I have a few things I would like to write about in this Ezine. In the last month or so a number of questions have arisen from clients and people who have contacted me, re tax and investment markets, AI, the UK property and much more. So, I thought I would try and address a few of these in this Ezine.
Italian tax and finance update | November 2025
By Gareth Horsfall
This article is published on: 20th November 2025
20.11.25
However, before I do that I thought I would give you the quick update on the new house and I say ‘new’ house but we moved in on August 7th 2024 and so it’s now been over a year and the house itself is largely done, save for some bits and pieces to do but which can be done when we have the time and energy and money to do so.
The thing that I am still very much learning is the management of the land :2025 was the first summer when I saw the full cycle of the fruit trees. I was explaining to someone recently that I didn’t actually buy any fruit from the fruttivendolo from about April until about 2 weeks ago because it has been a continuous fruiting, one after the other. Now, I just have some of the last cachi (persimmons) hanging off the tree but that’s it and learning the cycle of what grows and when they flower, fruit and when to harvest is quite interesting. I remember that the nespola (medlar) tree and almond tree flowered very early last year, in February if memory serves me correctly (I think I may need to start a diary!) and so given both of those trees need a good trim this winter (I never got round to them last year), the question is when to do it? My hunch is anytime now given we are in the ‘riposo vegetale‘ phase for plants, but anyway these are the kinds of decisions which haunt my dreams. LOL !!
With the recent spurt of rain and then the return of the good weather, the grass has had another growth spurt and I will need to give that another trim before the winter hibernation, more than likely. I should also mention that I harvested my first bietola (chard) last night. At the end of September, I popped to the local garden centre and bought a variety of seedlings and at last light of the day, around 7 pm dug a few channels in the land and planted my first ‘orto’ or as I like to call it the ‘orticino’. (See the photo below). Hardly very exciting, but I thought I would give it a go.
If you are interested in the crops, the list is as follows: porro (leek), winter lettuce (2 types), rapa, finocchio, broccoletti, carciofi (artichokes) and bietola and it was pretty much experimental for me and as you can see is quite messy in fact I haven’t had time to do any fancy bordering or anything like that because it’s in the middle of a patch of land where I haven’t even got around to cutting the grass from summer yet. Anyway, it’s all good fun and nice to have fresh bio veg available although slugs and snails are having a field day and most of it is pottered with hole ….but I am working on that!
Otherwise, I have understood that the summer period, May to September, is mainly for watching everything grow…quickly! Particularly, those things that you pruned in the period from October to April with the hope that this year’s crop will be better than last year’s, but never really knowing what nature will bring it’s like gambling and not knowing the odds. Writing it down it sounds a ridiculous waste of energy, but seeing the literal ‘ fruits’ of your labour is somewhat deeply satisfying…
Not wanting to turn this Ezine into a country side Q&A newsletter, I will move swiftly on from life in rural Italy and onto money matters.
As I said there are a few things which I wanted to mention in this E-zine and the first of which is one of my favourite subjects: The Agenzia delle Entrate.
I have been contacted by a number of people since September who have received letters from the AdE, this would not normally picque much interest for me because the AdE send regular letters out to try and weed out potential errors or omissions from your tax return in fact I have had a few myself over the years.
However this letter was of particular interest because it broached the subject of residency and non declaration of assets, at all, ever.
Over the years I have seen many times where someone has made a tax declaration, but where errors have been made and / or omissions, and the AdE have eventually caught up with the error and the individual concerned has had to correct the error, pay the back taxes and penalties. Fair enough mistakes happen and often through bad advice on the part of the commercialista but one category of people who seems to have evaded the oversight of the AdE were those people who are resident in Italy, and for one reason or another have never made a tax return here. The main reason is because they were badly advised by a commercialista to not ‘enter the system’ or that they were declaring in another country thinking that it wasn’t necessary to do so in Italy.
However, it may look like that particular issue has been uncovered by the AdE, in fact, in a short period of about 5 weeks, I had 6 people contact me, all with very similar situations, relating to not having filed for taxes in Italy and subsequently receiving a letter from the AdE asking them to visit their local AdE office and explain the anomaly.
Whether this is an awakening for the AdE for merely just a blip is anyone’s guess but I suspect they have finally got the right hand speaking with the left hand and they will weed more of these issues out in the near future. It all corresponds nicely with the change in definition of residency from Jan 1st 2024 and so is probably the start of a wider push to make sure that everyone is doing what they should be, whether they know it or not.
So, in short, if you are resident in Italy then it is more than likely that you should be declaring your financial situation for taxes each year, if a commercialista tells you that you shouldn’t or don’t need to file, then you need to question that and not just take their word for it. I would request written, signed confirmation that this is the case. Equally, filing for taxes in another country, thinking that this is sufficient, is generally the wrong thing to do and you may want to explore this further to avoid eventual contact from the AdE.
If you happen to be in this situation and are wondering what steps to take, do not hesitate to get in touch. I have helped many people through this situation in the past, it’s better to address the matter before being picked up by the AdE.
Now, let’s move on to the subject of the UK property market.
“Property is the best investment”
I don’t know how many times I have heard this said to me in my career, which has spanned an era when property investment probably has been one of, if not the best investment to make.
However, everything is cyclical and whilst UK residential property may have been a great investment, that doesn’t mean to say it will be forever. In fact, the UK property market has stalled, at the time of writing, and it remains to be seen whether it is just a pause for breath or part of a longer period of downturn for the UK property market. As I have repeated many times in the past, in times of needs, governments will turn to the real estate market to generate tax revenue because it is has been the go to investment of choice for most people. The UK budget will roll around at the end of this month and we will see what kind of moves Rachel Reeves makes on the UK property market, it is expected that she will tax properties over a certain value, but little is known at this time. (I spoke with an investment manager in London recently who said they are bracing themselves for a ‘brutal’ budget, were his exact words).
However, as usual these are just my musings.
To explain in a bit more detail Rathbones Investment Management recently wrote a great article for a professional publication and I thought to share this with you here.
The UK’s love affair with property investment is apparent across newspapers, daytime TV and social media. An English person’s home may be their castle – they’ve also regarded it as their nest egg (and the same for other Britons). Many have even bought additional castles, such is their ardour for property. Reflecting this, official figures show more than 2.8mn private landlords in the UK.
However, the days of strong returns from residential property are already past. The past decade has seen three pieces of bad news. House price growth has been slower; higher interest rates have squeezed the buy-to-let business model; the regulatory treatment of private landlords has become progressively less favourable.
The economic and policy outlook suggests those headwinds won’t dissipate. From 1980 to 2016, UK house prices rose 6.7% per year in absolute terms, or 3.3% in real terms (after allowing for inflation). Prices in London rose even faster: 8.5% in absolute and 5.0% in real terms. That rate of capital appreciation is considerable – and investors making an income from renting out properties would have made even more.
It’s difficult to compare returns from property exactly with returns from other investments, for various reasons – such as the cost of mending that leaky roof. But taking the crude numbers, the capital appreciation of a portfolio made up of 25% UK equities and 75% international equities would have been only slightly higher at 9.0% per year or 5.5% after inflation.
What drove high house prices?
What lay behind this? One cause is higher wages. As earnings have risen in real terms, households have been able to spend more on housing.
Between 1980 and 1998, the average UK house price rose by 2.6% above inflation per year. So too did the average wage. As result, the house price-to-earnings ratio – the average house price divided by average earnings – was similar in both years, at around 4.3, although it did fluctuate a lot between these two points.
However, since 2000, the ratio has risen to as high as 8 and never fallen below 6. So pay can’t be the whole story behind the price rises.
A fall in interest rates helped sustain higher house prices relative to earnings. Double-digit mortgage rates were the norm in the 1980s and early 1990s. But these dropped to as low as 1–2% by the late 2010s. This shift allowed buyers to borrow a lot more money for any given level of monthly repayment, bidding up house prices.
Other changes to the mortgage market have probably helped push UK house prices higher, by increasing the availability of loans and encouraging property investment. These include the entry of banks into the mortgage market, the introduction of buy-to-let mortgages, and market innovations, such as the government’s Help to Buy scheme.
Moreover, housebuilding has failed to keep pace with population growth over the past fifty years or so. In other words, demand has risen faster than supply.
Productivity, rates and policy
But conditions for house price growth now look much less fertile. After a period of far outstripping inflation, average earnings have grown much more slowly lately. Even if we ignore declining real wages in the early 2010s, they’ve only outpaced inflation by 0.5% a year since 2016. In the long run, real-terms wage growth is closely linked to productivity – companies generally only pay their workers more if they’re getting more from them. But productivity growth has in recent years been low – and we don’t foresee a dramatic improvement anytime soon.
Moreover, mortgage rates have risen in the past few years. The average 2-year fixed-rate 75% loan-to-value mortgage rate has climbed from 1.2% in 2021 to above 4% since 2022, according to the Bank of England. This has pushed up first-time buyers’ repayments. We don’t see a return to the abnormally low interest rate environment of the 2010s.
On top of higher interest rates, unfavourable tax changes and tighter regulation have added to costs. For example, stamp duty on additional properties was hiked in 2016 and again in 2024.
Moreover, the housing supply pipeline is flowing better. Although the government has fallen short of its housebuilding targets for years, the annual net increase in dwellings has crept back up since 2015, returning to above 200,000. On this measure, the housing stock is growing at the fastest rate since the 1960s.
End of the affair
With those fading tailwinds in mind, it’s little surprise that UK house prices have risen by a much more pedestrian 3.7% per year, in absolute terms, since 2016. That’s only about the same as inflation. Over the same period, the portfolio of UK and international equities we mentioned earlier rose by 7.2% a year.
We think this trend will continue. In our view, it may be time for the British to break off their love affair with the housing market and embark on a new one, with a diversified portfolio of financial assets. After all, 10- year UK government bonds offer yields above 4% and there’s a wide selection of high-quality names across the world’s stock markets. It might not be the most romantic of trysts, but we think it’s likely to offer them a better return in the long term.
Are we in an A.I and tech stock bubble?
For those of you who can remember as far back as the year 2000, as an investor, you may remember the investors favoured around the possibilities of the introduction of the internet (I think we were still working on dial-up connection at the time and my phone was probably a Nokia 3310. The world of today’s smart phones was about another 8 years away, when the iPhone first launched). I remember being at a business meeting in Geneva in 2005 and there was talk of being able to call over the internet from your phone in the near future and being able to answer emails more easily on your phone.
Little did we know how far we would come so quickly ! In the year 2000 there was much hype about this future and that fuelled what is now called the ‘tech boom’ in dot com stocks. Inevitably, this created a bubble in dot com stocks and a subsequent crash in the markets when investors realised a lot of the hype was largely based on fresh air and not much substance.
I have been asked quite a few times in the last month or 2, about the possibility of something similar happening in AI and tech stocks today.
It must be said that the circumstances are quite different this time round. Companies are actually profitable in 2025, and A.I will create problems in the employment market, but also deliver productivity gains.
(Interestingly, I saw an article the other day saying that Italian companies who had laid off employees to benefit from cost and productivity gains from the introduction of AI systems, were doing an about face and re-hiring those same workers because they realised that AI was not going to deliver all those gains which they had been promised).
Anyway, rather than writing a long discourse on the topic I asked Chris Saunders of New Horizon Asset Management what he thought, on this short video with my question and his answer. I hope you find it interesting.
IRPEF (income tax) rates set to drop again!
As part of Giorgia Meloni’ s government’s promise to the Italian people, IRPEF ( income tax) rates would be simplified and even reduced with their long term goal of having a much more simplified tax system ( good luck with that Giorgia !).
In the Legge di Bilancio 2026, which is currently being debated in parliament, they have proposed to reduce the second progressive rate of income tax, which currently sits at 35% for gross income between €28001 and €50000pa, to 33%.
Now, as I have often been heard saying, they are just playing around the margins and this kind of tax reduction will hardly have any real impact for most people who might be struggling with higher prices of the last few years and facing a continued erosion of their income. However, it is still something and in line with the promises made by the current sitting government. (At time of writing it does look like this will be approved and implemented from 2026).
Possible increased tax on rental properties?
This is the one that is creating the greatest political friction at the moment and, so what is it?
The proposal is to increase the cedolare secca tax on rental properties from 21% to 26% from 2026.
Cedolare secca 21% is the tax that is paid on rental property income, where selected, and is a kind of forfeit rate. The income from cedolare secca is not taken into account when calculating your other total income subject to income tax (IRPEF) and so is quite attractive for most. There are some disadvantages, which I won’t go into here because in the main the 21% tax rate is the go to option for most. However, it is proposed to bring this up to 26% on rental income (for private renters, rental agencies and rental agencies online).
As per the UK, see above, real estate is a go to cash cow for governments when they are looking to raise revenue and so this move (although likely to be watered down or removed altogether because Forza Italia are not in agreement and will not vote for the proposed change) is something that we will likely see happen more often.
If, as may be intended, it is being introduced to cool the housing market and, especially in the big cities, cool the rental market itself, I am sceptical that it will have an effect at all. Having lived in Rome for the last 20 years and seeing the explosion in the Airbnb apartment for rent, and the constant stream of tourists to occupy those places then I can’t see that an increase of 5% will hurt that much, other than those who have high debt levels to service.
Anyway, it’s something worth watching, in case you have a rental property, or part of property in Italy which you are generating income from.
London’s attractiveness as an International financial centre.
There has long been talk of London being one of the world’s premier financial centres and for some time, I think, it held the No 1 spot for a period as well, however, that would appear to be changing.
On one of my economist social media feeds, I saw these graphics recently which I thought I would share.
An IPO (Initial Public Offering) is where a private company decides to list on the public stock exchange so that it can raise capital and offer its share to investors. They normally choose to do this when they reach a certain size, as a way of accelerating company growth. In which jurisdiction they do this is important because it can generate a lot of revenue for the financial sector in that country, create jobs and also secures the attractiveness of the financial centre as a place that is deemed safe and secure to list publicly.
London used to be one of the preferred jurisdictions, but as you can see, in 2025, that is no longer the case. London now holds spot No 23 on the list behind some important newer entries, such as Hong Kong, China and India.
What this says about London’s long term future is anyone’s guess but it is interesting information all the same. (Could Brexit have played a part?) . It probably says more about the ever increasing importance of Asian economies and the continued importance of the USA.
AI Stocks Face a Wake-Up Call – What the Sell-Off Really Means
By Chris Burke
This article is published on: 10th November 2025
10.11.25
After months of relentless optimism, AI-linked stocks are taking a sharp hit. The same names that drove markets higher — NVIDIA, Palantir and other AI heavyweights — are now leading the decline.
Here’s what’s happening and what it tells us about the broader market.
The Story Behind the Sell-Off
Valuation Reality Check
Many AI companies are priced for perfection. Investors are questioning whether earnings can truly justify those sky-high expectations.
Even Palantir, which beat forecasts, dropped nearly 8% after results.
Profit-Taking After a Huge Run-Up
The AI trade has been red-hot all year. Some investors are locking in gains and rotating to safer ground — not necessarily abandoning the theme, but taking a breather.
Market Concentration Risk
Tech and AI stocks now make up roughly one-third of the S&P 500. When this sector sneezes, the entire market catches a cold.
Caution from Big Players
Analysts from Morgan Stanley and Goldman Sachs have warned that equities could face a 10–20% pullback — and short sellers like Michael Burry are reportedly betting against the AI trade.
Why It Matters
Short term:
Expect more volatility as valuations adjust and traders test the market’s conviction in AI.
Medium term:
This could be a healthy consolidation — trimming speculative excess without ending the structural AI growth story.
Long term:
The winners will be those turning AI promise into real profits — not just those riding the narrative.
The Takeaway
This isn’t an “AI crash.” It’s a re-rating of expectations.
The key question for investors and industry leaders now:
Are we investing in sustainable innovation — or chasing momentum?
What to Watch Next
- Earnings guidance from major AI players
- Capex trends in cloud and data infrastructure
- Market rotation signals into other sectors
- Interest rate updates and macro data
My view: This pullback is healthy. The market is reminding us that even transformational technologies need time, discipline, and fundamentals to catch up with the hype.
I’m here to help you get organised and take those financial worries away.
If you’d like to discuss any of these topics in more detail or arrange an initial consultation to explore your situation, you can do so here.
You can also read independent reviews of my advice and service here.
Financial update November 2025 | France
By Katriona Murray-Platon
This article is published on: 9th November 2025
09.11.25
Autumn has officially arrived in France. The clocks have gone back, the air is cooler, and whilst grey, rainy days have set in, we can still look forward to the occasional burst of sunshine. November may be one of the shorter months, but before preparations for the end-of-year festivities begin, there are several important matters to keep in mind
Although the taxe d’habitation has become a thing of the past for most French residents, it still applies to owners of second homes in France. Over four million households are liable for either the Taxe d’Habitation sur les Résidences Secondaires (THRS), the Taxe sur les Logements Vacants (TLV), or the Taxe d’Habitation sur les Logements Vacants(THLV).
The Taxe d’Habiation statements should now be available in your online account on impots.gouv.fr, where you will also find the payment details and deadlines.
On 25th October, the French deputies voted to amend the draft finance bill that was proposing to freeze the income tax rates, instead voting in favour of re-establishing indexation in line with inflation which increases current tax bands by 1.1%. Below is a table showing the 2025 thresholds compared with the proposed thresholds for 2026.
| 2025 income tax thresholds | Proposed tax thresholds (increased by 1.1%) for 2026 | Income tax rate |
| Under €11,497 | Under €11,623 | 0% |
| Between €11,498 and €29,315 | Between €11,624 and €29,637 | 11% |
| Between €29,316 and €83,823 | Between €29,638 and €84,745 | 30% |
| Between €83,824 and €180,294 | Between €83,746 and €182,277 | 41% |
| Over €180,295 | Over €182,278 | 45% |
Once the finance law is officially adopted at the end of the year, I will confirm these thresholds.
If you are subject to Wealth Tax on Property (IFI) and the amount due is €300 or less, this must be paid by 17th November by cheque, cash or bank card or by the 22nd November if you pay online. If the amount is more than €300, it must be paid online via the impots.gouv.fr website.
By now, you should have received your income tax statement and paid tax due. If you have discovered any errors or miscalculations, please correct them as soon as possible as after 3rd December 2025 you will no longer be able to submit an amended tax return on the impots.gouv.fr website; any corrections after this date must be submitted in paper form.
If you have a PEL account which was opened between 2011 and 2015, your bank will automatically close it and transfer the funds to another savings account. PELs opened since 1st March 2011 can be held for a maximum of 15 years, whereas the PELs opened before this date can remain open indefinitely. According to the Banque de France, the average balance of a PEL account is €25,017, with around 12% of such accounts exceeding the maximum capital limit of €61,200. These accounts are not term accounts and should only be used if you plan to purchase a property or carry out renovations to your property.
If you do seasonal lettings, you will have received an email from the tax office reminding you that the tax rules have changed in 2025. For “meubles de tourisme non classés” if your income in 2023 and 2024 was more than €15,000 you can no longer stay as micro-BIC. The income that you received will be under the “régime réel” and will require the assistance of an accountant. You should contact your tax office for more information.
Urssaf also sent an email to remind those who earned over €23,000 from their season lettings that they have to pay social security contributions on this income and not social charges like other landlords. Depending on your turnover, you can opt for the micro-social regime at either 21.2% (for meublés de tourisme non classés) or 6% (for meublés de tourisme classés). From 2027, website-based business as Airbnb and Arbitel will take the social contributions directly at source.
If you have any questions on the above or any other matters, please do get in touch. I am available for online meetings or face to face meetings throughout November, so if you have any questions about your finances, please do contact me to arrange a free, no obligation, meeting.
Financial Tips in Spain – November 2025
By Chris Burke
This article is published on: 1st November 2025
01.11.25
I often hear from people who are used to tax-efficient savings and investments in their home country (for example, UK ISAs) and want to find the same here in Spain. Immediately, I explain two key things:
- Unless you qualify for a specialist tax regime such as The Beckham Law, you will generally pay more tax living in Catalonia (and Spain in general) — we pay to live here (and most would agree it’s worth it!).
- It’s not easy to get the right advice when it comes to setting yourself up tax-efficiently in Spain — covering everyday income taxes, deferring and mitigating savings/investment tax, and avoiding common pitfalls that can lead to problems with the Spanish tax authorities.
When arranging your finances, there are three professionals you should have on your side — and in this order:
1. Tax Adviser / Lawyer
They’ll explain, implement, and advise on the best way to set yourself up from a tax perspective in Spain. This is your starting point. Once you’re resident, the “tax clock” starts ticking — so it’s crucial to get it right from the outset.
2. Accountant (Gestor)
They ensure you declare what you should, claim what you can, and stay compliant with Spanish tax obligations. Remember: in Spain, you’re often considered “guilty until proven innocent” — bank accounts can be frozen or assets seized until you legally prove otherwise, which can take years.
3. Financial Adviser
A good financial adviser will first make sure the above two areas are in order. Then, they’ll take the time to understand your situation, your questions and priorities, and build a tax-efficient investment strategy that matches your goals and comfort with risk. They’ll also ensure you’re administratively organised — for example, having the right Will.
Each of these professionals can save you thousands of euros in Spain.
The first two focus mainly on income tax, whilst my role as a financial adviser is to help you grow and preserve your wealth — ensuring that when you or your heirs access it, it’s done as tax-efficiently as possible.
Tax-Efficient Investing in Spain
If you’re resident (or becoming resident) in Spain, here are some key points and strategies to be aware of:
1. Taxation for Residents
If you are tax resident in Spain (over 183 days here, or your “centre of interests” is in Spain), you’re taxed on your worldwide income and gains.
- Investment income (dividends, interest, and capital gains) falls under the savings tax scale:
• 19% up to €6,000
• 21% from €6,000–€50,000
• 23% from €50,000–€200,000
• 26–28% above that
- Wealth tax (patrimonio) applies in many regions — some exempt it, but Catalonia it is not.
- Tax-free wrappers from abroad (like UK ISAs) are not recognised as tax-free in Spain.
- Non-compliant investments can lead to worse tax treatment and extra reporting (e.g., Modelo 720).
2. Key Tax-Efficient Investment Structures
Spanish-Compliant Investment Bond (SCIB)
A life-assurance based investment bond recognised by Spanish authorities.
Benefits include:
- Growth inside the policy rolls up tax-free (no annual taxation).
- Withdrawals are taxed only on the gain portion, not the full amount.
- May reduce reporting obligations (like Modelo 720).
- Can assist with inheritance planning.
Important: Ensure it’s a Spanish-compliant product — otherwise, you lose these benefits. While it offers tax deferral, you’ll still pay savings income tax when you withdraw gains (unlike a UK ISA).
Holding Company / ETVE Regime
For those with corporate structures, the Entidad de Tenencia de Valores Extranjeros regime can be highly tax-efficient.
- Dividends and gains from foreign subsidiaries may be 95% exempt from corporate tax.
- Dividends to non-residents can often be distributed tax-free. This is generally for higher-net-worth individuals or corporate setups.
3. Practical Strategies & Top Tips
- Use only Spanish-compliant investment products if you’re resident.
- Time your withdrawals to stay in lower tax bands.
- Consider your region’s tax regime (e.g., wealth tax exemptions vary).
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.
Hindsight is not always a wonderful thing
By Jeremy Ferguson
This article is published on: 28th October 2025
28.10.25
Especially when it comes to retirement.
I was really interested to read an article recently published in the UK press about regrets many pensioners have when they do eventually retire.
The number one regret was not saving enough early on in their lives, with many retirees wishing they had started saving into their pensions earlier, or having increased the amount they paid into their pensions when their incomes were higher later on in their careers.
Next unsurprisingly was under-estimating how much you’ll eventually need to retire with. The common issue in this regard was being overly optimistic about how secure their retirement finances would be given longevity, inflation, healthcare costs, etc. In all fairness, all of these factors are very hard to predict over the longer term.
One thing we now know is that the advances in medical treatments and care are resulting in longer life expectancy, and a better physical well being. All of this means we are living longer and being much more active in retirement, both of which cost more.
The importance of actively managing pension arrangements was again largely under estimated, with many retirees wishing they’d made clearer plans earlier. For example, when to retire, where they may be retiring and what sort of lifestyle they wanted. As these ‘wants’ changed during their younger years leading up to retirement, many people simply didn’t adjust their pensions accordingly.
Inevitably this is easier said than done, making it one of the most difficult decisions to get right, because of course it’s almost impossible. Some retirees feel they were too cautious with their money in their younger years, with others maybe enjoying life a tiny bit too much and then finding out they either couldn’t enjoy retirement fully because they hadn’t contributed enough, or conversely finding out their pension income far exceeded their needs in retirement.
Needless to say that if you are reading this and you have already retired, then these observations may all be a little too late. However, many people I meet after they have moved to Spain have retired quite early in life and are not yet drawing on their pensions. In these cases, there is still a lot you can do, particularly by way of managing these pension funds as effectively as possible. Ie Maybe the charges can be reduced or the investment strategy can be improved? Also, what about the tax position when you do start to draw down – understanding this and making sure it’s as tax efficient as possible can make a big difference.
Retirement planning is also not always about your pensions, it is often about managing your savings as well, and many people I speak to come here with funds they didn’t plan to have accumulated as a result of selling their UK property, which had increased impressively in value over the years.
If managed correctly and invested in the right way, these funds can in many cases be used to substitute pension income and help you enjoy living here in Spain.
If this is you, then please feel free to get in touch so we can take a good look at your current situation and if relevant consider the available options as to how best to manage things going forward.
Le Tour de Finance in France
By Spectrum IFA
This article is published on: 23rd October 2025
23.10.25
Thinking of moving to Europe… or already living the expat life in France?
Welcome to Where Money Talks.
Le Tour de Finance brings together expats, advisers and finance professionals for relaxed, practical and interactive sessions on tax and financial planning in France. The event is designed for people who want to live well, feel secure and plan smartly while navigating French-resident tax regimes, Assurance Vie, pensions, investment markets and estate planning.
Two exceptional venues, two great days of connection
Over the course of our recent tour we gathered over 70 participants across two beautifully located events. Day one took place at Château Val Joanis near Pertuis (Vaucluse) — nestled in the Luberon region, a scenic estate of vines, olive trees and renowned terraced gardens.
Day two followed at Château de la Bégude in Valbonne on the Côte d’Azur, a 17th-century manor within a peaceful golf-estate setting between Valbonne and Opio.
The atmosphere throughout was warm and interactive: in both venues attendees were able to enjoy breakout conversations, mingle in the gardens, and engage in meaningful Q&A with the presenters. More than just formal lectures, the days offered an opportunity to ask real-life questions, share experience with fellow expats, and take away actionable next-steps in a friendly setting.
Speakers & professional insight
We were pleased to host a strong panel of trusted advisers and finance practitioners including representatives from The Pru, The Spectrum IFA Group, Currencies Direct, Brewin Dolphin and Novia Global. These experts guided discussions through key issues such as tax-efficiency for French-resident expats, UK/France pension interfaces, the role of Assurance Vie, foreign exchange and currency strategies, investment markets and legacy/estate planning. Having all these viewpoints in one place meant attendees could begin to build a rounded understanding – rather than piecemeal advice.
Living in France as an expat — why planning matters
Living abroad in France brings many rewards – lifestyle, weather, culture, international community, but also distinct financial and tax responsibilities. Becoming tax-resident in France triggers a range of rules on income, inheritance, assets and investments. Without careful planning, the complexity can lead to missed opportunities or unintended liabilities. Time and again during the event we heard how proactive planning with professionals makes the difference: understanding the French tax treaty framework, choosing the right investment wrapper (such as Assurance Vie), considering currency exposure, and aligning UK/France pensions and inheritance.
Equally important is the personal dimension: being able to relax, knowing your financial affairs are in order, and being part of a network of like-minded expats. That sense of community and shared experience was very evident across both days of Le Tour de Finance.
Thank you & next steps
A heartfelt thank-you to everyone who attended and to our presenters for their clarity and engagement. If you couldn’t join this round, keep an eye on our website for future events, and feel free to get in touch to explore how tailored advice might support your personal expat financial journey. Because when you’re living abroad, planning ahead matters – and getting the right help makes all the difference.
Can I Pass On My Investments Tax-Efficiently in Spain?
By Matthew Green
This article is published on: 18th October 2025
18.10.25
Moving to Spain gives you more than just a better lifestyle — it offers a fresh perspective on what really matters.
For many expats, that means not only enjoying their wealth today, but ensuring it’s passed on efficiently to loved ones tomorrow.
But here’s the catch: Spain’s inheritance and gift tax system works very differently from what most expats are used to in their home countries. And without the right planning, your family could end up facing an unnecessary and unexpected tax bill.
Understanding How Inheritance Works in Spain
In Spain, inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by the beneficiary, not the estate.
That’s often the first surprise for newcomers — it’s your spouse, children, or other heirs who pay the tax, rather than your estate before distribution.
The amount payable depends on:
- The relationship between the deceased and the beneficiary (spouses and children generally receive the biggest allowances)
- The value of the inheritance
- The region of Spain you live in — because each autonomous community (like Valencia or Madrid) sets its own allowances and reductions
For example, Madrid currently offers one of the most generous regional allowances, with reductions of up to 99% for close family members. Valencia, on the other hand, provides smaller deductions — which can make a significant difference to your family’s eventual tax exposure.
Structuring Your Investments Can Make a Big Difference
The way you hold your assets determines how smoothly — and efficiently — they can be passed on. Investments in a Spanish tax-compliant bond can offer a number of key advantages when planning for succession:
- You retain full control of your investment during your lifetime
- You can name multiple beneficiaries, who inherit directly without the need for probate delays
- The bond’s structure allows for efficient transfer of value — avoiding the administrative complexity that often comes with overseas holdings
- Beneficiaries may receive significant tax advantages, depending on your region of residence
In short, compliant structures help your heirs inherit assets that are clean, locally compliant and immediately accessible, without triggering unnecessary tax consequences.
Avoiding Common Pitfalls
Many expats unintentionally make things more complicated by:
- Holding UK ISAs, investment accounts, or offshore funds that aren’t recognised under Spanish law
- Keeping property or assets in personal names rather than through efficient vehicles
- Failing to review beneficiary nominations after moving to Spain
These issues can create double taxation risks, delays or even cause assets to fall outside your heirs’ allowances. A simple review of your portfolio through the lens of Spanish succession law can often fix these risks before they become costly.
Peace of Mind for You and Your Family
Effective planning is about more than saving tax — it’s about clarity and peace of mind. Knowing that your wealth will transfer smoothly and efficiently to the people you care about is one of the greatest gifts you can leave behind.
Whether your goal is to ensure your spouse is financially secure, or to pass on assets to your children in the most tax-efficient way possible, a little forward planning today can make all the difference tomorrow.
Final Thought
If you’ve chosen to make Spain your long-term home, your financial plan should reflect that. Local advice can help you align your investments, pensions, and estate planning with Spanish law — so your wealth stays protected across generations.
If you’re an expat living in Valencia, Madrid, or elsewhere in Spain, and you’d like to understand how to structure your assets for efficient inheritance and succession, I can help.
We’ll review your existing arrangements and identify ways to reduce potential inheritance tax exposure, simplify the transfer of assets, and ensure your loved ones are properly protected.
Get in touch for a no-obligation consultation to discuss your personal situation and learn how to build a clear, tax-efficient legacy plan for your family.
The Expat’s Guide to Building Wealth in Spain
By Matthew Green
This article is published on: 16th October 2025
16.10.25
Beware of the traps….
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 tax resident in Spain, those same structures can start working against you rather than for you.
A New Life, a New Set of Rules
One of the biggest surprises for newcomers to Spain is that Spain taxes your worldwide income and gains — not just what’s earned here. That includes dividends, interest, and even growth within investment funds.
It’s easy to assume that investments left “back home” can be ignored, but in reality, the Spanish tax authorities (Hacienda) expect full reporting of your global assets.
That’s where many expats fall into avoidable tax traps:
– 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)
There’s a Smarter, More Efficient Way
Spain offers legitimate, tax-efficient investment options — specifically designed 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 Wealth the Right Way
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.
Making It Work for You
Every expat’s situation is unique — from how income is generated, to where assets are held, to whether a move is permanent or temporary.
That’s why getting regulated local advice matters.
The Spanish system can be generous when you plan properly – but unforgiving if you don’t.
So before you make any investment or draw from your pension, take a moment to review your setup. The right structure today can save you thousands over the years ahead, and keep your finances aligned with the lifestyle you came here to enjoy.
Final Thought
Spain rewards those who plan ahead. By taking time to structure your wealth intelligently, you can enjoy the Mediterranean life — without letting unnecessary taxes eat into your returns.
Call to Action
If you’re living in Valencia, Madrid, or elsewhere in Spain and would like to review your investments or pension arrangements, I can help you explore the most tax-efficient and compliant options available for residents.
Whether you’re recently arrived or have been here for years, a short conversation can often reveal ways to improve returns and reduce tax exposure — all within the Spanish system.
Get in touch for a no-obligation consultation to see how you can make your money work smarter in Spain.
Spectrum IFA begins Employee Ownership for a Sustainable Future
By Spectrum IFA
This article is published on: 14th October 2025
14.10.25
Empowering People, Ensuring Continuity, and Deepening Commitment to Clients
At The Spectrum IFA Group, our success has always relied on our people, their expertise, dedication, and a shared belief in doing what is best for our clients. As a firm founded on trust, transparency and building long-term relationships, we recognise that sustainable growth depends not only on sound financial advice but also a solid grounding in joint ownership and responsibility.
Since its inception, Spectrum has aspired to share company ownership with its advisers and staff. Establishing a clear succession plan is essential, not only to ensure business continuity but also to provide long-term security for our advisers, employees, and most importantly, our clients.
Today, Spectrum’s advisers and staff collectively hold over 15% of the company’s share capital. This initiative reflects our belief that those who contribute daily to looking after our clients’ interests should also participate in the company’s growth. In 2026, Spectrum plans to increase employee and adviser equity participation to approximately 30%. Our longer-term intention is for advisers and employees to own 48% of the business, with the remaining 52% retained by the founders.
This approach demonstrates our commitment to creating a resilient, people-focused organisation where everyone has a vested interest in delivering exceptional advice and service. By aligning ownership with those who directly support our clients, we are securing our longevity whilst embedding the long-term continuity of relationships that help define our unrivalled service standards.
At Spectrum, we view this as more than simply an exercise in restructuring company ownership – it reflects of our core values. We are building an organisation that empowers people, rewards dedication, and safeguards the future security of our clients, advisers, and employees alike. Together, we are shaping a stronger, more sustainable Spectrum team for generations to come.
Modelo 720 Spanish Tax Form
By Jett Parker-Holland
This article is published on: 13th October 2025
13.10.25
When people move to Spain, they often expect challenges around property or residency, but one of the biggest surprises comes from the tax office. After settling in, most people become accustomed to the Spanish tax system; however, one common pitfall that British expats encounter is the requirement for a single tax reporting form, known as Modelo 720.
Importantly, this is not a tax bill; it is a declaration, but failing to address it correctly can still result in hefty penalties and unnecessary stress.
The Modelo 720 is an annual information return that Spanish tax residents must file if they hold certain assets abroad worth more than €50,000 in any of three categories: bank accounts, investments, and property. Once filed, it does not need to be submitted again unless your foreign-held assets increase by more than €20,000, or your wealth in another category exceeds the €50,000 threshold. It aims to give the Spanish tax authorities a clear picture of your worldwide wealth.
Importantly, the form itself does not create a tax liability, but it can leave you open to scrutiny, which is where the risk lies. Failure to declare or even minor errors can lead to fines, backdated tax assessments, and interest charges. Once you’re on Hacienda’s radar, future scrutiny tends to increase, which is a headache nobody wants when settling into life in Spain.
Many expats worry that the cash and investments they have held in the UK may pose a potential issue with the Modelo 720, and that failing to declare in previous years may prevent them from doing so now. The good news is that by structuring your finances in advance, you can avoid this problem altogether. Certain Spanish-compliant investment bonds are not classed as foreign assets for Modelo 720 purposes, meaning you don’t need to declare them. For those anxious about declaring, this can be a great opportunity to structure your wealth so that it does not need to be declared, thereby avoiding ongoing scrutiny.
Beyond avoiding declaration, a bond allows for tax-deferred growth within the bond, meaning that your wealth can continue to collect interest and benefit from favourable tax treatment on withdrawals. Spanish-compliant bonds are not just about avoiding taxes or declarations; they are about ensuring compliance with Spanish regulations. For many of my clients, transferring assets into a compliant bond is the single most significant step they take to streamline their financial life in Spain.
Modelo 720 may seem like a minor formality, but mishandling it can turn into an expensive problem. By structuring your wealth effectively, you can reduce the risk of fines while also gaining ongoing tax efficiency and estate planning benefits. If you are already living in Spain or planning a move, now is a good time to review your arrangements.
A Spanish-compliant product is (almost) a prerequisite for an expat investor in Spain; it is the cleanest way to stay on the right side of Hacienda while keeping your money working hard for you.
As a Chartered Wealth Manager with a master’s degree in Investment Management, I specialise in helping British expats in Spain manage pensions, investments, and tax-efficient structures. With years of experience advising across both the UK and Spain, I focus on making cross-border finances simple, compliant, and effective for the long term.
If you would like a confidential review of your situation or would like to explore your options, please don’t hesitate to contact me. Proper planning today can save you a great deal of time, money, and stress tomorrow.