Many expats living abroad forget that in addition to being subject to inheritance tax in the country they now reside in, they are also still subject to UK inheritance tax on their worldwide assets.
There are ways to reduce UK and Spanish inheritance tax for expats living in Spain.
If you have money sitting in a bank account in Spain that takes you over the meagre allowances afforded to beneficiaries here in Spain, or the more generous (but still too low in my opinion) personal allowances in the UK , then its time you looked at moving some of this cash into a tax complaint investment bond.
With regards to Spanish inheritance tax this product can help eliminate tax liabilities for your spouse or partner on first death both in Spain and in the UK. On second death if your beneficiaries are outside Spain, as long as the tax compliant bond is sited outside Spain they are only subject to their countries inheritance tax rules.
More and more people are being caught out by UK inheritance tax, so if your investments take you over your UK allowance and your beneficiaries are in the UK then there is the option to place the tax compliant bond in a Trust. In addition Trusts can avoid the need for probate and allow funds to be paid out on death. They can also ensure the right people get the right proportion of assets at the right time, helping with succession planning and wealth protection.
If you would like more information on this or any other financial advice please contact me by email firstname.lastname@example.org or call me on 658 892 330.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management Ltd is authorised and regulated in the UK by the Financial Conduct Authority and is registered with both the DGS and CNMV. Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain.