A pensioner strolling along the beach. | J.H.


Living in Mallorca provides so many benefits… the relaxed pace of life, climate, scenery, food and culture all do wonders for our physical and mental health. If you’re retired you’ll have plenty of time to take life easy.

We can’t neglect our financial wellbeing though. Taking a little time now to review the various elements means we can get it sorted, have peace of mind for our financial future and get on with enjoying life in the Mediterranean.

Tax planning

How you hold your savings, investments and pensions can make a difference to how much tax you pay.

UK tax planning is unlikely to be effective in Spain. ISAs, for example, become fully taxable here. But as a Spain resident you gain access to other opportunities. Locally compliant arrangements, such as a suitable life assurance bond, can combine your investment, tax and estate planning in one exercise, grouping different investments together under one tax-efficient roof – making your life easier too!

Savings and investments

Are your savings and investments suitable for your life in Spain? Have you planned ahead for your later years and when your heirs receive their inheritance?

Your portfolio needs to be designed around your circumstances, needs, objectives and risk profile – too many people have investments that aren’t suitable and too risky for them. Plan ahead to keep pace with inflation and maintain your spending power throughout retirement.

A wealth management adviser can objectively establish your appetite for risk, ask questions about your situation and aims and recommend a suitable investment approach.

The same goes for pension funds. British expatriates have various options for their UK pensions, so take specialist advice to see what works best for you now you’re living in Spain.

Estate planning

You should be thinking about your estate planning while reviewing all the above. How you hold assets can impact who can inherit them, how easily they’ll be transferred to heirs and their tax liability. There’s a lot you can do now to make life easier and more tax-efficient for your beneficiaries.
While living in Spain may generally be nice and easy, cross-border tax and financial planning can be complex. Building up a good relationship with a locally based financial adviser can take the stress away. They’ll have the local knowledge of the Spanish tax and succession regimes needed, understand how it all interacts with UK rules, and guide you through your financial wellbeing journey in Mallorca.

Summarised tax information is based upon our understanding of current laws and practices which may change. Individuals should seek personalised advice.

Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com