Financial Clarity for Expats in Spain

The Expat’s Guide to Building Wealth in Spain

What Catches most Expats Off Guard
When you move to Spain, the dream is clear: sunshine, a slower pace, and more time to enjoy life. But for many expats, the reality of managing money here soon brings a new challenge — understanding how the Spanish tax system treats your investments.

In the UK or elsewhere, you might have built wealth using ISAs, premium bonds, or investment portfolios with little thought for cross-border implications. But once you become a tax resident in Spain, those same structures can start working against you rather than for you.

These are the areas where I see expats run into problems most often:

• Selling shares or funds that trigger capital gains tax at 19–28%
• Holding money in non-compliant offshore accounts
• Missing annual reporting obligations on overseas assets (Modelo 720/721)

Smarter, More Efficient Options are Available to You

Spain offers legitimate, tax-efficient investment structures designed specifically for residents. One of the most effective is the Spanish tax-compliant investment bond.

Here’s why so many expats in Valencia and Madrid are switching to these structures:

• Your money still grows through diversified investments (funds, equities, etc.)
• Growth inside the bond is tax-deferred — you only pay tax when you withdraw
• Withdrawals are treated proportionally, so only a small part is taxable
• No annual reporting required on the underlying investments
• It simplifies wealth management — one structure, one report, all compliant with Spanish law

For example, if your investment grows 5% in a year and you take a small withdrawal, only a fraction of that amount is taxable – not the full sum. Compare that to a General Investment Account, where every sale or fund switch could trigger tax immediately.

Building Your Wealth with Peace of Mind

The goal isn’t just to save tax — it’s to grow wealth sustainably, with peace of mind.

By using compliant structures, you can:

• Avoid unnecessary annual tax drag on your investments
• Allow your capital to compound over time
• Keep your financial reporting simple and transparent

And when it comes to retirement planning or accessing your UK pension, having your investments structured correctly in Spain makes a world of difference to how much you actually keep.

If any of this resonates with your situation, the best next step is a conversation.

About Matthew

Matthew Green is a UK-qualified financial adviser based in Spain, working with British and international expats across Valencia, Madrid, and the wider Costa Blanca region.

He is a member of The Spectrum IFA Group — one of Europe’s leading independent financial advisory firms for expatriates — and is regulated to provide cross-border financial advice.

Matthew’s approach is straightforward: understand your life first, then build a plan around it. No jargon, no pressure, no one-size-fits-all solutions.

What to Expect:

It starts with a conversation — usually 20 to 30 minutes. There’s no preparation needed on your part. We’ll talk about your situation, what’s on your mind, and whether there are areas where I can help.

There’s no cost, no obligation, and no pressure. The goal is simply to give you a clearer picture of where you stand.