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Top financial tips Spain May 2025

By Chris Burke
This article is published on: 8th May 2025

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.

Article by Chris Burke

If you are based in the Barcelona/Costa Brava area and would like to have an initial, complimentary face to face video call or arrange a time to visit Chris in his office in central Barcelona, contact Chris on chris.burke@spectrum-ifa.com or whatsapp +34 689915730.

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