Spain’s warm climate, welcoming culture, and excellent lifestyle continue to attract expatriates from across the UK and the US. However, when it comes to managing your wealth, living in Spain adds layers of complexity. Tax rules, reporting obligations, and investment regulations differ sharply from those in your home country. Working with an experienced international investment adviser ensures your portfolio is structured compliantly and optimised for your new life under the Spanish sun.
The Need for Cross-Border Financial Expertise
Both UK and US expats are subject to Spain’s worldwide income tax, which applies to earnings, dividends, and capital gains. In addition, Spain enforces a Wealth Tax and requires residents with assets over €50,000 outside the country to report them annually through the Modelo 720 declaration. These obligations can be daunting — but with expert advice, you can structure your investments efficiently, remain compliant, and avoid unnecessary taxation.
Tailored Investment Strategies for Expats in Spain
A qualified international adviser can help you:
- Build a globally diversified, tax-efficient portfolio aligned with your financial goals and risk appetite.
- Utilise Spain-compliant investment structures, such as life assurance portfolio bonds, which allow for tax deferral and simplified annual reporting.
- Manage currency risk between pounds, dollars, and euros, ensuring your wealth retains its real value.
- Align your investments with your long-term residency and retirement plans — whether you remain in Spain, move elsewhere in Europe, or eventually return home.
For UK Expats in Spain
British expatriates often arrive with ISAs, UK pensions, and other domestic investments that may lose their tax advantages under Spanish law. An adviser familiar with both systems can help you restructure your portfolio to remain compliant while maintaining flexibility and tax efficiency. Pension strategies — such as consolidating or transferring to a QROPS or international SIPP — should be reviewed carefully to ensure suitability.
For US Expats in Spain
American citizens face additional challenges due to FATCA and IRS rules. Many EU-based investment funds are classified as Passive Foreign Investment Companies (PFICs), leading to punitive taxation in the US. Working with an adviser who understands both Spanish tax law and US reporting requirements helps ensure your investments are fully compliant and positioned for long-term growth.
Invest with confidence
At Blacktower FM, we understand that investment decisions can be complex and overwhelming. That’s why our team of experienced advisers are here to do the hard work for you. We will carefully assess your risk appetite and objectives to create a bespoke investment strategy that aligns with your goals.
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