June 26, 2025 • 50 mins
free financial advice in Spain for Expats In Spain
Info pages Your questions answered fast Today David wright interviews Josh Williams from Ambient Wealth Management, who has some great advice for people moving to spain. Contact Jose here https://form.jotform.com/250781690418058
Expats discounts page. health cover car insurance and electric bills get money off all these and more see how here..Top expert help page and much more see here https://www.davidwrightonline.com
Living and working in Spain info and discounts on services you need when moving to Spain. We also have a free help and mentor page where our experts answer all your questions. come join us here.. / britishexpatsinspain Davids 23 years experience living and working in Spain. tv appearances BBC TV news interviews and now 2 New LIVE radio shows every Thursday and Friday on Almeria Radio Moving to Spain see what its really like and all you need all in my 4 new books here..http://livinginspainbooks.com/ SUBSCRIBE TO MY CHANNEL Click link below now. https://www.youtube.com/c/DavidWright... British Expats In Spain #healthcoverinspain #expatshealthcover #exptashealthinsurance finding work in spain #workinspain #jobsinspain #findingworkinspain #workinspain
Watch video version here
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Move to Spain info and help. Remember you can now book a private call with David to get targeted help thats WRIGHT for you see whats others are saying about the calls here https://davidwrightonline.com/adventures-in-spain/book-a-private-consultation-with-david/
with over 23 years living and working in Spain now i have personally helped many people follow their dream of moving to Spain. I can get you where you want faster than you think lets chat..
Info pages Your questions answered fast Today David wright interviews Josh Williams from Ambient Wealth Management, who has some great advice for people moving to spain. Contact Jose here https://form.jotform.com/250781690418058
Expats discounts page. health cover car insurance and electric bills get money off all these and more see how here..Top expert help page and much more see here https://www.davidwrightonline.com
Living and working in Spain info and discounts on services you need when moving to Spain. We also have a free help and mentor page where our experts answer all your questions. come join us here.. / britishexpatsinspain Davids 23 years experience living and working in Spain. tv appearances BBC TV news interviews and now 2 New LIVE radio shows every Thursday and Friday on Almeria Radio Moving to Spain see what its really like and all you need all in my 4 new books here..http://livinginspainbooks.com/ SUBSCRIBE TO MY CHANNEL Click link below now. https://www.youtube.com/c/DavidWright... British Expats In Spain #healthcoverinspain #expatshealthcover #exptashealthinsurance finding work in spain #workinspain #jobsinspain #findingworkinspain #workinspain
Watch video version here
Become a supporter of this podcast: https://www.spreaker.com/podcast/move-to-spain-the-wright-way-with-david-wright--4371936/support.
Move to Spain info and help. Remember you can now book a private call with David to get targeted help thats WRIGHT for you see whats others are saying about the calls here https://davidwrightonline.com/adventures-in-spain/book-a-private-consultation-with-david/
with over 23 years living and working in Spain now i have personally helped many people follow their dream of moving to Spain. I can get you where you want faster than you think lets chat..
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Yes, so I'll just introduced you then, Josh So Josh
Williams from Ambient Wealth. Thank you Josh for joining us today.
You're the financial expert that I've been using for sometime
and helps a lot of my followers and that. So
just give us a little bit of intro to yourself
for people that don't know you.
Speaker 2 (00:20):
Yeah.
Speaker 3 (00:21):
Yeah, it's nice to be called an expert, I guess.
But speaking about myself. Moved over to Spain almost ten
years ago now after working in finance with my father
and his.
Speaker 2 (00:33):
Company in the UK.
Speaker 3 (00:36):
Came my qualifications back back there and moved over ten
years ago and it's been a journey over here working
with expats, understanding and laws, the treaties, the exemptions, and
it's there's lots to understand, and that's where I provide
sort of quite personalized advice to clients, especially since setting
(00:59):
up Wealth.
Speaker 2 (01:00):
So I'm the owner and director of Ambient Wealth.
Speaker 3 (01:03):
Set set up Ambient nearly two years ago now, after
seeing a sort of a niche in the market to
provide transparent and more personalized expat advice. After working with
a couple of firms over here, didn't see that that
was necessarily the case all the time. So yeah, that's
(01:24):
myself very settled here in Spain and look forward to where.
Speaker 4 (01:28):
Are you, Josh, Just tell us a little bit where
you are.
Speaker 3 (01:30):
Yes, I'm based in the south of Spain in Malaga,
just in between Managar and my bay on the on
the coast. I frequently visit Seville. I have family connections
in Sevilla, so I travel in between Managa and Seville
quite often. But although based in the south, I have
clients all over Spain, many in Andalusia, but others in Barcelona,
(01:55):
in Galicia, and Madrid, in x and Madora, you know,
weird and places, and I do travel to visit clients.
But yeah, base based in the south, but not elimited.
Speaker 1 (02:06):
And with everything online now dies in easy access to everything,
most of the work is done or I can be
done online, Josh. It doesn't really matter about where people
live or where they moved through Spine, does it correct?
Speaker 3 (02:17):
Yeah, So yeah, COVID allowed that, you know, one of
the one of the few silver linings of COVID has
opened up that that comfortableness with with online video communications. Before,
you know, it was very face to face, especially when
you're talking about finances and some people still have that approach,
(02:40):
which I understand and respect. Others are more open to
you know, the convenience of a video call, which can
save a lot of time in travel.
Speaker 2 (02:49):
So Covid has opened that up.
Speaker 3 (02:52):
And yeah, we speak to a lot of clients via
telephone video videos most common, but also face to face.
Is that so I prefer as well if ione ist.
Speaker 1 (03:03):
Yeah, so, Josh Risen, you know I do these videos
with my experts. Is that you know, I've been here
for twenty four years now this year, twenty four years,
and there's a lot of British people that come here
and they're not sure about certain things, and you know,
advice sometimes you go and find somewhere you have to
pay for it. It can be expensive and there a little
(03:23):
bit slow and coming forward with the British people. So
these these are completely free consultations with people to start
with initially, and you know the experts that I provide
people like yourself that I know and trust for some time,
and you offer free advice to my members on my
websites and my Facebook groups. But doing calls like this,
(03:44):
you know, people jump on the call or we set
we set it up and record it and post it
post it like this will be posted later on as well,
so you know, it helps people get the right information
so they can make better decisions here. I've seen so many,
you know, horror stories of people moving here, and you know,
like just the other day on Facebook, somebody said, been
here for a year now and I need to change
(04:07):
my driving license and you know, and I said, you
had residency here for a year, yeah, and you haven't
changed technically, that's breaking a lot. You have to change
your driving license within six months. I've been driving here.
Technically I they got stopped by the police there. The
license isn't valued. And you know how somebody can be
here a year and not know that. It's pretty much
everywhere all over the internet. But you know, getting help
(04:29):
and advice avoid helps you avoid these little problems. So
you know, Josh, I appreciate your time today and everything.
So how do you want to start off the day?
We're going to talk about a few things, pensions, taxes
and how do you want to start Yeah, so.
Speaker 3 (04:43):
I think to the title of the webinar, I feel
like is securely investing as a tax resident in Spain?
I know, talking about taxes and everyone's idea of a
good time. But the aim today is to give to
give people and a practical, honest guidance if you like,
(05:04):
and answer real life questions that people might be sitting on.
So to make it relax, you know, Q and a focused.
I know you've got some questions for me, and I
can run through some commonly asked questions that expats typically ask.
But you know, focusing on what you've mentioned there, people
move over to Spain, they don't know what the differences are.
(05:25):
Some people can be quite naive and just think that
it's the same. You know, it continues to be the
same with declarations and reporting of assets. You know, it
is very very different, different legislation, different jurisdiction. But we're
going to focus on today the tax efficiency available for
Spanish residents, investment options, especially post Brexit, dealing with vices, pensions,
(05:52):
love sums in the bank or in investments, and also
Spanish compliant options and what they mean for people living here,
avoiding common tax pitfalls and also protecting wealth long term.
And it's it's as you know. You know, David, you
work with me for a while now, you know I'm
not a salesy person. This is not a sales pitch.
(06:14):
It's just just real guidance based on correct Yeah. So
you know, coming on to why being a tax president
in Spain changes everything, you know. To bring it to basics,
being a tax resident in Spain requires an individual to
be here for one hundred and eighty three days a year.
(06:35):
This is just one day over six months. Worldwide income
is reportable. Again, that's a common common issue that people think, Oh,
I only earn in Spain, or I only earn a
state pension, or I only have pension income. Whatever it
may be and wherever it may come from, it needs
(06:57):
to be reported in Spain. If you are a tax
versus in Spain, yes, there's double taxation treaties with different
countries for different taxes. However, there it's it's important to
understand what they are, something that we can help with.
But if there is tax paid at source in the
UK on a seale of property, for example, and you
(07:18):
pay your tax in Spain the couple of gains tax,
you declare that you paid that tax in the UK
and it will be offset against your Spanish tax, so
reduce that you don't pay twice. UK tax rappers so
ices for investments, you know, individual saving accounts, very common.
Premium bonds again, you know, my grandmother, bless her, bless
(07:42):
her heart.
Speaker 2 (07:43):
She she you know.
Speaker 3 (07:44):
Put a lot of not a lot, but she used
to give me presents, you know, when I was younger,
twenty quid here and there into premium bonds and say
one day we'll make the million. But averagely, you know,
looking at that over a period of time, it's it's
not a great investment anyway, even if as a UK
a tax resident. But people like the surprise, but it
(08:05):
doesn't provide any tax benefits to someone living outside the UK,
same as ices and SIPs as well, you know, so
then they may no longer be tax efficient for someone
living over overseas and and in Spain in this instance,
and also with tax residency, it's important to understand the
(08:26):
structuring from the start to avoid tax traps, to make
sure that you're not overpaying tax on investments or growth
sale of properties. There are ways and means to reduce taxation,
but it does come down to individual circumstances.
Speaker 1 (08:42):
So yeah, every everyone's different, and areas do change a
little bit of different rules and regulations and do a
little bit here in Spain.
Speaker 2 (08:50):
Line, correct, Yeah, yeah, even in Spain itself.
Speaker 3 (08:54):
You know, you've got Spain as a whole who have
their national rules when it comes to tax, particularly inheritance
tax is a big one. Wealth tax as well, but
so Spain sort of set the rules and then each
individual autonomous community. I'm in Andalucia where Managar is same
as you David in al Maria. Al Maria sorry, and
(09:18):
Lucia does not have any well, has an a full
exemption for wealth tax, whereas if you go to Valencia
or the Valenciana region Alacante, where a lot of British
expats do end up, there is wealth tax to contend with.
So people, you know, need to understand what the tax
(09:38):
scenario is in the area that they're moving in Spain,
not just in Spain as a whole.
Speaker 2 (09:43):
So Andlucia is is quite on that story.
Speaker 1 (09:47):
Josh, I had a story a little while ago from
one of my other expert advisors that a British person here,
a husband and wife had died and left the health
to their to their son and all to there was
I think there were three children gafted around the world
and the property was worth over half a million. They
weren't living in and blue fear. As you say that
(10:09):
it's got you don't have to worry about the inheritance tax.
So there was an inheritance tax to pay and it
was quite a lot of money. Maybe you can tell
me what it will be, roughly on half a million.
Speaker 4 (10:20):
But so the.
Speaker 1 (10:22):
Kids didn't act well the kids were growing up. They
didn't have the money to pay the tax because the
tax had to be paid before they can inherit the property.
So they was in limbo and I don't know what happened,
but it was a big problem because they didn't have
the money to pay the tax to inherit the money.
So you can imagine a nightmare scenario on that one.
Speaker 3 (10:39):
Yeah, yeah, that's again a difference, you know, going a
little bit off. But with the inheritance tax, it's the
individual who is benefiting who the tax liability lies with,
rather than in the UK it's with the estate of
the deceased, so it's pretty opposite. So it's based on
the individual that's benefiting in space and they're existing wealth
(11:02):
and then as you've correctly said, the tax needs to
be paid prior to receiving that wealth, so there can
be problems.
Speaker 2 (11:09):
You know, we're receiving that wealth.
Speaker 3 (11:10):
But there are ways to you know, to combat that,
you know, with use of wills and make sure it's
written under the correct laws, having finances structured appropriately, assets
in jurisdictions that you know are tax neutral, you know,
rather than in the UK living in Spain.
Speaker 2 (11:30):
So yeah, there are ways to combat it.
Speaker 3 (11:32):
But yeah, bearing bearing heads in the sand and not
taking any action can lead to problems for family members,
especially when they may be grieving, you know, in times
of hardship, so it's important to plan for that for
the future.
Speaker 2 (11:50):
For sure.
Speaker 3 (11:52):
So yeah, I mean some of the common you mentioned
a common common questions there that expacts ask I think
I touched them a couple there, But one of the
most common one is do I have to report my
UK rental income or pensions? And the answer to that
(12:13):
is yes, although UK rental income again is tax that
source in the UK and needs to be reported in
the UK as well. If the property is in the UK,
you make that declaration in the UK, then you make
the same declaration in Spain and you provide the proof
(12:34):
that you paid the tax in the UK. And then
wherever the amount is in Spain, say if it's twenty
five percent. You pay twenty percent in the UK, then
you pay that five percent in Spain. That missing amount pensions.
Depending on the pension, there are very few that that
are not sorry, that are taxed that source in the
UK and being civil service pensions, some of them are
(12:59):
taxed ACE so they shouldn't be taxed in Spain, but
the majority are taxed only in Spain as income. Another
common one is my payment commencement lump some or what's
known now as a tax free cash TFC in the
UK of twenty five percent. Is it tax free? People
(13:20):
assume it is. It's tax free in the UK, yes,
but it's not taxby in Spain. It's treated as as income,
you know, and that twenty five percent bolt on a
large amount on to exist in income for that tax
year and then potentially create a forty to forty five
percent tax charge.
Speaker 2 (13:39):
You know, if that's.
Speaker 3 (13:40):
Managed correctly and it's taken over a series of years,
you can reduce that tax liability.
Speaker 2 (13:45):
So that's important. What other questions you've got?
Speaker 1 (13:50):
I said to you before about you know, such some
British people that are retired here as most of them are.
You know, well, I don't have to I don't have
to declare my Taxmy I'm not own anything. You know,
I've been here for years and I'm not earning any money.
But they do, don't they correct?
Speaker 3 (14:05):
Yeah, even if you're not earning, you know, that decoration
does still need to be put forward.
Speaker 2 (14:10):
It's very cheap, it's a very simple declaration.
Speaker 3 (14:14):
I've got some clients they do it themselves, you know,
log in and then put the boxes in. But just
you know, just to have that a surety and that
you know that that comfort that you're not going to get.
Speaker 2 (14:25):
A knock at the door or an email or.
Speaker 3 (14:28):
A letter through the door to say, you know, you
get yellow slips that you have to go to the
post office and pick up a package because it needs
to be signed for and it's from you know, the asciendo.
That's not something you want to be doing for the
sake of a small declaration. To make sure that, yeah,
you are declaring, and if you're unsure, then speak to
an expert, speak to a tax advisor, speak to financial
(14:50):
devisor like ourselves, you know, just to make sure you're
doing what you are doing is correct and if it's
not appropriately advised to do so.
Speaker 1 (15:00):
Yeah, yeah, good, good, information there, Josh, Yeah.
Speaker 2 (15:04):
For sure. What else is there? How can people need?
Speaker 4 (15:11):
Josh? I just want to put this in there, and
I put it in at the end as well.
Speaker 1 (15:14):
You know that if anybody wants to get in touch
with Josh to have a free consultation, you do do
a short consultation for any of the people that come
through any of my links to get some information in
the firsthand, and then later on, you know, if they
take up any business that's between you and then. But
you know, it's worth having a quick free consultation with
somebody like yourself. So I just wanted to put that
(15:35):
in there that thank you very much Josh for offering
this to people that follow me.
Speaker 2 (15:41):
Yeah.
Speaker 3 (15:41):
Yeah, So I'll cover that at the end as well.
But you know, if your listeners fifteen fifteen minute chat,
you know, discovery callers, I like to call them discovery
conversation where we understand, you know, what clients needs are,
what they're looking for, what they have, what they're looking
to achieve. If there's a gap, has we bridged that,
you know, and closed that, and then we'll organize a
(16:04):
follow up call to to run through a bit more
in a bit more detail.
Speaker 2 (16:09):
Again, complementary.
Speaker 3 (16:11):
And then I can put together some some of my
views and and and you know, initial thoughts as to
what planning should be undertaken, and why that planning should
be undertaken, and what it would mean to the client
based on their circumstances and their.
Speaker 2 (16:26):
And their goals. You know, it's it's our mission.
Speaker 3 (16:28):
To to to provide the best advice to to our clients,
and yeah, look forward to to doing so.
Speaker 2 (16:34):
But you know, there's lots of areas to to understand
in Spain.
Speaker 3 (16:39):
It's it's not so straightforward and need services like ourselves,
but there are ways to invest cautiously effectively without any
legal issues to achieve you know, a level of growth
from from investments as well without taking too much risk,
(17:02):
and to provide comfort that if anything happened to policyholders
then the inheritance tax wouldn't be an issue, especially with
jointly held policies where the plans would simply just continue
in the surviving spouse's name, without any taxes, without any probate,
(17:23):
without any freezing or embargoes of accounts.
Speaker 2 (17:27):
It's just nice and straightforward. Yeah, that's that's.
Speaker 3 (17:31):
What we what we advise our clients on. Again, every
client is different. As you said, you know, what may
work for you, they may not work for for me.
So it's important to understand.
Speaker 1 (17:40):
I think one of the other things that I said
to you earlier about questions that I'll get people I
feel are interested in, is, you know, investing money that
a lot of British people, a lot of anybody that
moves here to spying. You know, they've have sold up
most of them in the UK and they've bought the house,
and they've got some money in a bank which they're
living off. And sometimes there's quite a lot of moneyers
(18:03):
sitting there and the banks offer pretty much nothing as
far as interest a way of earning on your money
here in Spain, you know, and the people, mostly the
British people, a little bit dubious about investing money. You
hear these horror stories and that, but there are some
pretty safe options and short and long term investments that
they can do. So do you want to just give
(18:24):
us some idea about that, Josh.
Speaker 2 (18:26):
Yeah, yeah.
Speaker 3 (18:27):
So some of the providers that we work with, you know,
just to give to drop a name, Prudential, They provide
a Spanish design or Spanish compliant investment for British design
for British internationals or British nationals that are now living
(18:47):
in Spain. Everyone knows Prudential, you know, a large one
of the largest financial institutions.
Speaker 2 (18:54):
Everyone will remember the prew man that is to knock
at the doors back in the UK.
Speaker 3 (19:00):
So they're an established company with hundreds of millions under
management and we work closely with them and provide and
offer their products. And one of those products, as I mentioned,
is the Spanish compliant investment typically designed for the more
cautious investor, so they would have internal funds, so it's
(19:24):
not permitted to do you have if you think about it,
Credential are the structure or a vehicle, just like I
don't know a pension policy with Credential or Scottish Widows
or Aviva in the UK. And then within that structure
you have your investment funds. A lot of providers and
some other Spanish compliance structures allow external funds within this structure,
(19:50):
which can be beneficial and is more suited to the
you know your balance investor or more adventurous where you
can access your your big fundhouses and big names Credential
only offer their own internal investment funds.
Speaker 2 (20:07):
Within that plan, and that's what provides the more cautious nature.
Speaker 3 (20:11):
Yes, the returns may be slightly less, but in terms
of providing a low risk and conservative investment that can
produce and produce with a tax efficiency for individuals living
in Spain, that's important.
Speaker 2 (20:30):
So with the returns that could be achieved, you know, with.
Speaker 3 (20:34):
A cautious investor, you're looking at an average return over
a five year period just below five percent a year,
which is not bad, which you take. You know, it's
better what banks are offering in Spain for sure. Interest
rates in the UK, yes, they're relatively high in terms
of recent history, but they.
Speaker 2 (20:55):
Are coming down. They're due to come down.
Speaker 3 (20:57):
They were held recently but again in six weeks time
they'll be reviewed again and they'll be looking.
Speaker 2 (21:03):
To come down.
Speaker 3 (21:04):
So it makes sense to have a structure that's fitting,
that's low risk and with fairly low minimums as well.
Speaker 1 (21:13):
But of course terms Josh, time time wise time scales
on these investments is a minimum maximums.
Speaker 3 (21:19):
Yeah, so credential for example that on that example they
have a five year term, so throughout that five years
there is an accessibility of five percent per year as
a maximum. So that needs to be obviously fought out,
and you know, it's not a case of here's an investment,
(21:40):
see you later.
Speaker 2 (21:40):
Client.
Speaker 3 (21:41):
We sit down with a client, understand their needs, their objectives,
their assets, and what they're looking for, and provide a
recommendation based on those needs. And if a client needs
funds to purchase a property or wants to go on
a world trip, you know, and we'll need access to
that investment, then Predential may not be the the best advice,
so we'd look at alternate options. But Predential, for example
(22:06):
five years. You would typically need any investment you should.
Speaker 2 (22:10):
Have you know, in place for five years to get
the true returns.
Speaker 3 (22:14):
Because you invest over a one or two year period,
you know, an event can occur like Russia, Ukraine or
or you know the.
Speaker 2 (22:21):
Tariff scenario with Trump or or Iran and Israel.
Speaker 3 (22:26):
You know these events occur, which calls volatility. Good thing
with Predential is they have a southing return return process
which eliminates as much volatility as possible to allow that
smooth and consistent return. But it is important to make
sure that you know that if access is needed, we
(22:48):
don't set up a plan which is not suitable for that.
Speaker 2 (22:52):
But terms. Yeah, you'll be looking at a five year
term to achieve.
Speaker 3 (22:56):
That consistent return of five five percent of the causes
a balanced investor, which most clients are. When we've actually
come down to it, you're achieving around six and a
half to seven percent on average over that five year period.
But I wouldn't recommend any clients to invest, you know,
over a short period of time and looked for games
because events happened and you know it can cause these
(23:18):
these downturns.
Speaker 2 (23:19):
But over a long.
Speaker 3 (23:20):
Period, these downturns do occur that you the general trajectory
is upwards.
Speaker 4 (23:26):
I actually have invested.
Speaker 1 (23:27):
My father pushed me years ago when I was first
started work to invest in Prudential, and I took out
a ten year policy with them, and I thought, ten
years is you know, affinity when you're young. And I
paid him in my wages to it. And after ten years,
I got an eighteen thousand euro lumpchtone, which to me
as a youngster was a fantastic money and it got
(23:50):
me my first car. You know, I managed to go
out and buy myself a car. So I've done where
in the past with Prudential.
Speaker 3 (23:57):
So yeah, shows you know that around for a long time.
They've got skin in the game. They're a large international corporation,
and as you said, especially for younger clients. I have
younger clients that are contributing regularly into pension plans, into
regular savings plans you know that require accessibility. So we
(24:18):
have that function built in. But at the same time,
you know, time does go by. If you have a
long term horizon, then the chances of growth are even higher,
fairly higher anyway.
Speaker 2 (24:29):
Over a five year period.
Speaker 3 (24:30):
If you've got more longer term horizon, not six, seven, eight, nine,
ten plus years, the chances that you'll make money are
even higher. Further fund per year I'm talking about not
over a ten year period. The year on year return
is more likely with a longer term investment, but five
years is more than enough to achieve a healthy return prudential.
Speaker 2 (24:55):
For example, the.
Speaker 3 (24:56):
Cautious investment that I mentioned to you, the Spanish bond
has achieved just over five percent per year on average
over that five years. One year, maybe two percent, one year,
maybe eight over an average per year it's five.
Speaker 2 (25:09):
And a half, which is so Josh.
Speaker 1 (25:12):
You know, to talk about the minimum, what is the
minimum really that somebody would need to put down as
an investment.
Speaker 3 (25:20):
Yes, the minimum amount for prudential belief, it's twenty five thousand.
The credential I would typically recommend slightly higher minimums, but
the minimum is twenty twenty five thousand predential, that's the
most safe and secure option as a Spanish Spanish compliant investment.
(25:44):
You also have our providers that provide this tax efficient
investment structure where you can house investment funds and have
a bit more of a say of how the investments
are run. As I mentioned earlier, with the external options
external fund they can accumulate fairly well, but the minimum
(26:04):
there is one hundred thousand euros. And again with UK
pension options, private work based looking at the alternate options
that are designed for overseas residents not for UK residents.
So majority of UK pensions are designed for people living
in the UK it makes sense. But the international or
(26:25):
non resident options do have a minimum of one hundred
thousand as well, but that's quite a standard figure in
the industry and private pension. If you've been contributing for
five ten years of a private pension, more more likely
than not that the value will be at or around
one hundred thousand or more you get these old final
(26:48):
salary schemes that you know, the old calculations and the
way they produce the transfer figure. You know, the figures
can reach higher or very high amounts because it's more
beneficial sometimes too to transfer out of a final salary.
Speaker 2 (27:09):
Scheme than it than it is to stay in.
Speaker 3 (27:11):
But again it may not be so it does need
to be looked at for an individual circumstance and the
figures around it. But yeah, we help with with with
all of that, with with with our class.
Speaker 1 (27:24):
Good, good, good, So Josh, what would you like to
talk about now?
Speaker 4 (27:30):
Mate? Give us some tips on.
Speaker 3 (27:32):
I mean, what can we I'll give a small maybe
a case a little bit of a case study. You know,
we can do a comparison between a well, a British couple,
you know, typical scenarios. British couple of solder UK property,
hold some assets in the UK, your pensions, your few investments,
(27:53):
I says, and have moved over to Spain, and we
can focus on, you know, the tactical outcomes of this
remaining you know, with the assets in the UK. British
couple early fifties recently moved to Spain. Keep it in Andalusia,
so no wealth tax. Of course, wealth taxes above below three.
Speaker 2 (28:17):
Million, that is we didn't mention earlier.
Speaker 3 (28:19):
Actually that you know, above three million, there is an
actual tax in Andalucia called sodularity tax, which is similar
to a wealth tax, but that's on the higher networth individuals.
Speaker 2 (28:32):
There are products to produce that or.
Speaker 3 (28:33):
Mitigate that, but in this case moved to Andalucia, so
there's no wealth tax.
Speaker 2 (28:39):
This couple has less than three million now tax resident.
They've got the UK pensions, a couple.
Speaker 3 (28:46):
Of de viases and premium bonds and cash in the
bank and recently sold UK property, so some of the
proceeds are in in the bank, you know, generating you know,
small amount of interest that the bank provides. So that's
two hundred and three fifty thousand that's in the UK
in pounds. So we're going to assume that the ICE
(29:09):
has achieved five percent a year as growth, you know,
to make it a lightful comparison and look at the
pitfalls of that existing structure. If the individual remains with
their assets in the UK. Ices are not tax free
in Spain, so the annual gains and income are fully taxable.
(29:30):
Premium bonds again are not tax exempts. Prizes are treated
as income currency risk funds. Remaining GMP may erode you know,
any gains made, especially when.
Speaker 2 (29:43):
They convert how they convert. You know, it needs to
be managed.
Speaker 3 (29:47):
UK pensions may face unnecessary taxation, especially at source on
initial receipts of income, and they're not tailored for overseas rest.
Speaker 2 (29:59):
That's the tailor for u K residents.
Speaker 3 (30:02):
The exposure to unnecessary income taxes on reinvested gains.
Speaker 2 (30:09):
And then estate planning.
Speaker 3 (30:10):
You know, UK based assets are liable for UK inheritance
tax and those same assets are also liable for Spanish
inheritance tax. So you know, why have hold assets in
a tax jurisdiction when you're not living there or don't
intend to go back where there are options to hold
the funds in tax neutral jurisdictions. And if an individual
(30:35):
that's moved to Spain moves back to the UK, those
assets are still efficient, you know, are still relevant to
them living back in the UK.
Speaker 2 (30:44):
But let's give this a comparison.
Speaker 3 (30:45):
So after ten years with those with those structures still
in the UK growing by five percent, you call that
a sort of a compounding interests of up to sixty
three percent. That's what it would provide five percent on
five percent, you know, growing that's in normal terms. With
that tax drag though and foreign exchange risk and you know,
(31:08):
poor efficiency, it may reduce to returns quite substantially and
will come on too that in a moment.
Speaker 2 (31:14):
So if we compare that scenario with the.
Speaker 3 (31:17):
Same couple moved those from the UK, it's on the
property holding their pensions ices, but they decide to consolidate
their capital, their liquid capital that they have remaining after
the new purchase of property in Spain and place that
into a Spanish compliant investment bond for example credential. As
(31:38):
we just discussed the low risk fund selection, there's tax
deferral available until withdrawal and only a proportionate amount.
Speaker 2 (31:49):
A proportional amount of that.
Speaker 3 (31:50):
Withdrawal when it does take place, is liable for tax
very efficient, so it's an effective rate of in between
one point nine percent and two point six rather than
you know, you paying your ordinary capital gains tax rates
year on year and will come into the differences. What
(32:11):
that means at the end of the ten years, the
isis and premium bonds would be liquidated to fund that
to the proceeds restructured into that compliant investment. UK pensions
transferred into an international or also known as a non
resident SIP self invested personal pension. A lot of people
(32:32):
may be aware of SIPs in the UK, very flexible,
very accessible.
Speaker 2 (32:36):
There are SIPs designed for UK non residents.
Speaker 3 (32:42):
That can be managed and you know, the currency can
be managed with that, Investments can be managed in alternate currencies,
not only gendp flexible drawdown options, access how and when,
as long as the individual is above fifty five soon
to be fifty seven actually, but these these these alternate
(33:04):
non structures that are made for non UK residents need
to abide by UK rules and it remains in the UK,
so it still has that overriding protection that the UK
offers with regulation from the SCA. And also you know,
with that restructuring for this particular comparison with this, you know,
(33:29):
second option, there's better integration with Spanish reporting and tax planning.
The investment is automatically reported. You know, there's no need
to declare that via the Mobulo seven twenty. It's automatically done.
That saves the cost, it saves accounting headaches, tediousness. You know,
the alternative route. You know, holding assets in the UK,
they all need to be reported, they all need to
(33:51):
be declared. It could be quite quite troublesome. And the
benefits for the second couple that have moved tax deferred
growth on the investment bond as I mentioned, only pay
tax when drawing and even then, as I mentioned, it's
only on the game proportion. Simplified reporting for the model
(34:13):
low seven twenty, which is the overseas asset declaration of
over fifty thousand if assets are held outside the outside
of Spain for control and visibility over the assets not
actually based in Spain, which people like the Spanish Compliant
Investment Bond credential, it's actually based in Ireland Islands. A
(34:34):
tax neutral Spain can't actually actually embargo that account being
based overseas, but it also meets the requirements for an
EU compliance structure. Estate planning the big one. You know,
I have clients that you know, the husband or wife
passed away and they don't know what's going on where.
Speaker 2 (34:55):
The assets are.
Speaker 3 (34:57):
If bank account's being frozen, how do we pay this
tax before we can unfreeze the account. An investment structure
such as the Spanish Compliant investment can be set up
in joint names. As soon as the first spouse passes away,
the surviving spouse just continues and becomes the full policy holder.
(35:18):
Very straightforward, simply a death certificate needs to be submitted
and its continues in the surviving spouse's note. I can't
tell you how many problems that avoids. And yeah, all
the investments are aligned with life in Spain, currency compliance
and tax treatment. And then finally with this just to
(35:39):
give the comparison with ten years of growth with investments
in the UK being taxed or the Spanish compliant investment
with the tax to fill set up with the same
amount of growth on both.
Speaker 2 (35:54):
So the five percent on each the Spanish.
Speaker 3 (35:56):
Compliant bond could result in around twenty five percent higher
net return after tax, which you know is a huge amount.
And we'll come into that growth figure in the moment
and why it's that amount. The pensions as well are
flexible managed by you know a you UK sort of
(36:20):
experience advisors such as ourselves in and also managing you know,
experience in managing expatriates with the UK based structures such
as the pensions. You know, so you've got best of
both of us, one that understands the UK set up
and the and the and the Spanish side of things,
and how to best make the most of the pension
(36:42):
and how much to draw each tax year, you know,
which is actually very very important to consider that.
Speaker 2 (36:53):
And yeah, to give you a sorry go on.
Speaker 1 (36:56):
What you're saying, Josh, is from what you're saying, and
you've got to get it taken out of the UK.
If you're living here in Spain, you'll be mad to
keep stuff like that in the UK.
Speaker 4 (37:09):
You'll be losing money.
Speaker 3 (37:10):
Correct, especially liquid assets, you know, the money in the bank.
Speaker 2 (37:14):
I get it.
Speaker 3 (37:14):
Could keep something there, you know, back for holidays or
to help the grandchildren or the children. But anything above
fifty thousand, no, because you've got to report that on
mod blow seven twenty. Just keep below fifty thousand, you know,
that should be more than enough to keep in the
UK if you want to keep some there. But the
remainder should be structured, rehoused into something that's more efficient,
(37:35):
that can achieve some growth, provide tax benefits whilst they're
living and on deaf and also for.
Speaker 2 (37:41):
Further generations.
Speaker 3 (37:43):
UK pensions for example, they would need to remain in
the UK, but have something that's designed for you non
UK residents, not where it may be that's been sitting
there for a long time.
Speaker 2 (37:54):
Unmanaged.
Speaker 3 (37:55):
UK advisors can't typically advise on on overseas individuals now
with the pensions seeing that a lot with a lot
of inquiries from expats that since Brexit, you know, the
Brexit EU passporting licenses for UK advisors to advise their
overseas clients on UK assets that's been removed.
Speaker 2 (38:15):
So but it makes sense to seek local advice, you.
Speaker 3 (38:18):
Know, so we understand the client scenario being feet on
the ground in Spain holding that UK asset, you have
that structured in the UK for a non resident, get
paid out gross get paid out. You know, you don't
have any beholding tax. You've got an advisor that can
actually manage your plan, make sure it's performing well, that
(38:39):
meets the criteria of the client. On an ongoing basis,
you know, where our clients advisors for life. It's not
just like I said earlier, here's the product to see
you later. Our clients, we have regular reviews, quarterly reviews
as a minimum, to make sure that everything that'll be
set up is doing what it should be doing and
if it's not should we some changes, you know, and
(39:02):
that could be a host of reasons, from economic scenarios
in the world to personal circumstances.
Speaker 2 (39:09):
So yeah, it's that's important.
Speaker 3 (39:12):
And just going back to that very quickly, and I'm
sort of maybe boring people. That's the difference in growth
is quite quite starstruck, you know, it's quite quite quite high.
The end figure after ten years, with two hundred and
fifty thousand invested in year one based in the UK,
(39:36):
and then two hundred and fifty thousand invested in year
one with the investments structured accordingly as a Spanish tax
president in a compliance structure, the final balance of the
UK investment would be three hundred and forty eight thousand.
That's based on a five percent growth per years tax
obviously to deal with every year.
Speaker 2 (39:55):
In Spain. If you compare that.
Speaker 3 (39:57):
To the Spanish compliance structure, result is four hundred and
seven thousand, So there's a difference there or net advantage
of fifty eight thousand pounds so in euros around sixty
five seventy thousand euros based on the exact same grow figures.
Speaker 4 (40:13):
You know, after how long was that?
Speaker 3 (40:15):
Did you say, that's ten years laster five years, it
will be half of that, around thirty thousand. It's a
fair amount, you know, it's more than it's around six
and a half seven thousand a year. And that's you know,
that's not considering anything else. That's purely the tax that
you'll be saving.
Speaker 4 (40:32):
Yeah, so that's.
Speaker 3 (40:36):
It's important to look at it, and that's what we help,
you know. And as I said at the start, it's
not a sales pitch. It's just to give people options, advice,
you know, to look at these things to not you know,
I don't think that it's what will be applicable to
yourself clients with inheritance in the future. Seven In property,
(40:57):
as you mentioned, it's it's quite common. Spain has some
great opportunities, but the wrong structure can be costly to
get it right for the start or or course correct
as early as possible, and that's what.
Speaker 2 (41:09):
We're here for.
Speaker 1 (41:11):
When I moved to Spain, originally I had over one
hundred grands sitting in the bank doing nothing.
Speaker 4 (41:16):
I remember, the interest was nothing on that.
Speaker 1 (41:19):
But I've used that money to invest in property here
and bought land and done at my house's so that's
where my money is in my in my property and
it's doing okay. But there are many people like me
that I know have sold their properties in the UK
and bought not downsize here, but property is cheaper, or
was when I moved here. You know, certainly get more
(41:40):
for your money here, especially if you're moving in Land
Spain a little bit. And so they've sold that their
lifelong house and in the UK and they've bought a
smaller property here, and so yeah, you know, a lot
of them are sitting with money in the bank, just
sitting there.
Speaker 4 (41:56):
Literally and then then peanuts with the interest in the bank.
Speaker 1 (41:59):
So you know, talk with someone like yourself could could
bring them dividends in the in the very short future.
Speaker 3 (42:07):
Correct, Yeah, I mean sometimes, as you said, property sometimes
like property.
Speaker 2 (42:12):
Nothing against property.
Speaker 3 (42:14):
I think you should have if someone has a million pounds,
for example, I should have a split accordance, property, liquid investments, pensions.
You know that should be split across those three sort
of main assets. I'm not saying that people put everything
in one basket.
Speaker 2 (42:31):
Spread it. If you like investment in property, invest in property.
Speaker 3 (42:34):
But you know, some people it may cause problems with
liquidity and having to sell a tenant or you know,
it's it's a balance.
Speaker 1 (42:43):
And I was always told, my dad always told me
years ago when I bought my first property, buy a
property you can't lose. Buy a property, you can't lose it.
You know, money's going through the room. And I bought
I bought during the crisis in the UK, just before it.
I bought an apartment, my first apartment, and I was
paying fifteen percent interest in the crisis, you know, when
(43:05):
the crash of the UK, and I actually sold it
several years later and lost fifteen vowels on the price
of the property to get out of it. You know,
so I lost money on that. But also it's all
down to time. Later on, when I had another house
in the UK, I bought it, kept it for three years,
did a little bit of work and it sold it
and made a huge profit on it.
Speaker 4 (43:26):
Again, it's depending on the time you buy and sell.
Speaker 1 (43:29):
But here in Spain, I don't think you can go
far wrong if you're buying as long as you're careful.
Speaker 4 (43:37):
And it does relate a lot on areas and things
like that here in Spain.
Speaker 1 (43:40):
But I have seen a big increase in the property
prices and land prices.
Speaker 4 (43:45):
Have gone pretty much through the roof. But it's funny.
Speaker 1 (43:48):
I bumped into my bank manager a few weeks ago
and when we bought a plot of land to build
our house, which was five years ago now, he said
to me, we haven't lent money to anybody since we
lent money to you to build their own house.
Speaker 4 (44:06):
Talk about brief people in any ourm area. And I
went really, and.
Speaker 1 (44:11):
He said, it's too risky a project now because people
buy a lot of money for the land and they
don't realize the costs involved in you know, the fees
and the construction costs, and there is a time limit
now the banks are putting on it for two years,
so you have to from the buying your land, you
have two years to complete the house. If you don't,
(44:31):
the banks can come foreclose on you and ask for
that money back.
Speaker 4 (44:35):
So he said, it's got so risky now that for
brief people.
Speaker 1 (44:38):
In the Armeria area, we're not offering them money mortgages
to buy land with the intent to do houses on
So there you go.
Speaker 2 (44:48):
Yeah, it just shows you. So there are caveats. Just understand.
People need to understand what those caveats are.
Speaker 3 (44:56):
In longevity, as you mentioned timescale, you need a bit
of luck on your side as well, I think with
most things, you know, but if you stick with things
for the majority, then that luck pays off. But yeah,
I don't think we're in the crisis right now. Property
prices is quite overpriced in Spain. In the UK they've
dropped in value, you know. It just shows you the difference,
you know, reading an article about property prices in in
(45:19):
Knightsbridge and Mayfair at the UK and some of the
property prices have dropped thirty to forty percent over the
last eighteen.
Speaker 2 (45:27):
Months, you know, and that's a huge amount on.
Speaker 3 (45:30):
Quite high valued properties, but it just shows you they're
at a discount, you know, some properties.
Speaker 2 (45:36):
But in Spain on the other side, you know, we brought.
Speaker 3 (45:39):
Out our place in twenty twenty one, you know, it's
it's gone up nearly double, you know since we were purchased.
But if we're looking to purchase another property, that house
has gone up double as well.
Speaker 2 (45:50):
So it's all relevant, you know.
Speaker 3 (45:51):
So it depends on the country's in the location, as
you said, Inland by the coasts.
Speaker 2 (45:58):
You can get some silk great.
Speaker 3 (45:59):
Properties in in Land in Spain for for good prices.
Speaker 1 (46:03):
So it's a lot of British people like to move
inland a little bit. I've noticed that, you know, they're
not so much. I mean, obviously people like the beaches
and the coast areas, but a lot of British people
I know living in the All Box and Mercier area
and Vera and they've moved away from the beaches because
(46:23):
you can get a lot more for your money, you know,
a bigger plot of land and house and gardens, swimming
pool that for sort of half the price. But you know,
and they're putting that money in the bank. And this
is what I wanted to do these calls with you,
because you know, I see these people. Recently, I went
to a big gathering of three thousand British people in
(46:45):
in in All Box a little while ago, down to
do to the radio station with and you know, I
was talking to a few of the people there and
I said something, you.
Speaker 4 (46:54):
Know, they managed to sit in the bank. You need yeah, yeah,
I need to talk to somebody. You need to talk
to somebody.
Speaker 1 (46:58):
So you know, it's it's I think the Britage were
a little bit slow and a bit very very cautious
in that. But you know, if you're living your dream
life here in Spain and that money, seeing it, it could
be buying you quite a.
Speaker 4 (47:10):
Few more tables if you've got it invested properly.
Speaker 2 (47:12):
You know, for sure.
Speaker 3 (47:13):
Yeah, it's important and everyone loves to tap us. You know,
I can purchase a few more sachichas in in Inmuzzo saws.
That's for sure going ontomatic.
Speaker 2 (47:24):
But no, I get it. People need to have that trust.
And what we've.
Speaker 3 (47:28):
Done We've set up a trust pilot, a site if
you like, where clients and majority of myself of our
clients have have written a nice review about us, which
is which is good.
Speaker 2 (47:40):
We haven't don anything wrong yet, but I'm sure that
will never happen.
Speaker 3 (47:45):
But yeah, so people can check out, you know, when
they look at us online ambient wealth, just search that
comes up lots of information Facebook page, the website linked
in the trust pilot. You see those reviews, so see
sort of what other people have thought of us, you know,
real life.
Speaker 2 (48:01):
Reviews us.
Speaker 1 (48:03):
So, Josh, anything else you want to add quickly before
we round this up.
Speaker 2 (48:07):
I think I think that's it, David. I think we've
covered most points.
Speaker 3 (48:12):
You know, we maybe sort of jumped a little bit
here and there, but I think we've got the majority of.
Speaker 4 (48:17):
Tips. Sure aren't stress enough, you know that.
Speaker 1 (48:22):
You know. I hate it when I see people lose
out here the different things, and I've done it in
the past when I was here. I was quite great
green when I first moved there, and there wasn't the
help like this Josh, twenty four years ago. There wasn't
the Facebook pages of the Internet, wasn't anything like this.
Speaker 4 (48:37):
I had to literally come to Spain and learn the
hard way.
Speaker 1 (48:40):
I asked people go to the bank managers and pay
for interpreters to come and find out things from men.
And I lost money on several different things here and
learned the hard way. So now there's no excuse for that,
you know. So it does it hurts me when I
see people, you know, going down that road. Oh we've
lost this and we didn't know this and didn't know that.
So doing these videos is really helpful for people, I think,
(49:03):
and putting them out on my information sites can stop
people going through some of their problems and losses that
I've had over the years here. So Josh, just to
recap the gain free consultations with you for any of
the people that want to listen to this and I'll
leave a link to help that can get in touch
with you below.
Speaker 4 (49:23):
This from in the description of this video.
Speaker 2 (49:26):
Yeah yeah, perfect, Yeah.
Speaker 3 (49:27):
Thank you Dave for organizing, and thank you all for
joining and listening. I know finances can feel quite overwhelming,
especially in a different country, but with the right guidance,
it really doesn't have to be. So that's what we're
here for, and we can provide that that initial consultation,
as David said, complimentary, see where we can help, what
(49:49):
we can do, and potentially plan togain.
Speaker 1 (49:52):
Gave yourself some money, love time, good, Okay, thanks very
much for helping us today. Josh Williams from Ambient Wealth,
Thank you, Josh, Thank you say
Yes, so I'll just introduced you then, Josh So Josh
Williams from Ambient Wealth. Thank you Josh for joining us today.
You're the financial expert that I've been using for sometime
and helps a lot of my followers and that. So
just give us a little bit of intro to yourself
for people that don't know you.
Speaker 2 (00:20):
Yeah.
Speaker 3 (00:21):
Yeah, it's nice to be called an expert, I guess.
But speaking about myself. Moved over to Spain almost ten
years ago now after working in finance with my father
and his.
Speaker 2 (00:33):
Company in the UK.
Speaker 3 (00:36):
Came my qualifications back back there and moved over ten
years ago and it's been a journey over here working
with expats, understanding and laws, the treaties, the exemptions, and
it's there's lots to understand, and that's where I provide
sort of quite personalized advice to clients, especially since setting
(00:59):
up Wealth.
Speaker 2 (01:00):
So I'm the owner and director of Ambient Wealth.
Speaker 3 (01:03):
Set set up Ambient nearly two years ago now, after
seeing a sort of a niche in the market to
provide transparent and more personalized expat advice. After working with
a couple of firms over here, didn't see that that
was necessarily the case all the time. So yeah, that's
(01:24):
myself very settled here in Spain and look forward to where.
Speaker 4 (01:28):
Are you, Josh, Just tell us a little bit where
you are.
Speaker 3 (01:30):
Yes, I'm based in the south of Spain in Malaga,
just in between Managar and my bay on the on
the coast. I frequently visit Seville. I have family connections
in Sevilla, so I travel in between Managa and Seville
quite often. But although based in the south, I have
clients all over Spain, many in Andalusia, but others in Barcelona,
(01:55):
in Galicia, and Madrid, in x and Madora, you know,
weird and places, and I do travel to visit clients.
But yeah, base based in the south, but not elimited.
Speaker 1 (02:06):
And with everything online now dies in easy access to everything,
most of the work is done or I can be
done online, Josh. It doesn't really matter about where people
live or where they moved through Spine, does it correct?
Speaker 3 (02:17):
Yeah, So yeah, COVID allowed that, you know, one of
the one of the few silver linings of COVID has
opened up that that comfortableness with with online video communications. Before,
you know, it was very face to face, especially when
you're talking about finances and some people still have that approach,
(02:40):
which I understand and respect. Others are more open to
you know, the convenience of a video call, which can
save a lot of time in travel.
Speaker 2 (02:49):
So Covid has opened that up.
Speaker 3 (02:52):
And yeah, we speak to a lot of clients via
telephone video videos most common, but also face to face.
Is that so I prefer as well if ione ist.
Speaker 1 (03:03):
Yeah, so, Josh Risen, you know I do these videos
with my experts. Is that you know, I've been here
for twenty four years now this year, twenty four years,
and there's a lot of British people that come here
and they're not sure about certain things, and you know,
advice sometimes you go and find somewhere you have to
pay for it. It can be expensive and there a little
(03:23):
bit slow and coming forward with the British people. So
these these are completely free consultations with people to start
with initially, and you know the experts that I provide
people like yourself that I know and trust for some time,
and you offer free advice to my members on my
websites and my Facebook groups. But doing calls like this,
(03:44):
you know, people jump on the call or we set
we set it up and record it and post it
post it like this will be posted later on as well,
so you know, it helps people get the right information
so they can make better decisions here. I've seen so many,
you know, horror stories of people moving here, and you know,
like just the other day on Facebook, somebody said, been
here for a year now and I need to change
(04:07):
my driving license and you know, and I said, you
had residency here for a year, yeah, and you haven't
changed technically, that's breaking a lot. You have to change
your driving license within six months. I've been driving here.
Technically I they got stopped by the police there. The
license isn't valued. And you know how somebody can be
here a year and not know that. It's pretty much
everywhere all over the internet. But you know, getting help
(04:29):
and advice avoid helps you avoid these little problems. So
you know, Josh, I appreciate your time today and everything.
So how do you want to start off the day?
We're going to talk about a few things, pensions, taxes
and how do you want to start Yeah, so.
Speaker 3 (04:43):
I think to the title of the webinar, I feel
like is securely investing as a tax resident in Spain?
I know, talking about taxes and everyone's idea of a
good time. But the aim today is to give to
give people and a practical, honest guidance if you like,
(05:04):
and answer real life questions that people might be sitting on.
So to make it relax, you know, Q and a focused.
I know you've got some questions for me, and I
can run through some commonly asked questions that expats typically ask.
But you know, focusing on what you've mentioned there, people
move over to Spain, they don't know what the differences are.
(05:25):
Some people can be quite naive and just think that
it's the same. You know, it continues to be the
same with declarations and reporting of assets. You know, it
is very very different, different legislation, different jurisdiction. But we're
going to focus on today the tax efficiency available for
Spanish residents, investment options, especially post Brexit, dealing with vices, pensions,
(05:52):
love sums in the bank or in investments, and also
Spanish compliant options and what they mean for people living here,
avoiding common tax pitfalls and also protecting wealth long term.
And it's it's as you know. You know, David, you
work with me for a while now, you know I'm
not a salesy person. This is not a sales pitch.
(06:14):
It's just just real guidance based on correct Yeah. So
you know, coming on to why being a tax president
in Spain changes everything, you know. To bring it to basics,
being a tax resident in Spain requires an individual to
be here for one hundred and eighty three days a year.
(06:35):
This is just one day over six months. Worldwide income
is reportable. Again, that's a common common issue that people think, Oh,
I only earn in Spain, or I only earn a
state pension, or I only have pension income. Whatever it
may be and wherever it may come from, it needs
(06:57):
to be reported in Spain. If you are a tax
versus in Spain, yes, there's double taxation treaties with different
countries for different taxes. However, there it's it's important to
understand what they are, something that we can help with.
But if there is tax paid at source in the
UK on a seale of property, for example, and you
(07:18):
pay your tax in Spain the couple of gains tax,
you declare that you paid that tax in the UK
and it will be offset against your Spanish tax, so
reduce that you don't pay twice. UK tax rappers so
ices for investments, you know, individual saving accounts, very common.
Premium bonds again, you know, my grandmother, bless her, bless
(07:42):
her heart.
Speaker 2 (07:43):
She she you know.
Speaker 3 (07:44):
Put a lot of not a lot, but she used
to give me presents, you know, when I was younger,
twenty quid here and there into premium bonds and say
one day we'll make the million. But averagely, you know,
looking at that over a period of time, it's it's
not a great investment anyway, even if as a UK
a tax resident. But people like the surprise, but it
(08:05):
doesn't provide any tax benefits to someone living outside the UK,
same as ices and SIPs as well, you know, so
then they may no longer be tax efficient for someone
living over overseas and and in Spain in this instance,
and also with tax residency, it's important to understand the
(08:26):
structuring from the start to avoid tax traps, to make
sure that you're not overpaying tax on investments or growth
sale of properties. There are ways and means to reduce taxation,
but it does come down to individual circumstances.
Speaker 1 (08:42):
So yeah, every everyone's different, and areas do change a
little bit of different rules and regulations and do a
little bit here in Spain.
Speaker 2 (08:50):
Line, correct, Yeah, yeah, even in Spain itself.
Speaker 3 (08:54):
You know, you've got Spain as a whole who have
their national rules when it comes to tax, particularly inheritance
tax is a big one. Wealth tax as well, but
so Spain sort of set the rules and then each
individual autonomous community. I'm in Andalucia where Managar is same
as you David in al Maria. Al Maria sorry, and
(09:18):
Lucia does not have any well, has an a full
exemption for wealth tax, whereas if you go to Valencia
or the Valenciana region Alacante, where a lot of British
expats do end up, there is wealth tax to contend with.
So people, you know, need to understand what the tax
(09:38):
scenario is in the area that they're moving in Spain,
not just in Spain as a whole.
Speaker 2 (09:43):
So Andlucia is is quite on that story.
Speaker 1 (09:47):
Josh, I had a story a little while ago from
one of my other expert advisors that a British person here,
a husband and wife had died and left the health
to their to their son and all to there was
I think there were three children gafted around the world
and the property was worth over half a million. They
weren't living in and blue fear. As you say that
(10:09):
it's got you don't have to worry about the inheritance tax.
So there was an inheritance tax to pay and it
was quite a lot of money. Maybe you can tell
me what it will be, roughly on half a million.
Speaker 4 (10:20):
But so the.
Speaker 1 (10:22):
Kids didn't act well the kids were growing up. They
didn't have the money to pay the tax because the
tax had to be paid before they can inherit the property.
So they was in limbo and I don't know what happened,
but it was a big problem because they didn't have
the money to pay the tax to inherit the money.
So you can imagine a nightmare scenario on that one.
Speaker 3 (10:39):
Yeah, yeah, that's again a difference, you know, going a
little bit off. But with the inheritance tax, it's the
individual who is benefiting who the tax liability lies with,
rather than in the UK it's with the estate of
the deceased, so it's pretty opposite. So it's based on
the individual that's benefiting in space and they're existing wealth
(11:02):
and then as you've correctly said, the tax needs to
be paid prior to receiving that wealth, so there can
be problems.
Speaker 2 (11:09):
You know, we're receiving that wealth.
Speaker 3 (11:10):
But there are ways to you know, to combat that,
you know, with use of wills and make sure it's
written under the correct laws, having finances structured appropriately, assets
in jurisdictions that you know are tax neutral, you know,
rather than in the UK living in Spain.
Speaker 2 (11:30):
So yeah, there are ways to combat it.
Speaker 3 (11:32):
But yeah, bearing bearing heads in the sand and not
taking any action can lead to problems for family members,
especially when they may be grieving, you know, in times
of hardship, so it's important to plan for that for
the future.
Speaker 2 (11:50):
For sure.
Speaker 3 (11:52):
So yeah, I mean some of the common you mentioned
a common common questions there that expacts ask I think
I touched them a couple there, But one of the
most common one is do I have to report my
UK rental income or pensions? And the answer to that
(12:13):
is yes, although UK rental income again is tax that
source in the UK and needs to be reported in
the UK as well. If the property is in the UK,
you make that declaration in the UK, then you make
the same declaration in Spain and you provide the proof
(12:34):
that you paid the tax in the UK. And then
wherever the amount is in Spain, say if it's twenty
five percent. You pay twenty percent in the UK, then
you pay that five percent in Spain. That missing amount pensions.
Depending on the pension, there are very few that that
are not sorry, that are taxed that source in the
UK and being civil service pensions, some of them are
(12:59):
taxed ACE so they shouldn't be taxed in Spain, but
the majority are taxed only in Spain as income. Another
common one is my payment commencement lump some or what's
known now as a tax free cash TFC in the
UK of twenty five percent. Is it tax free? People
(13:20):
assume it is. It's tax free in the UK, yes,
but it's not taxby in Spain. It's treated as as income,
you know, and that twenty five percent bolt on a
large amount on to exist in income for that tax
year and then potentially create a forty to forty five
percent tax charge.
Speaker 2 (13:39):
You know, if that's.
Speaker 3 (13:40):
Managed correctly and it's taken over a series of years,
you can reduce that tax liability.
Speaker 2 (13:45):
So that's important. What other questions you've got?
Speaker 1 (13:50):
I said to you before about you know, such some
British people that are retired here as most of them are.
You know, well, I don't have to I don't have
to declare my Taxmy I'm not own anything. You know,
I've been here for years and I'm not earning any money.
But they do, don't they correct?
Speaker 3 (14:05):
Yeah, even if you're not earning, you know, that decoration
does still need to be put forward.
Speaker 2 (14:10):
It's very cheap, it's a very simple declaration.
Speaker 3 (14:14):
I've got some clients they do it themselves, you know,
log in and then put the boxes in. But just
you know, just to have that a surety and that
you know that that comfort that you're not going to get.
Speaker 2 (14:25):
A knock at the door or an email or.
Speaker 3 (14:28):
A letter through the door to say, you know, you
get yellow slips that you have to go to the
post office and pick up a package because it needs
to be signed for and it's from you know, the asciendo.
That's not something you want to be doing for the
sake of a small declaration. To make sure that, yeah,
you are declaring, and if you're unsure, then speak to
an expert, speak to a tax advisor, speak to financial
(14:50):
devisor like ourselves, you know, just to make sure you're
doing what you are doing is correct and if it's
not appropriately advised to do so.
Speaker 1 (15:00):
Yeah, yeah, good, good, information there, Josh, Yeah.
Speaker 2 (15:04):
For sure. What else is there? How can people need?
Speaker 4 (15:11):
Josh? I just want to put this in there, and
I put it in at the end as well.
Speaker 1 (15:14):
You know that if anybody wants to get in touch
with Josh to have a free consultation, you do do
a short consultation for any of the people that come
through any of my links to get some information in
the firsthand, and then later on, you know, if they
take up any business that's between you and then. But
you know, it's worth having a quick free consultation with
somebody like yourself. So I just wanted to put that
(15:35):
in there that thank you very much Josh for offering
this to people that follow me.
Speaker 2 (15:41):
Yeah.
Speaker 3 (15:41):
Yeah, So I'll cover that at the end as well.
But you know, if your listeners fifteen fifteen minute chat,
you know, discovery callers, I like to call them discovery
conversation where we understand, you know, what clients needs are,
what they're looking for, what they have, what they're looking
to achieve. If there's a gap, has we bridged that,
you know, and closed that, and then we'll organize a
(16:04):
follow up call to to run through a bit more
in a bit more detail.
Speaker 2 (16:09):
Again, complementary.
Speaker 3 (16:11):
And then I can put together some some of my
views and and and you know, initial thoughts as to
what planning should be undertaken, and why that planning should
be undertaken, and what it would mean to the client
based on their circumstances and their.
Speaker 2 (16:26):
And their goals. You know, it's it's our mission.
Speaker 3 (16:28):
To to to provide the best advice to to our clients,
and yeah, look forward to to doing so.
Speaker 2 (16:34):
But you know, there's lots of areas to to understand
in Spain.
Speaker 3 (16:39):
It's it's not so straightforward and need services like ourselves,
but there are ways to invest cautiously effectively without any
legal issues to achieve you know, a level of growth
from from investments as well without taking too much risk,
(17:02):
and to provide comfort that if anything happened to policyholders
then the inheritance tax wouldn't be an issue, especially with
jointly held policies where the plans would simply just continue
in the surviving spouse's name, without any taxes, without any probate,
(17:23):
without any freezing or embargoes of accounts.
Speaker 2 (17:27):
It's just nice and straightforward. Yeah, that's that's.
Speaker 3 (17:31):
What we what we advise our clients on. Again, every
client is different. As you said, you know, what may
work for you, they may not work for for me.
So it's important to understand.
Speaker 1 (17:40):
I think one of the other things that I said
to you earlier about questions that I'll get people I
feel are interested in, is, you know, investing money that
a lot of British people, a lot of anybody that
moves here to spying. You know, they've have sold up
most of them in the UK and they've bought the house,
and they've got some money in a bank which they're
living off. And sometimes there's quite a lot of moneyers
(18:03):
sitting there and the banks offer pretty much nothing as
far as interest a way of earning on your money
here in Spain, you know, and the people, mostly the
British people, a little bit dubious about investing money. You
hear these horror stories and that, but there are some
pretty safe options and short and long term investments that
they can do. So do you want to just give
(18:24):
us some idea about that, Josh.
Speaker 2 (18:26):
Yeah, yeah.
Speaker 3 (18:27):
So some of the providers that we work with, you know,
just to give to drop a name, Prudential, They provide
a Spanish design or Spanish compliant investment for British design
for British internationals or British nationals that are now living
(18:47):
in Spain. Everyone knows Prudential, you know, a large one
of the largest financial institutions.
Speaker 2 (18:54):
Everyone will remember the prew man that is to knock
at the doors back in the UK.
Speaker 3 (19:00):
So they're an established company with hundreds of millions under
management and we work closely with them and provide and
offer their products. And one of those products, as I mentioned,
is the Spanish compliant investment typically designed for the more
cautious investor, so they would have internal funds, so it's
(19:24):
not permitted to do you have if you think about it,
Credential are the structure or a vehicle, just like I
don't know a pension policy with Credential or Scottish Widows
or Aviva in the UK. And then within that structure
you have your investment funds. A lot of providers and
some other Spanish compliance structures allow external funds within this structure,
(19:50):
which can be beneficial and is more suited to the
you know your balance investor or more adventurous where you
can access your your big fundhouses and big names Credential
only offer their own internal investment funds.
Speaker 2 (20:07):
Within that plan, and that's what provides the more cautious nature.
Speaker 3 (20:11):
Yes, the returns may be slightly less, but in terms
of providing a low risk and conservative investment that can
produce and produce with a tax efficiency for individuals living
in Spain, that's important.
Speaker 2 (20:30):
So with the returns that could be achieved, you know, with.
Speaker 3 (20:34):
A cautious investor, you're looking at an average return over
a five year period just below five percent a year,
which is not bad, which you take. You know, it's
better what banks are offering in Spain for sure. Interest
rates in the UK, yes, they're relatively high in terms
of recent history, but they.
Speaker 2 (20:55):
Are coming down. They're due to come down.
Speaker 3 (20:57):
They were held recently but again in six weeks time
they'll be reviewed again and they'll be looking.
Speaker 2 (21:03):
To come down.
Speaker 3 (21:04):
So it makes sense to have a structure that's fitting,
that's low risk and with fairly low minimums as well.
Speaker 1 (21:13):
But of course terms Josh, time time wise time scales
on these investments is a minimum maximums.
Speaker 3 (21:19):
Yeah, so credential for example that on that example they
have a five year term, so throughout that five years
there is an accessibility of five percent per year as
a maximum. So that needs to be obviously fought out,
and you know, it's not a case of here's an investment,
(21:40):
see you later.
Speaker 2 (21:40):
Client.
Speaker 3 (21:41):
We sit down with a client, understand their needs, their objectives,
their assets, and what they're looking for, and provide a
recommendation based on those needs. And if a client needs
funds to purchase a property or wants to go on
a world trip, you know, and we'll need access to
that investment, then Predential may not be the the best advice,
so we'd look at alternate options. But Predential, for example
(22:06):
five years. You would typically need any investment you should.
Speaker 2 (22:10):
Have you know, in place for five years to get
the true returns.
Speaker 3 (22:14):
Because you invest over a one or two year period,
you know, an event can occur like Russia, Ukraine or
or you know the.
Speaker 2 (22:21):
Tariff scenario with Trump or or Iran and Israel.
Speaker 3 (22:26):
You know these events occur, which calls volatility. Good thing
with Predential is they have a southing return return process
which eliminates as much volatility as possible to allow that
smooth and consistent return. But it is important to make
sure that you know that if access is needed, we
(22:48):
don't set up a plan which is not suitable for that.
Speaker 2 (22:52):
But terms. Yeah, you'll be looking at a five year
term to achieve.
Speaker 3 (22:56):
That consistent return of five five percent of the causes
a balanced investor, which most clients are. When we've actually
come down to it, you're achieving around six and a
half to seven percent on average over that five year period.
But I wouldn't recommend any clients to invest, you know,
over a short period of time and looked for games
because events happened and you know it can cause these
(23:18):
these downturns.
Speaker 2 (23:19):
But over a long.
Speaker 3 (23:20):
Period, these downturns do occur that you the general trajectory
is upwards.
Speaker 4 (23:26):
I actually have invested.
Speaker 1 (23:27):
My father pushed me years ago when I was first
started work to invest in Prudential, and I took out
a ten year policy with them, and I thought, ten
years is you know, affinity when you're young. And I
paid him in my wages to it. And after ten years,
I got an eighteen thousand euro lumpchtone, which to me
as a youngster was a fantastic money and it got
(23:50):
me my first car. You know, I managed to go
out and buy myself a car. So I've done where
in the past with Prudential.
Speaker 3 (23:57):
So yeah, shows you know that around for a long time.
They've got skin in the game. They're a large international corporation,
and as you said, especially for younger clients. I have
younger clients that are contributing regularly into pension plans, into
regular savings plans you know that require accessibility. So we
(24:18):
have that function built in. But at the same time,
you know, time does go by. If you have a
long term horizon, then the chances of growth are even higher,
fairly higher anyway.
Speaker 2 (24:29):
Over a five year period.
Speaker 3 (24:30):
If you've got more longer term horizon, not six, seven, eight, nine,
ten plus years, the chances that you'll make money are
even higher. Further fund per year I'm talking about not
over a ten year period. The year on year return
is more likely with a longer term investment, but five
years is more than enough to achieve a healthy return prudential.
Speaker 2 (24:55):
For example, the.
Speaker 3 (24:56):
Cautious investment that I mentioned to you, the Spanish bond
has achieved just over five percent per year on average
over that five years. One year, maybe two percent, one year,
maybe eight over an average per year it's five.
Speaker 2 (25:09):
And a half, which is so Josh.
Speaker 1 (25:12):
You know, to talk about the minimum, what is the
minimum really that somebody would need to put down as
an investment.
Speaker 3 (25:20):
Yes, the minimum amount for prudential belief, it's twenty five thousand.
The credential I would typically recommend slightly higher minimums, but
the minimum is twenty twenty five thousand predential, that's the
most safe and secure option as a Spanish Spanish compliant investment.
(25:44):
You also have our providers that provide this tax efficient
investment structure where you can house investment funds and have
a bit more of a say of how the investments
are run. As I mentioned earlier, with the external options
external fund they can accumulate fairly well, but the minimum
(26:04):
there is one hundred thousand euros. And again with UK
pension options, private work based looking at the alternate options
that are designed for overseas residents not for UK residents.
So majority of UK pensions are designed for people living
in the UK it makes sense. But the international or
(26:25):
non resident options do have a minimum of one hundred
thousand as well, but that's quite a standard figure in
the industry and private pension. If you've been contributing for
five ten years of a private pension, more more likely
than not that the value will be at or around
one hundred thousand or more you get these old final
(26:48):
salary schemes that you know, the old calculations and the
way they produce the transfer figure. You know, the figures
can reach higher or very high amounts because it's more
beneficial sometimes too to transfer out of a final salary.
Speaker 2 (27:09):
Scheme than it than it is to stay in.
Speaker 3 (27:11):
But again it may not be so it does need
to be looked at for an individual circumstance and the
figures around it. But yeah, we help with with with
all of that, with with with our class.
Speaker 1 (27:24):
Good, good, good, So Josh, what would you like to
talk about now?
Speaker 4 (27:30):
Mate? Give us some tips on.
Speaker 3 (27:32):
I mean, what can we I'll give a small maybe
a case a little bit of a case study. You know,
we can do a comparison between a well, a British couple,
you know, typical scenarios. British couple of solder UK property,
hold some assets in the UK, your pensions, your few investments,
(27:53):
I says, and have moved over to Spain, and we
can focus on, you know, the tactical outcomes of this
remaining you know, with the assets in the UK. British
couple early fifties recently moved to Spain. Keep it in Andalusia,
so no wealth tax. Of course, wealth taxes above below three.
Speaker 2 (28:17):
Million, that is we didn't mention earlier.
Speaker 3 (28:19):
Actually that you know, above three million, there is an
actual tax in Andalucia called sodularity tax, which is similar
to a wealth tax, but that's on the higher networth individuals.
Speaker 2 (28:32):
There are products to produce that or.
Speaker 3 (28:33):
Mitigate that, but in this case moved to Andalucia, so
there's no wealth tax.
Speaker 2 (28:39):
This couple has less than three million now tax resident.
They've got the UK pensions, a couple.
Speaker 3 (28:46):
Of de viases and premium bonds and cash in the
bank and recently sold UK property, so some of the
proceeds are in in the bank, you know, generating you know,
small amount of interest that the bank provides. So that's
two hundred and three fifty thousand that's in the UK
in pounds. So we're going to assume that the ICE
(29:09):
has achieved five percent a year as growth, you know,
to make it a lightful comparison and look at the
pitfalls of that existing structure. If the individual remains with
their assets in the UK. Ices are not tax free
in Spain, so the annual gains and income are fully taxable.
(29:30):
Premium bonds again are not tax exempts. Prizes are treated
as income currency risk funds. Remaining GMP may erode you know,
any gains made, especially when.
Speaker 2 (29:43):
They convert how they convert. You know, it needs to
be managed.
Speaker 3 (29:47):
UK pensions may face unnecessary taxation, especially at source on
initial receipts of income, and they're not tailored for overseas rest.
Speaker 2 (29:59):
That's the tailor for u K residents.
Speaker 3 (30:02):
The exposure to unnecessary income taxes on reinvested gains.
Speaker 2 (30:09):
And then estate planning.
Speaker 3 (30:10):
You know, UK based assets are liable for UK inheritance
tax and those same assets are also liable for Spanish
inheritance tax. So you know, why have hold assets in
a tax jurisdiction when you're not living there or don't
intend to go back where there are options to hold
the funds in tax neutral jurisdictions. And if an individual
(30:35):
that's moved to Spain moves back to the UK, those
assets are still efficient, you know, are still relevant to
them living back in the UK.
Speaker 2 (30:44):
But let's give this a comparison.
Speaker 3 (30:45):
So after ten years with those with those structures still
in the UK growing by five percent, you call that
a sort of a compounding interests of up to sixty
three percent. That's what it would provide five percent on
five percent, you know, growing that's in normal terms. With
that tax drag though and foreign exchange risk and you know,
(31:08):
poor efficiency, it may reduce to returns quite substantially and
will come on too that in a moment.
Speaker 2 (31:14):
So if we compare that scenario with the.
Speaker 3 (31:17):
Same couple moved those from the UK, it's on the
property holding their pensions ices, but they decide to consolidate
their capital, their liquid capital that they have remaining after
the new purchase of property in Spain and place that
into a Spanish compliant investment bond for example credential. As
(31:38):
we just discussed the low risk fund selection, there's tax
deferral available until withdrawal and only a proportionate amount.
Speaker 2 (31:49):
A proportional amount of that.
Speaker 3 (31:50):
Withdrawal when it does take place, is liable for tax
very efficient, so it's an effective rate of in between
one point nine percent and two point six rather than
you know, you paying your ordinary capital gains tax rates
year on year and will come into the differences. What
(32:11):
that means at the end of the ten years, the
isis and premium bonds would be liquidated to fund that
to the proceeds restructured into that compliant investment. UK pensions
transferred into an international or also known as a non
resident SIP self invested personal pension. A lot of people
(32:32):
may be aware of SIPs in the UK, very flexible,
very accessible.
Speaker 2 (32:36):
There are SIPs designed for UK non residents.
Speaker 3 (32:42):
That can be managed and you know, the currency can
be managed with that, Investments can be managed in alternate currencies,
not only gendp flexible drawdown options, access how and when,
as long as the individual is above fifty five soon
to be fifty seven actually, but these these these alternate
(33:04):
non structures that are made for non UK residents need
to abide by UK rules and it remains in the UK,
so it still has that overriding protection that the UK
offers with regulation from the SCA. And also you know,
with that restructuring for this particular comparison with this, you know,
(33:29):
second option, there's better integration with Spanish reporting and tax planning.
The investment is automatically reported. You know, there's no need
to declare that via the Mobulo seven twenty. It's automatically done.
That saves the cost, it saves accounting headaches, tediousness. You know,
the alternative route. You know, holding assets in the UK,
they all need to be reported, they all need to
(33:51):
be declared. It could be quite quite troublesome. And the
benefits for the second couple that have moved tax deferred
growth on the investment bond as I mentioned, only pay
tax when drawing and even then, as I mentioned, it's
only on the game proportion. Simplified reporting for the model
(34:13):
low seven twenty, which is the overseas asset declaration of
over fifty thousand if assets are held outside the outside
of Spain for control and visibility over the assets not
actually based in Spain, which people like the Spanish Compliant
Investment Bond credential, it's actually based in Ireland Islands. A
(34:34):
tax neutral Spain can't actually actually embargo that account being
based overseas, but it also meets the requirements for an
EU compliance structure. Estate planning the big one. You know,
I have clients that you know, the husband or wife
passed away and they don't know what's going on where.
Speaker 2 (34:55):
The assets are.
Speaker 3 (34:57):
If bank account's being frozen, how do we pay this
tax before we can unfreeze the account. An investment structure
such as the Spanish Compliant investment can be set up
in joint names. As soon as the first spouse passes away,
the surviving spouse just continues and becomes the full policy holder.
(35:18):
Very straightforward, simply a death certificate needs to be submitted
and its continues in the surviving spouse's note. I can't
tell you how many problems that avoids. And yeah, all
the investments are aligned with life in Spain, currency compliance
and tax treatment. And then finally with this just to
(35:39):
give the comparison with ten years of growth with investments
in the UK being taxed or the Spanish compliant investment
with the tax to fill set up with the same
amount of growth on both.
Speaker 2 (35:54):
So the five percent on each the Spanish.
Speaker 3 (35:56):
Compliant bond could result in around twenty five percent higher
net return after tax, which you know is a huge amount.
And we'll come into that growth figure in the moment
and why it's that amount. The pensions as well are
flexible managed by you know a you UK sort of
(36:20):
experience advisors such as ourselves in and also managing you know,
experience in managing expatriates with the UK based structures such
as the pensions. You know, so you've got best of
both of us, one that understands the UK set up
and the and the and the Spanish side of things,
and how to best make the most of the pension
(36:42):
and how much to draw each tax year, you know,
which is actually very very important to consider that.
Speaker 2 (36:53):
And yeah, to give you a sorry go on.
Speaker 1 (36:56):
What you're saying, Josh, is from what you're saying, and
you've got to get it taken out of the UK.
If you're living here in Spain, you'll be mad to
keep stuff like that in the UK.
Speaker 4 (37:09):
You'll be losing money.
Speaker 3 (37:10):
Correct, especially liquid assets, you know, the money in the bank.
Speaker 2 (37:14):
I get it.
Speaker 3 (37:14):
Could keep something there, you know, back for holidays or
to help the grandchildren or the children. But anything above
fifty thousand, no, because you've got to report that on
mod blow seven twenty. Just keep below fifty thousand, you know,
that should be more than enough to keep in the
UK if you want to keep some there. But the
remainder should be structured, rehoused into something that's more efficient,
(37:35):
that can achieve some growth, provide tax benefits whilst they're
living and on deaf and also for.
Speaker 2 (37:41):
Further generations.
Speaker 3 (37:43):
UK pensions for example, they would need to remain in
the UK, but have something that's designed for you non
UK residents, not where it may be that's been sitting
there for a long time.
Speaker 2 (37:54):
Unmanaged.
Speaker 3 (37:55):
UK advisors can't typically advise on on overseas individuals now
with the pensions seeing that a lot with a lot
of inquiries from expats that since Brexit, you know, the
Brexit EU passporting licenses for UK advisors to advise their
overseas clients on UK assets that's been removed.
Speaker 2 (38:15):
So but it makes sense to seek local advice, you.
Speaker 3 (38:18):
Know, so we understand the client scenario being feet on
the ground in Spain holding that UK asset, you have
that structured in the UK for a non resident, get
paid out gross get paid out. You know, you don't
have any beholding tax. You've got an advisor that can
actually manage your plan, make sure it's performing well, that
(38:39):
meets the criteria of the client. On an ongoing basis,
you know, where our clients advisors for life. It's not
just like I said earlier, here's the product to see
you later. Our clients, we have regular reviews, quarterly reviews
as a minimum, to make sure that everything that'll be
set up is doing what it should be doing and
if it's not should we some changes, you know, and
(39:02):
that could be a host of reasons, from economic scenarios
in the world to personal circumstances.
Speaker 2 (39:09):
So yeah, it's that's important.
Speaker 3 (39:12):
And just going back to that very quickly, and I'm
sort of maybe boring people. That's the difference in growth
is quite quite starstruck, you know, it's quite quite quite high.
The end figure after ten years, with two hundred and
fifty thousand invested in year one based in the UK,
(39:36):
and then two hundred and fifty thousand invested in year
one with the investments structured accordingly as a Spanish tax
president in a compliance structure, the final balance of the
UK investment would be three hundred and forty eight thousand.
That's based on a five percent growth per years tax
obviously to deal with every year.
Speaker 2 (39:55):
In Spain. If you compare that.
Speaker 3 (39:57):
To the Spanish compliance structure, result is four hundred and
seven thousand, So there's a difference there or net advantage
of fifty eight thousand pounds so in euros around sixty
five seventy thousand euros based on the exact same grow figures.
Speaker 4 (40:13):
You know, after how long was that?
Speaker 3 (40:15):
Did you say, that's ten years laster five years, it
will be half of that, around thirty thousand. It's a
fair amount, you know, it's more than it's around six
and a half seven thousand a year. And that's you know,
that's not considering anything else. That's purely the tax that
you'll be saving.
Speaker 4 (40:32):
Yeah, so that's.
Speaker 3 (40:36):
It's important to look at it, and that's what we help,
you know. And as I said at the start, it's
not a sales pitch. It's just to give people options, advice,
you know, to look at these things to not you know,
I don't think that it's what will be applicable to
yourself clients with inheritance in the future. Seven In property,
(40:57):
as you mentioned, it's it's quite common. Spain has some
great opportunities, but the wrong structure can be costly to
get it right for the start or or course correct
as early as possible, and that's what.
Speaker 2 (41:09):
We're here for.
Speaker 1 (41:11):
When I moved to Spain, originally I had over one
hundred grands sitting in the bank doing nothing.
Speaker 4 (41:16):
I remember, the interest was nothing on that.
Speaker 1 (41:19):
But I've used that money to invest in property here
and bought land and done at my house's so that's
where my money is in my in my property and
it's doing okay. But there are many people like me
that I know have sold their properties in the UK
and bought not downsize here, but property is cheaper, or
was when I moved here. You know, certainly get more
(41:40):
for your money here, especially if you're moving in Land
Spain a little bit. And so they've sold that their
lifelong house and in the UK and they've bought a
smaller property here, and so yeah, you know, a lot
of them are sitting with money in the bank, just
sitting there.
Speaker 4 (41:56):
Literally and then then peanuts with the interest in the bank.
Speaker 1 (41:59):
So you know, talk with someone like yourself could could
bring them dividends in the in the very short future.
Speaker 3 (42:07):
Correct, Yeah, I mean sometimes, as you said, property sometimes
like property.
Speaker 2 (42:12):
Nothing against property.
Speaker 3 (42:14):
I think you should have if someone has a million pounds,
for example, I should have a split accordance, property, liquid investments, pensions.
You know that should be split across those three sort
of main assets. I'm not saying that people put everything
in one basket.
Speaker 2 (42:31):
Spread it. If you like investment in property, invest in property.
Speaker 3 (42:34):
But you know, some people it may cause problems with
liquidity and having to sell a tenant or you know,
it's it's a balance.
Speaker 1 (42:43):
And I was always told, my dad always told me
years ago when I bought my first property, buy a
property you can't lose. Buy a property, you can't lose it.
You know, money's going through the room. And I bought
I bought during the crisis in the UK, just before it.
I bought an apartment, my first apartment, and I was
paying fifteen percent interest in the crisis, you know, when
(43:05):
the crash of the UK, and I actually sold it
several years later and lost fifteen vowels on the price
of the property to get out of it. You know,
so I lost money on that. But also it's all
down to time. Later on, when I had another house
in the UK, I bought it, kept it for three years,
did a little bit of work and it sold it
and made a huge profit on it.
Speaker 4 (43:26):
Again, it's depending on the time you buy and sell.
Speaker 1 (43:29):
But here in Spain, I don't think you can go
far wrong if you're buying as long as you're careful.
Speaker 4 (43:37):
And it does relate a lot on areas and things
like that here in Spain.
Speaker 1 (43:40):
But I have seen a big increase in the property
prices and land prices.
Speaker 4 (43:45):
Have gone pretty much through the roof. But it's funny.
Speaker 1 (43:48):
I bumped into my bank manager a few weeks ago
and when we bought a plot of land to build
our house, which was five years ago now, he said
to me, we haven't lent money to anybody since we
lent money to you to build their own house.
Speaker 4 (44:06):
Talk about brief people in any ourm area. And I
went really, and.
Speaker 1 (44:11):
He said, it's too risky a project now because people
buy a lot of money for the land and they
don't realize the costs involved in you know, the fees
and the construction costs, and there is a time limit
now the banks are putting on it for two years,
so you have to from the buying your land, you
have two years to complete the house. If you don't,
(44:31):
the banks can come foreclose on you and ask for
that money back.
Speaker 4 (44:35):
So he said, it's got so risky now that for
brief people.
Speaker 1 (44:38):
In the Armeria area, we're not offering them money mortgages
to buy land with the intent to do houses on
So there you go.
Speaker 2 (44:48):
Yeah, it just shows you. So there are caveats. Just understand.
People need to understand what those caveats are.
Speaker 3 (44:56):
In longevity, as you mentioned timescale, you need a bit
of luck on your side as well, I think with
most things, you know, but if you stick with things
for the majority, then that luck pays off. But yeah,
I don't think we're in the crisis right now. Property
prices is quite overpriced in Spain. In the UK they've
dropped in value, you know. It just shows you the difference,
you know, reading an article about property prices in in
(45:19):
Knightsbridge and Mayfair at the UK and some of the
property prices have dropped thirty to forty percent over the
last eighteen.
Speaker 2 (45:27):
Months, you know, and that's a huge amount on.
Speaker 3 (45:30):
Quite high valued properties, but it just shows you they're
at a discount, you know, some properties.
Speaker 2 (45:36):
But in Spain on the other side, you know, we brought.
Speaker 3 (45:39):
Out our place in twenty twenty one, you know, it's
it's gone up nearly double, you know since we were purchased.
But if we're looking to purchase another property, that house
has gone up double as well.
Speaker 2 (45:50):
So it's all relevant, you know.
Speaker 3 (45:51):
So it depends on the country's in the location, as
you said, Inland by the coasts.
Speaker 2 (45:58):
You can get some silk great.
Speaker 3 (45:59):
Properties in in Land in Spain for for good prices.
Speaker 1 (46:03):
So it's a lot of British people like to move
inland a little bit. I've noticed that, you know, they're
not so much. I mean, obviously people like the beaches
and the coast areas, but a lot of British people
I know living in the All Box and Mercier area
and Vera and they've moved away from the beaches because
(46:23):
you can get a lot more for your money, you know,
a bigger plot of land and house and gardens, swimming
pool that for sort of half the price. But you know,
and they're putting that money in the bank. And this
is what I wanted to do these calls with you,
because you know, I see these people. Recently, I went
to a big gathering of three thousand British people in
(46:45):
in in All Box a little while ago, down to
do to the radio station with and you know, I
was talking to a few of the people there and
I said something, you.
Speaker 4 (46:54):
Know, they managed to sit in the bank. You need yeah, yeah,
I need to talk to somebody. You need to talk
to somebody.
Speaker 1 (46:58):
So you know, it's it's I think the Britage were
a little bit slow and a bit very very cautious
in that. But you know, if you're living your dream
life here in Spain and that money, seeing it, it could
be buying you quite a.
Speaker 4 (47:10):
Few more tables if you've got it invested properly.
Speaker 2 (47:12):
You know, for sure.
Speaker 3 (47:13):
Yeah, it's important and everyone loves to tap us. You know,
I can purchase a few more sachichas in in Inmuzzo saws.
That's for sure going ontomatic.
Speaker 2 (47:24):
But no, I get it. People need to have that trust.
And what we've.
Speaker 3 (47:28):
Done We've set up a trust pilot, a site if
you like, where clients and majority of myself of our
clients have have written a nice review about us, which
is which is good.
Speaker 2 (47:40):
We haven't don anything wrong yet, but I'm sure that
will never happen.
Speaker 3 (47:45):
But yeah, so people can check out, you know, when
they look at us online ambient wealth, just search that
comes up lots of information Facebook page, the website linked
in the trust pilot. You see those reviews, so see
sort of what other people have thought of us, you know,
real life.
Speaker 2 (48:01):
Reviews us.
Speaker 1 (48:03):
So, Josh, anything else you want to add quickly before
we round this up.
Speaker 2 (48:07):
I think I think that's it, David. I think we've
covered most points.
Speaker 3 (48:12):
You know, we maybe sort of jumped a little bit
here and there, but I think we've got the majority of.
Speaker 4 (48:17):
Tips. Sure aren't stress enough, you know that.
Speaker 1 (48:22):
You know. I hate it when I see people lose
out here the different things, and I've done it in
the past when I was here. I was quite great
green when I first moved there, and there wasn't the
help like this Josh, twenty four years ago. There wasn't
the Facebook pages of the Internet, wasn't anything like this.
Speaker 4 (48:37):
I had to literally come to Spain and learn the
hard way.
Speaker 1 (48:40):
I asked people go to the bank managers and pay
for interpreters to come and find out things from men.
And I lost money on several different things here and
learned the hard way. So now there's no excuse for that,
you know. So it does it hurts me when I
see people, you know, going down that road. Oh we've
lost this and we didn't know this and didn't know that.
So doing these videos is really helpful for people, I think,
(49:03):
and putting them out on my information sites can stop
people going through some of their problems and losses that
I've had over the years here. So Josh, just to
recap the gain free consultations with you for any of
the people that want to listen to this and I'll
leave a link to help that can get in touch
with you below.
Speaker 4 (49:23):
This from in the description of this video.
Speaker 2 (49:26):
Yeah yeah, perfect, Yeah.
Speaker 3 (49:27):
Thank you Dave for organizing, and thank you all for
joining and listening. I know finances can feel quite overwhelming,
especially in a different country, but with the right guidance,
it really doesn't have to be. So that's what we're
here for, and we can provide that that initial consultation,
as David said, complimentary, see where we can help, what
(49:49):
we can do, and potentially plan togain.
Speaker 1 (49:52):
Gave yourself some money, love time, good, Okay, thanks very
much for helping us today. Josh Williams from Ambient Wealth,
Thank you, Josh, Thank you say
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