¿Entiendes lo que tienes?

ID-1009143Contact me today on (+34) 96 558 7633 or email john.hayward@spectrum-ifa.com to see how we can help.

Why invest in a Spanish bank or investment product? For a UK Expat in Spain this could cause Spanish inheritance tax issues.  Also, does a UK Expat fully understand terms and conditions in Spanish?

Some people find understanding investment accounts written in English very confusing. Why then do they get involved with plans written in Spanish? Many UK expats in Spain go for UK television, possibly costing them €500 a year, as they are familiar with the programmes and they can understand them. It seems odd for the same people to invest €100,000 or more in a bond with a Spanish bank, not understanding what has been committed to, entrusting themselves to their friendly bank manager or gestor. In some cases, the promise of easy/immediate access has turned into being tied in for 5 years or more.

This may sound anti-Spanish. I have lived in Spain for over 10 years and I have no intention of leaving, alive. However, I also know that there have been massive banking problems here in the past where banks have propped up their debt with the money of unsuspecting, and often elderly, customers. People have been tied into schemes with no way of getting their money for many years. As long as people are not fluent in Spanish, they should not, in my opinion, trust their money to a ‘foreign’ bank. If the bank is prepared to provide a clear English version of the plan, then there is an opportunity to see if it is appropriate. Otherwise it might as well be written in Russian or Chinese.

We, at The Spectrum IFA Group, explain all the detail of what we can arrange (in understandable English), including the charges and penalties, if any. The policies we are able to organise are Spanish compliant for tax purposes but not based in Spain. This means, with correctly arranged Wills, they will not form part of any Spanish IHT calculation.

Contact me today on (+34) 96 558 7633 or email john.hayward@spectrum-ifa.com to see how we can help.