EXPAT INVESTMENT PLANNINGThe Spanish Bond
What is the Spanish Bond?
The Spanish Bond presents a unique investment account tailored for expats residing in Spain, combining the benefits of investment and life assurance. This financial instrument offers a range of advantages, including certain tax benefits that can contribute to its appeal.
The Spanish Bond provides expats with the opportunity to enjoy a feature known as "gross roll up" within the account. Gross roll up refers to the ability to defer taxes on investment gains and income generated within the account. This means that the investment growth and income generated are not subject to immediate taxation, allowing for potential tax deferral and the potential for greater compounding of investment returns over time.
By taking advantage of gross roll up within the Spanish Bond, expats in Spain can potentially enhance the overall growth and profitability of their investments. The ability to defer taxes allows for a more efficient use of capital, as the gains can be reinvested and continue to compound within the account.
Who is it for?
The Spanish Bond is a product available to Spanish residents who intend to stay in the country for the long term and throughout their retirement.
Particularly, it will be beneficial to those who wish to grow and protect their wealth, whilst minimising local taxes. The gross-roll up feature will complement any investment growth over the lifetime of the account.
It’s important to bear in mind that as with any investment, this product carries market risk. The exact level of risks depends on the individual portfolio recommended and its exposure to stocks and shares around the world.
KEY FEATURESGross roll up, allowing tax-free investment growth
Investment growth and capital preservation over the long term
Wealth Tax efficient
Locally compliant in Spain
LIMITATIONSIt can be set up on a commission basis
Minimum investment of £100,000
It can be more costly than other investment accounts
Typically cannot hold individual shares
Our Verdict
For expats in Spain with £100,000 or more to invest, the Spanish Bond emerges as the optimal choice considering its tax advantages and tailored benefits.
The combination of investment opportunities and life assurance, coupled with the tax benefits such as gross roll up, makes the Spanish Bond particularly attractive for British Expats in pain.
The deferral of taxes on investment gains and income generated within the account allows investors to maximise their investment growth and potentially enhance their overall returns over time.
As always with insurance products, it is vital to consult with a financial adviser or tax professional who possess expertise in Spanish tax regulations and investment strategies.
At The Wealth Genesis, our expert advice team can provide bespoke, flat-fee advice based on your individual circumstances and help to secure your Expat retirement in Spain.
