Archive for April, 2010

Inheritance Tax In Spain

Posted by John at 28 April 2010

Category: General, Money

Tags: , , , ,

Do you have worries about the inheritance tax on your property in Spain?

I have been looking in to the subject and came across Wincham IHT, a company that looks to have the answers. Take a look at the information below, you never know it may just help.

Wincham explain how it works

You may be aware of this already, but it’s something many people who own property in Spain don’t know.

It’s about the taxes payable when an owner of property in Spain passes away.

If you have ever wondered about the details of inheritance tax, it’s simply this:

Your hard earned legacy may have to be sold off to pay crippling tax bills when you pass away?

Spanish Inheritance tax, death duties , legal fees – up to 40% .

So, right now, can you be absolutely sure that those you leave behind will have the money to cover those costs?

Of course we would all prefer our children and grandchildren to enjoy the property we’ve worked so hard to own, and not be forced to sell it to cover onerous tax demands.

Equally as worrying, did you know that in the UK system of IHT, a husband or wife is usually an exempt beneficiary?

But in the Spanish system…

Your husband or wife will not be exempt from Spanish Inheritance Tax.

It’s a sobering thought, isn’t it?

So, while it’s not something we like to dwell on can I ask you…

“Have you considered what will happen to your dream of leaving something of value to your children when you depart this world”?

The harsh reality is that your gift could become a financial burden that your loved ones simply can’t pay off.

How much debt? – When you take into account Spanish death duties, inheritance tax, legal, agency fees and accounting fees in both Spain and the UK, and other ‘incidentals’….certainly 40%, but maybe as much as 50% of the value of your property!

“Most estates will be hit with as much as a 40% tax charge unless steps are taken…”

Joe Howard – Senior Partner of Howard Mathews LLoyd Accountants UK

What is the difference between Death Duties in the UK and IHT in Spain?

In the United Kingdom, it is the estate of the deceased that is subject to taxation. In Spain however, it is the individuals who inherit that are taxed. This means that if you don’t plan ahead, and start now, the cold fact is that a huge chunk of your wife or children’s inheritance will go in taxes.

With that in mind, may I ask a final, pointed question?

“You know what happens if you don’t plan, so are you happy right now with what you have done about it”?

I’m sorry if that question seems blunt, but we need to be realistic and take direct action to stop our hard earned money from being grabbed by the tax man.

But what action can you take today to protect the property you worked so hard to own, in the future?

The good news is that you CAN take a positive step, and do it right now!

Up until now, there have been very few legal strategies to side step Spanish Inheritance taxes.

Now there is a simple way to organise your property and keep the money out of the tax man’s pocket.

This is how it works; …

Introducing: The Wincham Investments Inheritance Tax Protection Strategy

To protect your property and ensure your loved ones will inherit it without incurring Spanish IHT we have teamed up with Wincham Investments Ltd a United Kingdom company established in 1994 to help people just like you minimize their tax liabilities.

You can shield your children from those crippling debts through a simple, legal tax shelter that means it remains in the family, free of burdens like Inheritance taxes, death duties and legal fees in Spain.

You can build a solid wall of defense so that when the time comes, a simple declaration moves the ownership from you, to your loved ones.

No taxes or lengthy Spanish Will probate, no Spanish and UK legal fees… no being forced to sell.

You will maintain full control at all times. You can rent it, sell it, raise funds on it, just the same as you can right now.

You have the control to divide the property between beneficiaries in a much simpler format than normal Spanish Wills allow.

You can change the ownership percentages, without additional legal costs.

Your new structure is guaranteed safe and effective in transforming a potential tax bill of 40%- 50% of your asset value, to just a few percent now, and a little in the future.

“…there will be…NO liabilities. NO fees, NO legal costs”

Maria L. de Castro – Legal Advisor Spain

Exactly how is this Spanish Inheritance tax protection created?

By forming a UK Company: The owners of the property form a UK Limited Liability company, in which ownership passes into the hands of the company. Each owner becomes a Director of the company.

As the legal company owner, you remain in full control of the company – and therefore the asset.

You do not relinquish any control or decision making power regarding the property.

You stay in absolute control of the shares of that company, and you have the final say in who owns those shares.

Therefore – Inheritance tax never becomes an issue. Because on your passing, the company still remains the owner of the asset, it’s just the shares in the company that will change hands when the time comes.

It’s simple, isn’t it?

And it’s totally legal too!

“With current legislation and tax laws there is an opportunity for

considerable taxation savings by purchasing new overseas property

under the umbrella of a UK limited company”

Joe Howard; Senior Partner – Howard Mathews LLoyd, UK Accountants

If you own property in Spain of any value, you should seriously consider restructuring your asset to protect it in the future.

Although our example (on the UK legal opinion page) shows the savings on a 300,000€ property, savings on agents fees, legal fees and taxes means this structure is the perfect tax planning strategy for all property owners.

Interested? Here’s what to do now.

You need more information and to be sure that this is a safe and legal way to protect what you have worked so hard to achieve, I understand that.

The first thing to do is request a free proposal, personalised to reflect your tax liabilities right now, and the benefits of restructuring under the Wincham plan. A case Manager at Wincham will work out the figures for you with no obligation. If you decide to move forward and plan your inheritance using this simple system, they will tell you the way it will happen, what you need to do, how to divide the shares up, & what it will cost.

To get your free personal proposal, all you need to do is click here, fill in the form and we’ll send it to you immediately by post, fax or email, whichever you prefer.

But make a decision to act today. Time is precious, another year is flying by, and none of us truly knows what tomorrow will bring.

Mark Roach, Wincham Consultants Limited, Spain & The UK

CLICK HERE FOR YOUR PROPOSAL

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Currency Update & Podcast 26th April 2010

Posted by John at 26 April 2010

Category: General, Money

Tags: , , , ,

This weeks look at the euro and the pound with currency expert Keith Spitalnick.

Hola amigos!

The release of preliminary GDP figures in the UK on Friday saw sterling drop against the dollar, euro and Canadian from a five week high of 1.1615. 0.2% for last quarter’s growth puts pressure on Gordon to come up with solutions rather than excuses in the third and final Prime Ministerial debate. Sterling had strengthened in the lead up to Friday’s market open on the back of optimistic economic (GDP) forecasts from the financial sector in March.

If the market still believes that Greece and other European economies have a long term solvency problem, then this may translate into a short term liquidity problem. Despite the IMF involvement and the support of some of the EU member states there is yet to be a consensus on how the €30billion Greek bailout might be spent.

The British press has made quite a story of the apocalyptic consequences of a hung parliament. Anecdotally a hung or ‘balanced’ parliament has led to the slight devaluation of a domestic currency, but with previous coalition governments other factors have determined this loss in value so it does not really stand to reason that this is the default consequence.

Inflation and interest rates could rise

A loss in the value of the pound may detrimentally affect the balance sheet and could cause a rise in inflation resulting in the need to increase interest rates before the economy is ready; and yet it must be conceded that shaky market confidence, which is natural with a slow recovery, has fuelled the press and government to exaggerate and peddle this view that a hung parliament can only mean a coalition of confusion and in-fighting regardless of the fact that all parties agree their priority is the economy.

Labour has stressed that their priority is economic stability, jobs and trade and liquidity. According to the polls Labour can’t do this on their own, and with the narrowing of the polls in March the market sold sterling accordingly; yet this most recent rally suggests that the market may have reconciled itself with the fact that a hung parliament where a united coalition focuses on maintaining growth, jobs and the recovery, might not be detrimental to economic growth.

Further to this Mr Cameron and George Osborne, the City’s ‘Golden Boy’, have already made assurances that they will take money out of labour proposals to start repairing the deficit. It seems that the markets are responding positivity to both of the major parties stating their priorities regardless of who wins on 6th May.

Hung Parliament?

The real risk to the economy is with a hung parliament that does not deliver on its economic pledges. At the moment you could argue that Labour’s initiatives have not delivered the recovery and growth that was promised, but whether or not that is sufficient reason to vote for another party is not the point. The most important issue is that all the money borrowed and pumped into the economy has not yet been paid for, and has not translated into the moderate growth we might have expected.

Many people simply want to know whether the rate will go up and where it will go to. There is no way of answering this at this time. The election is a blip. We rely on our economy performing consistently, and improving in those damaged areas in order to give a firmer outlook. Private sector investment is key, but can only come from confidence and leadership in business in government. I am still bullish on sterling for 2010, but my expectations have changed largely to take into account the relatively poor economic data.

Hasta la proxima!

For more information on currency exchange you can click here.

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Investments

Posted by John at 23 April 2010

Category: Money

Tags: , , ,

The “Who, Why, When, Where, What” guide to financial planning:

“Some say money can’t buy you everything… but money is the facilitator of choice… and to have choice… well to me that’s everything”

David J. Rogers, Independent Financial Adviser.

Who?

Unrivalled knowledge and experience in providing Tax, Wealth Management and Estate Planning services to private clients in Spain. My key strengths are that I take time to fully understand my clients and I provide a full range of services which enable my clients to:

Protect themselves from tax wherever they live

Protect and preserve their wealth and pensions

Organise their assets in the most effective manner so that they can be passed to their heirs as efficiently as possible

Despite what you might hear from others, there are no off-the-shelf solutions and every single one of our clients has their own personal concerns, responsibilities and ambitions.

The solutions that work for one, simply would not work for another.

So only by fully understanding where you are today, where you want to be in the future and understanding your attitude to risk versus reward can I truly provide a tailored solution for you.

“One things for sure making money requires planning – take time out to understand what you want and by when. Once you know your goal, there are a wide range of tools and investment strategies to help you get there and the performance of your investments could make a critical difference to your financial well being in the future. Therefore, reliable financial advice, investment products, tax and estate planning is vital and should not be left to chance; after all, we reap what we sow”

David J. Rogers, Independent Financial Adviser. …………………………………………………………………………………………………………………

Why?

“As conflicting reports on the state of the global economy continue, knowing what to do with your money can seem daunting. An independent financial adviser is best placed to assist you with your financial planning. An IFA can work with you to develop an appropriate investment strategy and review your plan to ensure that you remain on track and decisions are made with focus and cohesion”

David Elms, Chief Executive of “unbiased”

……………………………………………………………………………………………………………………

When?

We’re all so busy coping with our everyday lives that we often put off planning for the future. But every now and then something prompts us to think what would happen if?

However, in reality, the true cost of delay is not achieving your goals and dreams; not the actual cost of planning now!

Successful financial planning offers many rewards in addition to the obvious ability to meet your life goals. When IFAs were surveyed about the most significant benefit of financial planning in their own lives, the top answer was “peace of mind.” There are few benefits in life greater than this.

The truth is that a little time spent now on careful financial planning, means you can relax in the knowledge that you’ve got things covered.

Probably the greatest mistake you can make with regard to financial planning is to ignore it completely or delay so long that you consider the opportunity to do some planning has passed you by. While it is true that the younger you start the more beneficial the process will be, financial planning is worthwhile at any age.

“I look to the future because that’s where I’m going to spend the rest of my life.”

George F. Burns, Author and comedian

To find out Where and What or if you’re interested in learning more about the tax and financial planning issues that affect you and your assets here in Spain please contact David here. He will be delighted to offer you a full ‘financial health check’.

Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a solicitation of an offer to buy or sell products or investments. Before offering any financial advice I need to carry out a full fact find to establish your individual circumstances, your objectives and your attitude to risk, solutions will then be tailored to meet your specific needs.

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Funeral Insurance In Spain

Posted by John at 21 April 2010

Category: General

Tags: , , ,

No one wants to think about dying and most people will put off planning for a funeral until they become ill. However, if you are living away from your country of origin it is something which should be considered in advance to ensure that your wishes are respected and you don’t leave loved-ones with costs and red-tape that they can’t handle.

The problems with funeral arrangements in Spain

The funeral needs of the expatriate living in Spain are very different to those needs whilst still living in the UK. Firstly let’s take a look at the main differences:
  • In Spain funerals can be conducted within 24-48 hours
  • It is not unusual for the funeral to be completed before the family are notified
  • The cost of a funeral in Spain can be in excess of €3,000, and of course this is constantly on the increase
  • Language difficulties make you extremely vulnerable with regards to the provision of service and pricing
  • Local laws and regulations in Spain are very complicated
These issues can be taken care of with a little pre-planning and the selection of one of the funeral products available on the market. By thinking ahead, doing your research and making plans you can avoid the potential pit falls that may arise during, what is, a very difficult time for our loved ones.

Home or away?

One of the major questions we need to ask ourselves is – ‘Do I want to be laid to rest here in Spain, or do I want to be taken back to the UK?’
This decision should be taken carefully with input from your friends and family. Repatriation will add to the expense of your funeral, but it can be very important for your loved ones to have you buried close by and to have a funeral that can be attended by your extended family and friends at home.
Whatever you decide, there is now a solution that will ensure loved ones will not be left with the logistical problems or financial burdens of our decisions. There are a number of options including pre-paid plans and insurance which offer similar results but in very different ways. One will be right for some, whilst not for others.
Both options will provide English telephone support via a 24 hour bereavement helpline. Just one phone call to the relevant helpline is all that is needed and your provider will handle the rest. This will provide your loved ones peace of mind that all the funeral arrangements, or repatriation, will be conducted as per your wishes. Only reputable Spanish registered funeral directors are used, with full understanding of the Spanish system.

So to understand the differences and allow you to make the right choice for you click on the two links below.

For more information about funeral insurance click here.

For more information about pre-paid funeral plans click here.

To return to the home page click here.

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Currency Update 19th April 2010

Posted by John at 19 April 2010

Category: General, Money

Tags: , ,

This weeks look at the euro and the pound with currency expert Keith Spitalnick

The pound has made fractional improvements over the last week, with the GBP/EUR rate closing in Europe and UK at 1.141 (0.8764).  This is despite further narrowing in opinions polls on the election campaign trail.  Interestingly the euro did strengthen earlier in the week on the proposed Greek package of €30billion, but the euro has gone on to lose that gain after confusing caveats and questionable commitment from Germany.

Leaders debate did not help

In the UK the leaders of the three main political parties held a live televised debate last week. The event did little to clarify the outcome of upcoming election, with sterling still suspect to swings in the opinion polls in the month ahead. Nick Clegg, the Liberal Democrat leader, shone through in the first of three debates as the parties look to win over undecided voters.

Bail out for Greece?

Greek Prime Minister George Papandreou last week asked for a meeting with the European Union, the IMF and the ECB, leading to speculation that a bailout is imminent. Talks are to begin in Athens on 19th April. The country’s cost of borrowing from private markets continues to rise. Financial markets have shunned Greek debt in recent weeks, despite escalating promises from the EU that they would step in to prevent a default. The euro was the worst performing major currency on these renewed fiscal worries.

This week will be heavy with UK economic data, which will hopefully expose the hollow sentiment behind The Chancellor’s March budget.  Improvements in retail, services and a rise in high street price may see the pound attempt to push higher, but it will find stiff resistance at 1.15 and pressure will increase over the next six weeks and the chances of a sterling sell still hang in the balance.

For more information on currency exchange you can click here.

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New Low Cost Health Insurance For Expats

Posted by John at 16 April 2010

Category: Health

Tags: , , , , , , ,

New Product CASER HEALTH MEDICAL

Caser Seguros have just launched a brand new private health care product that offers great cover at very competitive premiums. It is aimed at  those clients, who use the health insurance mainly for first medical opinion and the opinion of a specialist.

Health Medical is a health insurance which includes ambulatory medical care with a very lower premium.

The main covers of Caser Health Medical are:

  • The same list of Doctors as Caser Health
  • Emergencies, ambulance and home assistance if required
  • Complementary oral and dental coverage and free Child Dental Plan included
  • Medical assistance abroad to €1500
  • Infant Psycology and Clinical Psycology. 20 free sessions per year
  • Obstetrics and Gynaecology. Family planning treatment.
  • Podiatry. 6 free sessions per year
  • Benefits of complimentry services. Surgical correction of shortsightedness, longsightedness and astigmatism, and up to €300 discount in conservation of cord blood
  • 24 hour, 365 days medical hotline
  • Second medical opinion

To find out more click here!

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Health Care Spain

Posted by John at 14 April 2010

Category: Health

Tags: , , , , , , ,

During September of 2009 important changes were implemented for foreigners resident in Spain. It is therefore important to understand the effects these changes have on us all.

Spains public health system offers health care free or  at a low cost so long as you are either paying social security here or are in receipt of a UK state pension.

However, as with many other countries the public health service has waiting lists to see specialists and for non-urgent operations.

How the system will work for you

As a contribution based economy Spain will provide free medical treatment to British nationals whilst on holiday. However when you take up residence you have to pay the Spanish National Insurance, currently €260 per month.

As Spain is part of the EU you are entitled to free care if you receive a British pension.

Please note that as from September 2009, any foreigner who is not in one of the above mentioned categories will not receive free medical assistance.

Getting tougher on who can use their health system

It was recently reported that because Spain cannot afford to look after it’s own people under the system, they have decided to stop all treatment to foreigners. If you don’t contribute, you don’t get the benefits.

The E111 is ONLY for use whilst on holiday and new systems in operation from September will ensure that this is the case! The EHIC/E111 allows reciprocal emergency health care during temporary visits to other EU countries. Strictly speaking it is not a permanent entitlement nor a full entitlement to all treatments available under each nations state health care systems.

Why have private health insurance Spain?

If you do not qualify for public health care then it is essential that you have private health insurance. No insurance will mean no treatment. Everyone hopes they will never need to use any kind of health professional, however accidents and emergencies do happen. For that reason alone, not to mention pure peace of mind, it’s worth investigating your options.

Even if you are under the public health care system it is still advisable to have private health insurance as well in order to skip the waiting lists and receive treatment quickly, when needed.

For more information about health insurance click here.

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Funny Insurance Claims

Posted by John at 9 April 2010

Category: For Fun

Tags: , , ,

Friday Fun.

Here are this weeks selection of funny insurance claims.

Have a fantastic weekend!

  • I thought my window was down, but I found it was up when I put my head through it.
  • As I approached an intersection a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.
  • To avoid hitting the bumper of the car in front I struck a pedestrian.
  • The other car collided with mine without giving warning of its intention.
  • I knew the dog was possessive about the car but I would not have asked her to drive it if I had thought there was any risk.

Parking does not come naturally to everyone!

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Currency Update 1st April 2010

Posted by John at 1 April 2010

Category: General, Money

Tags: , ,

This weeks look at the euro and the pound with currency expert Keith Spitalnick

Appearances can be deceptive; especially to the outsider observing events that are still unfolding following the Greek bailout. They would be shaking their heads in disbelief that the Eurocrats think that all their problems have been solved.

The problem still remains that the global markets in the past 12 months have become supercharged with government stimulus and both equity and commodity markets soared on the back of this.

The European Central Bank began withdrawing their stimulus in December 2009 and it took only one month for the ship that is Greece to hit the rocks. Now, imagine if that ship had been a super-tanker like Italy, Spain or Portugal - it would have been a massacre. But make no mistake; we are still in very stormy waters that could yet yield a very nasty surprise.

What the Europeans are asking the market to do is this:

1) Believe in the fact that they can reduce their budget deficits back down below 3 % (something they have never done since the Euro’s inception)

2) Believe that the southern European states can increase productivity and structurally reform (something they have also failed to do since the Euro’s inception)
3) Reduce their public sector debt (something that has in some cases doubled since the Euro’s inception).

Debt won’t go away.

Now the one thing that won’t go away is the debt that these countries carry and unless they can:
1) Radically reform their labour laws
2) Increase productivity
3) Increase the rate of growth
4) Cut public services

…then the Euro as a currency will continue to suffer. What you will probably start to see is a two-step Euro, North and South.

When the Euro was launched the main concern the North had with the South was the four points I have just mentioned, all of which have been ignored for the past 10 years. So to expect a change in behaviour from these countries is farcical to say the least.

April & May are big months for Greece - they have to go to the market to raise about 16 billion Euros. The fact that the markets are worried about this is in itself laughable when you consider the US government was only last year chucking trillions of dollars at any industry that happened to raise its hand for help. It shows how deep the political diversions are now in Europe.

The seas are still very stormy and I am already munching the sea sickness tablets in anticipation of the Greek bond issuance, I suggest you do the same.

Happy Easter!

For more information on currency exchange you can click here.

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