+44 (0)20 7389 8133 Make an Enquiry
News / Saving Tax In Spain And Investing In Sterling

Saving Tax In Spain And Investing In Sterling

22.09.11

Please note that this article is over six months old. While Blevins Franks takes care to make sure that information is accurate on the date of publication, some content may change over time. You should not rely on the accuracy of legislation and tax information in this article; take professional advice for your circumstances.

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 E

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 concerned about the Euro

? You will return to the UK in the future

? Your heirs are in the UK

You also need to consider how your savings and investments are taxed in Spain. Many people are uncertain whether they should invest in Euros in Spanish authorised arrangements to get the local tax planning benefits, or keep their investments in Sterling and risk paying more tax than necessary.

It is a misconception that if you transfer funds into Spanish authorised investment vehicles you need to transfer into Euros. Although it is the case with some products, it is certainly not the case with all of them and you can elect which of the major currencies to be invested in.

It is therefore possible to have a tax plan where your investments are denominated in and biased towards Sterling at the same time as being structured to save tax in Spain ? the best of both worlds.

Effective tax planning is all about flexibility and adaptability, so you should choose arrangements where you can switch between currencies if necessary. This would, for example, give you the option to convert to Euros when you have more confidence in the currency or, if you are invested in Euros, switch to Sterling when you return to the UK.

Blevins Franks have been providing integrated tax planning and wealth management since 1975. The strategies we recommend are always based on your personal circumstances, objectives and concerns.

The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.
Make an Enquiry

We want people to be able to easily access and understand the information we provide, so if you need further help to access information on this website or key documents in a different format or setting, please contact us via your Blevins Franks adviser, by email via [email protected] or by phone on +44 (0)20 7389 8133.

 

Blevins Franks Financial Management Limited (BFFM) is authorised and regulated by the Financial Conduct Authority in the UK, reference number 179731, to provide advice in the UK. Blevins Franks Wealth Management Limited (BFWML) is authorised and regulated by the Malta Financial Services Authority, registered number C 92917 to provide advice in Malta and other EU countries in line with its [IDD and MiFID] passporting permissions. It is authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks Trustees Limited (BFTL) is authorised and regulated by the Malta Financial Services Authority for the administration of trusts, retirement schemes and companies. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475 to provide advice in France and other EU countries in line with its [IDD] passporting permissions, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on  www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). BFFM, BFWML, BFF and BFTL are all part of the Blevins Franks Group Limited (BFGL) whose registered office is Gasan Centre, Triq il-Merghat, Zone 1, Central Business District, Mriehel CBD1020, Malta. This promotion has been approved and issued by BFWML, BFF and BFFM for respective use in the EU and UK.

Follow this link for FRENCH version

 

© Blevins Franks