Savings & Investments

Savings & Investments

Make your money work for you.

Savings & Investments

Our comprehensive Savings & Investment products are provided by The Spectrum IFA Group, a truly independent authorised brokerage, who are able to draw on a wide range of specialist flexible investment products, to produce a solution that meets your individual needs.

A tax haven for your savings & investments, in Spain!

* Tax free growth

* No EU Savings Tax

* Inheritance Tax Mitigation

* Regular income

Yes it’s true! There are now several well-known companies offering Spanish approved investment bonds that are extremely tax efficient.

By investing as little as 10,000 or €15,000, 100% of your investment starts to work from day one.

Why worry about “withholding” or “retention” tax on your savings?

If you hold savings on deposit in offshore centres such as the Isle of Man or Jersey, any interest is subject to 15% withholding tax. Alternatively the interest is taxed in Spain if you have declared it.

Remember that the withholding tax increases to 20% from 2008 and 35% from 2011. Bank deposits held in local Spanish accounts may suffer tax as well.

A Spanish approved investment bond could be the answer!....

....Many of those that have retired to Spain have worked hard to build up a nest egg, but they will want to make some of their savings or investments work harder than bank deposits. Also, many are looking to receive income to add to any pension income. With the security of a familiar company, choosing a lower-risk investment arrangement could be the best option.

For example, one Euro Cautious Managed fund has grown by 27.73% (3 years to 6th May 2007) and one Property fund by 30.05% (3 years to 30th April 2007).

Remember, Euro deposit accounts often only pay 3% per annum (or say 5% in sterling) so investing in a lower-risk fund could offer far better returns whilst countering the effects of inflation eroding your capital.

A Spanish investment bond is extremely tax efficient.

Very low taxes for income withdrawals

Let’s look at a case study in more detail.
Mr Jones invests € 100,000 which then grows by 7% to €107,000 after year one. He then takes €7,000 to supplement his income.

The € 7,000 profit is calculated as follows: -
€ 7,000 €107,000 x €7,000 = € 457.94

The actual amount assessed towards tax is €457.94 (entered on a tax return). Mr Jones’s marginal rate of income tax is 18%. Therefore, €457.94 x 18% = €82.42 tax to pay.

Very tax efficient!

Tax free growth on your capital

Your capital grows free of income or capital gains taxes. This is wholly recognised by the Hacienda. Remember, EU Savings Retention Tax does not apply making this is a favourable tax environment when compared with holding excessive cash on deposit.

Exempt from EU Savings Tax Directive

Should interest be derived from, say, a deposit account in the Channel Islands, 15% retention tax would apply. Based on a deposit paying €7,000 interest, the actual tax payable would be €1,050. After 2011 this increases to a whopping 35% amounting to €2,450 tax.
However, a Spanish investment bond is exempt from this tax!

Spanish inheritance tax savings

Considerable savings from Spanish Inheritance Tax could apply. In some cases, savings of more than 80% could apply where beneficiaries are not resident in Spain. For example, this could be children that are not living in Spain.


• Offshore bank accounts are now targets for the UK Taxman.
Ask your local adviser for details now.

Remember, The Spectrum IFA Group is fully regulated in Spain.

Savings & Investments