Press & Media

Woodbrook Group – Wealth Division – May 2018 Tax and Saving in Spain

Posted on: 03 May 18

Woodbrook Group – Wealth Division – May 2018

Tax and Saving in Spain

If you are from the United Kingdom, and you are moving to Spain, then it is not unusual for you to have some expectations regarding the taxes that will be charged on your savings, which, in turn, is supposed to give you an income or serve as something to fall back on. Expectedly, you may have already been conversant with the use of ISAs in developing valuable holding that will not be taxed in the United Kingdom, and you might be wondering if there is anything resembling an ISA in Spain?
As a result, it is imperative that you recognise how the system works in Spain and to have an insight into how much you will be paying in tax and using this information to make your financial plans. Given that residents in Spain are legally responsible for paying tax on income and gains built all around the world, this article takes a look at the differences in tax between both countries and examines what could pass as an ISA in Europe. Indeed, the significant difference is in the way Wealth, Inheritance and savings are taxed.

Wealth Tax in Spain

Presently, there is no wealth tax in the United Kingdom, while individuals in Spain worth above €700,000 are liable to pay 0.2–2.5% on net assets. In places like Catalonia, the rate is within a band of 0.21-2.75%.

Inheritance Tax in Spain

In Spain, the imposed tax on the individuals getting an inheritance is reliant on the amount they get from the estate, while in the United Kingdom the entire estate of the deceased is taxed. Also, there is a clear distinction in the taxation system and allowances. It is pertinent to note that the inheritance tax rates differ across Spain, from Barcelona to Andalucía, etc.

Tax-Free Savings in Spain

The Personal Equity Plans (PEPS) which was introduced in 1987 that have now metamorphosed into ISAs is entirely tax-free but is limited to £20,000 for each year. But if you are resident in Spain, then all your income and gains obtained from share sales and premium bonds (wholly taxed as general income) are liable to savings income tax.
Presumed you would have become really worried by now, but you don’t have any reason to fret because Spain has its own version of the ISA, a similar investment and often regarded as the “European ISA,” with some essential features and benefits such as:

  • It is slightly more restrictive than the UK’s ISA but worth the effort in general. Should you rely on your investment for income, then you are likely to enjoy some useful and fantastic tax breaks.
  • It has no limit and is moveable to other countries
  • You may enjoy up to 80% in tax savings if you go back to the UK having spent some years in Spain
  • You can invest up to 10 millions Euros in a single year

In conclusion, this article has been able to take a cursory look at the fundamental difference in taxation between the United Kingdom and Spain, while taking a look at Spain’s version of the ISA, the European ISA.

Woodbrook Group is an independent financial advisory and corporate services company regulated by CySEC. With offices across Europe, Asia and the Middle-East, Woodbrook’s expertise is in investment and wealth planning, structured product building, QROPS, SIPPS, trust and trustee services, Accounting, Audit and Legal services, company formation and administration, taxation, cross-border structuring, domiciliation and corporate services among many others. Focusing on both holistic financial planning to the individual and corporate fiduciary service, Woodbrook Group advise on many financial and business matters, helping clients make the right decisions.

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Woodbrook Group – Wealth Division – May 2018 „QROPS tax charge for 2017“ – Will this change after BREXIT?

Posted on: 03 May 18

Woodbrook Group – Wealth Division – May 2018
„QROPS tax charge for 2017“ – Will this change after BREXIT?

In the wake of the announcement by the UK government that 25% Overseas Transfer Charge (OTC) will be charged on QROPS transfers occurring on or after 9th March 2017, there has been a great deal of uncertainty trailing the declaration and whether this policy will change after BREXIT remains to be seen. As the debate on whether Britain remains or exit the European Union rages on, various pension experts have offered their opinion on this issue that may have consequences for a lot of people.
QROPS (Qualifying Recognised Overseas Pension Scheme) was originally set up as a result of an EU demand for both British and European expats residing on mainland Europe to have easy access to pension savings they made while working in the United Kingdom. The set rules allow non-European Union financial centres to provide QROPS to British expats or international workers from any country with UK pension funds. The law guiding it calls for a scheme to fulfil a set of UK regulations that do not restrict the place where the pensions are based, to just the European Union alone.
Although the HMRC Guidance indicates that the OTC will not be applied in the following situations:

  • the member is resident in the same country in which the QROPS receiving the transfer is established
  • the member is resident in a country within the European Economic Area (EEA) and the QROPS is established in a country within the EEA
  • the QROPS is set up by an international organisation for the purpose of providing benefits for or in respect of past service as an employee of the organisation and the member is an employee of that international organisation. PTM112200 provides guidance on the definition of an international organisation. It does NOT simply mean a multi-national employer.
  • the QROPS is an overseas public service pension scheme and the member is an employee of an employer that participates in the scheme
  • the QROPS is an occupational pension scheme and the member is an employee of a sponsoring employer under the scheme

However, some of the advisors in the industry believes that HMRC may require that for private and salary pension transfers, owners could only transfer a pension to their host country in the EEA rather than Malta, which could adversely impact on those living in Spain, France, Italy or Portugal — mainly if they do not have QROPS that can accept transfers. Although some of the international QROPS advisors are feel this is unlikely to happen.
Other transfer specialists believes that this law does not imply immediate death for HMRC QROPS should the vote go in favour of a BREXIT. They feel expats are fretting for no justifiable reasons, and advocates that pensioners seek personal advice from qualified and experienced independent financial adviser about how Britain leaving the EU might affect them.

 

In conclusion, whether you are planning to relocate to another country or have already transferred benefits to a QROPS, it is vital that you get advice from a professional regulated service to explore your options and to see how this regulation and BREXIT might impact on you.

Woodbrook Group is an independent financial advisory and corporate services company regulated by CySEC. With offices in Limassol, Nicosia and Paphos / Cyprus and operating in many countries across Europe, Asia and the Middle-East, Woodbrook’s expertise is in investment and wealth planning, structured product building, QROPS, SIPPS, trust and trustee services, Accounting, Audit and Legal services, company formation and administration, taxation, cross-border structuring, domiciliation and corporate services among many others. Focusing on both holistic financial planning to the individual and corporate fiduciary service, Woodbrook Group advise on many financial and business matters, helping clients making the right decisions.

Press Release WBG „QROPS tax charge for 2017“ – Will this change after BREXIT? Kopie_red

 

 


Press Release Woodbrook Group – Wealth Division – May 2018

Posted on: 02 May 18

Woodbrook Group Wealth Division is delighted to announce the appointment of Mark Slevin as Regional Manager Cyprus.

Mark Slevin

Mark takes up this role from beginning of May 2018 and he will be based at the Woodbrook Group Head Office in Limassol. Mark has many years of experience working both as an IFA and as a team leader and brings a wealth of experience to Woodbrook. The continuing rapid growth of the Woodbrook Group is founded both on its independence and particularly on its total commitment to exceptional client service, which is an area of specific expertise for Mark. The Woodbrook Group recognises the absolute need for all clients to have total confidence in their financial advisors, and exceptional client service is an essential part of this. Mark will ensure that the Group’s obligation to client support and service is fully achieved in the region. This major appointment is a key element of the Woodbrook Group’s strategy to grow and develop the company as it opens new offices around the world.

Woodbrook Group is an independent financial advisory and corporate services company regulated by CySEC. With offices in Limassol, Nicosia and Paphos / Cyprus and operating in many countries across Europe, Asia and the Middle-East, Woodbrook’s expertise is in investment and wealth planning, structured product building, QROPS, SIPPS, trust and trustee services, Accounting, Audit and Legal services, company formation and administration, taxation, cross-border structuring, domiciliation and corporate services among many others. Focusing on both holistic financial planning to the individual and corporate fiduciary service, Woodbrook Group advise on many financial and business matters, helping clients making the right decisions.

Press Release Mark Slevin WBG_red


Education planning – More than just education fees

Posted on: 20 Mar 18

We all want the best prospects for our children, which is the reason education fee planning is a wealth management matter that should be considered. Saving might be the only way to ensure you can meet these future costs when the time comes. It is even more crucial if you are an expat or international worker, since in many countries funding your children’s education will be entirely your own responsibility.

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Company Introduction July 2017

Posted on: 22 Jul 17

Woodbrook Group Company Video

 

 


Budapest office Training Day July 2017!

Posted on: 21 Jul 17

Budapest office Training Day July 2017! Getting our Consultants up to date on all new products and services from the Woodbrook Group!


Warsaw office Training Day July 2017

Posted on: 19 Jul 17

Warsaw office Training Day July 2017! Getting our Consultants up to date on all new products and services from the Woodbrook Group!



Bucharest office Training Day July 2017! Getting our Consultants up to date on all new products and services from the Woodbrook Group!

Posted on: 18 Jul 17

Bucharest office Training Day July 2017! Getting our Consultants up to date on all new products and services from the Woodbrook Group!


FEIFA sees international adviser firms membership spurt as regulation bites

Posted on: 04 Jul 17

The Federation of European Independent Financial Advisers (FEIFA) has seen a growth in number of firms joining its ranks, with advice and support surrounding regulatory changes needed, particularly in the international expat arena.

FEIFA said that it has added three further companies across the last few weeks as members of the trade association, with a Cypriot financial adviser firm and a UK international expat advisory specialists added.

The Woodbrook Group, Churchgate Accountants Ltd and Omega Financial Solutions have all joined its ranks in the last few weeks, FEIFA said in a statement.

Woodbrook is based in Cyprus and has 15 advisers and operates in a number of mainland European countries, while Churchgates FCA-regulated and is based in Suffolk, working in combination with Accountants, Solicitors and Investment Managers, all under one roof.

Omega is also an FCA-regulated firm, located in the North-West of England but often working with international advisers, not least with regards to pension advice for expatriates, FEIFA said.

FEIFA chief executive Paul Stanfield said that the organisation is seeing a particular growth spurt as regulation begins to bite across the globe.

‘Further growth’

“Only recently we were announcing that FEIFA had more member firms than ever before and we have already seen further growth since then,” Stanfield said. “Another new membership peak has therefore been reached and we are understandably very pleased with this progress.

“Allied to this we are experiencing an increasing desire from advisers to be represented – and also a growing need to be supported and assisted with regards to expat and international business.

“Representation and support of the advisory sector is arguably more important than ever before and our membership growth would suggest that the sector is increasingly realising that fact.”

FEIFA member companies are English-speaking advisory businesses, active across Europe and advising on cumulative assets in excess of €4bn. The Federation is a non-profit trade association and its membership operates in around 35 European countries as well as, in some cases, other regions of the world.

The trade body also has affiliations with a wide range of companies, including major asset managers, international life companies, and a number of international pension and trust companies.

http://www.internationalinvestment.net/regions/europe/feifa-sees-international-adviser-firms-membership-spurt-regulation-bites/


Woodbrook Group joins FEIFA – The Federation of European Independent Financial Advisers

Posted on: 30 Jun 17

Woodbrook Group is proud to announce it’s partnership with the Federation of European Independent Financial Advisers to help to ensure the best standards of practise in the regulated and licensed financial service industry.

Announcement FEIFA 1


Woodbrook Group is authorised and regulated by the Cyprus Securities and Exchange Commission (No: 297/16) and subject to the requirements of the EU’s Markets in Financial Instruments Directive (MiFID). Woodbrook Group is licensed by the Cyprus SEC for the provision of Investment Services (Investment Advice) and Ancillary Services (Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments).

Woodbrook Group and its affiliates make no representations or warranties as to the accuracy, completeness or timeliness of the information. Woodbrook Group disclaims any responsibility for content errors, omissions, infringing material and any responsibility associated with relying on the information provided on this website. The information contained in this website is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved and your country of residence. Before making any decision or taking any action, you should consult with our qualified advisors for advice specific to your circumstances.