Especially when it comes to retirement.
I was really interested to read an article recently published in the UK press about regrets many pensioners have when they do eventually retire.
Viewing posts categorised under: Mondaq
Hindsight is not always a wonderful thing
By Jeremy Ferguson
This article is published on: 28th October 2025
28.10.25
The number one regret was not saving enough early on in their lives, with many retirees wishing they had started saving into their pensions earlier, or having increased the amount they paid into their pensions when their incomes were higher later on in their careers.
Next unsurprisingly was under-estimating how much you’ll eventually need to retire with. The common issue in this regard was being overly optimistic about how secure their retirement finances would be given longevity, inflation, healthcare costs, etc. In all fairness, all of these factors are very hard to predict over the longer term.
One thing we now know is that the advances in medical treatments and care are resulting in longer life expectancy, and a better physical well being. All of this means we are living longer and being much more active in retirement, both of which cost more.
The importance of actively managing pension arrangements was again largely under estimated, with many retirees wishing they’d made clearer plans earlier. For example, when to retire, where they may be retiring and what sort of lifestyle they wanted. As these ‘wants’ changed during their younger years leading up to retirement, many people simply didn’t adjust their pensions accordingly.
Inevitably this is easier said than done, making it one of the most difficult decisions to get right, because of course it’s almost impossible. Some retirees feel they were too cautious with their money in their younger years, with others maybe enjoying life a tiny bit too much and then finding out they either couldn’t enjoy retirement fully because they hadn’t contributed enough, or conversely finding out their pension income far exceeded their needs in retirement.
Needless to say that if you are reading this and you have already retired, then these observations may all be a little too late. However, many people I meet after they have moved to Spain have retired quite early in life and are not yet drawing on their pensions. In these cases, there is still a lot you can do, particularly by way of managing these pension funds as effectively as possible. Ie Maybe the charges can be reduced or the investment strategy can be improved? Also, what about the tax position when you do start to draw down – understanding this and making sure it’s as tax efficient as possible can make a big difference.
Retirement planning is also not always about your pensions, it is often about managing your savings as well, and many people I speak to come here with funds they didn’t plan to have accumulated as a result of selling their UK property, which had increased impressively in value over the years.
If managed correctly and invested in the right way, these funds can in many cases be used to substitute pension income and help you enjoy living here in Spain.
If this is you, then please feel free to get in touch so we can take a good look at your current situation and if relevant consider the available options as to how best to manage things going forward.
Can I Pass On My Investments Tax-Efficiently in Spain?
By Matthew Green
This article is published on: 18th October 2025
18.10.25
Moving to Spain gives you more than just a better lifestyle — it offers a fresh perspective on what really matters.
For many expats, that means not only enjoying their wealth today, but ensuring it’s passed on efficiently to loved ones tomorrow.
But here’s the catch: Spain’s inheritance and gift tax system works very differently from what most expats are used to in their home countries. And without the right planning, your family could end up facing an unnecessary and unexpected tax bill.
Understanding How Inheritance Works in Spain
In Spain, inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by the beneficiary, not the estate.
That’s often the first surprise for newcomers — it’s your spouse, children, or other heirs who pay the tax, rather than your estate before distribution.
The amount payable depends on:
- The relationship between the deceased and the beneficiary (spouses and children generally receive the biggest allowances)
- The value of the inheritance
- The region of Spain you live in — because each autonomous community (like Valencia or Madrid) sets its own allowances and reductions
For example, Madrid currently offers one of the most generous regional allowances, with reductions of up to 99% for close family members. Valencia, on the other hand, provides smaller deductions — which can make a significant difference to your family’s eventual tax exposure.
Structuring Your Investments Can Make a Big Difference
The way you hold your assets determines how smoothly — and efficiently — they can be passed on. Investments in a Spanish tax-compliant bond can offer a number of key advantages when planning for succession:
- You retain full control of your investment during your lifetime
- You can name multiple beneficiaries, who inherit directly without the need for probate delays
- The bond’s structure allows for efficient transfer of value — avoiding the administrative complexity that often comes with overseas holdings
- Beneficiaries may receive significant tax advantages, depending on your region of residence
In short, compliant structures help your heirs inherit assets that are clean, locally compliant and immediately accessible, without triggering unnecessary tax consequences.
Avoiding Common Pitfalls
Many expats unintentionally make things more complicated by:
- Holding UK ISAs, investment accounts, or offshore funds that aren’t recognised under Spanish law
- Keeping property or assets in personal names rather than through efficient vehicles
- Failing to review beneficiary nominations after moving to Spain
These issues can create double taxation risks, delays or even cause assets to fall outside your heirs’ allowances. A simple review of your portfolio through the lens of Spanish succession law can often fix these risks before they become costly.
Peace of Mind for You and Your Family
Effective planning is about more than saving tax — it’s about clarity and peace of mind. Knowing that your wealth will transfer smoothly and efficiently to the people you care about is one of the greatest gifts you can leave behind.
Whether your goal is to ensure your spouse is financially secure, or to pass on assets to your children in the most tax-efficient way possible, a little forward planning today can make all the difference tomorrow.
Final Thought
If you’ve chosen to make Spain your long-term home, your financial plan should reflect that. Local advice can help you align your investments, pensions, and estate planning with Spanish law — so your wealth stays protected across generations.
If you’re an expat living in Valencia, Madrid, or elsewhere in Spain, and you’d like to understand how to structure your assets for efficient inheritance and succession, I can help.
We’ll review your existing arrangements and identify ways to reduce potential inheritance tax exposure, simplify the transfer of assets, and ensure your loved ones are properly protected.
Get in touch for a no-obligation consultation to discuss your personal situation and learn how to build a clear, tax-efficient legacy plan for your family.
Financial Clarity for Expats in Spain
By Matthew Green
This article is published on: 16th October 2025
16.10.25
The Expat’s Guide to Building Wealth in Spain
What Catches most Expats Off Guard
When you move to Spain, the dream is clear: sunshine, a slower pace, and more time to enjoy life. But for many expats, the reality of managing money here soon brings a new challenge — understanding how the Spanish tax system treats your investments.
In the UK or elsewhere, you might have built wealth using ISAs, premium bonds, or investment portfolios with little thought for cross-border implications. But once you become a tax resident in Spain, those same structures can start working against you rather than for you.
New Life, A New Set of Rules
One of the biggest surprises for newcomers to Spain is that Spain taxes your worldwide income and gains — not just what’s earned here. That includes dividends, interest, and even growth within investment funds.
It’s easy to assume that investments left “back home” can be ignored, but in reality, the Spanish tax authorities (Hacienda) expect full reporting of your global assets.
These are the areas where I see expats run into problems most often:
- Selling shares or funds that trigger capital gains tax at 19–28%
- Holding money in non-compliant offshore accounts
- Missing annual reporting obligations on overseas assets (Modelo 720/721)
Smarter, More Efficient Options are Available to You
Spain offers legitimate, tax-efficient investment structures designed specifically for residents. One of the most effective is the Spanish tax-compliant investment bond.
Here’s why so many expats in Valencia and Madrid are switching to these structures:
- Your money still grows through diversified investments (funds, equities, etc.)
- Growth inside the bond is tax-deferred — you only pay tax when you withdraw
- Withdrawals are treated proportionally, so only a small part is taxable
- No annual reporting required on the underlying investments
- It simplifies wealth management — one structure, one report, all compliant with Spanish law
For example, if your investment grows 5% in a year and you take a small withdrawal, only a fraction of that amount is taxable – not the full sum. Compare that to a General Investment Account, where every sale or fund switch could trigger tax immediately.
Building Your Wealth with Peace of Mind
The goal isn’t just to save tax — it’s to grow wealth sustainably, with peace of mind.
By using compliant structures, you can:
- Avoid unnecessary annual tax drag on your investments
- Allow your capital to compound over time
- Keep your financial reporting simple and transparent
And when it comes to retirement planning or accessing your UK pension, having your investments structured correctly in Spain makes a world of difference to how much you actually keep.
Why Personal Advice Matters
Every expat’s situation is unique — from how income is generated, to where assets are held, to whether a move is permanent or temporary.
That’s why getting regulated local advice matters.
The Spanish system can be generous when you plan properly – but unforgiving if you don’t.
So before you make any investment or draw from your pension, take a moment to review your setup. The right structure today can save you thousands over the years ahead, and keep your finances aligned with the lifestyle you came here to enjoy.
Spain rewards those who plan ahead. Take the time to understand your options, and you can enjoy the life you moved here for – without letting unnecessary taxes eat into what you’ve built.
If any of this resonates with your situation, the best next step is a conversation.
About Matthew
Matthew Green is a UK-qualified financial adviser based in Spain, working with British and international expats across Valencia, Madrid, and the wider Costa Blanca region.
He is a member of The Spectrum IFA Group — one of Europe’s leading independent financial advisory firms for expatriates — and is regulated to provide cross-border financial advice.
Matthew’s approach is straightforward: understand your life first, then build a plan around it. No jargon, no pressure, no one-size-fits-all solutions.
What to Expect:
It starts with a conversation — usually 20 to 30 minutes. There’s no preparation needed on your part. We’ll talk about your situation, what’s on your mind, and whether there are areas where I can help.
There’s no cost, no obligation, and no pressure. The goal is simply to give you a clearer picture of where you stand.
Modelo 720 Spanish Tax Form
By Jett Parker-Holland
This article is published on: 13th October 2025
13.10.25
When people move to Spain, they often expect challenges around property or residency, but one of the biggest surprises comes from the tax office. After settling in, most people become accustomed to the Spanish tax system; however, one common pitfall that British expats encounter is the requirement for a single tax reporting form, known as Modelo 720.
Importantly, this is not a tax bill; it is a declaration, but failing to address it correctly can still result in hefty penalties and unnecessary stress.
The Modelo 720 is an annual information return that Spanish tax residents must file if they hold certain assets abroad worth more than €50,000 in any of three categories: bank accounts, investments, and property. Once filed, it does not need to be submitted again unless your foreign-held assets increase by more than €20,000, or your wealth in another category exceeds the €50,000 threshold. It aims to give the Spanish tax authorities a clear picture of your worldwide wealth.
Importantly, the form itself does not create a tax liability, but it can leave you open to scrutiny, which is where the risk lies. Failure to declare or even minor errors can lead to fines, backdated tax assessments, and interest charges. Once you’re on Hacienda’s radar, future scrutiny tends to increase, which is a headache nobody wants when settling into life in Spain.
Many expats worry that the cash and investments they have held in the UK may pose a potential issue with the Modelo 720, and that failing to declare in previous years may prevent them from doing so now. The good news is that by structuring your finances in advance, you can avoid this problem altogether. Certain Spanish-compliant investment bonds are not classed as foreign assets for Modelo 720 purposes, meaning you don’t need to declare them. For those anxious about declaring, this can be a great opportunity to structure your wealth so that it does not need to be declared, thereby avoiding ongoing scrutiny.
Beyond avoiding declaration, a bond allows for tax-deferred growth within the bond, meaning that your wealth can continue to collect interest and benefit from favourable tax treatment on withdrawals. Spanish-compliant bonds are not just about avoiding taxes or declarations; they are about ensuring compliance with Spanish regulations. For many of my clients, transferring assets into a compliant bond is the single most significant step they take to streamline their financial life in Spain.
Modelo 720 may seem like a minor formality, but mishandling it can turn into an expensive problem. By structuring your wealth effectively, you can reduce the risk of fines while also gaining ongoing tax efficiency and estate planning benefits. If you are already living in Spain or planning a move, now is a good time to review your arrangements.
A Spanish-compliant product is (almost) a prerequisite for an expat investor in Spain; it is the cleanest way to stay on the right side of Hacienda while keeping your money working hard for you.
As a Chartered Wealth Manager with a master’s degree in Investment Management, I specialise in helping British expats in Spain manage pensions, investments, and tax-efficient structures. With years of experience advising across both the UK and Spain, I focus on making cross-border finances simple, compliant, and effective for the long term.
If you would like a confidential review of your situation or would like to explore your options, please don’t hesitate to contact me. Proper planning today can save you a great deal of time, money, and stress tomorrow.
Smart investing for expats in Spain
By Chris Burke
This article is published on: 13th October 2025
13.10.25
Regular saving & investing for Expats in Spain: A New Way to Build Your Future Wealth
For many of my clients here in Catalonia and across Spain, their wealth is locked away in their home/property. It’s a comforting form of security, however most people understand the need to make their surplus money and savings work for them —as the years are passing and the need to plan for future expenses and retirement are becoming ever more important.
But here’s the challenge:
If you live in Spain, your options for tax-efficient long-term saving are extremely limited — unlike in the UK, where private pensions allow contributions of up to £60,000 per year with valuable tax relief.
So, what can you do if:
- You don’t have a large lump sum to invest right now, but
- You do have a monthly disposable amount that you could commit toward your financial future?
Until recently, the answer wasn’t encouraging. Most products available locally offered poor returns, high fees, and were designed to benefit the banks or institutions more than the investor.
That’s changed.
Today, we have a cost-efficient investment strategy that allows our clients to start with a modest initial amount and then add to it monthly — a plan that truly works in your favour.
Here’s why it’s such a powerful approach and can increase your wealth allowing your money to pay for future life goals:
1. Compounding Growth: Your Money ‘Making’ Money
When you invest regularly, your returns begin to generate returns — that’s the magic of compound interest.
For example:
- Initial investment: €50,000
- Monthly contribution: €1,000
- Average annual return: 6%
Timeframe: 10 years
At the end of that period, your total balance could exceed €254,850.
The rule of 72 is a handy guide here: divide 72 by your annual return (72 ÷ 6 = 12 years), and you’ll see how long it takes to double your money. The longer you invest, the more powerful compounding becomes.
2. Smoothing Out Market Volatility (Dollar/Euro-Cost Averaging)
By investing a fixed amount every month, you buy more when prices are low and fewer when they’re high — automatically reducing your risk.
This strategy, known as dollar/euro-cost averaging, helps take the emotion out of investing and smooths out short-term market swings.
Over time, it leads to a lower average cost per unit and more stable growth.
3. Time in the Market Beats Timing the Market
Even professional investors can’t consistently predict when to buy or sell.
What matters most is staying invested — because missing just a few of the market’s best days can dramatically impact your long-term returns.
A disciplined monthly investment keeps you in the game and lets you capture long-term market growth without the stress of guessing when to act.
4. Builds a Strong Saving Habit
Treat your monthly investment like a bill — a payment to your future self.
This simple mindset creates powerful financial discipline and ensures you’re always moving closer to your goals, even when life gets hectic.
5. Your Money Working Harder — and Smarter
Regular investing means your money is always working for you.
Through dividends, interest, and capital growth, your returns compound over time — accelerating your wealth creation.
6. Protecting Your Wealth Against Inflation
Cash sitting in a bank account is losing value every year due to inflation.
Investing in assets such as stocks, bonds, or diversified funds gives your money a real chance to outpace inflation and grow in real terms.
7. Building Financial Independence
Consistent, long-term investing helps you create assets that generate income and give you freedom.
Whether your goal is a secure retirement, helping your children with education, or achieving financial independence, this strategy is designed to get you there — steadily and confidently.
In Summary
You don’t need a fortune to start — just commitment, consistency, and a smart structure.
Our investment strategy gives you the flexibility to start small, save a sizeable monthly disposable amount, and build meaningful wealth over time — without the high costs or complexity of traditional financial products.
If you’re an expat in Spain ready to make your money work harder for your future, now is the time to act.
Ready to see how this could work for you?
Get in touch for a confidential, no-obligation conversation about building your financial future in Spain – NOTE, a minimum saving amount of €1,000 per month applies.
If you would like to have an initial consultation to explore your personal situation, you can do so here.
Click here to read independent reviews on Chris and his advice.
The Beckham Law advantage
By Chris Burke
This article is published on: 9th October 2025
09.10.25
How expats in Barcelona/Spain can save, invest, reduce future taxes and build wealth smartly
Barcelona/Spain continues to attract top international talent — entrepreneurs, digital professionals, and executives who want to enjoy life in one of Europe’s most vibrant cities while advancing their careers. But moving to Spain comes with financial questions:
How can you structure your income efficiently, save for the future, and make your money work harder for you?
Enter the Beckham Law — a powerful tax regime that, when used strategically, can form the foundation for long-term wealth building.
What Is the Beckham Law?
Originally introduced in 2005 (and famously used by David Beckham during his time at Real Madrid), the Beckham Law — officially known as the Special Expat Tax Regime — allows qualifying foreign workers in Spain to be taxed as non-residents for a period of up to six years.
That means:
- You pay 24% tax on Spanish employment income up to €600,000 (€47% above that).
- Foreign income and gains are exempt — in other words, you’re not taxed in Spain on your worldwide income.
For professionals relocating to Barcelona/Spain, that’s a huge opportunity.
It provides a window of time to optimise your finances, save aggressively, and invest smartly before you transition into the standard Spanish tax system/move elsewhere.
The Challenge: Saving and Investing in Spain
While the Beckham Law provides tax advantages on income, the options for medium/long-term saving and investing in Spain are limited — especially compared to the UK or other countries with flexible private pension systems.
Spanish banks are generally perceived to offer higher-cost products and traditional pension plans have minimal contribution and tax advantages.
So, what can you do if you want to make the most of your time under the Beckham regime and then very importantly make sure you are highly tax efficient for when it ends and you either stay in Spain or leave?
The Opportunity: Strategic International Investing
This is where smart financial planning makes all the difference.
I help clients in Barcelona/Spain build international investment structures that are:
- Tax-efficient under the Beckham regime,
- Flexible, allowing monthly or lump-sum contributions,
- Transparent and low-cost, focused on long-term growth rather than bank fees,
- And fully compliant with Spanish and international regulations.
This approach allows you to save regularly and grow your capital while enjoying the tax benefits available to you during your time in Spain.
How Regular Investing Builds Wealth
You don’t need to start with a fortune — consistency is what counts.
Here’s a simple example of what steady investing can achieve:
- Initial investment: €50,000
- Monthly contribution: €1,000
- Average annual return: 6%
- Duration: 10 years
At the end of that period, you could have over €254,850 — thanks to the power of compound growth. Regular saving smooths out market volatility, creates financial discipline, and puts time on your side.
Why Act Now
The Beckham Law is temporary — and the clock starts ticking the day you qualify.
The earlier you begin saving and investing during your residency, the more you can take advantage of the reduced tax burden and compounding returns.
Once your six-year window closes, your tax position changes — so using that time effectively can make a massive difference to your long-term wealth.
Your Financial Strategy in Barcelona
If you’re an international professional living or working in Barcelona, your financial situation is unique — and it deserves a tailored plan.
With the right structure in place, you can:
- Enjoy the benefits of the Beckham Law,
- Build investments that grow efficiently,
- Protect your assets,
- And lay the foundation for lasting financial independence.
Tax Efficient strategy
When on the Beckham Law you have almost a ‘once in a lifetime’ opportunity to get financially organised, reduce future taxes and mitigate/eradicate profits on current gains, potentially increase wealth substantially and set yourself up for the rest of your life financially – You just need the right advice, financial partner and strategy to help you do this, someone with years of experience helping clients achieve this.
Ready to make the most of your time under the Beckham regime?
I help expats in Spain take control of their finances — with transparent advice, efficient investment strategies, and a long-term view of wealth creation.
Financial update France October 2025
By Katriona Murray-Platon
This article is published on: 6th October 2025
06.10.25
France has a new prime minister (again), actually – no we don’t – another one gone! However, time is of the essence to ensure that the Finance Law is approved and passed into law by the end of the year. Prior to the government reshuffle, there was a plan to freeze the tax rates at their current level and not adjust them in line with inflation as has been done in the past few years.
There was also a plan to set the 10% abatement on pensions at a maximum of €2000 per pensioner rather than the current maximum of €4399. Whether these measures will be adopted into law by the end of year, only time will tell.
According to a study published by the French National Statistics Body (INSEE, Focus 354), in 2024, 78% of French residents have a Livret A Savings account, compared with 42% who have an assurance vie and 27% that have a property savings plan (PEL/CEL). Only 19% of French residents have a retirement account (PER) and only 16.5% are part of an employer’s savings plan. Clearly the French prefer to keep their investments in assurance vies rather than in share accounts since only 9.8% of French residents have PEAs and only 9.6% have ordinary share accounts (compte titres). With the interest rate for the Livret A now at only 1.7%, this means that a large amount of French savings is not protected from inflation. Since money in an ordinary share account is subject to both tax and social charges, it is more tax efficient to invest in either an assurance vie or a PEA.
After another hot and dry summer, which has affected ground conditions in many areas, a decree has been published on 6th September 2025, which grants a subsidy to property owners in 11 departments to diagnose and remedy the potential damage of clay soil shrinkage and expansion.
This financial assistance could cover up to 90% of the costs up to a maximum amount of €2 000 for a “vulnerability diagnosis” of the property and up to 80% of the work costs up to a maximum amount of €15,000. Both will be means tested.
This autumn child care benefits (“complement de libre choix du mode de garde” or CMG) are changing. The CMG is a family benefit which covers part of the costs of a child being looked after by a carer (assistante maternelle) or at home by a nanny employed directly by the parents. This benefit is being amended in order to better assist families in certain situations. From 1st September 2025, the amount of this benefit will also change. In particular, single parents can now receive CMG until their child is 12 years old instead of 6 years old previously. From 1st December 2025, for parents with shared custody of their child, each parent can receive CMG under certain conditions. The calculation of the amount of benefits will be done automatically by Urssaf on the Pajemploi website and families will be informed of the new amount of benefits they will receive in the September 2025 declaration.
The Taxe Foncière statements are now available on your online account on the impots.gouv.fr website. You have until 15th October to pay the tax or20th October if you pay online. If you are already paying your taxe foncière monthly and the amount is higher than last year, then you will pay your regular amount on 15th October and the excess on 15th November.
Most people will have noticed an increase in their tax foncière of 1.7% due to the annual revaluation of the rental value which is the basis on which this tax is calculated.
There may also be an additional increase if your local council has voted for one. Other subsidiary taxes such as the tax to manage aquatic areas and the prevention of flooding may also have increased in certain areas. As for the tax for the refuse collection, a table produced by the Environmental and Energy efficiency (Agence de l’environnement et de la mâitrise de l’energy) published in Le Monde newspaper on 25th August showed that more than half of local authorities charge more than what it actually costs them to collect and treat the rubbish. If your tax foncière seems excessively high this year, it may be worth raising this issue with your local council.
If you have any questions on your financial situation in France, or know someone who does, please do get in touch and I would be happy to arrange a free, no obligation, phone or video call.
The Cost of Living in Valencia
By Matthew Green
This article is published on: 29th September 2025
29.09.25
How to Budget for Your New Life
Valencia is one of Spain’s most attractive destinations for expats—and for good reason. With its stunning beaches, vibrant culture, and affordable lifestyle compared to other European cities, it’s no wonder so many people choose to call it home. But before you pack your bags, it’s important to understand what life in Valencia really costs and how to plan your budget.
Housing Costs
Accommodation is likely to be your biggest monthly expense. Valencia offers a wide range of housing options, from modern apartments in the city center to charming villas on the outskirts.
- City Centre: Expect to pay €900–€1,300 per month for a two-bedroom apartment in areas like Ruzafa or El Carmen.
- Suburban or Coastal Areas: Prices drop as you move away from the center—€700–€900 can get you a similar apartment in quieter neighborhoods or near the beach.
- Buying Property: Valencia is still more affordable than Barcelona or Madrid, with prices averaging €2,000 per square metre, but the market is heating up.
Tip: Factor in community fees (for building maintenance), property taxes, and if renting, a deposit (usually one or two months’ rent).
Food and Entertainment
Spain is famous for its food culture, and Valencia doesn’t disappoint. From traditional paella to modern tapas bars, eating out can be surprisingly affordable compared to Northern Europe or the US.
- Groceries: A weekly shop for two people costs around €50–€70 at local supermarkets.
- Dining Out: A menu del día (three-course lunch) costs €10–€15, while dinner for two at a mid-range restaurant might be €40–€60.
- Coffee & Drinks: Coffee is usually €1.50–€2, and a glass of wine is often under €3.
Entertainment such as cinema tickets, concerts, and cultural events are also reasonably priced – expect €8–€10 for a movie ticket.
Education and Transport
If you have children, education will be a key factor in your budget.
- Public Schools: Free for residents, though lessons are mainly in Spanish and Valencian.
- Private Schools: Fees start at around €300 per month.
- International Schools: For English-language or IB programs, expect €700–€1,200 per month per child.
Transport is another area where Valencia shines:
- Public Transport: A monthly metro/bus pass is about €40.
- Driving: Fuel is currently around €1.60 per liter, and parking in the city can be challenging and costly.
Hidden Costs Expats Often Overlook
Many new arrivals forget to budget for these:
- Healthcare Insurance: If you’re not eligible for public healthcare, private plans start at €50–€100 per month.
- Taxes: Wealth tax, property tax (IBI), and possible double taxation issues—always check your situation before moving.
- Paperwork & Administration Fees: NIE registration, residency paperwork, translations, and notary costs can add up.
- Home Setup Costs: Furniture, appliances, and deposits for utilities.
Final Thoughts
Valencia offers a fantastic quality of life at a relatively affordable price, but like any move, planning ahead is key. Create a realistic budget, understand where your biggest costs will be, and allow some flexibility for the unexpected.
As a financial planner with The Spectrum IFA Group here in Valencia, I help expats like you plan smart so you can enjoy life without financial stress.
If you’d like a free, no-obligation chat about setting up your finances for life in Spain, feel free to get in touch. It’s all about making sure you can enjoy everything Valencia has to offer—without financial stress.
School fees in Valencia
By Matthew Green
This article is published on: 19th September 2025
19.09.25
If you are a parent in Valencia and are concerned about how to meet the rising cost of private education, you are not alone. Many families are looking for smarter, more tax-efficient ways to cover these expenses without depleting their hard-earned savings.
At The Spectrum IFA Group, we help clients create investment strategies that can provide reliable income streams for school fees — while protecting wealth for the future.
The García Family Example
Mr and Mrs García live in Valencia and, like many families, are planning for the cost of private education for their children. With nursery fees averaging around €800 per month and secondary school fees closer to €960 per month, they wanted to ensure that they could cover these costs in a sustainable and tax-efficient way.
After speaking with their adviser at The Spectrum IFA Group, they looked at how best to structure their savings to provide the required income without eroding their long-term capital.
Using Investments to Generate Income
The Garcías had €250,000 available, which they invested into a tax-efficient bond. With an assumed long-term growth rate of around 5% per year, they were able to withdraw approximately €12,500 annually (about €1,040 per month).
This income stream was enough to cover the monthly school fees, while keeping the original capital invested and growing over the years.
Tax Efficiency Matters
In Spain, life assurance bonds are particularly attractive because of their favourable tax treatment. Only the gain portion of each withdrawal is taxable, making the early years especially efficient.
This structure meant the Garcías could cover school fees with minimal tax drag and without dipping into their capital base.
Flexibility and Peace of Mind
By using investment growth to fund school fees, the family maintained:
- Flexibility — withdrawals can be adjusted if fees change over time.
- Capital protection — their €250,000 remained invested for future needs, such as university costs.
- Estate planning advantages — the investment can be passed on seamlessly and tax-efficiently to their chosen beneficiaries.
The Importance of Ongoing Advice
As with any financial plan, regular reviews with their Spectrum adviser ensure the investment stays on track, adapting to changes in fee levels, market conditions, or family circumstances.
Summary: By structuring their savings intelligently, families in Valencia can meet the challenge of private school fees while preserving wealth for the future.
If you would like to explore how your savings and investments can be structured to provide for school fees — or other future goals — in a tax-efficient way, speak to The Spectrum IFA Group. A personal consultation will give you peace of mind that your plan is sustainable and tailored to your family’s needs.
Spain’s Budget 2025
By Tom Worthington
This article is published on: 12th September 2025
12.09.25
Setting the stage: Brussels wants homework in October
While the UK plays calendar Enie Meenie minie mo with Spring/Autumn Budgets (and the occasional “surprise!” emergency one), the EU prefers punctuality. Every October, member states hand in their budgets like model students. In 2024, everyone also had to submit a four-year plan to steer national debt toward (or below) 60% of GDP—the EU’s collective happy place.
Spain, after a domestically bumpy 2024 (Reuters politely called the 2024 draft “discontinued,” which is the fiscal equivalent of “we meant to do that”), pivoted to 2025—and got Brussels’ nod in late November for a longer seven-year clean-up plan under the rebooted EU fiscal rules. Translation: fewer vibes, more spreadsheets.
What actually changed (a.k.a. the “please don’t shoot the messenger” bit)
Goodbye, tax holidays
- Basic foods slid back to their usual 4% VAT, olive oil included (collective sigh across Iberia).
- Electricity returned to 21% VAT.
- Fuel duty nudged up.
Net result: monthly bills did the opposite of “Mediterranean chill.”
Nine new tax rises for 2025
Congress kicked off the 2025 tax year with nine approved increases, targeting roughly €4.5bn/year in extra revenue. Among the eyebrow-raisers:
1. “Bank Tax”: A progressive levy on net interest margin + commissions earned in Spain (roughly 1% to 7%).
2. Savings Income Tax: For incomes over €300,000, the top rate rises from 28% to 30%.
*Yes, this can touch insurance policy withdrawals and other taxable gains—mainly relevant for the well-heeled.
Business translation: banks are the piñata; high-net-worth savers bring an extra 2% candle to the tax cake.
Property:
The spicy bit everyone is arguing about…
Regional Property Transfer Tax still varies (hello, Valencia at 10% for buyers, residents and non-residents alike).
But the big headline: reports that Spain is considering a tax of up to 100% on properties bought by non-EU residents (yes, that includes the UK and US).
- PM Pedro Sánchez framed it as an “unprecedented” step amidst a housing emergency, warning against a society split into “rich landlords vs. poor tenants.”
- He cited 27,000 homes bought by non-EU residents in 2023 “not to live in, but to make money.”
- The Property Registry estimated foreigners (EU + non-EU) were ~15% of sales in 2023 (~87k of 583k total).
Important fine print: This is about plans and proposals being discussed, not a done deal. If you’re a non-EU buyer, keep your lawyer on speed-dial and your pulse steady.
Wealth & Solidarity: the sequel nobody asked for (but everyone pays attention to)
Spain has long had Wealth Tax for residents with net wealth ≥ €700,000, but regions can—and did—play with allowances. Madrid and Andalucía famously went full 100% relief.
Cue the central government’s 2022 plot twist: a “temporary” Solidarity Tax layered on top, using Wealth Tax rules as the base. Exemptions broadly still apply (primary home up to €300,000, business assets when it’s your main activity, and qualifying shareholdings >5%—or >20% family-owned). After exemptions, Solidarity hits at:
- €3m – €5,347,998: 1.7%
- €5,347,998 – €10,695,996: 2.1%
- Above €10,695,996.06: 3.5%
Also remember: non-residents can face Wealth Tax on Spanish-sited assets. Double Tax Treaties may soften the edges—but bring a professional to the knife fight.
The surprisingly cheerful chapter:
Inheritance tax (mostly) retires to the beach
Spain’s regions have been trimming Succession Tax like a minimalist Marie Kondoing their wardrobes:
- Madrid: 99% relief for Groups I & II (close family) for years now, plus 25% relief since 2023 for siblings, uncles/aunts, nephews/nieces.
- Andalucía (since 2022): €1m allowance + 99% relief for spouses/ascendants/descendants (inheritances; gifts differ). Group III allowance €10,000, top rate 26%.
- Balearic Islands (from 18 Jul 2023): 100% reduction for Groups I & II (residents only). Group III? -50% for siblings/uncles/aunts/nephews/nieces; -25% for in-laws.
- Canary Islands (from 6 Sep 2023): 99.9% reduction for Groups I–III, and for gifts to I–II.
- Valencia (draft approved 5 Sep 2023): 99% reduction for Groups I & II, mirroring Murcia/Andalucía vibes.
Estate-planning translation: check your postcode—it matters more than your zodiac sign.
Who should care (and why)
- Banks: Expect margin/comms to feel… taxed. (On the bright side, you’re still not a fintech.)
- High-net-worth investors: That 30% top savings rate taps your shoulder at €300k+ incomes. Tax deferral may become your new best friend.
- Non-EU property buyers: Keep watching the “up to 100%” tax proposal. This is the policy equivalent of a weather warning: it may drift, split, or hit land.
- Heirs in certain regions: Inheritance tax often now says, “I’m off to Ibiza.” Confirm local rules, then celebrate responsibly.
Jargon-buster (with tapas)
- TARIC: The EU’s giant library of tariff codes—great for insomniacs and importers.
- Wealth vs. Solidarity: Same family, different personalities. Solidarity uses Wealth Tax’s base… and adds an extra bill for the very wealthy.
- Groups I–III: Family-proximity ladder for inheritance reliefs (spouses/children up top; in-laws somewhere near the sand).
Practical checklist (so you can look clever on Monday)
- If you bank or broker in Spain: Model the 1–7% bank tax impact on your P&L and pricing.
- If your savings income can top €300k: Re-evaluate wrappers, timing of withdrawals, and asset location.
- Thinking of buying in Spain as a non-EU resident: Pause, get advice, and track the 100% property tax proposal closely.
- Inheritance planning: Re-run scenarios by region—reliefs can be massive, but rules differ.
- Budgeting households: Expect higher baseline costs from VAT/fuel/electricity resets; shop around, switch tariffs, and stop treating olive oil like cologne.
Conclusion
Spain’s 2025 plan blends EU-approved fiscal discipline with domestic social aims—and a dash of headline-grabbing housing policy.
For investors and families alike, the theme is simple: location matters, timing matters, and reading the footnotes definitely matters.