Expat Community > Spain

Kevinfj
Joined 2015
Posts: 5

International Investment Life Insurance Plan

9 years ago

I have a British friend who has taken up permanent residency in the Alicante region. He has an Isle of Man issued Life Insurance Investment Bond that he has held for over ten years.
A local financial advisor ( not Spanish ) has told him to surrender the plan and to start one with a firm called SEB (Ireland) which this advisor claims meets Spanish tax requirements.
However if my friend does this he stands to incur charges of around 16,000 euros with regards to the new plan. ( Perhaps even more ). All the charges as regards the setting up of his existing plan have long since been paid.
Does he really have to do this !? Surely he can simply pay tax on any growth on his existing ‘Bond’, out of his income on year by year basis and not then have to pay tax when he eventually cashes out of his plan ?
Any advice you can provide would be gratefully received. ( This friend has spoken to a British tax advisor and they have confirmed what the financial advisor has said but there is a suspicion that they are working in close collaboration, and to that extent perhaps the Tax advisor advice is not properly independent !? ).

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Expat Community > Spain

International Investment Life Insurance Plan

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