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Spain Axes Expat Mortgage Tax

Property should form part of a bigger investing strategy

Just as elsewhere in the globe, the key to successful wealth management in Spain is all about considering the impact and efficiency of expenses while balancing them against income and assets.

As such, the mortgage tax changes could have significant impact on the wealth management plans of some expat investors: prior to the change, the legal and tax costs of buying a property in Spain could easily be worth 10 percent or more of the sale price. This will now drop by around 2 percent, which is a considerable saving and has the potential to be especially valuable when applied to the purchase of higher value properties.

The move will almost certainly be welcomed by expats in Spain, and their financial advisers, as it should mean savings on property purchases which could be invested elsewhere – for example, into regular savings plans or into other aspects of expat retirement planning experience. It also slightly reduces Spain’s reputation for excessive property tax and administration charges.

Coming at a time when property purchase and rental prices are on the rise in Spain, the tax change may just mean that Spain’s wealth management options have been rescued. As we know, Spain is a top choice for Brits who want to move abroad, but in recent years the expense involved meant that other destinations began to look more attractive.

Help from Blacktower Today

Purchasing a property in Spain is not an easy process. Although the latest law changes regarding mortgage tax do lift some of the financial burden, there remains no substitute for a strong wealth management and tax planning strategy.

The wealth management advisers at Blacktower’s Spanish offices can help you review your investment assets and plan your financial future. For more information, contact us today.

Other News

Lasting Power of Attorney for Expat Investors

Research by the Alzheimer’s Society suggests that two-thirds of people who have sought financial advice have a lasting power of attorney (LPA) in place, but this, potentially, means a significant proportion of Brits do not have the protection that LPA offers.

Unfortunately, there is a common misconception among many expats (highlighted in a survey of UK expats conducted by Old Mutual International in 2017) that a spouse, child or financial professional can automatically sign documents and manage the welfare and monetary matters of a person who loses mental capacity. This is not the case; your family members could be left vulnerable should you become unable to manage your affairs without having LPA in place.

Good expat financial advice would generally advocate local legal advice to help ascertain whether or not an existing LPA, i.e. one that was drawn up in the UK, is valid in your location of residence. Generally speaking, however, common law jurisdictions will recognise a British lasting power of attorney, but it is always worth checking.

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Norway’s new secure bank notes have a fishy theme

Waves breakingNorges Bank has recently introduced the new series of Norwegian banknotes, which display a rather unusual design.

Traditionally, as is the case in most countries, Norway’s banknotes have always been adorned with portraits of the country’s important historical figures. But this new series of currency has done away with tradition and instead features images with one theme tying them together: the sea.

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