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We provide a comprehensive wealth management and tax planning service to Expats living in Spain, those considering relocating to Spain and Expatriates who are returning from Spain to their home country.

There are some very significant differences between the tax regime in Spain and the way your tax is levied in the UK and other countries and without professional help in understanding the differences there could be a serious negative effect on your wealth. There are even taxes in Spain that Expats will not have encountered before such as Wealth Tax and notional rent tax.

Spanish Tax

The tax you pay in Spain depends not only on the rates set by the government but also the autonomous region where you are resident. You will pay:

  • Income tax at a top of rate of 45% to 48%, depending on region
  • Up to 23% income tax on savings
  • Tax on capital gains made on property and investments
  • An annual wealth tax of between 0.2% and 3.5% on your worldwide assets
  • Non-residents could be liable for Spanish taxes, for example, when buying or selling property in Spain.

Tax Planning is Essential

Without proper tax planning you could end up paying considerably more tax than necessary. The rules are complicated and there is a requirement to annually declare all overseas assets. With the introduction of Common Reporting Standards the Spanish authorities will also automatically receive information about your income and asset holdings elsewhere so it is important to ensure that your tax declarations are correct.

Although the regime sounds onerous with our help you should be able to enjoy favourable tax treatment.

Investments & Pensions

Our advisers are here to help you structure your investments and pensions to ensure that you benefit from the tax efficient schemes available to Expats in Spain. It is really important that you recognize that tax efficiency means aligning your assets with your residential status. Holding onto UK investments when resident in Spain can be detrimental to your wealth and it is equally important to review your pension arrangements preferably before you move to Spain particularly if you intend to retire there.

Estate planning and Inheritance Tax

Spanish succession tax works very differently from UK Inheritance tax and the effect on your heirs depends on their relationship to you and where they live. Succession tax rates go up to 34%, but with 'multipliers' can reach 82% in extreme cases. Living in Spain does not mean that your liability for UK Inheritance Tax disappears. UK domicile rules mean that your worldwide assets can be subject to IHT and despite a double taxation agreement between UK and Spain there could be situations where you could be paying death taxes in both countries. With careful planning our Expat experts will guide you through this complex area of planning to help minimise your liabilities in both jurisdictions.

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Talk to Us

Speak directly to a locally based, professionally qualified, personal financial advisor, specialising in Expats in Spain, about your personal financial planning needs.

Please contact us on Tel: +44 207 998 0570 or email enquiries@fwm.gi