold.
Taking specialist advice covering both countries will ensure a tax-efficient transfer of wealth to your family and heirs, in a way that fulfils your wishes.
Savings and investments
If you do not already have a financial plan in place for Spain, take a fresh look at your savings and investments. Are they actually better suited to a UK resident? Do they meet your risk/reward appetite? Will they keep pace with inflation to maintain your spending power? Are you taking advantage of suitable tax-efficient opportunities in Spain? You may be pleasantly surprised at how much tax restructuring your assets could save you.
Your investment strategy must be based on your circumstances, time horizon, needs, aims and risk tolerance. Ensure you have adequate diversification to avoid over-exposure to any given country, asset type, sector or company. Explore investment structures that allow multi-currency flexibility to help minimise exchange rate risk.
Integrated financial planning for peace of mind
Bringing all these elements together requires expert, cross-border advice. A comprehensive review now can secure your family’s wealth and give you confidence for 2026 and beyond.
At Blevins Franks, we specialise in creating tailored strategies for British expatriates in Spain, combining tax, investment, pension and succession planning into one cohesive plan. Our goal: to protect your wealth and ensure your wishes for future generations are fulfilled.
Contact us today to start your 2026 financial review.
