Blacktower Ready to Respond to New Challenges

Your des-res might be a gorgeous sea-front apartment overlooking the med, or a rural stone cottage nestled amongst the vineyards of Burgundy, but wherever you live, once you are settled, understanding whether you are domiciled, non-domiciled or resident can be a bit confusing. However, clarity is essential: the amount of tax you pay hinges on knowing the difference and the relevance of each non-dom status versus residency status.

Firstly, don’t just guess your residency or non-dom status, because if you get it wrong, you could pay too much tax or pay it in the wrong place, and failure to pay can lead to large fines and penalties. Sadly, mis-payments are not tolerated; your tax planning may be well-intentioned, but if you don’t pay the correct amount of tax in the appropriate jurisdiction, you could be in hot water, so it is vital to get it right.

Generally, we recommend that you speak to a financial adviser working in your local region who will understand the jurisdictional rules applicable to your location and personal situation, but as a brief guide, read on and we will explain the fundamentals.

2018 has brought good news for many expats tackling the idiosyncrasies of finance in Spain and, especially for those who want to manage their legacy planning successfully.

This is because British and other EU citizen expatriates in Spain have received a boost in relation to succession tax laws.

Under the Spanish regional system, expats in Spain (but not those from outside the EU or EEA) can avoid costly Spanish state succession rules on passing; instead they are able to take advantage of kinder regional laws, such as those just implemented by Murcia and Andalucía.

In these areas, if you have Spanish assets but have not quite yet become a fully-fledged expat or indeed if you have Spanish property but still reside full-time in the UK; your heirs, wherever they may live, are entitled to the full range of succession tax reliefs offered by the region in which your assets are invested. Sometimes this may be as much as 99% succession tax relief or, in some cases, total exemption.