Financial Wisdom For Uncertain Times
When it comes to Pensions and Investments, there is no such thing as the right solution for everyone; one size does not fit all. We all have differing needs and thoughts with regards to risks and returns. Yes, we would all like to have the highest returns possible, but the highest returns often come with a much higher level of risk and volatility.

I believe it is very wise to invest internationally and not to ‘put all your eggs in one basket’. Diversify well, but also, if you watch every cloud on the financial horizon – Brexit, the Italian Banking crisis etc, you’ll never invest. Perhaps more importantly if you had missed the best 25 days in the stock market over a 45-year period, your investments would be worth about a quarter of what they could have been worth.

Maybe you have a cash ISA and get around 1% interest, when core inflation in Spain is currently 2% as of June 2018 as published by the Instituto National de Estadisticas. That means that the spending power of your money is decreasing – you are losing money in real terms! Even that 1% is fully taxable in Spain, because the Spanish equivalent of HMRC, the Hacienda, do not recognize ISAs or most other UK Tax-efficient investments.

My Spanish lawyer recently told me that next year the Hacienda will have up-to-date data on every British Expat who is living in Spain. This will be provided by HMRC who will link it to your National Insurance number. I don’t believe anyone will get away with not declaring their taxes properly in Spain, because the Hacienda can see you’re living here by looking at your water and electricity consumption, your phone usage, cash withdrawals and card spending, not to mention the electronic passport controls now operating in the UK and Spain! The Hacienda also has the power to go back four years and request tax payments and impose hefty penalties for non-payment of taxes.

You are generally a Spanish Tax Resident if:
You are living in Spain for 183 days per year.
You have your ‘centre of vital interests’ in Spain (home, spouse, children, main source of work etc’).

Some taxes are still due in the UK, ie. if you decide to retain a UK property, or you have a public service pension scheme (Civil Service, Forces, etc). I am not a tax advisor and always recommend you seek local specialist advice regarding tax.

If you are becoming a Spanish Tax Resident talk to us asap. We will be able to give you some tips that will help you avoid making very costly mistakes.

We help you to find an investment or Pension Product that is as tax and cost efficient as possible; one that allows your money to grow without annual taxes and one in which the Spanish taxes are much lower on withdrawal than a non-Spanish compliant product.

120 Avenida Dr. Artero Guirao 2C
San Pedro Del Pinatar
30740, Murcia, Spain

Our office suite is on the main N332 through road of San Pedro del Pinatar with easy parking. If you want more information or wish to make an appointment to discuss your own situation then call 657 684 094 or email
Blacktower Financial Management (International) Limited is licensed by the Gibraltar Financial Services Commission. Licence 00805B. Blacktower Financial Management Limited is authorised and regulated by the Financial Conduct Authority in the UK and is registered with both the DGS and CNMV in Spain.

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