Five hundred euro notes

Five hundred euro notes. | Reuters

Cathal Rochford, Partner Blevins FranksPalma24/07/2023 16:32
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When was the last time you reviewed your financial planning? If you have not done it in a while or you moved to Mallorca fairly recently, it’s important to take a fresh look at your tax and estate planning, investments and pensions, to ensure they’re suitable for you today and your future plans.
One key reason to review your wealth management is to ensure it is up to date. Establish whether any tax rules or financial regulations have changed and consider if developments in your personal circumstances mean you should adjust previous arrangements.

But an effective review of your financial planning, to ensure it is suitable for your life in Spain and wishes for the future, needs to go beyond that.

Many people only consider segments of their finances at a time. They may have bought shares in companies they like and/or invested in funds recommended by an adviser years ago. They may speak to a tax accountant about Spanish taxation and tax planning opportunities. Then they speak to a lawyer about setting up a Spanish will. At some point they look at their pension funds.

For truly effective financial planning, however, you need to consider all these various aspects together. For example, how you hold your investments can make a difference to your Spanish tax liabilities. Estate planning in Spain is no simple matter, with its complex succession tax regime and forced heirship rules, and how you own assets can impact on what you can achieve. Finally, when deciding what to do with your pensions, look at all your retirement savings and what income they can generate for you.

Every family is different. Your strategic financial planning must be carefully designed for you. All the various aspects should work cohesively together to create an overall wealth management plan that provides long-term financial security for yourself and achieves your wishes for your heirs.
For peace of mind that you have covered everything, and have understood the intricacies of Spanish taxation, and that making one financial decision will not have unexpected consequences on another, take expert, professional advice, ideally from a locally based cross-border wealth management specialist.

The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual is advised to 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