FIVE RECOMMENDATIONS THAT WE ALWAYS MAKE TO OUR CLIENTS AFTER THEY HAVE PURCHASED IN SPAIN.
- Do not become a tax resident of Spain before discussing all the pros and cons with your solicitor . It may or not be in your interest depending on your circumstances and to join the system is a half an hour job while to get out of the system is complex. There are many reasons both in favour and against becoming a tax resident in Spain and they require careful consideration.
- If you become a resident in Spain you will need to be careful with certain investment products outside Spain because sometimes they cause problems with income tax in Spain and later for your heirs if they are also resident in Spain in inherit those products. If you become a resident , before deciding where and in what products to keep your savings (in Spain, in the u.k, in Ireland , in Jersey etc), (deposits, condos de inversion , Spanish compliant and non compliant bonds , shares etc. ), discuss these matters with a solicitor accustomed to cross/border estates to make sure that your option is the most sensible from the point of view of both tax efficiency and future probate complexity . Over the years we have seen many cases of unnecessarily complicated estates resulting from greedy and or ignorant financial advisors who have sold unnecessarily complex financial products with the excuse of saving inheritance tax that have caused nasty surprises for the heirs.
- Make sure you make a sensible Spanish will. It is extremely important that they are done by a firm that has experience with probate.
- Have somebody lined up to present your non resident imputed income tax returns each year if you are a non-resident or to present you declaration of assets abroad form plus your income tax return on worldwide income if you become a resident.
- Sounds like a silly thing but make sure that direct debits for electricity, water, rubbish, rates and community of owners have been correctly set up and that you have started to see the bill being presented to your bank. (otherwise you may come out on holiday and find no electricity )
