Most people try to do the right thing. They work hard, save diligently, contribute to their pensions, and even invest in property to secure a comfortable retirement and leave something behind for their loved ones. It’s the responsible thing to do, but recent changes to the UK tax system have turned that logic on its head, especially for British expats living abroad or planning to retire in Spain.
Viewing posts categorised under: Spain
Are You Leaving 40% of Your Assets to the Taxman?
By Jett Parker-Holland
This article is published on: 22nd April 2025
22.04.25
As of April 2025, a new inheritance tax test will be introduced, replacing the ambiguous concept of domicile with a more definitive measure: residency. If you are living—or planning to live—in Spain for the long term, this change affects you directly. Under the new rules, if you have lived outside the UK for at least 10 of the last 20 years, you’ll be classified as a non-UK Long-Term Resident. This is important because it means your overseas assets will no longer be subject to UK Inheritance Tax (IHT); however, UK-based assets such as pensions, property, and bank accounts will still be taxed at 40%.
For many clients, much of their estate remains tied up in the UK. This includes UK property, bank accounts, and—most notably—UK pensions. Although yields on UK assets like rental property or fixed-term bank deposits can appear attractive, the long-term benefit may be diminished if 40% of the value is lost to IHT on death. Because of this, those planning to live in Spain for the long term may want to consider moving certain assets out of the UK tax system. It’s an area where careful financial planning can make a real difference.
The same applies to pensions. Under the old regime, UK pensions were exempt from IHT. Now, pensions are included as part of your estate. If you pass away after age 75, your beneficiaries could face a 40% IHT charge, and potentially up to another 45% in income tax when they take money out of the pension. It’s a harsh reality and fundamentally changes how we should value UK pensions. If your beneficiaries can’t access the full pot, it’s simply not as valuable as it once was. Under these conditions, a £400,000 pension could lose £160,000 to IHT alone.
At Spectrum, we specialise in cross-border financial planning. We can help you review your UK assets and explore options to reduce your exposure to unnecessary taxes, ensuring more of your hard-earned wealth stays with your family, not the taxman.
If you’re living in Spain, or planning to, and you’re unsure how these changes affect you, this may be a good time to review your plans. A short conversation could help secure your legacy.
If you would like to discuss your situation in more detail and explore your options, please feel free to contact me directly for a no-obligation consultation.
Navigating Offshore Banking: What Superyacht Crew Need to Know
By Tom Worthington
This article is published on: 18th April 2025
18.04.25
For those working aboard superyachts, managing finances across multiple countries is part of the job. Offshore banking is a common topic in the industry, but what does it actually mean? More importantly, how can superyacht crew members ensure they use offshore accounts legally and effectively?
What is an Offshore Account?
An offshore account is a bank account held outside the account holder’s country of residence. These accounts are often established in jurisdictions known for financial privacy, currency flexibility, and, in some cases, tax efficiency. Common offshore banking hubs include Switzerland, the Cayman Islands, Singapore, and Luxembourg.
Key Features of Offshore Accounts
• Multi-Currency Access – Useful for those paid in different currencies or working in international waters.
• Privacy & Confidentiality – Some jurisdictions have strict banking secrecy laws.
• Tax Efficiency – Depending on residency status, offshore accounts may offer tax advantages.
• Asset Protection – Offshore banking can safeguard funds from political instability or legal claims.
Are Offshore Accounts Legal?
Yes. Offshore banking is entirely legal, provided account holders comply with tax reporting obligations in their country of residence. Many governments enforce strict regulations requiring individuals to disclose offshore accounts.
Key compliance measures include:
• Common Reporting Standard (CRS) – Over 120 countries automatically share offshore account data with tax authorities.
• Foreign Account Tax Compliance Act (FATCA) – A U.S. law requiring Americans to report foreign financial accounts.
Failure to disclose offshore accounts can result in heavy fines, tax penalties, or even legal action. However, when used correctly, offshore accounts serve legitimate purposes such as international transactions, estate planning, and investment diversification.
How Offshore Banking is Enforced
The days of absolute banking secrecy are over. Since the introduction of CRS in 2018, tax authorities worldwide have cracked down on undisclosed offshore assets. Here are a few key examples:
Switzerland’s Secrecy Crumbles
• Over 3.1 million accounts worth €1.3 trillion were reported in the first year of CRS.
• Countries like France, Germany, and Italy used this data to launch tax audits on individuals with undeclared Swiss accounts.
• Many account holders voluntarily disclosed assets to avoid penalties.
Spain’s Offshore Crackdown
• Over 11,000 undisclosed offshore accounts were uncovered from 2020-2023.
• Tax authorities recovered millions in unpaid taxes and issued heavy fines.
• High-profile cases, including football stars like Cristiano Ronaldo and Lionel Messi, highlighted the risks of offshore tax evasion.
UK’s HMRC Recovers £570 Million
• The UK’s tax authority identified over 150,000 residents with hidden offshore accounts.
• £570 million was recovered in unpaid taxes.
• Stricter penalties were introduced for failure to declare offshore wealth.
What This Means for Superyacht Crew
Superyacht crew frequently work across jurisdictions, earning salaries in different currencies and often living outside their home country.
This can make offshore banking an attractive option, but it’s crucial to remain compliant with tax laws.
Key Considerations:
• Know Your Tax Residency – Your tax obligations depend on where you are officially resident, not just where you work.
• Report Your Offshore Accounts – Avoid penalties by declaring foreign accounts where required.
• Seek Professional Advice – Offshore banking and tax laws are complex. Consulting a financial adviser who understands the yachting industry can help navigate the rules effectively.
Final Thoughts
Offshore banking is a useful financial tool when used correctly. However, with increasing transparency and global information-sharing agreements like CRS, hiding offshore assets is no longer an option.
Superyacht crew should approach offshore banking with full awareness of their legal responsibilities to ensure financial security without unnecessary risks.
To make sure you are doing it properly, feel free to contact Tom
New UK IHT rules
By John Hayward
This article is published on: 7th April 2025
07.04.25
As of 6th April 2025, several significant changes to inheritance tax (IHT) laws have been implemented in the United Kingdom. For the purposes of this article, I will focus on those people that I deal with in the main, namely UK nationals who are tax resident in Spain.
From a UK perspective, under the new rules, an individual will be classified as a “Long-Term Resident” (LTR) if they have been UK tax resident for at least 10 out of the previous 20 tax years. LTRs will be subject to IHT on their worldwide assets. Conversely, UK nationals who have lived in Spain for 10 out of the previous 20 years will only be liable for IHT on UK-situated assets.
For individuals planning to leave the UK, there will be a “tail” period during which their worldwide assets remain subject to UK IHT. The duration of this tail depends on the number of years the individual was UK resident, ranging from three to ten years.
Inheritance Tax threshold freeze
The IHT threshold, the nil-rate band, which determines the value above which estates are subject to tax, is frozen until 2030. In other words, the value of an estate may increase but the allowance will not. The threshold for the majority of those affected is £325,000. This means that estates valued above this threshold will be taxed at 40%. As there is an inter-spouse exemption in the UK, the surviving spouse will normally inherit the deceased’s allowance creating an allowance of £650,000. There is no such exemption in Spain but, depending on where someone lives in Spain, a beneficiary might be eligible for an allowance to be applied. These (Spanish) tax rules have changed regularly over the two decades that I have lived in Spain and so it is probably wise not to put too much reliance on them for long-term financial planning.
Inclusion of pensions in Inheritance Tax
Beginning in April 2027, pension funds will be considered part of the assets subject to IHT. This means that pension funds outside the UK could be exempt. At the same time, the UK has recently introduced a 25% charge for moving pension funds to overseas schemes (QROPS). Although this might appear to put the final nail in the coffin of the overseas pension transfer market, there could be a Lazarus moment. In simple terms, if a UK based pension fund is valued at £1,000,000 and is moved to QROPS, the fund would reduce to £750,000 after applying the 25% charge. For those who prefer skiing (spending the kids’ inheritance) the same fund left in the UK pension could be subject to a 40% IHT charge, obviously more than if the fund had been transferred with a 25% charge. Growth assumptions and other factors will need to be considered but overseas transfers cannot be ignored.
How UK and Spanish IHT apply to Spanish compliant bonds
As we can see, assets in the UK will be subject to UK IHT. Why not just move cash from the UK to Spain? The problem here is that this opens the Spanish tax door.
As well as bank deposits, there might be ISAs and other UK investment plans which will be subject to UK IHT. UK advice has been restricted since Brexit and, for most tax residents of Spain, holding certain assets in the UK is simply not tax efficient. But moving everything to Spain could also cause problems.
Investment options
We arrange investment bonds, often referred to as Spanish compliant bonds, which are recognised as insurance policies and benefit from the favourable tax treatment in Spain even though they are not situated in Spain. The bonds we recommend are based in Ireland and Luxembourg, both in the EU, satisfying Spain’s conditions. For Spanish IHT, Spain will tax the individual receiving the benefit if either a) the beneficiary is resident in Spain or b) the asset is in Spain. This means that a UK resident beneficiary will not pay Spanish IHT on the bond. Equally, if the deceased is a non-Long Term Resident of the UK under the new rules, the bond will not be part of a UK IHT calculation.
The main aim of a Spanish compliant bond is to increase the value of the underlying investment whilst putting clients in a position to supplement their income. Of course, any investment should reflect the tax regime of the country that the person is resident in. The bonds can move with the individual for these purposes. For example, whilst a resident of Spain, the Spanish tax deferral rules apply. If the person moves back to the UK, the UK rules then apply with the added benefit that tax relief available in respect of time spent outside the UK.
For more information on how we can help you position your money in the most tax efficient manner, contact me at john.hayward@spectrum-ifa.com or (0034) 618 204 731 (WhatsApp).
Major changes are ahead for British expatriates living abroad
By Jeremy Ferguson
This article is published on: 24th March 2025
24.03.25
Historically, the concept of “domicile” has been central to determining UK Inheritance Tax obligations for British citizens. Many British expats found that despite decades abroad, they were still deemed UK domiciled on their demise, exposing not just their UK assets but their global estates to UK Inheritance Tax.
New rules which soon come in to effect mark a major shift in this area, particularly impacting British expatriates who have been living overseas for extended periods, replacing the concept of domicile with new long-term residence (LTR) rules. Under these new rules, the test for liability to UK Inheritance taxes will be based on your residency.
For those of you who have lived outside of the UK for at least 10 of the last 20 years, you will now be classified as non-UK long-term residents. This change means your global assets (except UK based holdings such as pensions, property, investments and bank accounts) will be exempt from UK Inheritance tax.
Therefore, if you are intending to remain out of the UK indefinitely or you have already been out of the UK for more than ten years, you should seriously consider moving assets outside of the UK.
As an example, if you hold funds in a UK bank account in GBP then these will remain subject to the old IHT rules as they will be classed as a UK asset, so if the monetary amounts are substantial enough, it makes perfect sense to move these funds outside of the UK. This is something we can help you with by explaining what options are available and where the best interest rates can be found. (This could even offer you the chance of deferring annual taxes here on any interest earned).
On one hand they giveth, however on the other hand they taketh away
An expression many of you will be familiar with. For those of you who watch the UK news, many will be familiar with the plight of the UK farmers who are up in arms about the change in the tax treatment of their farms on inheritance. What amazes me is the fact that in the same budget, the Government announced that UK pensions are now going to form part of your assets assessed for Inheritance taxes, whereas previously they were exempt. I explained earlier about the favourable changes if you live outside of the UK, so on one hand they giveth, but now your pension will be subject to UK Inheritance tax, they taketh away!
This is a real sting in the tail if you have planned to leave your pension to your children due to the tax efficiency this previously offered. If we look at the worst case scenario under the new regime, you have a UK pension and pass away after the age of 75, your beneficiaries could now be hit with a 40% UK Inheritance tax charge and on top of that there could be further tax liabilities when they choose to take income (of up to another 45%…….). I am simply amazed that these facts aren’t getting the column inches the farmers are getting. Again, because of this there may be sense in moving as much of your pension out of the UK scheme as possible.
As with anything as important as this, planning and taking action could save you and your family a fortune in unnecessary taxes. We are here to help explain the issues, sensible ways to deal with them and ultimately helping you to make a well informed decision as to what you should or shouldn’t do..
News addiction can damage your wealth
By John Hayward
This article is published on: 3rd March 2025
03.03.25
Basing investment decisions on daily headlines has led to financial loss
We are a couple of months into 2025 and many aspects of life seem to be engulfed in uncertainty which is no great shock because that has always been the standard. Recent headlines have been pretty much the same as these from the 1960s.
- Washington, Moscow establish ‘hot line’ link
- New peace plan for Middle East
- Rail go-slow begins
- Canada plane crash
Not a lot really changes apart from the global population and prices. Yet it seems that very little is learned with all of this experience. People react to headlines and make decisions based on what might well be complete nonsense. The press obviously has to write stories but that does not mean that they are accurate, or even true.
“Watch what we do, not what we say.”
– John Mitchell, Attorney General to Richard Nixon, 1969
All of this has come to the fore with particular focus on Donald Trump and his team. Many people now have a negative outlook because Donald Trump was elected again. Clients have been asking me if their investments have been affected. They have been pleasantly surprised to learn that, far from the investment world imploding, the value of their investments is higher than it was when Donald Trump was elected on 5th November 2024.
Of course, markets can go down as well as up. However, history has shown us that, over time, there have been more ups than downs.
When considering savings and investments, it has often been wiser to ignore the daily headlines and allow things to sort themselves out which, more often than not, they do. We have already seen how the President can appear to regularly change his mind and moving with these political waves could lead to investment nausea.
When he was first President from 2017 to 2020, the S&P 500 index rose by 47% during his term. The message is that the United States of America is the place to have at least some money right now, if not always. The unfortunate fact of life is that stock markets appear to be more important than the well-being of people in general.
In June 2023, clients of mine decided to surrender their investment plan as they felt that they would do better in a deposit account. In 2023, with high inflation leading to high interest rates, 5% interest in a deposit account seemed extremely attractive to them. I am not certain if they are still receiving 5% but, even if they are, they are about 7% down on what they would have had if they hadn’t surrendered their policy and had left the funds intact. Added to that, they will have had to have paid tax each year on the interest whereas tax on the investment gains would have been deferred whilst within the Spanish compliant bond they had. So often, people react to the headlines, make decisions based on short-term market movements, and lose out. And then blame their financial advisers!
I discourage focusing too much on daily headlines. Other than a story about a cat rescued from a tree, headlines are rarely cheery and there is almost always nothing we can do about what has happened. By taking a lot of notice of daily news, one can be led to making decisions that will lead to regret.
For a considered approach to investing, making you aware of taxation in Spain and the UK, contact me today.
Coming to an email box near you:
- Premium Bonds and their value in Spain
- Consolidating UK private pensions
- Claiming state pensions
- Entry/exit system
- Power of attorney
Top financial tips – Spain February 2025
By Chris Burke
This article is published on: 13th February 2025
13.02.25
Let’s get right into it, the start of the year is a chance to get yourself organised and write down that list of life admin tasks you keep putting off and finally complete, one by one – I am no different to anyone else – and how good does it feel when you tick each one off!
I must admit, I keep a list of ‘tasks’ on my phone, but each day I write these down in front of me which seems much more effective – maybe because I am constantly looking at them? Then I ‘tick’ them off as I go – it’s so satisfying!
Anyway, from a finance perspective this month I remind you of those important admin tasks that you really need to make sure you are on top of and which, if you don’t address, could end up costing you and/or your loved one’s money:
Wills
Make sure, particularly if you have children, that you have a Will and that it is up to date/correct. Many people are astounded to find out that even today there are still archaic rules in place in Spain regarding your children and how inheritance rules apply – make sure you understand this and are comfortable with what could happen.
Mortgages
2025 has a strong forecast for interest rates to continue falling, predicting to around 2% by the end of the year. It could be a good time to review that mortgage and make sure you are not over-paying or to secure a better rate moving forward which, over the lifetime of the mortgage, could save you tens of thousands of euros.
Savings/Investments
With interest rates predicted to continue to fall, although possibly not enough to change inflation, it’s important any savings you have are working hard for you – obtaining a 7% return over 10 years doubles your money. With careful planning and investment advice you can preserve/grow your wealth as per your needs.
Inheritance/Gift planning
Depending on where you live in Spain, it can be very important (and valuable) to know and understand how inheritance tax works versus receiving a gift from someone – in many cases it can be beneficial to do the latter, potentially avoiding much larger, future taxes.
I am here to help you get organised and take those financial worries away. If you would like to discuss any of the above topics in more detail, or 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.
House prices in Spain
By The Spectrum IFA Group Spain
This article is published on: 12th February 2025
12.02.25
What happened to house prices in Spain in 2024 and what can we expect in the year ahead ?
First, let’s consider how the residential property market performed last year. The significant increase in average house prices, reaching €2,164 per square metre, represented a 12.5% increase from the historical peak of 2007.
This growth was largely driven by the following factors:
Sustained Demand: Economic recovery and job stability have encouraged more people to invest in property, in turn maintaining steady demand in the housing market.
Limited Supply: The scarcity of developable land along with building restrictions have limited the supply of new homes, particularly in urban areas and coastal regions, contributing to price increases.
Foreign Investment: Interest from foreign buyers has been significant, accounting for around 15% of transactions in 2024. The top buying nationalities were, in this order: British, Germans, Dutch, Moroccans, French, Romanians, and Italians. The most sought-after regions were Illes Balears, Comunitat Valenciana, Canary Islands, Regiónde Murcia, Catalonia, and Andalusi
Monetary Policy: Low-interest rate policies implemented by the European Central Bank have facilitated access to affordable mortgages.
If we also review prices regionally across the country, it’s possible to identify quite substantial price variation between autonomous communities:
- The Community of Madrid recorded an average price of €3,780/m², with an annual increase of over 17%.
- The Balearic Islands reached an average price of €3,771/m², rising 15 % compared to the previous year.
- The Canary Islands experienced a 17% increase, reaching €2,327/m².
- Basque Country: The region recorded an average price of €3,157/m².
- Catalonia: The average price stood at €2,615/m² (in the province of Barcelona: €3,007/m²).
Additionally, in terms of city-level price increases, Valencia led with a 24% rise, followed by Málaga (21.5%) and Madrid (20%). In contrast, Huesca was the only provincial capital where housing prices declined, with a drop of 0.4%.
Turning to the possible consequences of price increases, the following points become relevant –
- Reduced Accessibility: Rising prices make it harder for lower-income groups, especially young people and middle-income families, to access homeownership.
- Household Debt: To buy a home, families must take on higher mortgages, increasing their debt levels and potentially affecting their long-term financial stability.
- Regional disparity: While regions such as Madrid, the Balearic Islands, and the Basque Country have the highest prices, other areas have seen more moderate increases, exacerbating territorial disparities.
Looking ahead, according to extensive analysis within the banking sector, house prices are expected to continue rising in the short term, but at a more moderate pace. Forecasts suggest:
- 2025: A 5%price increase.
- 2026: A 3%rise.
- 2027: A 2%increase, aligning more closely with inflation predictions.
Factors such as potential interest rate cuts by the European Central Bank, high levels of employment, property supply shortages, and high foreign demand, particularly in the major cities, the Mediterranean coast, and the islands, are likely to influence this trend – inevitably though, there is no absolute certainty in market direction from here.
And finally, it is of course essential for potential buyers to carefully assess their financial circumstances and consider market conditions before committing to buying. Seeking advice from mortgage professionals can be invaluable in navigating this complex landscape.
Should you have any inquiries regarding the content of this article, or any other questions relating to mortgages in Spain, please do not hesitate to reach out to us for further information.
Patricia Nadal
Why a Financial Adviser is Essential for Expats Living in Spain
By Barry Davys
This article is published on: 18th January 2025
18.01.25
Change is inevitable, and for many, it can be unsettling—especially when moving to a new country like Spain. Navigating the complexities of a new tax system, managing investments in unfamiliar markets, and ensuring your financial future aligns with both your personal goals and local regulations can be daunting.
Fortunately, in the 19 years I have been in Spain, many of my clients have placed their trust in me, allowing me to guide them through these challenges on their financial journeys. While seeking professional advice might involve a cost, the peace of mind it provides – and the assurance that your wishes are carried out efficiently and effectively – makes it an invaluable investment.
For expats living in Spain, the need for a financial adviser becomes even more apparent. The financial landscape here is unique, with specific regulations, tax implications, and cultural nuances that can easily trip up even the savviest individuals. An experienced adviser ensures that every decision you make is informed, compliant, and tailored to your needs.
The Value of an Adviser in Spain
When you choose to work with a financial adviser in Spain, you gain far more than someone to manage your investments. Here’s what we bring to the table:
- Navigating Spanish Tax Systems: Spain’s tax system is complex, particularly for expats. From wealth taxes to inheritance taxes and the rules around double taxation treaties, an adviser can guide you through the maze and help optimise your arrangements.
- Structuring Tax-Efficient Investments: An adviser ensures your assets are structured to maximise tax efficiency during your lifetime and, importantly, for your family after you’re gone.
- Providing Stability During Market Turbulence: When stock markets fluctuate, it’s easy to panic. An adviser helps you maintain perspective, adapt strategies if necessary, and keep focused on your long-term goals.
- Liaising with Local Experts: In Spain, financial planning often requires collaboration with tax lawyers, notaries, and other local experts. A good adviser coordinates these relationships to safeguard your interests.
- Accessing Expert Investment Insights: Advisers have access to fund managers and global investment opportunities that may outperform self-managed options. This expertise ensures your investments are aligned with your risk tolerance and financial goals.
- Supporting Life Transitions: Whether you’re buying property in Spain, starting or selling a business, or preparing for retirement, an adviser provides a steady hand to guide you through every major change.
Preparing for Life’s Uncertainties
As an adviser with decades of experience, I’ve walked with my clients through every stage of life. For expats, ensuring your financial affairs are in order is crucial—not just for you, but for your loved ones. If your next of kin are unfamiliar with Spanish legal and financial requirements, settling your affairs can become an overwhelming burden.
A good financial adviser ensures everything is prepared ahead of time, reducing stress for those left behind. This includes organising inheritance planning to minimise tax liabilities and ensuring your wishes are carried out exactly as intended.
Planning for Continuity
Even as I consider the future of my own practice, I reflect on the importance of continuity. For my clients, this means having a trusted team in place to manage their affairs should I no longer be available. Similarly, expats need to consider how their financial arrangements will be managed over the long term, especially in a foreign country.
Why You Shouldn’t Go It Alone
While it’s possible to manage your finances independently, the risks of missing out on key opportunities or making costly mistakes are significantly higher. This is especially true in Spain, where the rules and regulations are often different from those in your home country.
Working with a financial adviser ensures that every aspect of your financial life is optimised and aligned with your goals. It’s not just about avoiding pitfalls, it’s about unlocking opportunities that you might not even know exist.
Take Control of Your Financial Future
Whether you’re new to Spain or have lived here for years, the value of professional financial advice cannot be overstated. By partnering with a knowledgeable adviser, you gain more than financial stability, you gain peace of mind, knowing that every decision you make is informed, strategic, and designed to protect your future.
Don’t leave your financial future to chance. Take the first step today. Send me a summary of your situation at barry.davys@spectrum-ifa.com and discover how tailored financial advice can help you achieve your goals while navigating the unique challenges of living in Spain.
Contact me now to begin your journey toward financial clarity, security, and success. Your future self, and your family, will thank you.
AI in financial planning
By Barry Davys
This article is published on: 8th January 2025
08.01.25
Enhancing Your Financial Strategy with Trusted AI Tools
The buzz around Artificial Intelligence (AI) is hard to ignore, with tools like ChatGPT becoming increasingly accessible. While AI offers exciting possibilities, my approach remains measured and focused on one goal: enhancing your financial planning experience.
How AI Enhances Your Financial Planning
AI is a powerful tool, but it’s not a replacement for personalized advice.
Instead, I use AI to complement my expertise, freeing up more time to focus on your unique needs and objectives. Below, I’ve outlined how AI is being integrated into our processes and the benefits it brings to you.
Common Questions About AI in Financial Planning
Will AI take over jobs?
AI is ideal for repetitive tasks, such as sorting recyclable materials in factories. In financial planning, it’s a supportive tool, not a replacement for human judgment and empathy.
Will my financial planning be fully automated?
Absolutely not. Financial planning is deeply personal and requires understanding your goals, values, and circumstances. While AI can assist with specific tasks, I remain at the heart of your financial strategy, ensuring your plan reflects your needs.
Where and How AI is Being Used
I take an incremental approach to adopting AI, focusing on areas that directly enhance your experience and outcomes:
1. Cash Flow Modeling
AI helps generate clearer, more timely reports, allowing us to review and adjust your plan efficiently. Future developments will include portfolio research and implementation improvements, currently in the testing phase.
2. Tax-Efficient Savings
Calculating taxes on investments with complex withdrawal patterns has traditionally been time-consuming. AI now streamlines this process, reducing calculation times from weeks to days, ensuring more accurate and timely tax planning.
3. Investment Research
AI aids in analyzing market trends and investment options, giving us deeper insights to recommend strategies aligned with your goals.
4. Communication
AI enhances how I communicate updates on your financial plan, changes in tax laws, or regulatory developments. You’ll receive information faster and in more digestible formats, keeping you informed every step of the way.
A Human-Centered Approach
AI is an augmentation tool, not a replacement. It allows me to dedicate more time to addressing life events and complex planning needs, including:
- Managing inheritances and inheritance tax (in Spain and the UK)
- Retirement planning tailored to your lifestyle goals
- Tax-efficient strategies whether you stay in Spain or return to the UK
While AI supports behind the scenes, you can trust that I remain your adviser – a person you can rely on for clarity, guidance, and answers to all your financial questions.
A Commitment to Your Success
AI is being introduced thoughtfully, with the sole aim of improving outcomes for you. Rest assured, I’m not becoming a robot or avatar. I will always be here to provide personalized, human-centric advice tailored to your unique circumstances.
If you have any questions about how AI is being used or how it benefits your financial plan, please don’t hesitate to reach out.
To start a conversation book a call with Barry Davys using his online system. This allows you to choose a time that is convenient for you for the call which can be either a phone or video call.
An unusual part of the job
By Jeremy Ferguson
This article is published on: 24th December 2024
24.12.24
I am writing this at the end of another year in which I found myself helping people relocate from the UK to retire to Spain. For many, this was a lifelong dream, for others it was a case of simply having had enough of the UK.
The process is now a lot more involved than it was before Brexit, and my role tends to be focused on making sure all of their finances stack up, and being as tax and investment efficient as possible once they arrive. There are certain things to consider before you leave the UK; an example could be taking your pension lump sum in the tax-free environment of the UK, or making sure your house sale doesn’t create tax implications once you become Spanish resident. This typically revolves around the timing of your move here, which can be critical in relation to effective tax planning.
What has really been obvious to me this year with most of my new clients is the ‘unusual part’ of my job that I had not really come across too much in the past. Most people have been used to making money all of their working lives, be it in the form of receiving a salary each month, or making profits from self-employment. But when retirement comes along, income from working suddenly stops and in the case of people retiring to Spain, they suddenly find themselves in a situation where they no longer receive ‘earned’ income. For many, this is a very difficult situation to deal with psychologically, as they become fearful of spending money.
And this is the unusual part I am referring to, as I find myself spending a lot of time with people running through their finances and expenditure, showing detailed projections of how long their money will last going forward. Of course, it is very difficult as no one knows how long they are going to live, and no one knows what their money will be making going forward, but by making sensible assumptions on both considerations a pretty realistic picture can be painted.
This is the point at which I really emphasise the power of ‘passive income’, and help people to understand its relevance and value. Simply put, even though you have stopped earning money when you retire, it doesn’t mean you have stopped making money. With interest on bank deposits, and growth on investments and pensions, whilst you may be enjoying life relaxing on the beach or playing golf, your hard-earned savings are working away in the background for you. This is why it is so important to keep a close eye on your assets, making sure they are working as hard as possible for you. I always refer to this as passive income.
Over time people become more relaxed about their new situation in retirement, but to start with it can be very difficult to adjust. This is why I spend a lot of time talking with people, explaining that as they ease into retirement this is something that will start to take a back seat in their daily worries, and spending money will become less of a stressful issue. Regular reviews of their financial situation are a great help when it comes to ‘proving’ things will be ok!
If you would like help when it comes to planning your retirement, then please do not hesitate to get in touch.
And let’s hope 2025 is a prosperous year for us all.