Spotlight On … Clifford Knezovich – IFA

If you’ve recently become an expat, what’s your favourite aspect of your new surroundings so far?

Britons in France may say the availability of work, expats in the Netherlands (or more specifically Amsterdam) may comment on the impressive safety and security, and many more expats around the globe are likely to appreciate the opportunity to learn a second language (and cherish the fact that they’re in the optimum position to do so).

If you were to ask British expats in Germany what they value most about their chosen country, you’re bound to get a whole host of varied answers, as stated in a recent poll carried out by The Local Germany.

Here in Spain, I hear no end of horror stories regarding the country’s financial institutions and laws. Unfortunately, I too have been on the receiving end of unscrupulous and downright unfair treatment, but last week a client of mine of over four years called me in distress. For the avoidance of doubt, this is a true story.

My client is 86 years old and, sadly, her husband died eight months ago. Over four years ago she followed our recommendation of investing in a purpose-built Spanish portfolio bond with both her husband and her as lives assured. This meant that should either partner die before the other, the bond would continue as if nothing had happened, thereby not triggering a Spanish Inheritance Tax calculation. In Spain unlike the UK, there is Inheritance Tax between spouses, however, because this particular bond is held outside Spain it avoids inheritance tax. This is a tool that we often use for clients in Spain.