You haven’t sold your investments.

You haven’t moved your investment account.

You may not even have changed anything about the way your money is invested.

So why should becoming tax resident in Spain make any difference?

For many people moving to Spain, this is one of the questions that gets overlooked.

Your investments may still be held in the country you came from, but your tax position may have changed. For Spanish tax residents, Spain generally taxes worldwide income, subject to the specific rules that apply to the individual and any relevant tax treaty.

That means becoming resident in Spain can be a good time to step back and review your investments as a whole.

Does my investment have to move to Spain?

Not necessarily.

Becoming resident in Spain does not automatically mean that every investment you own needs to be transferred to a Spanish bank or investment provider.

You may have investments, savings or other financial assets held in another country and continue to hold them there.

The more important questions are:

• How will the investment be treated for Spanish tax purposes?
• Are there any reporting requirements?
• Can your existing provider continue to service you as a Spanish resident?
• Are the investments still appropriate for your circumstances?
• Are the charges competitive?
• Does the investment fit with your longer-term plans?

The location of an investment and your tax residence are two different things.

There can also be reporting obligations relating to certain assets held outside Spain. For example, Spain’s Modelo 720 is an information return covering certain foreign accounts, securities, rights, insurance and other assets, subject to the applicable rules and thresholds.

This is one reason why simply leaving everything exactly as it was before moving may not always be the best approach.

Should I sell my investments before becoming Spanish resident?

This is a question I hear regularly.

The temptation can be to think:

“Perhaps I should sell everything before I become resident in Spain and start again.”

But selling investments simply because you are moving country can create its own consequences.

You need to consider the investment itself, potential gains, timing, taxation, transaction costs and what you intend to do with the money afterwards.

There is no universal answer.

For some people, restructuring before or after a move may be worth considering. For others, selling investments could create unnecessary costs or tax consequences.

The important thing is to understand the position before making a major decision.

What about ISAs and other tax-efficient arrangements?

People arriving in Spain often have financial arrangements that were designed around the tax system of their previous country.

An ISA is a good example for someone coming from the UK, but the broader principle applies to people from many different countries.

A tax-efficient investment in one country does not automatically receive the same treatment in another.

That doesn’t necessarily mean it should be closed or sold.

It means its treatment should be understood before making a decision.

What should I review after becoming a Spanish resident?

Rather than looking at each investment separately, I think it is more useful to look at the bigger picture.

For example:

Investments
Are your investments still appropriate for your objectives, timeframe and attitude to risk?

Tax
How are your different sources of investment income and gains treated in Spain?

Currency
If you hold assets in several currencies, does that still make sense now that your life is based in Spain?

Charges
Are you paying for services or investment arrangements that are no longer suitable?

Reporting
Do you have any Spanish reporting requirements relating to assets held overseas?

Retirement
How do your investments fit alongside your pension and other retirement income?

Estate planning
Would your current arrangements still make sense if you died while resident in Spain?

Future plans
Do you intend to remain in Spain permanently, or might you eventually return to your previous country?

These questions can be much more important than simply asking where an investment is held.

Moving country doesn’t necessarily mean moving your investments

One of the biggest mistakes people can make after moving to Spain is assuming that everything needs to be changed immediately.

Sometimes it does.

Sometimes it doesn’t.

The better approach is to understand what you already have, how it is treated now that you are resident in Spain, and whether it still fits the life you are building here.

Your investments may not need to move.

But your financial plan probably deserves to move with you.

If you’ve recently become tax resident in Spain and haven’t reviewed your investments and wider financial arrangements since your move, it may be worth taking a fresh look.

At The Spectrum IFA Group, I work with expatriates and internationally mobile individuals living in Spain, helping them review pensions, investments and wider financial planning in the context of their circumstances in Spain.

If you’re unsure whether your existing investments are still appropriate now that you live in Spain, get in touch and we can discuss your circumstances and whether a review would be worthwhile.

Every year, thousands of Britons make the decision to swap grey skies for blue horizons and build a new life on Spain’s Costa del Sol, and it is for much more than just the sunshine.

It’s also about the quality of life, financial freedom, family life, health, and making retirement the best chapter of life rather than simply the last. Recent research continues to show Spain is comfortably the number one destination for British retirees, attracting more than twice the interest of Portugal, and significantly more than France or Italy.

When I am dealing with clients and their plans to move here, I have noticed something interesting, in that people rarely move because of one particular reason, but often when asked, the overriding reason tends to be because everything simply ‘feels much better’.

For many British retirees, the financial benefits are just as attractive as the climate, with recent comparisons showing that overall living costs in Spain are around 32% lower than the UK, equating to almost £400 per month less spent. Groceries, household costs, restaurants and leisure activities are all significantly cheaper.

This doesn’t simply mean spending less, it often means living better, eating out more frequently, a healthier diet, swimming in the pool you didn’t have before, all of which define quality of life.

It’s not all plain sailing though, as moving countries also creates one of the biggest financial transitions many people will ever make, with a different tax system to adjust to, pension rules changing, Investment tax changing, as well as inheritance planning being different. Therefore the strategies that worked perfectly in Britain, can often become inefficient, or even expensive, once you’re a Spanish tax resident.

Moving to Spain is exciting. Your pension, however, probably wasn’t designed with the move in mind.

For many people, a UK pension is one of their largest assets. So, after becoming resident in Spain, it is natural to ask whether the pension should now be transferred to a Spanish or international arrangement.

But there is an important question to ask first:

Does it actually need to move?

The answer isn’t necessarily yes.

Do I need to transfer my UK pension?

Moving to Spain does not automatically mean that your UK pension needs to be transferred overseas.

Depending on your circumstances, you may be able to leave your pension in the UK and continue to manage it from Spain. In some cases, that may be the most appropriate option.

Before considering a transfer, it is important to understand what you already have, including:

• The type and value of your pension
• The investments and charges
• Any guarantees or valuable benefits
• When you can access the pension
• How you expect to use it in retirement
• Whether you may eventually return to the UK

A transfer should therefore be a financial planning decision, rather than simply a consequence of moving country.

This is why simply looking at where your pension provider is based isn’t enough.

Your tax residency, the type of pension and how you intend to take the benefits all need to be considered together.

What about my UK State Pension?

Your UK State Pension can generally continue to be paid while you live in Spain, subject to the relevant rules.

But your State Pension is only one part of your retirement income.

Your wider retirement plan might also include workplace pensions, personal pensions, SIPPs, investments, property or cash savings.

The important question is therefore not just:

“What will my pension pay me?”

but:

“How will all my sources of retirement income work together?”

Should I transfer my pension overseas?

This is where it is particularly important not to rush.

Certain overseas pension transfers can be subject to a 25% overseas transfer charge, depending on the circumstances, although exemptions and allowances can apply.

There can also be valuable benefits or guarantees attached to an existing pension that could be lost following a transfer.

So rather than asking:

“Can I transfer my pension?”

the better question is:

“What would I gain by transferring, and what could I potentially lose?”

So, what should I do?

If you’ve recently moved to Spain with a UK pension, I wouldn’t start by asking which provider you should transfer to.

I’d start by understanding what you already have and how it fits into your new life in Spain.

For some people, the best decision may be to leave their UK pension exactly where it is. For others, a review may identify opportunities to improve the investment strategy, charges, flexibility or overall retirement plan.

Moving to Spain doesn’t automatically mean your pension needs to move. But your financial plan probably deserves to move with you.

Have you reviewed your pension since moving to Spain?

If you’ve recently become resident in Spain and haven’t reviewed your UK pension and wider retirement planning, I would be happy to have an initial conversation with you.

At The Spectrum IFA Group, I work with expatriates living in Spain to review their pensions, investments and retirement plans, taking into account their circumstances in both the UK and Spain.

If you’re unsure whether your existing pension arrangements are still right for you, get in touch and we can discuss your situation and whether a review would be worthwhile.

It’s When the Financial Decisions Get Harder

For years, retirement is the destination.

You work. You save. You invest. You build your pension.

Then you retire.

Job done? Not quite.

In fact, retirement is often when the financial decisions become more important.

While you are working, your salary provides a regular income. If markets fall or you overspend, you have time to recover.

Once you retire, the equation changes.

Your investments may need to provide your income, potentially for 20, 30 or even 40 years.

So the question isn’t simply:

“How much money have I accumulated?”

It is:

“Will it be enough to support the life I want?”

What happens when things don’t go to plan?

Markets fall.

Inflation rises.

Unexpected expenses appear.

You live longer than expected.

Or one spouse dies before the other.

A retirement plan built around everything going perfectly isn’t really a plan.

This is why understanding your future cash flow can be just as important as choosing your investments.

Rather than simply looking at what you have today, you can model different scenarios:

• What if investment returns are lower?
• What if inflation remains high?
• What if you live to 95 or 100?
• What if you need a large amount of capital unexpectedly?
• What happens to your spouse if you die first?

You can’t predict the future. But you can prepare for different versions of it.

It’s when your wealth needs to start doing the job your salary used to do.

Is your retirement plan built around a number – or a lifestyle?

If you’re approaching retirement or already retired in Spain, don’t leave the answer to chance.

A personalised cashflow forecast can bring your financial future to life. It can show how your income, spending, investments and capital could develop over time—and, importantly, what happens if things don’t go exactly as planned.

You don’t need to predict the future. You need to understand it.

Are you receiving the advice you should be?

There are also many people who already have pensions, investments or other financial arrangements in place but haven’t had a meaningful review of their circumstances for some time.

Perhaps your adviser has retired or moved on. Perhaps you’ve been passed between advisers. Or perhaps you simply aren’t receiving the regular contact and ongoing advice you expected.

If that sounds familiar, you don’t necessarily need to start again.

A fresh review can help you understand what you currently hold, whether it remains appropriate for your circumstances and whether your financial arrangements are still aligned with your goals.

Your financial circumstances don’t stand still—and your financial plan shouldn’t either.

Whether you’re approaching retirement, already retired, or simply feel that your existing arrangements aren’t receiving the attention they deserve, a review can be a useful first step.

There is no obligation to change your existing investments or make any immediate decisions.

The starting point is simply a conversation about where you are today, what you want your money to achieve and whether your current arrangements are still working for you.

If you haven’t received retirement or pension planning advice in the past 12 months, it may be time to review where you stand. Get in touch to arrange an initial conversation and let’s look at whether your current arrangements are still working for you.

Because the earlier you identify a potential problem, the more options you have to do something about it.

What can increase your tax bill?

Sales and certain transfers of assets before 31 December may be taxed in the current tax year.

Sales

Some taxes are cumulative. If you continue selling assets that have increased in value, the tax rate will be based on your total gains for the whole year.

The tax rate will also depend on which Autonomous Community you are resident in. For example, the top rate of tax on gains in Catalonia is 30%.

If you think your savings, or perhaps that second property, have performed well, the result can look very different once the tax bill is taken into account.

Selling a second property, or selling your main residence if you are under 65 at the point of sale, can create a significant tax bill.

If you have only one property to sell but have already made significant gains from other sales this year, should you consider completing the property sale in the new tax year instead?

The profit from the sale of vested shares received through share option schemes can result in either income tax or capital gains tax. The constitution and terms of the share option scheme will determine which tax treatment applies.

We regularly see shares being sold soon after they have vested. If you have share options vesting, you can reply to this email to find out more and discuss whether you should sell in this tax year or the next.

Transfers

Making transfers of assets between people before the end of the year can also increase your tax bill. These transfers can include:

• Gifts to individuals who are tax resident in Spain
• Gifts to non-resident individuals involving assets located in Spain
• Transfers of non-EU pensions (for example, UK pensions) into European-based pension schemes

A pension transfer can potentially be taxed on the whole transfer value by adding it to all your other income. The result can be a very significant tax bill — potentially tens of thousands of pounds on a relatively modest pension.

Get specialist advice before you act

To ensure you receive the best possible support and advice, we can also call upon lawyers, who we have worked with 14 years, as needed.

What you should do in relation to a sale or transfer will depend on your personal circumstances. There is no one-size-fits-all answer.

To avoid making costly mistakes, you are welcome to book a call at a time that is convenient for you using my online booking system. You can tell me about your personal circumstances, and we can then advise you on what you should consider doing.

The right course of action will follow from there.

Moving to Spain can feel like the final destination.

For many expats, the plan is simple: sell up, move abroad, enjoy the lifestyle and build a new life in the sun.

But what happens if, somewhere down the line, Spain isn’t quite what you expected?

Perhaps your circumstances change. Your children move elsewhere. Your priorities change. You decide you want to be closer to family. Or maybe you simply discover that another country, or even your home country, suits you better.

It is something few people consider when they first move abroad.

Your financial life needs to be flexible too

When you move countries, your financial affairs can become increasingly complicated.

You may have pensions in one country, investments in another, property in Spain and bank accounts spread across several jurisdictions.

Then, if you decide to move again, the questions start to appear:

What happens to my investments?

What happens to my pension?

Will I still be able to hold the same investments if I leave Spain?

What happens to my tax position?

Will moving again create unexpected tax consequences?

These aren’t necessarily reasons not to move — they are reasons to think beyond the move itself.

Don’t build a financial plan that only works in Spain

One of the biggest mistakes can be assuming that today’s circumstances will remain unchanged for the next 20 or 30 years.

A good financial plan should consider not only where you live today, but the possibilities that could affect you tomorrow.

That might mean understanding how your investments could be affected if you become tax resident somewhere else, ensuring your pension arrangements remain appropriate, or simply keeping enough flexibility in your finances to give you choices later.

Because ultimately, financial planning isn’t just about making your money work for you in your current circumstances.

It’s about making sure your money doesn’t prevent you from changing those circumstances.

The freedom to change your mind

Nobody moves to Spain expecting it not to work out.

But having a plan for the unexpected doesn’t mean you are expecting the worst.

It means giving yourself options.

Perhaps Spain will be your home for the rest of your life.

Perhaps it will be the place you spend the next ten years.

Or perhaps, one day, you’ll decide it’s time for another change.

The best financial plan isn’t necessarily the one designed around one particular destination.

It is the one that gives you the freedom to choose where your life takes you next.

Is your financial plan flexible enough?

If you live in Spain, it can be useful to step back and consider whether your current financial arrangements would still work if your circumstances or country of residence changed.

I help expats in Spain look at the bigger picture — from investments and pensions to tax planning, inheritance and long-term cashflow.

If you’d like to understand how flexible your financial plan really is, get in touch for an initial conversation.

If you live in or are thinking of moving to Valencia, Alicante, or Castellón, there’s good news: the regional government has approved fresh tax cuts that could save you money.

Building on last year’s changes, the new rules (set out in Law 5/2026) trim income tax, double the wealth tax exemption, and make inheritance and gift tax more generous.

Income Tax Going Down

In Spain, your income tax bill combines a national rate and a regional rate. The Valencian government has cut its portion, which means lower overall rates for residents.

What’s changing?

The lowest rate drops from 18.5% to 18.3% in 2026, then to 18.2% in 2027

The top rate falls from 54% to 53.85% in 2026, then to 53.75% in 2027

Most bands in between will see similar small reductions

These cuts apply to wages, pensions, and rental income. Savings and investment income rates are set nationally and haven’t changed.

Rates shown are combined state and Valencian regional rates

Wealth tax allowance doubles

This is the big one for wealthier residents. The Valencian wealth tax exemption is jumping from €1 million to €2 million per person starting 31^st December 2026.

What does this means?

A couple could shield €4 million combined through personal allowances

Plus up to €600,000 extra for their main home (€300,000 each if jointly owned)

That’s potentially €4.6 million protected from wealth tax

One catch: Spain’s national “Solidarity Tax on Large Fortunes” still kicks in if your net assets top €4 million, so very wealthy individuals may still face some wealth-related taxes.

Inheritance and Gift Tax improvements

The rules for passing assets to family members are getting more flexible:

Family business relief expanded

The 99% tax relief for family businesses now covers more relatives

Previously limited to direct family; now extends to collateral relatives up to fourth degree (including first cousins)

This helps keep family businesses intact across generations

New tax credits for wider family

25% credit on inheritances and gifts between siblings, aunts, uncles, nephews, and nieces

Rising to 50% from June 2027

Bottom Line

The Valencian Community is becoming increasingly tax-friendly, especially for wealthier residents and families planning to pass on assets.

That said, lower rates don’t automatically mean a lower tax bill. If you’re a UK national living in Spain, you still need to navigate:

• Spanish income, wealth, and inheritance taxes
• UK Inheritance Tax (IHT)
• Cross-border UK pension and investment rules
• Property ownership in multiple jurisdictions

Tax rules in both Spain and the UK are forever changing – it’s worth reviewing your arrangements to make sure you’re not paying more than necessary.

Key dates to remember!

Income tax cuts: January 1, 2026 (with further cuts 1^st January, 2027)

Wealth tax exemption increase: 31^st December, 2026

(applies to 2026 tax returns filed in 2027)

Inheritance tax credit increase: June 2027

Most people have a picture in their head of what retirement will look like.

More time with family. Travelling. Long lunches in the sunshine. Perhaps enjoying the lifestyle that motivated you to move to Spain in the first place.

But there is a problem with the way many people plan for retirement.

We tend to plan for the retirement we expect — rather than the retirement we might actually have.

What if you decide to stop working earlier than planned?

What if you want to spend more in the first few years of retirement while you are fit and healthy?

What if investment markets fall just as you begin taking an income?

Or what if, quite simply, your priorities change?

These aren’t necessarily problems. In fact, having the financial flexibility to respond to them can be one of the greatest benefits of good planning.

It’s more than a pension pot

When planning for retirement, it is easy to focus on one number: how much money you have saved.

But the more important question may be:

“What can my money actually allow me to do?”

For people living in Spain, there can be even more to consider. You may have pensions in another country, investments, property, different currencies and a Spanish tax position that has changed since you left your home country.

Looking at each of these individually doesn’t always give you a clear picture of the future.

It is about understanding how your finances could cope with different possibilities.

This is where cashflow planning can be particularly useful. Rather than simply looking at what you have today, it can help you explore how your income, investments, pensions and spending could work together over the years ahead.

It can also highlight opportunities — perhaps you can afford to spend more than you thought, retire earlier than expected, or provide financial help to your family.

Your retirement doesn’t have to follow the original plan

The retirement you imagined ten years ago may not be the retirement you want today.

And that’s perfectly normal.

Perhaps the most useful financial plan isn’t one that tells you exactly what your future will look like.

It’s one that gives you the confidence and flexibility to make choices when life doesn’t go exactly to plan.

If you live in Spain and are approaching retirement, already retired, or simply wondering whether your current arrangements will support the lifestyle you want, I’d be happy to have an informal conversation.

Sometimes the most useful question isn’t:

“What should I invest in?”

It’s:

“What could my future actually look like?”

You are still living in Spain.

Your property is worth more than it was ten years ago. Your pension and investments have changed. Your children may now be living in different countries, and your own priorities may have changed too.

Now ask yourself:

Would the financial decisions you made in 2026 still make sense today?

It is an interesting question because most of us plan for the future we expect to have.

But life rarely follows the plan.

What if things change?

When people move to Spain, they often have a clear idea of what their future will look like.

Perhaps they intend to retire here permanently. They buy a property, organise their pensions and investments, and settle into their new life.

But what happens if things change?

You might decide to move back to your home country, move somewhere else, receive an inheritance, sell your property, retire earlier than expected, or simply live much longer than you originally anticipated.

These aren’t problems. They are simply possibilities.

The question is whether your financial arrangements are flexible enough to cope with them.

And the ability to deal with an unexpected financial event without completely changing your lifestyle.

A good financial plan shouldn’t simply tell you what to do today. It should help you understand what your choices could look like tomorrow.

Try looking at your finances from 2036

Imagine you are already there.

Ask yourself:

• Where am I living?
• Am I still working?
• What income do I need?
• Where are my pensions and investments held?
• What happens if I need to sell my property?
• What happens if my circumstances change?
• What happens if I live another 30 years?

You don’t need to know the answers with certainty.

The purpose isn’t to predict the future. It is to see whether your finances are prepared for different versions of it.

This is where financial planning and cashflow forecasting can be valuable.

It isn’t a crystal ball. It is a way of helping you understand your financial future and, importantly, the choices available to you.

So, imagine it really is 2036.

If your life looks different from what you expect today, will your financial plan be able to adapt?

Perhaps the most important question isn’t:

“How much money will I have?”

It is:

“What will my money allow me to do?”

Could your financial plan adapt to your future?

If you are an expat living in Spain and haven’t reviewed your financial arrangements recently, I would be happy to have an informal conversation with you.

There is no obligation to make any changes. Sometimes, simply looking at where you are today and considering the different paths your future could take can give you greater clarity and confidence.

If you’d like to explore what your financial future could look like, get in touch and let’s start the conversation.

“Plans are nothing. Planning is everything.” — Dwight D. Eisenhower

When people ask me how I became a financial adviser, they’re often surprised when I tell them it started in the British Army.

Before working in financial services, I served with the First Battalion Grenadier Guards, including operational tours in Baghdad and Basra. Those experiences taught me lessons that have stayed with me throughout my career, not just in finance, but in life.

One lesson stands above all others: Hope is not a strategy.

Before any operation, every detail was planned. We considered different scenarios, prepared for unexpected events and made sure everyone understood their role. No one expected everything to go exactly as planned, but having a clear strategy meant we could adapt when circumstances changed.

Life isn’t so different. Whether you’re building a career, raising a family, running a business or relocating to another country, things rarely unfold exactly as we expect.

I’ve been fortunate to help families from many parts of the world who have chosen to make Spain their home. While every family’s story is unique, they all have one thing in common: they’ve made a life-changing move.

After leaving the Army, I built my career in financial services in London before moving to Spain in 2020. Looking back, the industries couldn’t appear more different, but the principles are remarkably similar: prepare well, review regularly and adapt when circumstances change.

Whether you’re originally from the UK, the United States, Canada, France, Germany, the UAE or anywhere else, moving abroad is more than a change of address. It’s the beginning of a new chapter. Your financial plan should begin a new chapter too.

How can we help?

At The Spectrum IFA Group, we help internationally mobile individuals and families living in Spain bring their finances together through clear, long-term financial planning. If you’d like to arrange a no-obligation conversation, we’d be delighted to discuss your circumstances and help you build a financial plan that’s ready for whatever comes next.