How do you create long-lasting wealth as a British person living overseas? Having assets and/or income in different countries can add extra considerations to wealth management. For instance, you might need to account for the impact of exchange rates – and different countries’ inflation rates – on the “real” value of your assets.
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5 key things to include in a will
A will is important for UK residents, yet for expats it is even more so. With interests and assets based across different countries, it is vital that your loved ones are protected in the event of your death. For Spain-based expats, the last thing you want is for grieving family members to be confused about what your wishes were – and, how the rules apply about inheritance tax (IHT) in Spain and the UK.
Health, income & life protection: a short guide
Do you have a financial safety net ready in case of emergencies? As an expat, the need for a financial protection plan can be even more urgent due to the nature of spending considerable time abroad. What if you need to fly home quickly for a family emergency? What if a serious illness or accident leaves you unable to work and earn money for a significant period? Perhaps your host country and/or local employer is not as generous, say, with sick pay and benefits compared to those in the UK and elsewhere.
Do I need bond funds in my pension?
As an individual nears retirement, it is common to start thinking about “de-risking” their pension(s). In simple terms, this involves moving investments away from volatile ones – e.g. shares which can fluctuate rapidly in price – towards less volatile ones. Bonds are commonly held up as an ideal asset class to move assets into (to achieve de-risking). Yet what are bonds exactly? In particular, how do “bond funds” work and where should they sit within a pension?
Your financial plan in 2024 – key dates to watch
One of the best ways to put more hard-earned money back into your pocket (via tax-efficient planning) is to be well-prepared for key dates in the financial year. Below, our financial advisers offer a summary of the main milestones for British expats to watch in 2024. We also include some thoughts on how these dates could affect your financial plan.
How expats can guard against scams
Living abroad brings wonderful opportunities for work, travel and enriching experiences. Yet it can also leave British expats vulnerable to scams – especially for those surrounded by an unfamiliar culture and language. In the UK alone, 3.5m fraud offences were recorded for the year ending in March 2023. Fewer statistics are available for expats, but it is reasonable to assume that the risk of victimhood is higher.
A short guide to regular savings for expats
How do you best save money when moving to Spain? British expats have a range of options when it comes to building up an emergency fund and saving for a short-term financial goal (e.g. a mortgage deposit).
Ethical investing: a short guide
Lots of people are attracted to the idea of “ethical investing”. Yet what is it exactly? How do you get started with building an ethical portfolio? The subject can seem more overwhelming to British expats living in Spain, since it may be less clear what your options are regarding investment opportunities and platforms (compared to a UK resident).
How to navigate the Spanish wealth tax
In the UK, taxes are primarily imposed on income earned as it comes in. For instance, capital gains tax (CGT) is levied on chargeable gains from investment returns. Income tax is levied on a worker’s salary. The nearest thing we have to a “wealth tax” in the UK is perhaps inheritance tax (IHT), which is typically levied at 40% on the value of an individual’s estate once it exceeds £325,000. However, what are the rules in Spain?
A short financial checklist before moving abroad
As a British national preparing to move to Spain, relocating overseas involves more than just packing your suitcase. It is also essential to get your legal and financial planning “ducks in a row”, especially if you are planning to work or retire in Spain. Below, our Alicant financial planners here at Scottsdale offer a short financial planning checklist to help expats who are hoping to move to Spain.