You have moved to Spain and done everything properly; advised the UK tax authorities that you are no longer tax resident, started paying tax on your income here rather than in the UK and closed your offshore bank accounts so that you won’t run into problems with disclosure to the Spanish tax authorities, following changes to the withholding tax rules under the EU Savings Directive and then WHAM just when you think everything is sorted you discover that the Spanish banking system is in crisis and in desperate need of a bailout. Banks are being downgraded by rating
s agencies and shored up by EU money because of their massive exposure to bad property debt. As happened in the UK with Northern Rock and then more recently in Ireland and Greece bank depositors have voted with their feet and removed their savings for fear of losing money.
Well the comforting news is that there is a bank deposit guarantee scheme in place which would cover the first €100,000 of any deposit but can you imagine how difficult and time consuming it might be to recover? What if you have savings in excess of this amount? What would you do in the meantime if you were relying on those funds to provide you with income to cover your day to day living expenses?
Would it not be better to take some proper advice from a regulated firm of financial advisers who can speak your language and provide you with properly researched investments that will stand the test of time and not be exposed to the risk of bank failure?
Would you not rather have your savings grow free of tax and defer any taxation until a withdrawal is made? Isn’t this important now that Spain has significantly increased the rate of tax payable on savings interest?
Would you not like to be able to draw from your savings at tax rates that are in single figures and in some cases could be as less than 3%?
Would you not prefer that your beneficiaries might be able to receive the remainder of your savings without having to pay succession tax on their inheritance?
Would you not be better off speaking to Fiduciary Wealth Management, cross border financial advisers with offices in Spain and Central London who can provide you with the right solution to meet your specific circumstances?