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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.

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SPANISH BOND GUIDE TODAY
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Frequently Asked Questions About Spanish Compliant Investment Bonds

Welcome to our FAQ on the Spanish Compliant Investment Bond! If you're interested in exploring investment opportunities in Spain or seeking a tax-efficient investment vehicle, you've come to the right place. In this guide, we aim to provide you with essential information and answers to common questions about the Spanish Compliant Investment Bond.

Please note that while we strive to provide accurate and up-to-date information, it's essential to consult with a qualified financial advisor or tax specialist who is well-versed in the regulations and requirements of the Spanish Compliant Investment Bond. They can provide personalized guidance based on your specific financial goals and circumstances.

Let's dive into our FAQ on Spanish Compliant Investment Bonds and discover the possibilities that this investment avenue can offer for your long-term financial planning.

A Spanish compliant bond is a type of investment-linked life assurance policy that meets certain technical requirements to be considered tax compliant in Spain. This bond is issued by life insurance companies in the European union and provides specific benefits for expats of any nationality who are either tax resident or planning to become tax resident in Spain. Spanish compliant bonds can help investors accumulate capital or provide a regular income in a highly tax-efficient manner.

Tax referral, in the context of a Spanish compliant bond, refers to the advantageous tax treatment where any growth in the policy value is deferred until the bond is fully surrendered or a withdrawal is made. Unlike immediate taxation, only the gain element of the withdrawal is subject to tax. This unique tax benefit applies specifically to Spanish compliant bonds, making them an attractive option for tax-efficient investment and wealth accumulation.

The Spanish compliant bond offers valuable benefits when it comes to Spanish succession tax. Unlike in the UK, where estate pays the tax, in Spain, the beneficiary is responsible for paying the tax. By establishing a Spanish compliant bond in joint names, you can avoid triggering any tax on the first death, completely bypassing the succession tax issue. Additionally, if the ultimate beneficiary resides outside of Spain, there will be no succession tax on the second death, as both the beneficiary and the asset are held outside of Spain. This advantage plays a crucial role in estate planning, effectively mitigating potential Spanish succession tax liabilities.

At Fiduciary Wealth Management, we prioritize the effective management and growth of your investments. Our dedicated team of investment advisers is committed to constructing a carefully curated portfolio that aligns with your financial goals and risk tolerance.

We begin by leveraging our extensive expertise to select high-quality and compliant funds from a diverse range of investment options. Our advisers have access to a wide universe of funds, allowing us to tailor your portfolio to meet your specific requirements. By considering your attitude to risk and return expectations, we ensure that your investments are aligned with your unique financial objectives.

But our commitment doesn't end there. We continuously monitor the performance of your portfolio to ensure that it remains on track and delivers the desired results. Regular reviews and adjustments, made in accordance with your agreement, allow us to optimize your portfolio's performance and adapt to changing market conditions.

Rest assured that your money is being actively managed by experienced professionals who are dedicated to maximizing your investment potential. We strive to provide transparency, regular communication, and proactive management to keep your investments working hard for you.

If you're ready to have your money invested in a way that aligns with your financial goals, get in touch with us today to discuss how our tailored investment approach can benefit you.

Certainly! With our Spanish compliant investment bond, you have the flexibility to withdraw regular income according to your needs. You can choose to receive withdrawals at monthly, quarterly, semi-annual, or annual intervals. To maintain this privilege, it is required to maintain a minimum balance of €15,000 in your bond. Enjoy the peace of mind knowing that you can access your funds regularly while your investment continues to grow.

At Fiduciary Wealth Management, we provide individuals with the opportunity to establish a Spanish compliant investment bond. Our offerings are available to individuals up to the age of 80, subject to meeting the requirement of being of sound mind. This maximum age limit applies to all parties involved in the bond. Contact our team to explore how you can benefit from establishing a Spanish compliant investment bond tailored to your unique circumstances.

When considering a Spanish compliant bond, you can start investing with a minimum amount of €100,000 or its equivalent in your preferred currency. This entry-level investment allows you to enter the market and begin building your investment portfolio. Contact our team at Fiduciary Wealth Management to explore the possibilities of starting your investment journey with a Spanish compliant bond tailored to your financial goals.

We offer the flexibility to establish a Spanish compliant investment bond with the potential to include up to six individuals as lives assured. This means that you can extend the coverage and potential returns of the policy to multiple beneficiaries, providing a comprehensive solution for your financial planning needs. Whether you're considering including family members or other individuals, our team can guide you through the process of structuring a Spanish compliant bond that aligns with your unique circumstances and objectives. Contact us today to explore the possibilities of maximizing the benefits of a Spanish compliant bond for you and your chosen lives assured.

At Fiduciary Wealth Management, we understand the importance of providing options that cater to your specific needs. When it comes to our Spanish compliant investment bond, you have the flexibility to choose from multiple currency options. You can select the currency that aligns with your personal requirements, including euros, sterling, or us dollars. This ensures that you can manage your investments in a currency that suits your financial goals and preferences. Our experienced team can guide you in making the right currency choice based on factors such as your residency, international transactions, and long-term financial objectives. By offering a range of currencies, we aim to provide you with the necessary flexibility and control over your investments. Get in touch with us today to explore the diverse currency options available for your Spanish compliant investment bond.

Managing tax obligations and compliance requirements can be a complex task, especially when it comes to reporting offshore assets. However, with our Spanish compliant investment bond, you can enjoy the benefits of streamlined reporting and peace of mind when it comes to Modelo 720.

Under Spanish tax regulations, residents are required to declare their offshore assets annually through the Modelo 720 declaration. However, the good news is that our Spanish compliant investment bond is specifically structured to simplify your reporting obligations. As an offshore investment, it falls within the guidelines agreed upon by hacienda, the Spanish tax office.

This means that you are not required to include this type of investment in your annual Modelo 720 declaration. By investing in a Spanish compliant bond, you can enjoy the convenience of reduced reporting requirements, allowing you to focus on your life and financial goals without unnecessary concerns about tax compliance.

Our dedicated team of experts is well-versed in Spanish tax regulations and will ensure that your investment structure aligns with the requirements to minimize your reporting obligations. We prioritize transparency and compliance, providing you with the peace of mind that comes with knowing your investments are structured in a tax-efficient manner.

With our Spanish compliant investment bond, you can navigate the complexities of Modelo 720 with ease, allowing you to enjoy the benefits of your offshore investment while maintaining compliance with Spanish tax laws.

If you're seeking a tax-efficient solution that simplifies your reporting requirements for Modelo 720, contact us today to learn more about how our Spanish compliant investment bond can benefit you.

Nominating beneficiaries is an important aspect of your financial planning, ensuring that your assets are distributed according to your wishes. When it comes to our Spanish compliant investment bond, the process of nominating beneficiaries is straightforward and flexible.

To nominate beneficiaries for your Spanish compliant investment bond, simply follow these steps:

Consultation: our experienced financial advisors will guide you through the process and provide personalized advice based on your specific circumstances. We will discuss your objectives, preferences, and any legal considerations related to beneficiary nominations.

Selection: once you have a clear understanding of your options, you can choose one or more individuals or entities as beneficiaries. You have the flexibility to nominate both primary and contingent beneficiaries, specifying the order in which they would receive the benefits.

Documentation: we will assist you in preparing the necessary documentation to formalize the beneficiary nominations. This may include completing beneficiary designation forms or updating the terms of your investment bond agreement.

Review and updates: it's important to periodically review and update your beneficiary nominations to reflect any changes in your personal or financial circumstances. Life events such as marriages, divorces, births, or deaths may require revisions to ensure your wishes are accurately reflected.

By nominating beneficiaries for your Spanish compliant investment bond, you gain greater control over the distribution of your assets and provide financial security for your loved ones.

Additionally, beneficiary designations offer certain advantages, such as bypassing the probate process, which can expedite the transfer of benefits to the intended recipients.

Our team of knowledgeable professionals is here to support you throughout the process of nominating beneficiaries, ensuring that your wishes are effectively documented and legally binding. We understand the importance of confidentiality and will handle your beneficiary nominations with the utmost sensitivity and care.

To begin the process of nominating beneficiaries for your Spanish compliant investment bond, contact us today to schedule a consultation with one of our dedicated financial advisors. We will guide you through the necessary steps and provide comprehensive assistance to help you make informed decisions about your beneficiaries.

We understand that the safety and security of your investment in a Spanish compliant bond are of utmost importance to you. We are committed to providing you with peace of mind and protecting your assets.

When you establish a Spanish compliant investment bond with us, you can be confident in the following safety measures:

Segregated account: your assets are held in your name by the bond provider in a segregated account. This ensures that your funds are separate and distinct from the assets of the bond provider. They are exclusively allocated to pay you benefits and cannot be utilized for any other purposes.

Insolvency protection: in the unlikely event that the bond provider faces insolvency, they have implemented robust protection measures. Once the costs of liquidation have been covered, policyholders have first priority over the remaining fund assets. This ensures that you have a higher claim on the available assets, safeguarding your investment.

Regulatory compliance: as a life company based in Ireland, the bond provider adheres to stringent regulatory requirements outlined in the solvency ii directive of 2016. This directive sets capital requirements to ensure the financial stability of insurance companies. Compliance with these regulations provides an added layer of security for your investment.

Track record: it's worth noting that Ireland has an excellent track record with no insolvencies of authorized life insurers. This demonstrates our commitment to financial stability and underscores our dedication to safeguarding your investment.

Your trust and confidence in the safety and security of your Spanish compliant bond are of paramount importance to us.

The bond provider implements robust safeguards, adhering to regulatory requirements, and maintaining a strong financial position to protect your investment.

Should you have any further questions or require additional information regarding the safety measures and security features of a Spanish compliant investment bond, our dedicated team is here to provide you with the guidance and reassurance you need. Feel free to reach out to us for personalized support and assistance.

Speak to us for your Spanish compliant bond and experience the peace of mind that comes with investing in a secure and reliable financial solution.

Managing your financial affairs and ensuring compliance with Spanish regulations can be a daunting task. At our firm, we specialize in providing comprehensive support and expertise to help you navigate the complexities of arranging a Spanish compliant investment bond.

Our team of experienced tax and investment experts is dedicated to understanding your unique needs and circumstances. We will guide you through the entire process, from the initial consultation to the final arrangements, ensuring that every detail is taken care of.

During a detailed consultation, we will assess your financial goals and objectives to determine if a Spanish compliant bond is the right solution for you. Our experts will explain the advantages, address any concerns you may have, and provide personalized recommendations tailored to your specific requirements.

Summary

By working with us, you can have confidence that you'll receive personalized attention and professional assistance at every step. We understand the intricacies of financial management and the importance of arranging everything seamlessly for your peace of mind.

To get started, we invite you to connect with one of our trusted financial advisers. They will serve as your dedicated point of contact, ensuring that all your questions are answered and assisting you in arranging everything with ease.

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 connect@fwm.gi