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A Spanish Collective Investment Bond is a lump sum investment written as a life assurance contract to secure significant tax benefits. As the contract is written outside of Spain, typically Ireland, the investments are actually held outside of Spain.

The Spanish Investment Bond which can be established for sums in excess of £100,000 allows you to hold investments in a currency denomination of your choice; provided that the investments are held in funds that are UCITS compliant.

Spanish Portfolio Bonds have the advantage that there is no investment limit and when you come to make a withdrawal it is very tax efficient. Please see a withdrawal example:

Withdrawal Example Image

The Key Benefits of Spanish Compliant Bonds are as follows:

  • Withdrawals are extremely tax efficient as tax is only due on the growth element.
  • No requirement to report on a Modelo 720 annual declaration.
  • Possible to write the policy based on UK law in order that no tax is triggered on first death, between spouses, avoiding the Spanish succession tax issue completely.
  • If the ultimate beneficiaries live outside of Spain there will be no succession tax on second death as both beneficiary and asset are outside of Spain.
  • Holding large sums in a Spanish bank account in excess of the Deposit Protection Scheme carries risk. The Spanish Bond is extremely secure as the assets are held in a segregated account in your name by the Bond provider.

Whether you are moving to Spain from UK or emigrating to Spain from another country or indeed an expat living in Spain we strongly recommend you download and read our Spanish Bond Guide.

Spanish Investment Bond Guide Image

Talk to Us

Speak directly to locally based, professionally qualified, independent financial advisor about your expat tax planning requirements in Spain by contacting us on Tel: +44 207 998 0570 or email enquiries@fiduciarywealth.gi