Expert Guidance for Expats and Investors

Introduction

Navigating Spain’s financial landscape can be challenging, especially for expats and international investors unfamiliar with local regulations, taxation, and investment opportunities. At Chorus Financial, we specialise in providing independent, personalised financial advice to help expats and investors secure their financial future in Spain. Whether you’re planning your retirement, optimising your tax strategy, or seeking expert investment guidance, we are here to help.

Financial Challenges Expats Face in Spain

Expats moving to Spain often encounter unique financial hurdles, such as:

• Complex tax structures – Spain has various tax categories, including income tax, wealth tax, and inheritance tax.

• Currency fluctuations – Managing assets across different currencies can impact financial stability.

• Pension transfers – Understanding whether a transfer is the right move, and if so, whether to keep your pension in the UK or move it overseas. 

• Investment opportunities – Many expats are unsure whether to invest in Spain or keep their assets abroad.

At Chorus Financial, we address these challenges with personalised strategies tailored to expat needs.

Our Financial Advisory Services

1. Wealth Management

Our wealth management services focus on protecting and growing your assets with a long-term strategy tailored to your personal financial goals. We assess your risk profile and recommend investment opportunities that align with your needs while minimising tax liabilities.

Step-by-Step Guide to Wealth Management

1. Assessment of financial goals – We evaluate your short-term and long-term financial objectives.

2. Risk profiling – Understanding your risk appetite ensures the right investment mix.

3. Portfolio diversification – We create a balanced investment portfolio to minimise risk.

4. Ongoing management – Continuous monitoring and adjustments to maximise returns.

2. Retirement Planning

Spain is one of the most popular retirement destinations for British expats, but retirement planning requires careful financial structuring.

Key Considerations for Expats:

• How will your UK pension be taxed in Spain?

• Should you transfer your pension to a QROPS or SIPP? QROPS are much more limited these days, and many of our clients also consider UK-based SIPPs designed specifically for expats.

• What is the best way to structure your income for tax efficiency?

Step-by-Step Retirement Planning:

1. Understanding tax residency – Determine your tax obligations in Spain.

2. Pension transfer options – Evaluate QROPS, SIPPs, and other pension structures.

3. Investment strategies – Diversify income sources to sustain your retirement lifestyle.

4. Healthcare planning – Consider how healthcare costs impact your long-term finances.

3. Tax Planning

Understanding Spain’s tax system is critical for financial security. Our expert tax advisors guide expats through the Spanish tax system, ensuring full compliance while taking advantage of available tax breaks.

Key Tax Strategies for Expats:

• Wealth tax optimisation – Reducing tax exposure through strategic asset allocation.

• Income tax efficiency – Structuring your income to minimise high tax brackets.

• Capital gains tax planning – Understanding tax implications of selling assets in Spain.

4. Investment Advisory

Expats looking to invest in Spain require a clear understanding of the local investment landscape. Our independent advisors provide unbiased guidance on diversifying your portfolio, ensuring compliance with both UK and Spanish regulations.

Investment Options We Advise On:

• Tax-Efficient Wrappers – Understanding the products designed specifically for Brits living in Spain. 

• Stock Market & Mutual Funds – Investment strategies tailored for expats.

• Offshore Investments – Tax-efficient structures for protecting wealth.

5. Estate Planning

Spanish inheritance laws are complex, and without proper planning, your assets may not be passed on as you wish. Our estate planning service ensures your wealth is distributed efficiently and legally, minimising tax implications.

Common Estate Planning Questions

• What happens if I don’t have a Spanish will?

• How does Spain’s forced heirship law affect expats?

• What is the best way to minimise inheritance tax?

6. Expat Financial Advice

Living in Spain as an expat requires strategic financial planning, especially when managing money across different countries. We offer specialised expat financial services to help you with:

• Cross-border tax management to avoid double taxation.

• Currency exchange solutions to protect against fluctuations.

• Setting up offshore bank accounts for seamless international financial transactions.

Why Choose Chorus Financial?

✅ Expertise in Spanish Financial Regulations – We have deep knowledge of Spain’s tax and investment laws, ensuring full compliance.

✅ Truly Independent Financial Advice – Unlike many firms, we are not tied to any financial product providers. Our advice is 100% unbiased and client-focused.

✅ Personalised Solutions – Every client receives a customised financial strategy based on their unique goals and situation.

✅ Transparent, Fee-Based Advisory – No hidden fees, no commission-driven advice—just honest, professional guidance.

Who We Serve

• British Expats living in Spain who require expert financial planning.

• International Investors seeking high-return opportunities in the Spanish market.

• Business Owners & Professionals in need of strategic financial management.

What Our Clients Say

We have many testimonies from REAL clients on Google. We’d highly recommend you take a read through them to see what our clients have to say about us! You can read them on our Google Business Page.

Get Expert Financial Advice Today

Take control of your financial future in Spain. Speak to an independent financial advisor today for expert guidance tailored to your needs.

There’s several ways to get in touch. You can speak to us LIVE right here on the website during working hours, call us or send us an email. Visit our Contact Us page for more information or complete the form below. 

Frequently Asked Questions (FAQ)

1. How can British expats reduce taxes in Spain?

Spain has a complex tax system that affects expats differently depending on residency status, income sources, and asset locations. At Chorus Financial, we help British expats legally minimise their tax burden through strategic tax planning, efficient wealth structuring, and international tax treaties.

Key Strategies to Reduce Taxes:

• Understanding Tax Residency: If you live in Spain for more than 183 days per year, you are considered a tax resident and must pay tax on worldwide income. However, non-residents only pay tax on Spanish-sourced income.

• Applying the UK-Spain Double Tax Treaty: This treaty prevents double taxation and can significantly reduce tax liabilities on pensions, rental income, and dividends.

• Utilising the Beckham Law (Régimen Fiscal de Impatriados): New residents who qualify for this scheme can benefit from a flat tax rate of 24% on Spanish income for up to six years, instead of the progressive tax rates of up to 47%.

• Investment Tax Efficiency: Holding investments in tax-efficient structures like Spanish-compliant investment bonds or using offshore tax wrappers can significantly reduce annual taxation.

• Inheritance Tax Planning: Spain has inheritance tax laws that vary by region. Structuring wealth correctly can minimise inheritance tax exposure for your beneficiaries.

• Wealth Tax Mitigation: Spain imposes wealth tax on worldwide assets for residents. However, certain allowances and exemptions apply, and assets held in tax-efficient structures may be excluded.

• Corporate Structures & Non-Domiciled Status: Some expats use corporate structures for asset management to gain tax benefits while complying with international regulations.

2. Is it better to invest in Spain or keep my assets abroad?

The best investment strategy depends on your financial goals, tax situation, and long-term residency plans. Chorus Financial provides a personalised approach to investment planning, ensuring that your money works for you in the most tax-efficient way.

Key Factors to Consider:

• Tax Treatment of Spanish vs. Foreign Investments:

  • Spanish investment accounts are subject to capital gains tax of 19-26%.

  • Foreign-held investments may have different tax obligations depending on the country where they are held.

  • Offshore investments (such as Spanish-compliant bonds) often have more favourable tax treatments.

• Property Investment in Spain vs. Abroad:

  • Spanish property investment requires understanding local taxes (IBI, capital gains, rental income tax, and wealth tax).

  • Overseas property investments may offer better tax efficiency depending on double taxation treaties.

  • Consider whether exchange rate fluctuations could impact your returns.

• Currency Exchange Risks:

  • If you hold assets in GBP but spend in EUR, fluctuations in exchange rates may impact your purchasing power.

  • Using multi-currency investment platforms can reduce exchange rate risks.

• Regulatory Considerations:

  • Spain has strict financial regulations on foreign-held assets, including the Modelo 720 declaration, which mandates that assets above €50,000 abroad must be declared.

  • Investment opportunities such as Spanish tax-efficient funds can provide compliance and financial benefits for expats.

3. How do I ensure my pension is structured correctly?

Proper pension structuring ensures that you maximise retirement income, minimise taxes, and comply with both UK and Spanish regulations. Chorus Financial provides expert guidance on pension transfers, withdrawals, and long-term investment strategies.

Key Pension Considerations for Expats in Spain:

• QROPS vs. SIPPs – Which is Better?

  • QROPS (Qualifying Recognised Overseas Pension Scheme):

    • Once a popular choice, QROPS have become more limited and may involve higher costs and exit charges.

    • Benefits include fewer restrictions on withdrawals and potential tax efficiencies.

  • UK-Based SIPPs (Self-Invested Personal Pensions):

    • Many expats prefer SIPPs designed specifically for expats, as they allow for greater investment flexibility and often come with lower fees.

    • SIPPs can also be more tax-efficient depending on individual circumstances.

• Tax Treatment of Pensions in Spain:

  • UK pension withdrawals are subject to Spanish income tax, but proper structuring can reduce liabilities.

  • Lump sums from UK pensions may be taxed differently than annuity payments.

  • Pension drawdown strategies should be designed to avoid unnecessary high-tax brackets.

• Avoiding Double Taxation on Pensions:

  • The UK-Spain Double Tax Treaty determines how pensions are taxed and ensures that expats do not pay tax twice on the same income.

  • Some pension schemes allow you to split income between Spain and the UK to optimise tax efficiency.

• Investment Growth & Inflation Protection:

  • Many expats worry about their pensions losing value over time due to inflation.

  • We help structure pension investments to provide long-term growth while minimising risk.

Additional FAQs for Expats in Spain:

4. Do I need a Spanish will if I already have a UK will?

Yes. Spain’s inheritance laws differ from those in the UK, and having a Spanish will ensures that your assets are distributed according to your wishes while minimising legal complications and tax exposure.

5. What is the Modelo 720 declaration, and do I need to file it?

If you have overseas assets worth more than €50,000, you must declare them using Modelo 720. Failure to do so can result in severe penalties.

6. How does capital gains tax work when selling property in Spain?

Capital gains tax on Spanish property sales ranges from 19% to 26%. However, exemptions apply for residents over 65 who have lived in the property for at least three years.

7. Can I get private health insurance instead of joining the Spanish healthcare system?

Yes. Many expats opt for private health insurance, which provides faster access to medical services and may be required for certain residency applications.

8. How does wealth tax apply to expats in Spain?

Spain applies wealth tax on worldwide assets for tax residents, but allowances and deductions exist. Proper structuring can significantly reduce or eliminate wealth tax liabilities.

Compliance and Legal Information

Chorus Financial advisors provide regulated financial advice:

Spanish CNMV (Comisión Nacional del Mercado de Valores) Nº Registro Oficial 5107

Spanish DGS (Dirección General de Seguros y Fondos de Pensiones) Nº Registro Oficial 28224981