While the formation of a government headed by the socialist party’s Pedro Sánchez as prime minister, backed by the far-left “Unidas Podemos” party and its leader, Pablo Iglesias, now means that the government can begin to get on with the work of passing laws and fulfilling a parliamentary agenda, early proposals agreed by the two party leaders have revealed possible issues for some residents.
For example, HNW expats in Spain may face restrictions on their expat financial and tax planning opportunities. New government plans include:
- The introduction of two new tax brackets – one for income over €130,000 and another for income over €300,000.
- A review of HNWI tax contributions, with a view to ensuring greater revenue.
- A review of the tax havens list and a moratorium on tax amnesties.
- Greater regulation of SICAV investment vehicles.
At the moment, however, it is difficult to predict anything with certainty; it will not be until the coalition’s first budget that HNWI expats in Spain will know whether the coalition has been able to pass these intentions into law, so it will be incumbent upon expats to keep an eye on the political news over the coming months.
Blacktower Financial Management in Spain
Blacktower Financial Management can help HNWI expats in Spain plan their finances for the long-term, so they are well-placed to weather any political uncertainty and economic volatility.
This includes advising those who are moving to Spain, as well as providing advice to help resident expats optimise their assets, including real estate portfolios, investment vehicles and pensions.
For more information about how our international financial advisers may be able to help you, contact your local Blacktower office in Spain today.
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.
The UK government has admitted there are not enough pension transfer specialist advisers to deal with demand, particularly in the case of more complex transfers into overseas pensions. This was the government’s response in March to a consultation launched two years ago, on whether the need to take financial advice, introduced with pension freedoms, created difficulties for overseas residents – residents such as those living in Cyprus wishing to transfer their pension savings from the UK to a qualifying recognised overseas pension scheme (QROPS).
Few financial decisions are as important to an expat as the question of how and where they invest into a pension scheme.