Against this background it becomes all the more important that financial advice is sought in relation to private pensions. For a start, double tax treaties allow for enormous tax benefits to the expat retiree, while arrangements such as Qualifying Recognised Overseas Pension Schemes (QROPS) present many opportunities from a wealth management perspective. These of course include reduced income tax on drawdown, the flexibility to pass on tax-free pension funds to beneficiaries on death, greater investment freedom, and more.
The concern is that the politics surrounding Brexit could ultimately mean that expats are left with less enviable options post-March 2019. Given the way that finances work it is useful to remember how even small margins can, with large sums of money over long periods of time, make a significant difference, ultimately resulting in significant losses on what might otherwise be enjoyed.
This is why it is so important that expats in Marbella seek financial advice now so that they can make the most of the rules as they currently stand, rules that in the most part allow for an advantageous degree of efficient, personalised and regulated management that helps them ensure that their money works for them.
Unfortunately, although in all probability the post-Brexit landscape will not be that much different for expats who are already resident in the EU, there are no guarantees about what the future holds. By taking financial advice now you can limit the possibility for nasty surprises, however unlikely they might now seem.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
One of the most common questions asked of expat financial services firms is what should clients do with their pensions. Some wish to keep all their money in a UK-based pension, some will look to transfer to a Qualifying Recognised Overseas Pension Scheme (QROPS) and others will want to take a tax-free lump sum from their fund. In short, what an individual chooses to do will depend heavily on their personal circumstances together with any advice they receive from their expat financial services professional.