I recently attended the FEIFA Annual Adviser Conference in London and wanted to share a brief summary of the latest market insights, along with how advisers are continuing to evolve their approach to best serve clients in today’s environment.
FEIFA Annual Adviser Conference
By Peter Brooke
This article is published on: 30th May 2025
30.05.25
The Federation of European Independent Financial Advisers (FEIFA) – not to be confused with the football governing body! – was founded 16 years ago by a group of experienced IFA firms across Europe. They saw the need for an organisation that could uphold professional standards and represent the interests of advisers and their clients with both industry bodies and regulators across the continent. Spectrum is proud to be one of the original founding members, and we continue to support and build on those standards through our ongoing involvement.
The annual conference brings together FEIFA members and leading industry voices to discuss the unique challenges of advising cross-border clients. As Head of the Spectrum Investment Committee, it remains a valuable and important event in my calendar.
Staying the Course Through Market Volatility
Richard Flood (RBC Brewin Dolphin) reminded us that global events—whether pandemics, wars, or political wrangling —are a constant. Despite this, markets rise over time. The key is to focus on long-term fundamentals rather than react to short-term noise.
Volatility, he stressed, is a normal part of investing and “the price you pay for superior returns.”
Avoiding volatility by sitting in cash is not a good idea either as Inflation diminishes the purchasing power of cash – as illustrated in this Equities v’s Cash ‘inflation adjusted’ performance chart.
Navigating an Uncertain 2025
David Coombs (Rathbones) highlighted the ongoing impact of geopolitical events like Trump’s executive orders and Tariffs on trade and compared them to other countries ‘protectionist policies’ like unbalanced tax rates (eg Ireland), agricultural subsidies (eg France).
He also stressed the unconsidered challenges that passive investments (eg ETFs) pose to market stability due to being “forced sellers & and forced buyers” therefore adding to volatility.
Active management, in his view, remains vital, especially in 2025, and he shared a wonderful example of how active he has been in the last year:
The below chart is the Shopify share price, a share he has held for some time, the red dots are where he sold some shares (trimmed) and the yellow dots are where he added money – this shows that active management is much more than strategically choosing which companies to own or not own, but how to add value through tactical decisions.
The Passive Investing Paradox
Henry Wilson (LGT Wealth Management) discussed the risks of over-reliance on passive funds, including the concentration risk in a few large companies (eg MAG 7). Because of this concentration of returns (and risk) to fewer, larger companies he believes that true diversification is under threat, valuations are higher, future returns are compromised…
… BUT as Harry Markowitz, the architect of Modern Portfolio Theory & Efficient Frontier said “Diversification is the only free lunch to investing”.
Therefore while passive investing remains a useful tool, LGT and Spectrum advocate for highly diversified, actively managed portfolios to help manage risk and improve long-term returns.
If you are going to own passive investments you have to be active with them.
Model Portfolios & Adviser Alpha
Matthew Lamb (Pacific Asset Management) explored the evolution of model portfolios and the increasing role of technology. With many portfolios becoming similar, the real value lies in the advice given—not just the investments chosen.
This fits strongly with my recent newsletter about risk (click here) – If most ‘Balanced’ portfolios are similar to each other and most ‘Growth’ portfolios are similar to each other then the outcome for you, as my client, is not in picking between two balanced funds or two growth funds… it’s ensuring we choose correctly between Balanced or Growth in the first place!!
Good risk profiling conversations make sure we start in the right place.
Planning for the Summer
After almost 13 years, we’re finally heading to Australia for a long-overdue family holiday. We’ll be visiting my wife’s side of the family, who all live in Queensland. She’s been able to make a few trips in that time, but between school schedules, travel costs and a global pandemic, the children and I haven’t been back since 2013. We’ll be away for five weeks from the end of June and are really looking forward to the trip.
I’ll still be checking emails and messages periodically, but if you’d like to catch up — whether by phone, Zoom or in person before we go — please do get in touch or book something in the calendar before Friday 27th June.
All being well, I’ll be back at my desk (with a fair dose of jet lag) on Wednesday 6th August.
Lions V’s Australia
Of course, seeing family and friends is the main priority — but I’d be lying if I said there wasn’t something else I’m particularly excited about.
As a lifelong rugby fan, getting the chance to see the British & Irish Lions take on Australia in both the 1st and 3rd Test Matches — plus the Queensland Reds in early July — is nothing short of a bucket list experience for me.
As always, if there’s anything you’d like to go over before I head off, just let me know. And if anything comes up while I’m away, I’ll do my best to ensure it’s handled smoothly.
Contact me if you have any questions via the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
Mobile & Whatsapp: +33 6 87 13 68 71
Email: peter.brooke@spectrum-ifa.com
Calendly booking system: https://calendly.com/peterbrooke/30min
Behavioural Confirmation: The Sneaky Culprit Behind Your Wallet’s Woes
By Tom Worthington
This article is published on: 27th May 2025
27.05.25
Ever feel like your wallet has a mind of its own? You set out to save, but somehow end up splurging on that fancy coffee machine or the latest gadget. Let’s delve into the psychological phenomenon known as behavioural confirmation and see how it might be influencing your financial decisions.
What Is Behavioural Confirmation?
Behavioural confirmation is a type of self-fulfilling prophecy where our expectations about others lead them to behave in ways that confirm those expectations. In the realm of personal finance, this can manifest when we project our beliefs onto our spending habits, leading to outcomes that align with those beliefs—even if they’re detrimental.
Spending Habits: The Self-Fulfilling Cycle
Imagine believing you’re terrible at budgeting. This belief might cause you to avoid tracking expenses, leading to overspending, which then reinforces your initial belief. It’s a vicious cycle where your expectations shape your behavior, confirming your original assumption.
Similarly, if you think you’re a savvy investor, you might take on riskier investments without proper research, leading to potential losses that challenge your self-perception.
Investments: Confidence vs. Overconfidence
Believing in your investment prowess is great, but overconfidence can be costly. You might ignore warning signs or dismiss advice, thinking you know best. This can lead to poor investment choices, reinforcing the belief that the market is unpredictable, rather than acknowledging personal missteps.
Imagine believing you’re the next Warren Buffett after a couple of successful trades. This mindset, while empowering, can sometimes lead investors astray. Overconfidence bias is a well-documented phenomenon in Behavioural finance, where individuals overestimate their knowledge, underestimate risks, and exaggerate their ability to create returns.
Initial Success: An investor experiences early gains, attributing success solely to personal skill.
- Increased Risk-Taking: Buoyed by confidence, the investor undertakes riskier investments without thorough analysis.
- Neglecting Diversification: Believing in their ability to pick winners, the investor concentrates holdings, ignoring the benefits of a diversified portfolio.
- Ignoring Contradictory Information: The investor dismisses data or advice that challenges their beliefs, leading to potential blind spots.
- Potential Losses: Without proper risk assessment and diversification, the investor becomes vulnerable to market downturns, leading to significant losses.
Real-World Implications
- Excessive Trading: Overconfident investors often trade more frequently, incurring higher transaction costs and taxes, which can erode returns.
- Underestimating Risks: Believing they can predict market movements, these investors may overlook potential pitfalls, leading to investments in volatile or unsuitable assets.
- Confirmation Bias: Overconfident individuals tend to seek information that supports their views, ignoring evidence to the contrary, which can reinforce poor investment choices.
Mitigating Overconfidence
- Seek Diverse Perspectives: Engage with financial advisors or peers to gain different viewpoints and challenge personal assumptions.
- Implement Checklists: Before making investment decisions, use a checklist to ensure all factors, including risks and alternatives, are considered.
- Embrace Humility: Recognize the limits of personal knowledge and remain open to learning and adapting strategies.
Breaking the Cycle
To combat Behavioural confirmation:
- Self-awareness: Regularly assess your financial beliefs and challenge negative assumptions. Don’t start saving tomorrow, start saving today.
- Seek feedback: Discuss financial decisions with trusted individuals to gain different perspectives. This is exactly what a financial adviser can help you with.
- Stay open to options presented to you.
- Set realistic goals: Establish achievable financial objectives to build positive reinforcement loops.
Think of your financial beliefs as that friend who insists they’re bad at directions. Every time they get lost, they say, “See? I told you!” But maybe, just maybe, if they used a map or GPS, they’d find their way. Similarly, by challenging our financial self-perceptions and seeking guidance, we can navigate towards better financial health.
At the Spectrum IFA Group we can help you by being your GPS through the financial world and design your bespoke road map to make sure we you get to where you want to go.
Why Now Is a Surprisingly Good Time to Invest (Yes, Really!)
By Michael Doyle
This article is published on: 25th May 2025
25.05.25
I Do Love a Bargain
I know it’s almost summer, but is there anything better than the hope and expectation that builds around Christmas. It’s the best time of the year for me.
Not only do we get to enjoy all the trappings that come with the festive time of year but on Boxing Day the madness begins!!!!
The trainers that were €130 have been reduced to €60, the jacket that was out of reach at €400 is now €240, the sports T-shirts that just 2 days ago were €40 are now €20. What a time to buy.
There’s something similar happening in the markets right now and I just wanted to take a few minutes to explain why I think now could be a great time to invest.
Volatility is a Discount in Disguise
The markets have been bumpy — and that’s a gift in plain wrapping. Volatility creates opportunities. Quality companies with strong fundamentals often get marked down along with the rest of the market, offering savvy investors the chance to buy value at a discount. If you’ve read my other articles, you’ll know I’m partial to the odd quote from Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.” Right now? There’s more caution than confidence. That’s your opening.
Inflation Is Cooling. Rates May Follow
While central banks have taken us on a wild ride with interest rates, there are early signs of stabilization. Inflation is cooling in many regions. As economic data settles, interest rates may begin to ease, restoring more predictable conditions for both equities and bonds. Those who position themselves before the pivot are typically the ones who benefit most.
The Power of Time Is on Your Side
Time in the market beats timing the market — every time. The longer your money is invested, the more it compounds. Trying to wait for the “perfect” moment often leads to missed gains. Historically, the market’s best days tend to cluster near its worst days — miss those, and you risk missing most of the upside.
I wrote an article on this a few years back which still holds true today. You can read it here.
Innovation Hasn’t Slowed Down — It’s Accelerating
From AI and biotech to clean energy and space tech, we’re witnessing a new industrial revolution. These aren’t just exciting ideas; they’re multi-trillion-euro transformations already reshaping global economies. Investing now means getting in before the wave crests — not after.
Diversification Is More Powerful Than Ever
The global landscape is broader than ever. While some markets face headwinds, others are thriving. A well-diversified portfolio — across sectors, regions, and asset classes — isn’t just a shield, it’s a springboard. With the right structure, you can grow your wealth through both sunny and stormy weather.
So, Why Now?
Because uncertainty is the soil where opportunity grows. Because prices reflect fear, not fundamentals. Because the future isn’t waiting — it’s happening now.
As your financial adviser, my job is to help you see the forest through the trees, and to guide you with strategies that match your goals, timeline, and comfort level — especially when others are sitting on the sidelines.
Let’s have a conversation. Your future wealth might just thank you for acting today.
The best time to invest? Yesterday. The second-best time? Right now.
You can now book a 30 minute zoom meeting with me (at your convenience) by clicking here
Basic Investment Terms Explained
By Michael Doyle
This article is published on: 22nd May 2025
22.05.25
I’m Scottish and I live between France and Luxembourg. I moved to Luxembourg in 2008 and then France around 2015 and have commuted between both for a lot of my time with Spectrum. Needless to say my French has improved over time (as long as people speak to me as if I’m 6 year old child).
One of the things though that I still struggle with is some of the terms they use, eg Pédaler dans la semoule which seemingly means going around in circles. I always wondered why people were pedalling around in semolina.
It got me to thinking that I often assume people know all of the terms we use in financial planning, so here I’ve decided to try and break down the barriers.
What is a stock?
A stock represents partial ownership in a company. When you own a stock, you own a slice of that business — known as a “share” — and have a claim on its assets and earnings. Stocks are traded on public exchanges, and their value fluctuates based on the company’s performance, investor sentiment, and broader market conditions. Investors often buy stocks to participate in a company’s growth and, potentially, receive dividends.
What is a share?
A share is a single unit of ownership in a company, essentially your piece of the total stock issued. If a company issues 1 million shares and you own 10,000 of them, you own 1% of the company. Shares entitle the holder to a portion of the company’s profits (via dividends) and voting rights in some corporate decisions. Shares can rise or fall in value depending on market demand and the underlying company’s performance.
What is a bond?
A bond is a type of loan that investors give to governments, municipalities, or corporations. In return, the issuer agrees to pay back the principal amount on a set date and provide regular interest payments over the life of the bond. Bonds are considered fixed-income investments and are often used to provide portfolio stability and predictable income, especially in contrast to more volatile assets like stocks.
What is an ETF?
An ETF, or Exchange-Traded Fund, is a pooled investment vehicle that holds a diversified basket of assets — such as stocks, bonds, or commodities — and trades on a stock exchange like a regular share. ETFs allow investors to gain broad market exposure, often at a lower cost and with greater flexibility than mutual funds. They are popular for their diversification, transparency, and ease of access for both beginners and seasoned investors.
Let’s have a conversation. Your future wealth might just thank you for acting today.
You can now book a 30 minute zoom meeting with me (at your convenience) by clicking here.
Why Should I have an Assurance Vie?
By Michael Doyle
This article is published on: 20th May 2025
20.05.25
I wrote an article back in 2021 which you can read here. I just wanted to offer a reminder of the 10 most important reasons why you should consider having an Assurance Vie whilst living in France:
- Tax Efficiency: Assurance vie allows for tax-deferred growth on income and gains while the funds remain within the policy.
- Flexible Investment Options: With my help and planning you can choose from a variety of funds, including equity, bond, and special products, allowing for a diversified investment strategy.
- Access to Capital: You have full access to your capital at all times, with the option to take regular income withdrawals (possibly subject to an early exit penalty in the early years).
- Inheritance Planning: Assurance vie is highly effective for inheritance planning, allowing policyholders to designate beneficiaries and providing significant tax-free allowances.
- Long-Term Savings: It serves as a viable alternative to traditional pension plans, offering flexibility in saving for retirement.
- Potential for Higher Returns: By investing in unit-linked funds, there is potential for higher returns compared to traditional savings accounts.
- Social Charges on Gains: Only the gain element of withdrawals is subject to social charges, which can be advantageous compared to other investment vehicles.
- International Options: International assurance vie policies offer additional benefits, such as investment in multiple currencies and broader investment choices. We offer these at Spectrum meaning if you move country your Assurance Vie is often portable.
- Adaptability to Risk Tolerance: We offer regular reviews so can switch funds as your circumstances or attitudes toward investment risk change.
- Tax-Free Allowance After Eight Years: After eight years, gains can be offset against a tax-free allowance of €9,200 for couples or €4,600 for singles, enhancing tax efficiency.
You can now book a 30 minute zoom meeting with me (at your convenience) by clicking here.
Top financial tips Spain May 2025
By Chris Burke
This article is published on: 8th May 2025
08.05.25
Happy (Almost) Summer, everyone!
So far this year, the weather has been very unusual, to say the least. Hopefully, things will start to feel a bit more normal soon – which brings me nicely to the financial world, which has been anything but normal! Sometimes it feels like many of us are just pawns in the game that very powerful people play.
In my world, however, many of these ‘games’ are understandable from a financial perspective, and we don’t panic. Instead, we factor in all scenarios and focus on the medium- to long-term goals for our clients.
This month, I’ve put myself in my readers’ shoes and asked:
“What financial planning should I be doing while living in Spain?”
Whether you’re new to Spain (generally considered to be less than three years) or well-established, it’s important to stay financially organised and understand what actions you need to take.
Living abroad as an expatriate requires thoughtful financial planning to navigate both Spanish and international financial systems. Here are the key areas to consider:
1. Understand Tax Residency and Obligations
In Spain, spending over 183 days within a calendar year establishes you as a tax resident, meaning your worldwide income and assets may be subject to Spanish taxation. It’s crucial to understand the rules around tax residency to avoid unexpected liabilities.
2. Strategise Property Sales and Investments
If you own property in your home country, consider carefully when to sell. Selling property in the same tax year you become a Spanish resident can lead to significant capital gains taxes. Planning the sale before relocating may help mitigate this issue.
3. Establish a Comprehensive Estate Plan
Creating a Will that covers both your home country and Spain is essential to ensure your assets are distributed according to your wishes. It’s wise to consult with advisers experienced in cross-border estate planning to navigate the complexities.
4. Optimise Currency Management
Managing currency exchange efficiently can help minimise losses due to fluctuating exchange rates. Consider using multi-currency accounts or international banking services to provide greater flexibility and cost savings.
5. Savings, Investments & Pension Planning
Ensure these are structured to reduce future tax liabilities—whether that’s for withdrawals, passing assets to your spouse or children, or aligning with your investment expectations (e.g., risk/reward balance). Most importantly, work with someone you trust to help manage these assets.
6. Consult with Experts
Whatever your budget, make sure you work with a recommended lawyer, tax adviser, accountant, and financial adviser. In Spain, you are considered guilty until proven innocent, and it can take years to resolve legal issues—during which your bank accounts or assets may be frozen. Many expats are unaware of this, especially if they come from countries where the opposite presumption applies.
7. Use Your Life Experience
When choosing the right advisers, trust your gut—or your “spider senses,” as I like to call them. You’ve built up intuition through life experience, and more often than not, it’s spot on.
Engaging with financial advisers who specialise in expatriate services can provide tailored guidance on investment strategy, tax planning, and navigating financial matters in both Spain and your home country.
By proactively addressing these areas, you can establish a solid financial foundation for your life in Spain – ensuring both compliance with local regulations and alignment with your long-term goals.
I’m here to help you get organised and take those financial worries away. If you’d like to discuss any of the topics above in more detail, or would like an initial consultation to explore your personal situation, you can do so here.
Click here to read independent reviews on Chris and his advice.
Navigating Market Volatility
By Tom Worthington
This article is published on: 5th May 2025
05.05.25
How It’s Impacting Investors and What’s Driving It
In today’s economic rollercoaster, market volatility has become a feature, not a bug. Thanks to inflation, interest rates, and politicians who change their stance more often than they change their ties, investors are left riding waves of uncertainty
What Is Market Volatility?
Market volatility refers to how wildly asset prices swing around. It’s measured with stats like standard deviation or the VIX—aka the “fear index.” When VIX is high, it means traders are about as calm as a cat in a bathtub.
Think of volatility like a political debate: a lot of shouting, some overreactions, and nobody quite sure what the outcome will be—but everyone’s got an opinion.
How Volatility Is Affecting Buyers
- Increased Risk Aversion
When markets get shaky, investors run for the hills—or more precisely, into gold, bonds, or the financial equivalent of curling up under a blanket and binge-watching Netflix: cash. It’s not that they don’t want to invest; it’s just hard to focus on stocks when the economy’s behaving like a budget committee after three espressos.
- Short-Term Focus and Emotional Decisions
High volatility often leads to panic selling and FOMO buying—essentially the investment version of speed-dating your portfolio. One bad news headline and people dump their assets faster than a politician deletes tweets after a scandal.
- Greater Demand for Diversification and Alternatives
With public markets swinging like a metronome at a concert, investors are looking elsewhere: real estate, private equity, and alternatives that don’t fluctuate every time a central banker clears their throat.
Alternative strategies are basically the Switzerland of investing—neutral, quiet, and generally unaffected by the chaos going on next door.
- Hesitation in Major Life Investments
When markets are turbulent, people freeze. Buying a house. Starting a business. Investing in that avocado farm you saw on Instagram?! Better wait until the economy isn’t throwing daily tantrums like it’s on a sugar high.
What’s Causing the Current Volatility?
Geopolitical Tensions
Let’s face it—if the markets had a relationship status, it would be “It’s complicated.” Global tensions (Ukraine, Middle East, China-US trade) have created an environment where investors are just one diplomatic gaffe away from selling everything and moving to the woods.
And with international summits resembling more of a group therapy session than a solutions meeting, it’s no wonder markets are twitchy.
Inflation and Central Bank Policy
Central banks are trying to tame inflation with interest rate hikes—kind of like trying to put out a grease fire by hitting it with a calculator. Every time Jerome Powell or Christine Lagarde so much as raise an eyebrow, markets react like they just heard tax hikes are back on the menu.
Recession Fears
Recessions, Soft landings, Hard landings… No landing? At this point, the economy is basically being piloted by someone reading the instruction manual upside down. With mixed signals and conflicting forecasts, markets are responding like passengers on a turbulent flight—fastening their seatbelts and ordering strong drinks.
Tech and Social Media Hype
Social media has turned investing into part-time entertainment. Between Reddit-fueled pump-and-dumps and influencers recommending crypto in between smoothie recipes, market swings have become more meme than metric. Add algorithmic trading and you’ve got a digital casino with fewer rules and more drama than the House of Commons.
Earnings Uncertainty
Earnings season now feels like a bad date—lots of build-up, dramatic reveals, and someone always ends up disappointed. With rising costs and unpredictable demand, analysts are doing more guesswork than polling firms during a leadership race.
How Investors Can Respond
Here’s what smart investors are doing—besides stress-eating during market dips:
- Keep a long-term perspective: Ignore the noise—just like a seasoned voter during campaign season.
- Diversify: Don’t put all your eggs in one economic basket—especially if that basket is being carried by a toddler on roller skates.
- Use euro-cost averaging: Invest steadily over time, so you’re not stuck trying to time the market like a trying to explain your latest impulse buy to your other half.
- Hedge your bets: Consider options and other protections—because unlike political promises, these can actually reduce risk.
- Stay informed, not alarmed: Headlines sell panic; good decisions are made with data, not doomscrolling.
Conclusion
Volatility might be nerve-wracking, but it’s not the enemy. It’s a changing a nappy—messy, emotional, and always changing—but ultimately navigable if you stay calm, stay smart, and remember that every cycle, no matter how wild, eventually turns.
So hold onto your investments, keep a sense of humour, and remember: if in doubt talk to your adviser.
Financial update May 2025 – France
By Katriona Murray-Platon
This article is published on: 4th May 2025
04.05.25
May is when France comes out to play because the weather is warmer and the days are getting sunnier. However it is also the month when, if you haven’t already begun your tax declaration, you need to at least make a start on it over the next few weeks. The first deadline for filing the tax return is the 20th May for the paper returns which you will need to complete if this is the first year doing a tax return and you don’t have a tax number or login details to do it online.
The other deadlines for submitting both your income tax return and where applicable, your Wealth Tax return, are as follows:
| DEPARTMENT | DEADLINE |
| 0 to 19 | Thursday 22nd May 2025 at 11.59pm |
| 20 to 54 (including 2A and 2B) | Wednesday 28th May 2025 at 11.59pm |
| 55 to 974/976 | Thursday 5th June at 11.59pm |
| Non residents | Thursday 22nd May 2025 at 11.59pm |
If you do not at least attempt to get some sort of declaration submitted by these deadlines a 10% penalty will apply to the amount of taxed owed. Luckily, Spectrum has a free tax guide which you can find HERE. If you have any questions on this guide, please do get in touch.
I know that it may seem daunting and believe me, even though I was a tax adviser and used to do hundreds of declarations for my clients, I still find doing my own quite a challenge! So to help you, here are my ten top tips:
- HAVE YOUR FIGURES READY– Make sure that you know what kinds of income you need to declare and what the total annual figures are, whether they are taken off a bank statement or a tax certificate.
- KNOWING THE EXCHANGE RATE: The Banque de France average exchange rate for 2024 is €1.18 to £1. This is also the rate used by the Connexion newspaper. Make sure you have all your foreign income figures converted into Euros ready to input into the tax form.
- CHECK THE FIGURES ALREADY ENTERED ON THE TAX FORM – French source income (pensions, salaries, French bank income etc) should already be entered on the tax form. Whilst this information is generally correct, it is still worth checking these figures with any tax certificates issued by the relevant body or your December 2024 payslip.
- FOREIGN INCOME ANNEXE – I have noticed this year that whilst some annexe forms such as the 3916 are automatically ticked and carried over from the previous year, the 2047 for foreign income is not. You will therefore have to tick this box in the ANNEXE section of the online form to make this form appear. You must enter all foreign income received in 2024 on this form and then make sure that it is carried over or inputted again into the main 2042 tax form.
- CHECK THAT ALL THE DIFFERENT TYPES OF INCOME ARE TICKED – This applies on both the 2047 form and the main tax form (2042) as when you then click to the next page you will only be shown the boxes and pages that correspond to the income selected on the earlier page. So if you are only declaring pensions and bank interest, only those pages will appear. If you have other income like rental income or business income, you need to tick the relevant box for the page to appear. You can also look at the declaration that you did last year under the “documents” section on the main page and see what boxes you completed last year, then you can use the “search box” option.
- REMEMBER THE BANK ACCOUNTS AND UPDATE THE ASSURANCE VIE AMOUNTS – All non-French accounts must be declared on the 3916 form. This should automatically appear as a form if you declared accounts last year and boxes 8TT and 8UU were ticked. Any accounts you declared last year can be carried forward but if there are any changes, any new accounts or closed accounts, you must provide this information. Your assurance vie information will also be carried forward from last year but you will have to check the letter that was sent to you by the assurance vie provider in order to enter the value of the policy as at 1st January 2025.
- DON’T FORGET YOUR TAX CREDITS – If you have any domestic help or services paid via CESU, the amounts declared will be already entered on the tax form, you just need to check that these are correct. However if you have had any other home help (cleaners; gardeners, child care, after school lessons etc) from private companies or associations, these amounts are not always automatically entered. The company or association should have sent you a tax certificate for last year so you will need to enter that amount in the tax credit section. If you have a child in high school, sixth form or university, don’t forget to tick the box to get the (albeit small) tax reduction.
- RETIREMENT CONTRIBUTIONS – if you work in France and want to contribute to your pensions, it is a good idea to open a PER account. If you have already made contributions to a PER in 2024, you can deduct a percentage of these payments from your taxable income. The amount that can be deducted or carried over from previous years is shown on your tax statement. However to deduct these amounts from your tax you will need to reenter these amounts in the correct box.
- CHARITABLE DONATIONS – If you have made any charitable donations in 2024 you should have received a tax certificate from the charity with the amount to deduct. This may have been sent by email and fallen into your spam box so it is important to find the email or if it has been sent by post to keep the tax certificate in your tax file. If you still can’t find it you can contact the charity to send you another copy.
- NOBODY IS PERFECT (especially not me ;)) — you can start your declaration and go back to it later. You can do one version and then go back and change it. Once you get to the signature page which shows the tax due (this won’t appear if you have foreign income that will receive a tax credit) if something seems wrong you can go back and amend it. You can do this as many times as you like until the official deadline without it generating separate tax bills and even after the deadline provided you have submitted something before the deadline. If it gets close to the deadline it is better to declare something and sign the tax return and then correct it at a later date rather than incur a fine for late submission.
Property declaration – do you remember last year when you had do declare your properties as a separate declaration? This year you only have to declare whether there have been any changes in 2024. I noted on the online tax form that when you get to the signature page, you must tick a box saying there are no changes otherwise it will not let you sign off and send the tax return.
One of the welcome changes with the 2025 tax declaration is that couples will not be automatically taxed at the same rate but at their individual rates. This is particularly important for those paying tax at source on their pensions and salaries.
Until recently, couples were taxed at the same rate unless they opted for their individual rate which most people didn’t. The result of this was that, because women generally receive less than men when it comes to salaries and pensions, the woman was paying a disproportionate rate of tax. As from 1st September this will change and couples will automatically be taxed at their individual rate unless they opt to pay the same tax rate.
Unfortunately it is too late to contact tax advisers, tax lawyers or anyone else offering help with tax returns as they will be very busy completing the tax returns they already have, so don’t be surprised if they are not returning your calls or emails. However, with a bit of patience and perseverance it is possible to do your own tax return. If you have any questions please do get in touch and I will help as much as I can.
Tax returns in Italy
By Gareth Horsfall
This article is published on: 2nd May 2025
02.05.25
It’s that time of the year again folks!
I am always given warning that tax time is approaching because a number of clients start to ask for valuations of accounts, interpretation of some documents and also help with organising and sharing some documents with commercialisti.
However, regardless of anyone actually alerting me to the upcoming tax declaration in Italy, I always say that Easter time is a good time as any to nudge yourself into getting your financial documents in order for your ‘dichiarazione’ (if you haven’t done it already).
Never leave it too late! Commercialisti are run off their feet in the summer and can be hard to get hold of during their busiest time of the year, just when you or I are thinking about our holidays!
In this E-zine I am going to do an abbreviated version of the taxes that you may be subject to.
Nothing has really changed much from last year, so if you would like a longer explanation of what they are and why they are charged then you can check out my 2024 E-zine on the same subject, HERE.
(More on Italian country life at the end of this E.-zine if you are so inclined to keep reading on!)
TAX ON INCOME
INCOME TAX RATES FOR 2025 (IRPEF)
In a move to simplify the tax regime in Italy the tax bands have now moved from 4 to 3 in 2024.
| On the first € 28000 | 23% |
| € 28001 to € 50000 | 35% |
| € 50000+ | 43% |
PENSIONS
Most of my clients are in, or planning for, retirement to some degree and so understanding how your pension will be taxed as a resident in Italy is of paramount importance.
PRIVATE PENSIONS AND OCCUPATIONAL PENSIONS (Income tax rates – IRPEF)
Private pension provider income: 401K / IRA’s etc / Occupational pensions / Personal pension income / State pension or social security.
All these types of pension incomes fall into the income tax rates ( IRPEF), they are added together and the rates applied to the progressive bands of income.
GOVERNMENT DERIVED PENSIONS
(tax in country of origin unless Italian citizen!)
The definition according to the Italy / UK / USA double taxation convention 1988 is, paid from:
” a political or an administrative subdivision or a local authority”
The pension awarded is generally taxable only in the state in which it originates and tax is generally deducted at source in that country of origin, unless your are an Italian citizen and then it becomes taxable in Italy as well.
(Check the double taxation treaty from the country in which the pension payments originate)
(This income is not taken into account when calculating the tax on your other income sources in Italy, e.g. rental income, and it is not declared on your tax declaration in Italy)
2025: NO TAX AREA (€8500)
The NO TAX AREA applies to anyone receiving a pension, whilst resident in Italy (“pensioner” is defined as someone who is receiving official state benefits i.e., social security or state pension).
No distinction is made between pensions being paid from abroad or within Italy!
The NO TAX AREA is €8500 per annum.
It is important to understand that this is NOT an allowance but a tax credit system.
If your total income (reddito complessivo) is €8500 or less then all the tax payable on your pension will be provided as a tax credit.
HOWEVER, the more your total income, from all sources, increases over €8500, the more of the tax credit you lose.
If your total income is €50000 or above you would not receive any tax credit.
BANK ACCOUNTS AND DEPOSITS
A very simple to understand and acceptable €34.20 per annum is applied to each conto corrente e libretto di risparmio: current account or deposit account. This would typically include fixed deposits, short terms cash deposits, CD’s etc. The charge is the equivalent of the ‘imposta da bollo’ which is applied to all Italian deposit accounts each year.
(Money market accounts, premium Bonds in the UK and other deposit based instruments will not generally fall in this category and would be subject to wealth tax – see below)
Interest income is taxed at 26%.
INVESTMENT INCOME AND CAPITAL GAINS (26%)
A flat tax rate of 26% is payable on interest and income payments from capital and realised capital gains are also taxed at the same rate of 26%.
(Interest from Italian government bonds and government bonds from ‘white list’ countries are still taxed at 12.5% rather than 26%, as detailed above. This is another quirk of Italian tax law as this means that you pay less tax as a holder of government bonds in Pakistan or Kazakhstan, than a holder of corporate bonds from Italian giants ENI or FIAT).
If you are invested in NON-EU harmonised collective investment vehicles i.e. funds which are listed in a place outside the EU, then the gains and income from these assets are NOT taxed at the flat 26% rate in Italy, but would be added to the rest of your income for the year and taxed at your highest marginal rate of income tax! Funds or ETF’s, for example, which re listed in the UK with a GB ISIN code or in the US with an equivalent US number, would fall into this category.
This is particularly important for UK and USA domiciled assets. If you have a brokerage account with a group such as Fidelity or Vanguard or one of the many other asset management firms, or you invest through a platform such as Hargreaves Lansdown in the UK/USA, then depending on which assets you invest in could mean you are pushing yourself into a higher tax bracket on taxable gains and income for the year. Your portfolio may need restructuring for life in Italy!
WEALTH TAX ON ASSETS (0.2% PA)
Any financial assets other than property attract an annual wealth tax of 0.2% on the value of the asset as at the 31st December each year.
Here are examples of a few:
GENERAL INVESTMENT ACCOUNTS, ISAS, BROKERAGE ACCOUNTS, PLATFORMS, DISCRETIONARY MANAGED PORTFOLIO, DIRECT INVESTMENT IN FUNDS, STOCKS AND SHARES, COMMODITIES, ART WORK, CLASSIC CARS, ETC.
If the assets are located in one of tax regimes around the world which are considered fiscally privileged by the Italian authorities, then the rate of tax is 0.4% pa. The list can be found at the end of this article HERE
INCOME FROM OVERSEAS PROPERTY (Income tax rates – IRPEF)
Overseas net property income (after allowable expenses in the country in which is located) is added to your other income for the year and taxed at your highest progressive rate of income tax.
THE WEALTH TAX OF 1.06% ON THE VALUE OF THE PROPERY (IVIE)
For properties based in the EU, the value on which this tax is based is the Italian cadastral equivalent. You will find that the market value will, in most cases, to be significantly more than the cadastral equivalent value. For a list of the different tax values across Europe see the table below.
For properties located outside the EU (inc the UK/USA/Canada/Australia/NZ etc) the value for tax purposes is defined as the acquisition value (purchase /inherited/acquired) where this can be evidenced, otherwise it is the current market value of the property.
DISPOSAL OF PROPERTY
Disposal of properties both abroad and in Italy (exc prima casa) are not deemed speculative if you have owned the property for more than 5 full tax years and therefore are not capital gains tax liable on the disposal, in Italy.
NOTE: If you gain residency in Italy then by default your previous ‘first home’ or ‘family home’ for the purposes of the Italian tax authorities is now classified as an investment property. By definition, if you have a home in Italy and a property in another country, even if you consider this property your family home, it can no longer be considered your ‘Prima Casa’ for Italian tax purposes.
If you have any questions about any of these taxes and how they might apply to you and your individual financial situation, or if you think that you might be paying more than need to, then do get in touch and I will be happy to see if I can help you with your plans.
I can be contacted on email: gareth.horsfall@spectrum-ifa.com or on cell: +39 333 6492356
A QUICK UPDATE ON COUNTRY LIFE
The country life update seems to be garnering more interest than the financial talk, given the lovely feedback I have from many of you. I know many of you have already trodden this well worn path of moving to Italian rural homes and are involved in differing degrees with your properties and land management.
I am now slowing down a little bit as the spring has arrived and I see that the plants are literally exploding before my eyes. It seems futile to try and manage it too much when its all growing so quickly. However, it is hard to let go and I do find myself getting up in the morning and just having an hour or 2 on the land before work, or even on the weekend, where it rolls easily into 4 or 5 hours to the extent that my wife finally shouts from the window “Are we ever going to see you this weekend?”. At which point I know my day on the land is over, at least for that day.
Anyway, I know I have been telling many of you that I have refrained from cutting the grass under the olive trees to date. There is now good reason to be careful because as you will see below in the pictures, there are some new occupants of the land and I am a little reluctant to start mowing them down. (I have recently staked around them so I can get on with the grass cutting but without destroying the wild orchids).
I did however want to share a funny story. I bought a trattorino ( ride on lawn mower) in the January sales online, and got quite a good deal on it. However, given the weather had been quite cold up until about a month ago, the grass hadn’t really grown that much and so I put it in storage. I decided to start it up about a week ago, just to see how it went and as you might imagine, it didn’t start.
I was left with my trusty motorized lawnmower. ‘Che fatica!‘ as they say !! The trattorino ride on mower has now been fixed, under guarantee, (it was a broken fuse) and what a difference !!! A HUGE labour savings device.
On another note, I am finally starting, after the winter clean up of the land, to start looking at the border areas and wondering how I can tidy them up as well. A lot of trees and woodland needs to be at least trimmed back and will leave me with lots of material to deal with as always, given I need to do some fencing I was thinking about using this material in some way.
Facebook and social media, almost as soon as I started thinking about it, started pumping out lots of ideas from dead hedges, to woven fences and lots more. I am undecided, but might try my hand at some fence building at some point. It should be fun.
Interestingly, on our annual work and investment conference for The Spectrum IFA Group there has been lots of talk about the impact of Artificial Intelligence, on our lives, in the last few years.
In 2024 we were presented with a list of the jobs most at risk of AI, and those least at risk. At the bottom of the list was fence builder! They didn’t mention that this job might be at risk from Gareth, although the likelihood is that I will give it a try and make a mess and need to call a fence builder in the end, but at least I am guaranteed a nice human conversation instead of wondering if I am talking to an AI application.
This country life certainly has its challenges! I recently was sharing these experiences with someone and finished my emails by saying ‘1st world problems, I guess’. It was only on reflection that I thought that it’s probably one of the types of work that we actually have in common with people wherever they are from on the planet.
I won’t bore you with any more country life tales for this E-zine, but if you have any fence building ideas or want to talk about finances / tax, then please do get in touch!
Trump’s 100 days
Lastly, I thought I would leave you with a piece on Pres. Trump given that he is occupying a significant amount of time with conversations with you, at the moment ( and rightly so)
On April 29th he completed his first 100 days in office and his tone has softened, just slightly, in the last few days.
The article below was sent by one of our collaborative fund manager partners, VAM Funds and I thought I would share it as it’s a succinct article which explains what Trump is trying to do and his potential for success and possible hurdles along the way.
This is not one of my opinion piece’s but instead direct from the financial market people.
As Donald Trump approaches his first 100 days in office, a complex economic narrative emerges – challenging traditional approaches while attempting to address long-standing structural challenges. His presidency has introduced uncertainty and volatility, yet the broader economic context remains one of relative strength. This dynamic sets the current period apart from prior episodes of market turmoil.
Economic Context
The US faces critical economic pressures: a $2 trillion annual deficit, $36 trillion in national debt, and a declining manufacturing base. Trump’s approach represents an unconventional attempt to reimagine America’s economic positioning – neither entirely destructive nor completely transformative.
Yet, unlike previous periods of market unease, the economy today shows notable resilience. US unemployment remains near historic lows, corporate earnings continue to post positive growth, and balance sheets are broadly solid. Credit markets, while reflecting some spread widening, remain stable and not excessively leveraged. In many ways, the economy itself is not the root of the current turbulence.
The singular variable creating uncertainty is Trump himself. Markets are reacting less to economic fundamentals and more to political risk.
Against this backdrop, Trump’s strategy can be broken down into three core themes that shape his economic agenda:
| Trade Recalibration | Structural Economic Challenges | Economic Repositioning |
| Challenging existing global supply chain dependencies | Addressing long-term fiscal sustainability | Reviving domestic manufacturing |
| Seeking "fair trade" rather than pure free trade | Acknowledging the limits of current economic models | Reducing over-reliance on specific global partners |
| Attempting to redirect, not eliminate, global economic relationships | Proposing radical, and sometimes necessary, interventions | Balancing potential opportunity with heightened geopolitical risk |
Market Dynamics
Investors are navigating a landscape marked by uncertainty, but underpinned by strength. Unlike past episodes where systemic weakness drove market corrections, this time, economic indicators remain broadly constructive.
The real concern is political instability. Trump’s unpredictable tactics have jolted investor confidence, even though the macroeconomic foundations remain intact. However, his motivations are clear: he is ultimately driven to prove that he can build a robust U.S. economy, contain inflation, and secure strategic wins in the global trade arena.
With the 2026 mid-term election cycle beginning as early as Q1/Q2 next year, Trump cannot afford to alienate voters or lose his party’s slim Congressional majority. This political imperative may lead to quick policy “off ramps,” efforts to de-escalate tensions, and the search for visible wins – moves that could rapidly calm markets.
Indeed, any signs of stabilising rhetoric or resolution to current crises may spark an equally swift rebound in both equity and fixed income markets.
Structure in Chaos
Trump’s economic policy is neither pure economic nationalism nor traditional globalism. It is a hybrid approach – an improvised balancing act between disruption and adaptation characterised by:
· Challenging existing economic orthodoxy
· Acknowledging global economic interdependence
· Pursuing strategic economic repositioning
with the following potential outcomes:
· Possible supply chain diversification
· Increased domestic economic resilience
· Risk of short-term market volatility
· Long-term structural economic recalibration
Conclusion
Trump’s first 100 days signal a high stakes experiment in economic leadership. The market’s turmoil is not a reflection of economic collapse but of political unpredictability. Yet, the core economy remains resilient.
Should Trump pivot towards pragmatism – seeking quick wins, stabilising policy narratives, and presenting a clearer economic roadmap – the same markets that reacted sharply to uncertainty may respond just as swiftly to renewed clarity.
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
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.
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.