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Pending changes to the EU Savings Directive

Fiduciary Wealth Team

Do you hold your financial assets in an offshore jurisdiction to avoid paying taxes on savings? Are you relying on offshore company structures, trusts or foundations to escape taxes? Are you worried about the recent announcements by various tax authorities?

In July 2005 the European Union introduced the “Savings Directive” to ensure EU residents paid taxes on savings income to their country of residence regardless of whether they declared income or not and thus avoid the common practice of hiding capital in foreign bank accounts. The Directive, however, has so far proved to be ineffective as it only covers private individuals and most people transferred their funds into corporate structures.

Are you aware the EU has appointed an expert working group to close existing loopholes and prevent tax evasion?

Did you know that the plan is to increase the number of financial instruments and investments which fall within scope of the Directive as well as introduce look through facilities for offshore companies, trusts and foundations to ensure recovery of tax liability?

The future is uncertain but there is still time to take action. Do not get caught out! If you are worried about your investment strategy then contact our financial planners Spain  now to discuss your options. Talk to a wealth manager Spain at Fiduciary Wealth on +350 200 50982 to see how we can help you or your client’s, or make an appointment by emailing wealth@fiduciarywealth.eu.