This article on offshore Spanish-compliant bonds has been written by Sam Daynes of Holborn Assets
Are Your Finances Structured Correctly for Spain?
If you are thinking of moving to Spain, or are currently living here, it is essential to understand the implications on your financial holdings.
Treatment of certain assets in the UK lose their beneficial status when you become a non-resident.
For example, people that hold ISA’s and Premium Bonds will no longer benefit from the tax free status that would otherwise apply.
The predominant benefit of these types of investments are not so much the rate that you receive but the tax status of the investment.
It is therefore essential to review these holdings when relocating to Spain.
There are options available in Spain that can continue to give you tax benefits whilst also providing numerous other benefits.
An example of this is an offshore Spanish compliant bond.
An offshore Spanish-compliant bond is a type of bond that is issued under Spanish law but is held outside of Spain, typically in offshore financial centres such as the Channel Islands or Ireland.
There are lots of benefits to investing in offshore Spanish-compliant bonds:
What are these benefits?
- Tax efficiency: Offshore Spanish-compliant bonds are structured in a way that allows investors to benefit from tax efficiency. For example, the bond may be issued by a financial institution that is located in a low-tax jurisdiction, which can help to reduce tax liabilities. This can often mean that the bond grows virtually tax free and can have significant tax benefits on withdrawals.
- Currency diversification: Offshore Spanish-compliant bonds may be denominated in a currency other than the euro, which can provide investors with exposure to different currencies and help to diversify their portfolios.
- Portability: These bonds are normally internationally portable and so can move with the investor is they relocate away from Spain, and continue to provide benefits in many other jurisdictions.
- Access to global investors: Offshore Spanish-compliant bonds normally offer a far wider choice of funds and investment options than similar investments located in Spain.
- Regulatory flexibility: Issuing offshore Spanish-compliant bonds can provide issuers with greater regulatory flexibility compared to issuing bonds in Spain. This can be particularly beneficial for issuers who operate in highly regulated industries or who face strict regulatory requirements.
- Investor protection: These type of bonds can offer very high levels of investor protection. This can include protection under the laws of the jurisdiction where the bond is issued or protections provided by the bond’s trustee. These can often be much higher than the protection offered in Spain itself.
Overall, offshore Spanish-compliant bonds can offer investors a range of benefits, including tax efficiency, currency diversification, access to global investors, regulatory flexibility, and high levels of investor protection.
However, investors should always seek financial advice.
To discuss your situation in more detail, please use the link below to book yourself a free consultation with Sam Daynes of Holborn Assets.
In the video below Sam Daynes talks about offshore Spanish-compliant bonds…
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The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this report constitutes a solicitation, recommendation, endorsement, or offer by HOLBORN or any third-party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction.