In this Ezine I will summarise the discussions and news from our annual event which took place in Monaco this year.
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Financial updates – February 2026 – Italy
By Gareth Horsfall
This article is published on: 20th February 2026
20.02.26
As you may know my newsletters are not AI generated and for this reason they take me a little time to summarise the information, and also find the time to do so. I hope that you appreciate the fact that you are not being sent existing information which has been trawled out of the internet-o-sphere, but rather real, new and original content. (AI was a big story on the conference actually, so I will be touching on this a bit further down.
Interest rate cuts – Tax cuts – Lower energy costs – Deregulation
One interesting thing that occurred before I went on the conference, in fact just a few days before, was that a handful of people contacted me to say that they wanted to sell out of US based assets because they didn’t like the activities of Donald Trump and the current US administration. My advice at this time was:
We need to separate the political from the investment!
It is always good to be reminded that the US stock market is valued (USD 67-69 trillion) at more than the rest of the worlds stockmarkets cumulatively (USD 55 to 60 trillion). So no matter what we think about the politics in the US at the moment, to exclude ourselves from the US stockmarket would be akin to investment suicide. We can make investment choices based on sustainable and ethical choices (and we offer these services as well for our clients) but some of the best research, technological innovation and new creative thinking comes from the US and so it still retains it’s spot as one of the best, if not THE best places for an investor.
To further explain the importance of the US market, it was explained at the conference, that should just 1% of the total value of the US stockmarket be moved at any one time, it would hardly move the markets in the US at all. That same amount would be the equivalent of the entire German stockmarket (which includes all the big names we know such as Volkswagen, Basf, Siemens, SAP, Mercedes Benz and many more) and would have a tremendous impact on the German stockmarket and in Europe, just to give context on how important the US is for our portfolios.
Saying all this, I appreciate that the Trump administration may still be a little too much to bare for some people, and so here is my summary of what is going on there:
DRIVING THE US DOLLAR LOWER
If the U.S. economy is about 30% of global GDP, then should its currency, being that it is the reserve one, account for 35%-40% of global reserves and not 50% or 60%?
It is now pretty evident that the Trump administration is aiming to push the US Dollar lower against other currencies…but why?
The old globalisation game where the US outsourced everything and let China build the factories is effectively over. The idea that cheap imports were free trade and you don’t pay the price for destroying your industrial base is something which needs to be re-addressed as many economists on both the left and right side of politics, agree. To some extent Beijing also started weaponizing supply chains, particularly in rare earths such as lithium, cobalt and graphite, because they have an almost 90% control over these rare earths, both in mining and refining. The Trump administration is aiming to protect US interests and rebuild American industry from the ground up.
Tariffs are back—and they’re not going anywhere. They have largely turned out to be a negotiating stick and strategically aimed at specific goods rather than blanket punishment, to protect US domestic producers and force companies to bring manufacturing back to the US. As DT has said: “if you want access to the world’s largest consumer market, build in the US” Produce there and employ Americans.
A WEAKER DOLLAR IS PART OF THE PLAN
Not a collapse, but more than likely a deliberate, controlled depreciation to make U.S. exports competitive again and make imports more expensive. (2026 may see a further USD decline when the new Fed Chairman Kevin Walsh is put in place, and then it could stabilize)
Cheap foreign goods have flooded the US market (and Europe) for decades because the dollar was probably too strong. A weaker dollar rewards domestic production, boosts manufacturing margins, and will hopefully brings jobs back to places that have been forgotten for years! (If this strategy works then you can be assured that Europe wil adopt the same approach, no matter how much they hate to admit it!)
PROJECT VAULT
This could be one of the most significant decisions made by any US administration for decades. Project Vault is a $12 billion strategic plan to stockpile critical minerals, the equivalent of a Petro Reserve for the AI and defense age. The US is building a preferential trading bloc with price floors, adjustable tariffs, and enforceable rules to crush China’s predatory pricing and market flooding.
The winners will be the ones who control the physical economy—the mines, refineries, smelters and processing plants. Critical minerals and rare earth security.
Without them, nothing modern works. Jet engines. Hypersonic missiles. Wind turbines. Electric motors. Drones. Smartphones. AI data centers. Defense systems. EVs. Nothing.
And here are some examples:
Niobium—an irreplaceable steel strengthener. Adds toughness, corrosion resistance, and high-temperature performance to superalloys
(Brazil controls ~90% of global supply. The U.S. imports 100%. Zero domestic production. One mine in Canada which given the fractious nature of current US / Canada relations, the US considers this a national security nightmare)
Neodymium (Nd) and Praseodymium (Pr)—the magnetic rare earths that power permanent magnets, the strongest magnets ever made.
(Essential for EV traction motors, wind turbine generators, missile guidance, radar, precision-guided munitions, and high-performance robotics)
CHINA CONTROLS CIRCA 90% OF REFINING AND 93% OF MAGNET PRODUCTION AND 60% OF THE REFINED SILVER MARKET.
IF RELATIONS SOUR FURTHER, THEN BEIJING WITH JUST ONE PHONE CALL, COULD PARALYZE WESTERN DEFENSE AND CLEAN ENERGY SUPPLY CHAINS
And so, in a nutshell, that is what the Trump administration would appear to be doing geopolitically. (I won’t mention any US domestic issues that are….well….. questionable).
My hunch is that you will see Europe follow suit. Europe appears to have woken up (c/o D.T) to the fact that it needs to protect itself and can no longer rely on the US Military Industrial Complex. Re-arming Europe seems to be the EU leaders first objective, but if they then see progress with this economically nationalistic kind of behaviour in the US then I would say that they will start to walk a similar path, even though the EU is quite protectionist by nature anyway. It may mean that you need to stock up on TEMU goods now, whilst the prices are still low!
I have probably dedicated more time here to the Trump administration than I had wanted to, but it is clearly on alot of minds and so was worthy of a few lines.
However, on our conference we did discuss other investment matters, which arguably are not quite as important as what is happening in the US administration, but also warrant some time being spent on them.
THE GREENLAND DEBATE
These conferences are always interesting to get perspective on certain matters and the issue of Greenland was brought to light as follows:
From 1951 to 2004 the US had the right to place US bases in Greenland without any permission required.
From 2004 this power was taken away when Greenland gained sovereignty and fell under the supervision of Denmark.
Now, the pre-1951 agreement is being re-negotiated, and although not a ‘free to do what you wish’, the US will certainly have the possibility to expand its military presence. Was the whole ‘buying Greenland fiasco’ just a ruse to restablish this agreement?
THE AI BUBBLE
At the 2025 conference alot was made of AI and how it would be changing the world, putting people out of work and taking over our world. Just one year on and the view from the asset managers was almost completely the opposite, but also that it is not going anywhere soon.
However, an AI bubble (like the tech bubble of 2000), it would not seem to be. AI is already helping businesses to improve productivity but not by firing staff. There is no evidence of this and the companies running AI models themselves, are already profitable. In addition the Big tech companies are cash rich. It is more likely that AI integration will more of a messy technological shift, than a huge damaging effect and it’s very unlikely that AI stocks will be the cause of a global recession, or mass unemployment no matter what you read online.
Net income from Tech + comms services companies has grown from 23.1% in the year 2000 to 35.3% in 2025
HOWEVER, AI IS NOT LIVING UP TO EXPECTATIONS
A term was used: ‘Crap in – Crap out’.
What is being found is that the AI we know: ChatGPT, Google Gemini etc cannot be relied upon for accurate results.
Search results are based on the data that is out in the internet-o sphere. If that data is flawed then it has no way of knowing how to fact check it and hence it will produce inaccurate results. (In fact caught out ChatGPT on 3 occasions, when I knew its results were incorrect. I now use Google Gemini, which appears to be better). There is also a HUGE amount of internet fraud and scam and the culprits are using the internet to deliberately put out content which furthers their devious means. So, how can we rely on such a system? Markets are worried about the inability to overcome this problem and about a lack of innovation in AI. If we are all fishing in the same pool of information and being provided the same results then innovation and creativity grinds to a halt, and that is not good for businesses who are looking to find an competitive edge and / or increase productivity.
THE STRENGTH OF AI
But, AI probably has a more focussed strength in it’s ability to gather, organise and analyse large data sets. Private data is the real gem! It’s what you can’t see rather than already public data. I may have mentioned in my Ezine last year the example of the Lancet medical publication in the UK, which has archives going back 203 years. It is almost unimaginable that human beings would be able to reference a tiny fraction of that information, whereas they are already using AI tools to organise data and information in their business and to make it available to a much wider and much more targeted audience. Data is the new gold! Loyalty card data would be a perfect example of data which can be privately exploited by companies looking to gain a competitive edge with the use of AI tools.
AI POWER
The strange thing with AI is that the people who are probably going to make money from it are not the people directly running AI tools, but more likely the periphery businesses that are needed to keep it running: energy providers and data centres being good examples: see images below to give you an idea of just how many resources are going to have to go into running and maintaining these centres.
Could nuclear and renewables be the winners long term?
TWO MORE ITEMS
INTEREST RATES: don’t expect rates on your cash to be rising anytime soon. If you are sat with the majority of your assets in cash, then you should really be thinking about the long term implications of inflation on these monies. This is exactly the scenario that governments wanted to see. Low interest rates (which keep government benefit payments down and debt repayments low) but an inflationary economy. They pay their debts down quicker amd erode them away, and we feel the pinch. You can see the interest rate trend in the chart below.
OIL
Given the US’s influence over the world’s major oil producers (Venezuela, Saudia Arabia, Iran and Canada) , it is likely that there will be a glut of oil in the next 5 years. This will most likely push prices down. This is certainly what the D.T administration wants. Energy prices and inflation should fall which could be good for US stocks in particular. The wider US market could benefit greatly.
I hope you have enjoyed this content! Once again apologies for the time taken to get it you. Unfortunately I don’t even think AI is sophisticated enough…yet…to decipher my scribbles and handwriting when note taking.
As always, if you have any questions, or would just like to send me some comments on what you have read here, then feel free to do so. I am always interested to hear your thoughts on these matters.
Equally, if you would like to follow up individually on anything then you can do so on gareth.horsfall@spectrum-ifa.com or message / call me on +39 333 649 2356
Lifestyle First, Tax Second: Why That Order Matters
By Jett Parker-Holland
This article is published on: 17th February 2026
17.02.26
Spain consistently ranks amongst the best places to live in Europe. The climate is mild, life is relaxed, and living costs, especially in Andalucía, are often lower than in much of the UK. Within a short drive, you can find mountains, beaches, vibrant cities, and quiet whitewashed pueblos.
It is no surprise that so many people, after spending decades holidaying here, decide to make it their home. However, when I speak to clients considering the move, even for those who have spent years visiting Spain, the conversation often stalls at tax.
They have sometimes heard that another country has a more attractive regime, with lower rates of income or wealth tax, or a different inheritance tax structure. The fear is that by choosing Spain, they may be sacrificing financial security for lifestyle. In practice, when we slow the conversation down and look properly at the numbers, that fear is usually misplaced. With the right planning, many clients are in a stronger financial position after moving to Spain than they were before.
Recently, I worked with a couple in their early sixties. They had adult children, a beautiful home in the British countryside and substantial pensions and cash savings. They had spent decades holidaying on the Costa del Sol and had always imagined retiring there, but they hesitated. They had read that other jurisdictions were more tax-friendly and felt they might be making an expensive mistake. Originally, they planned to keep their UK home and rent it out to generate retirement income. They also felt reliant on drawing pension income immediately to maintain their lifestyle. Thankfully, they contacted me for a consultation in which we stepped back and considered what the move would actually look like.
The timeline for our agreed plan began before they became Spanish tax residents. First, they were able to sell their UK home free of capital gains tax because it was their primary residence. Next, we withdrew the savings from their ISAs, which had served them well while they were UK residents but would not retain the same advantages once living in Spain.
Finally, we reviewed their pensions; both were able to withdraw their 25 per cent tax-free lump sums before establishing Spanish residency. The result was transformational.
The couple had sufficient free capital to purchase their dream home in Andalucía outright and make it their own. As they would be over 65 if they ever sold that Spanish home, they would be exempt from capital gains tax on its sale. We restructured their remaining cash in a Spanish-compliant investment designed to provide steady growth, avoiding the annual tax that bank interest or ISAs would trigger. Crucially, we could control how much income they drew each year, keeping their income tax exposure low while still giving them flexibility.
When we modelled their estate position, the outcome was reassuring as well. In Andalucía, children can inherit up to one million euros free of inheritance tax, with a 99 per cent reduction on amounts above that threshold. Compared with their expected UK inheritance tax exposure, their long-term position was markedly improved. In short, their finances were structured so that tax applied only where necessary and at the lowest reasonable level, while preserving full access to their wealth if they needed it. They were living where they had always wanted to live, without feeling financially penalised for doing so.
Many couples hold back from their ideal location because they fear that tax will punish them. Tax is important, but it is rarely the whole story. It is a technical problem that can usually be managed through careful asset structuring and an understanding of cross-border planning opportunities. What cannot be recreated later is time spent living in the place you truly want to be. The most effective planning happens when we look at both sides of the move. As part of our advice, we consider what should be done while still a UK resident and what should be delayed until Spanish residency begins. When handled properly, the combination of both systems can work in your favour rather than against you.
Spain offers a high standard of living, strong healthcare, cultural depth, and a climate that encourages an outdoor, social way of life. For many people, it is not just a tax decision. It is a life decision, which is why we always take the approach:
Lifestyle first. Tax second.
Prioritise your lifestyle, then structure your finances around it. When that order is respected, both tend to fall into place.
As a Chartered Wealth Manager based in Spain, I work with British expatriates who want clarity before making big decisions. Moving country affects your pensions, investments, tax position, and estate planning. Done casually, it can create unnecessary costs. Done properly, it can strengthen your long-term position while giving you the lifestyle you actually want.
If you are considering a move, or have already relocated and are unsure whether your arrangements are structured efficiently, I am always happy to have an initial conversation. A well-timed review can make a meaningful difference.
Cash Is Comfortable. But Is It Quietly Costing You?
By Jett Parker-Holland
This article is published on: 16th February 2026
16.02.26
For many people who relocate to Spain, cash becomes the default position. When there are so many moving parts, “I’ll decide later” feels sensible, and in the short term, it often is. The issue is not holding cash, but holding too much of it for too long.
What tends to go unnoticed is that cash rarely keeps pace with inflation. Even when deposit rates look appealing, inflation and tax steadily reduce the real value of your money. In Spain, interest on bank deposits is taxed as savings income, at rates of up to 30 percent. Once tax is deducted and inflation is accounted for, the true return can be negligible or even negative. Five or ten years later, the same capital simply buys less. This is the silent cost of excessive caution and is particularly relevant for expatriates.
Many of the people I work with have built capital through years of disciplined saving in the UK. They may have sold a home or business, drawn a pension lump sum, or received an inheritance. The proceeds arrive in Spain and sit in a current account while life settles.
Recently, I spoke with a couple in their late fifties who had relocated to Andalucía following the sale of their UK property. After setting aside a sensible emergency reserve, they had roughly €500,000 in cash. For the first year it remained in a Spanish bank account earning modest interest. A 2% interest rate before tax wasn’t beating the 2.7% inflation we saw in 2025. When we reviewed their position, the conversation was not about chasing high returns, but creating stability, flexibility, and the reassurance that their capital would support their lifestyle and pass, in time, efficiently to their family.
We kept an appropriate cash reserve in place. The remainder was structured into a Spanish-compliant investment designed to grow steadily ahead of inflation, without triggering annual tax on internal growth.
When we modelled the expected outcomes, the difference over time was meaningful. More importantly, they felt confident that their money was finally aligned with their new life in Spain.
This is one of the most common conversations I have. Cash feels safe because it is seen as risk-free, but real safety is about making sure that your money is working for you over the long term. If you have significant savings sitting in a bank account and you are unsure whether they are working as effectively as they could be, it may be time to take a fresh look. If you have cash sitting idle and want to understand what it could be doing instead, get in touch and let’s talk through a plan that supports your aspirations in Spain.
Inbound workers tax regime Italy
By Andrew Lawford
This article is published on: 13th February 2026
13.02.26
New rules from 2024
Firstly, if you have already qualified for this regime under an earlier version, this article will not be relevant for you. There are, however, some transitory arrangements for people who became resident under the regime in the 2024 tax year but had purchased a property in Italy by the end of 2023.
If you think this might apply to you, then bring it up with your tax adviser to see which version of the regime applies to you.
What does the benefit consist of?
- A 50% reduction in taxable income for a period of 5 years, starting with the year the individual takes up residency in Italy;
- It is possible to increase this reduction to 60% if the individual has a child under the age of 18 living with them in Italy.
What are the requirements?
- The individual cannot have been a tax resident in Italy within the 3 tax years prior to taking up residency;
- This requirement increases to 6 or 7 years when there is continuity in the employment relationship (e.g. an inter-group transfer) – the 7 year rule applies when the individual was working for an Italian company in Italy before moving abroad;
- Commitment to remain a tax resident of Italy for at least 4 years;
- The work must be performed primarily in Italy;
- Qualification or specialisation requirements must be met (generally speaking you must have a university degree, be specialised by a certain amount of professional experience or be involved in certain types of research).
What are the limitations?
- Maximum income able to benefit from the incentive: €600,000p.a.
- Certain types of income may be subject to exclusion for freelancers, in particular any passive income streams like royalties. The general rule is that the individual must be engaged in “arts and professions”. Sole-trader business income would also be excluded.
What about compulsory pension contributions?
- Based on the prior incentive schemes, INPS contributions would continue to be calculated on 100% of employee income, but in the case of a freelancer, the incentive applies to pension contributions as well;
- The above has yet to be confirmed in practice for the new regime, but it does appear to offer a benefit to the self-employed as opposed to ordinary employees.
To sum up the critical points:
- If you have already been a resident of Italy in the past, make sure you understand the minimum period of residency abroad that applies to you;
- Check if you satisfy the qualification or specialisation requirements;
- As a freelancer, make sure that your particular activity or parts thereof would not be excluded;
- Watch out for clarification of the pension contribution requirements.
If you think this might be of interest to you, don’t hesitate to get in touch. I can’t give you a tax opinion, but I can discuss living in Italy more generally and can help with your overall planning, including getting appropriate professional advice as necessary.
French Financial Update February 2026
By Katriona Murray-Platon
This article is published on: 10th February 2026
10.02.26
At the end of January, I joined colleagues and product providers at our annual conference in Monaco. We heard a range of insightful presentations from companies including Evelyn Partners, iPensions, Momentum, New Horizon, VAM Alquity, LGT Wealth Management, Novia Global, Rathbones, Utmost, Prudential and RBC Brewin Dolphin.
There is often a difference between what dominates the headlines and what investment managers focus on. While it has become increasingly difficult to ignore what is happening in America, it is important to remember that we maintain a long-term focus for our clients’ investments.
As outlined by the fund managers, markets remain heavily tech-focused. However, although stocks from the companies known as the “Magnificent Seven” dominated markets in 2023 and 2024, there has been some broadening in 2025. Nvidia shares have recently flatlined and Microsoft was down 20%. Even though European stock markets are performing better, fund managers are not yet ready to abandon US equities in favour of European ones.
Unfortunately, the UK economic outlook remains gloomy. For several years now, fund managers have highlighted how little exposure they have to UK stocks within their portfolios. However, the FTSE 100 performed well in 2025, largely because many UK companies generate profits outside the UK.
There was considerable discussion around artificial intelligence.
While some may view AI as potentially similar to the dot-com bubble, our product providers demonstrated how the underlying economic fundamentals are very different.
Many people now use AI, but the key question remains: who is actually making money from it?
AI also requires significant infrastructure, including large data centres and substantial energy supply. Its influence is now extending into emerging markets as well.
Fund managers have reduced their oil exposure as energy prices continue to decline. Sovereign bonds, however, are becoming more attractive, with yields of between 1% and 3%, particularly Norwegian, Australian, New Zealand and Japanese bonds.
Novia announced its new GIA product which, like its SIPP, can hold funds denominated in HKD and Australian dollars, as well as GBP, EUR, CHF and USD. Currently, UK SIPPs sit outside a deceased person’s estate for inheritance tax purposes. However, proposals from the UK Chancellor will bring defined contribution pensions into the inheritance tax net from 6 April 2027.
Evelyn spoke about the digital data boom, describing it not as a fad but as a generational shift (anyone with teenagers will relate). Their aim is to “turn data into dollars” in 2026, and they continue to see opportunities, particularly among companies utilising AI. Stronger earnings and a weaker dollar are also supporting emerging market equities.
In French financial news, from 1 February 2026 the interest rates on French savings accounts have been reduced as follows:
Livret A: 1.50%
Livret de développement durable (LDDS): 1.50%
Livret Jeune: 1.50%
Compte Épargne Logement (CEL): 1.00%
Returns from euro funds in French assurance-vie policies appear to have stabilised. The average rate of return in 2025 was 2.65%, compared with 2.63% in 2024 and 2.60% in 2023.
After social charges taken at source, the average net return is 2.19% — only 1.5 percentage points above inflation.
While these assets are often viewed as safer options, cautious investors may benefit over time from increasing equity exposure to achieve stronger long-term growth.
Local taxes, in particular taxe foncière, are not expected to increase by more than 0.80% in 2026, due to the increase in the rental value of properties.
Other key changes from 1 January 2026 include:
- The annual social security ceiling is set at €48,060 (€4,005 per month).
- The legal interest rate is set at 6.67% for loans between individuals (for example, late custody payments) and 2.62% for loans between professionals.
- The maximum amount that can be withdrawn from a deceased person’s bank account to cover funeral costs is €5,965.
- Medication, treatment or services provided by non-contracted doctors (those who set their own fees) will no longer be covered by social security from January 2027.
- Fees for certain medical specialists have increased (€40 for a gynaecologist, €42 for a geriatrician and €57 for a neurologist).
- Stamp prices have increased, as they do each year, to €1.52 from €1.39. Postal costs for other services have also risen.
- Interest earned on PEL savings accounts is subject to income tax (12.8%) and social charges (18.6%), bringing the flat tax rate to 31.40%. Holding a PEL allows access to a mortgage at 3.2%.
- If you are expecting a baby in 2026, you may be entitled to an additional two months of maternity, paternity or adoption leave.
In January, if you benefited from specified tax credits or reductions (for example, home help), you will have received a payment equal to 60% of the total amount. The remaining balance will be reconciled through your 2025 tax return in September 2026.
After catching up with work following the conference, I will be spending time with my family from 16 to 20 February during the half-term holidays. If you have any questions about the information above, or would like to arrange a time to discuss your financial matters, please do get in touch.
The unusual aspects of taxation in Italy?
By Gareth Horsfall
This article is published on: 5th February 2026
05.02.26
We are a team of fully regulated financial advisers working across Europe, with a strong presence in Italy since 2010. Our focus is on helping expatriates, and returning Italians from abroad, who are residents or want to become residents in Italy.
- Needing a professional to help you – Unless your financial affairs are really simple then you will likely need a professional to help you complete your tax return. Self declaring is complicated due to the codes used to complete the forms and so might not be worth your while due to the risks of getting it wrong. That being said you can get info online as to how to complete your tax return which is helpful.
- Reddito diverso e reddito di capitale – If you have investments in something like Exchange Traded Funds, for example, the income and capital gains are treated as one type of income (reddito di capitale) and the losses as another (reddito diverso). You can’t offset one from the other even though they derive from the same asset.
- Wealth taxes – Many countries do not have wealth taxes. Italy introduced them in 2014 when Mario Monti was Prime Minister. At the time politically, Italy was under the spotlight for its mounting debt and so wealth taxes were introduced as a way to generate more revenue for the country. Also, it harmonised the fact that taxes were paid on domestic assets but not on assets held abroad, at the time and so capital flight was rampant to evade taxes.
- Wealth tax on property – If you have a property outside the EU, then the wealth tax is calculated on the purchase value. This may seem strange but the market value is largely subjective depending on market supply and demand and would be difficult to determine. The purchase price is documented in the purchase contract and so is a definitive sum which reference can be made to.
- Choosing your tax rate – You can choose to have your investment income and/or gains taxed at your lowest rate of income tax IRPEF (23%), if available, or the standard flat rate on investment income (26%). This comes in useful if your total income is low and you can use up your first band of income tax. Otherwise, it’s normally better to go with the standard flat tax rate. You can also deduct certain expenses from the IRPEF choice, which can lower the rate even more. This is not possible on the standard rate.
- There are no personal allowances or nil rate tax bands for personal income. You start paying tax on Euro No 1. If you are in retirement and in receipt of a pension/ retirement income, you may get an age-related credit, depending on your income, otherwise you can deduct some expenses such as some building costs, vets bills, pharmacy expenses and doctors bills, which can reduce your income tax bill further.
Specialised financial planning for expatriates across Europe
By Craig Welsh
This article is published on: 5th February 2026
05.02.26
Brexit significantly altered the financial planning landscape for expatriates in Europe, particularly for UK nationals. Many expatriates now face challenges in managing investments, pensions and long-term wealth due to changes in cross-border financial regulations.
As part of the UK’s exit from the European Union, financial services were excluded from the Withdrawal Agreement. This removed passporting rights that previously allowed UK-based financial advisers to operate across the EU. As a result, many UK advisers and institutions are no longer authorised to provide financial advice to clients living in the EU, leaving many without access to suitable planning and guidance.
For expatriates, this can create serious risks. Existing investment structures may no longer be tax-efficient, pension arrangements may not comply with local regulations, and important considerations such as inheritance planning, currency exposure and local tax reporting can be overlooked without properly authorised advice.
The Spectrum IFA Group specialises in financial planning and wealth management for expatriates throughout Europe. Licensed across the entire European Economic Area (EEA), Spectrum has offices in six EU countries, and Switzerland; however, we are also able to offer advice to expatriates living further afield, including for example in Germany, Poland, Greece and across Eastern Europe.
Our clients benefit from access to secure, well-regulated, and tax-efficient investment solutions designed specifically for expatriates. We also help with cashflow forecasting, modelling a range of retirement scenarios, such as when you can retire and whether your current assets will be sufficient to provide financial security for the long term. By working with experienced and qualified advisers who understand both UK and EU financial and regulatory frameworks, our clients can reliably protect their wealth, reduce tax exposure, and plan confidently for the future.
With expertise in cross-border financial planning, The Spectrum IFA Group helps expatriates across the EU make their finances truly Brexit-proof, providing clarity, stability, and long-term financial security.
Financial life in Italy 2026
By Gareth Horsfall
This article is published on: 22nd January 2026
22.01.26
For those of you who read my last Ezine you will be happy to know that I got my wellies for Christmas and also a more than welcome surprise of a toolbelt. I feel complete! I have been putting both to good use in the last week (seeing as though we have a good weather spell), by doing some early morning ‘potatura‘ of the olive trees.
I thought I would have a go myself this year since the chap who came last year hasn’t committed and it appears to be quite hard to find people in the area who are not already booked up. So, I thought I would give it a try after reading a few books, speaking with numerous people about it and watching far too many Youtube videos on the subject.
I am quickly realising how obsessive one can become when you are pruning olive trees, regarding correct shape, removing too much or too little and wondering whether the tree is growing too high, how to train it further down, whether to cut this branch or the other one. It’s quite therapeutic actually although it appears to be rather arbitary because we have no idea where the olives will produce, how many, and if environmental factors will affect production this year. However, as my 7.30am to 9 am morning routine (when not travelling) it is a good way to start the day.
Anyway, for my readers who have been doing this for many years, I will let you be the judges. See some fotos below. (Feel free to send comments about where I might be going wrong).
Moving on from land work I wanted to send this brief Ezine out just to reconnect in the New Year. 2025 proved to be a positive year for our investment accounts and it is anyone’s guess what is in store for 2026.
I am attending the Spectrum IFA Group annual conference from the 26th to 30th January and will be doing my usual round-up Ezine when I get back. We will be speaking with Rathbones Asset Management, Evelyn Partners, Prudential, New Horizon Asset Management, LGT Wealth Management and others as well.
But, before I return (hopefully Greenland will still be a part of Europe by then) I wanted to share some information on Italy with you, as a light hearted read.
On Facebook I follow a page called Dataroom di Milena Gabanelli. You may know of her from the programme ‘Report’, which is where I first became familiar with her around 15 years ago. Now she works for Corriere della Sera and has her own FB channel. It’s very interesting as they regularly put out content about Italy and global events but backed up with solid facts.
The most recent one I saw was ‘Chi paga meno tasse’. A look at the health system and exactly where tax revenue is coming from to support the system itself.
The following is summary of the video, which is only a few minutes long, but provides some quite interesting information, which I wanted to share with you.
(The data is taken from studies of contributi previdenziali relative dichiarazione 2023.)
Did you know that 76% of taxpayers in Italy declare less than €29000 gross per annum.
This group do not pay towards the health service because they are exempt. Their income is below the threshold set by the Italian government. (The ticket)
9% of taxpayers in Italy declare between €29000 and €35000 gross p.a.
This group pays for health expenses but not for welfare (pensions and schools!).
Only 15% declare over €35000pa.
This group contributes to both the health system and the welfare. They pay for the majority.
Let’s analyse things a little further
With an income of €29000 gross pa there is likely to be very little margin to pay your health care expenses. In this category fall many ‘pensionati and dipendenti’ and so we can exclude them for the purposes of the analysis.
The rest are autonomi ( self-employed people- like myself)
- 1.8 million autonomi in Italy are on the flat tax regime and so cannot be considered.
- 2.2 million autonomi pay IRPEF (normal income tax rates) and of these 1.3 million declare income under €29000pa. This means that they pay €2 billion in tax or ONLY 8% of the whole category for the autonomi.
To analyse further to see whether any of these people have a real need or if they are working in nero, we can look to the index ISA which looks at fiscal ability to pay. They work on a points based system and if a contribuente has under 8 points then there is the risk of fiscal evasion.
Tax Evasion vs Tax Avoidance
Here we have some interesting facts:
- 78% of restaurants declare less then €28000pa gross
- 70% mechanics under €20700 pa gross
- 60% alimentari under €10700 pa gross
- 48% hairdressers under €11900 pa gross and also 45% of balneari
Anyone who is declaring less than they actually bring in is also paying less contributions towards the health service and also they will receive less pension, which means that the people who are paying will have to pick up the bill.
The Agenzia delle Entrate are not funded well enough, even though they have some interesting tools at their disposal, and can do controls on only 4.5% of people / businesses annually.
It’s no surprise that the Italian government really doesn’t have much, if any, room for manoeuvre to change tax rates and why the health service is underfunded.
Short term rentals
If you like those facts you may also like the following ones about the explosion in short term rentals in Italy (affitti brevi), which go some way to explain why many cities and famous locations in Italy are now almost impossible to visit without a tremendous amount of people all doing the same.
- In 2011 short term rental advertisements didn’t exceed 20000 in the whole of Italy
- In 2021 this number had exploded to 620000
- In 2022 to 644000
- and 2023 to 700,000 which equates to approximately 11 billion euro invoiced a year
In the market of short-term rentals Italia is No 3 in the world behind the France and the USA!
If we analyse some of this data then we can see that 75% of these rentals are in the hands of private landlords and 25% managed by agencies.
Agencies, in general, retain 35% of the income to manage the cleaning and change of sheets etc. Almost all of the advertisements are now on the digital platforms like AirBnb and Booking.com, who in general keep between 14 and 18% of the income. The same platforms have been obliged since 2017 to apply a withholding tax of 21% on gross income.
In the Legge di Bilancio 2026 this withholding tax of 21% now applies to the first property. For the second a witholding tax of 26% and for owners of 3 properties or more, they are now deemed to be a business activity and must open a partita IVA (VAT position). The war on private landlords continues, not just here in Italy but across many countries, but whether it will make much difference in the long run is anyone’s guess.
If you have enjoyed this information so far, then I will leave you with the world of Italian politicians and how they are paid (c/o Dataroom di Milena Gabanelli)
They are paid well because they should, in theory, not be corruptible and should work in the interests of the country.
An Italian politician is entitled to a number of benefits, ranging from:
Indennità parlamentare, which is a compensation payment for being a politician and spending time away from home. It is currently €10435pm Gross or €5000-5300 pm after taxes and contributi.
Diara (per deputati e senatori) – just €3500pm
+ Expenses reimbursement.
These do not always have to be documented!!!!
They also qualify for reimbursement of travel expenses
And reimbursement of telephone expenses
Pensions
The same politicians are entitled to a pension after only 5 years of working in Parliament. (versus 20 years for the rest of us!)
Interest payments
They are also entitled to an interest rate of 5.4% on the money in their savings and current accounts. The bank pays this automatically versus the average rate for us , at about
0.2 %
And on that note I will leave it there. This Ezine was really was meant to be a light-hearted way of staying in touch.
I will be following this up from our conference with a market review from the week after next, followed by some other Ezines on tax and also organising your affairs for your loved ones.
Fraud and cyber-security
By Andrew Lawford
This article is published on: 14th January 2026
14.01.26
It’s time to pay (even more) attention!
We all know that we have to be careful when we are dealing with financial matters, especially when we are online.
I appreciate that this isn’t news to anyone, but it is easy to become complacent, as well as to fall behind in our awareness of the sophistication fraudsters have available to them in the era of Artificial Intelligence. I honestly think that we are all vulnerable to frauds, but if we have the humility to admit this, we can better protect ourselves against the most common pitfalls.
I recently watched a webinar made available by Cazenove Capital in the UK and whilst there were things in it that I already knew, I must admit that it also opened my eyes to how frauds are developing as well as reiterating what our best practices should be online and when dealing with financial matters generally.
I would strongly suggest that everyone takes the time to watch the full webinar, but here are a few bullet points that we all need to reflect upon:
- The golden rule in life is that if something seems too good to be true, it most probably isn’t true. However, human nature means that it is a good idea to be reminded of this fact on a regular basis.
- Most frauds are still relatively “low-tech” and involve things like hacking e-mail accounts – the fraudster may monitor e-mail traffic for a while before finding their opportunity, maybe by sending messages from your e-mail account to financial institutions you deal with. Two-factor authentication is an excellent protection against this possibility – if you don’t have it set-up on your e-mail accounts, do it now!
- Be careful clicking on links in e-mails you receive! These communications seem ever more credible nowadays and can easily trap the unwary.
- Any financial transaction that someone is urging you to carry out in a hurry should instantly raise a red flag. If you are being pressured to transfer funds, even by someone you know, hang up the phone, take a few deep breaths and call the person back on a number you know can be trusted. If you aren’t sure what to do, seek counsel from someone you trust who is not connected to the situation at hand. Deep-fake calls are a possibility (where it will appear that you are speaking to someone you know), but there are also cases where people have been contacted by complete strangers who claim that a family member is in trouble and needs money transferred in a hurry.
- If you do expect to have to make urgent payments to someone – maybe a family member or a business associate – use code-words or agree a protocol that only you and the person concerned will know. Agree in advance which accounts any payments will be made to. SEPA transfers in the EU will now confirm the identity of the beneficiary account holder – if your bank flags up any discrepancy between the name you have entered as beneficiary and the actual account holder, take time to check!
What is Spectrum doing to protect me?
For some time now, all Spectrum advisers are required to conduct video calls or in-person meetings when processing withdrawal requests from any investments we intermediate. The fact that withdrawals generally take some time before being paid out also takes away the threat of panicked decisions being made. Of course, one day deep-fake videos will likely become a reality and so even video calls may not be trustworthy, but for today this procedure will protect against all but the most sophisticated fraudsters (and these aren’t the ones who are targeting the likes of us – they will be defrauding multinational institutions).
We must make our job that of being a harder nut to crack compared with those around us. Rather like home security alarms: they will not be sufficient to stop the world’s most sophisticated thief, but they will be enough to make the opportunistic criminal move on to an easier target.
If you find yourself confused or worried about any of the above, please don’t hesitate to give me a call to discuss. The more we are aware of the risks we face, the better we can protect ourselves.
Managing savings and investments in Spain
By Chris Burke
This article is published on: 9th January 2026
09.01.26
Happy New Year and welcome back to the “normal” world – although I’m not entirely sure normal is the right word anymore.
If personal finances had a gym, January would be packed. Some people are here for a quick fix. Others are here to make a lasting difference – those who want their money to work properly for the long term, remain tax-efficient, well organised, and (just as importantly) keep calm along the way.
This month, I’m focusing on why anyone with savings or investments should seek professional advice when managing them – particularly here in Spain.
You’ve Made the Money. Now Let’s Not Lose It.
First of all – congratulations.
Making money is hard. You’ve done that part.
The next phase, however, is less about earning and more about not undoing your own success. This is where managing savings and investments properly really starts to matter – especially in Spain, where tax, structure and timing can quietly erode wealth if left unattended.
Here’s why smart people take wealth management seriously (and no, it’s not because they enjoy spreadsheets).
1. Because “Good Returns” Are Meaningless After Bad Taxes
A portfolio that performs well on paper can look very different after Spanish capital gains tax, wealth tax or the solidarity tax are applied.
Managing investments without considering tax efficiency is like filling a bucket with a small hole in the bottom – it works, but not for long.
Good wealth management isn’t about chasing higher returns. It’s about keeping more of the returns you already have.
2. Because Complexity Grows Faster
Than You Expect
At some point, money stops being “a portfolio” and starts becoming a system:
• different assets
• different jurisdictions
• different timelines
• sometimes different family members
Left unmanaged, complexity creates friction. Managed well, it creates flexibility. The goal isn’t simplicity – it’s clarity and tax efficiency.
3. Because Liquidity Is Underrated (Until It Isn’t)
Most financial problems aren’t investment problems – they’re liquidity problems.
Opportunities appear.
Life happens.
Markets wobble.
When everything is tied up, even good decisions become difficult ones. Smart planning ensures you can act when you want to, not only when you’re forced to.
4. Because Markets Are Emotional – and Humans Are Worse
Even experienced investors aren’t immune to poor timing, overconfidence or “just this once” decisions.
A structured, disciplined approach removes emotion from decisions that should be boring, deliberate and repeatable.
Ironically, the less exciting your financial strategy feels – supported by knowledge and research – the better it usually performs.
5. Because Wealth Should Support Your Life, Not Complicate It
Well-managed wealth should reduce stress, not add to it.
It should support your lifestyle, your family and your long-term plans – whether that’s freedom, security or simply peace of mind.
If managing your money feels like a second job, something isn’t working properly.
6. Because Spain Has Rules (Quite a Few of Them)
Spain is a wonderful place to live – and a nuanced place to manage wealth.
From wealth and succession taxes to residency and reporting obligations, the details matter. Ignoring them doesn’t make them go away; it just makes them more expensive later.
Good planning is proactive. Bad planning is retrospective.
The Bottom Line
Managing your savings and investments well isn’t about being aggressive, clever or constantly active.
It’s about being intentional.
You’ve already done the hard part by building wealth. Managing it properly is how you ensure it continues to work for you – quietly, efficiently and for a long time.
Many people only review their financial strategy after something changes: markets, regulations, residency or family circumstances. The most effective planning tends to happen before it’s needed.
If you ever feel it would be useful to sense-check your current approach, explore alternatives or simply have a thoughtful conversation about how your wealth is structured, I’m always happy to do so – discreetly and without obligation.
Sometimes clarity starts with a conversation.
You can arrange an initial consultation to explore your situation [here]. You can also [read independent reviews of my advice and service here].