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PENSION SPECIAL: State pension, tax residency, annuities, scams & investments for UK expats in Spain
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Jan 13, 2025
Christina Brady from Blacktower Financial Management Group in BayRadio's studio 1 for a pension special with Moody on Tuesday, 25th August. Christina tackles: * Calculating UK state pensions * Tax residency rules for British expats locked down in Spain during COVID-19 pandemic * Pension scams promising up to 15% annual interest * Pros/cons of annuities for British expats in Spain * Creating healthy investments with UK pensions and assets in Spain Subscribe: https://www.youtube.com/channel/UCHyiJYOOyp4cWu5kzr_2RrA Website: http://www.bayradio.fm/ Mobile App: https://app.appinstitute.com/yddcc Facebook: https://www.facebook.com/BayRadioInSpain Twitter: https://twitter.com/bayradioinspain Instagram: https://www.instagram.com/bayradiospain/
View Video Transcript
0:00
[Music]
0:00
this is bay radio i've touted this as a
0:03
pension special
0:05
with yourself because it's obviously um
0:07
a big part of what you're doing
0:08
at core business at black tower
0:09
financial management i didn't give you
0:11
too much notice
0:12
i don't text you yesterday can we do
0:14
this because we should
0:15
start with this thing that the reason it
0:17
um i mentioned it and the reason it came
0:18
up
0:19
yes um or do you want to start with
0:21
something else
0:22
no no that's fine what happened was i
0:24
had a review with someone they came in
0:26
and i was talking about
0:27
um you know they were going through
0:29
their assets liabilities
0:31
and i said right in there you need to
0:32
include your state pensions your uk
0:35
state pension
0:36
your spanish pension i said because that
0:39
whether you like it or not can be it's a
0:41
guaranteed income
0:43
it gives you that stability and this
0:44
person turned around i said well how do
0:46
i find out
0:47
what i'm due for my uk state pension i
0:49
said well there is a link you can go to
0:51
and it's very very simple all you have
0:54
to do is go on the internet you go to
0:57
dot www.gov.edu i think it's forward
0:59
slash
1:01
check dash state dash pension
1:04
click on that takes you through you just
1:06
have to put your name your date of birth
1:09
it will tell you the date that you are
1:10
due to get a uk state pension
1:12
then you put in your national insurance
1:14
number and it will tell you how much of
1:15
a state pension you're going to get if
1:17
anything
1:17
so you know the date you're going to get
1:19
it it will tell you what you're going to
1:20
get a weekly
1:21
based on today's figures and what you're
1:22
going to get annually and it's something
1:25
that you know
1:26
you that is guaranteed um you could do
1:28
the same for spanish tape picture but
1:30
this person was really
1:31
really happy because he'd had lots of
1:33
financial reviews with other people
1:35
and all they were interesting is oh
1:37
you've got this much cash we'll invest
1:38
it
1:39
not a cash flow forecast which is what
1:41
we do at blacktown we go through
1:43
what you've got coming in not now but in
1:45
the future
1:46
to work out and then we ask you what you
1:48
think your income requirements are now
1:50
what they will be in retirement post
1:52
retirement and we're including things
1:54
like your uk state pension
1:56
your spanish pension any other pensions
1:58
you've got anything coming in
2:00
um we are not just in in we're not just
2:03
not interested in grabbing any money
2:04
you've got to invest in it that is not
2:06
financial advice
2:07
that really isn't and if anyone's done
2:09
that to you please just walk away
2:11
some people have come to me said they've
2:12
gone in they've said to people oh i've
2:14
got this investment i've got this
2:15
investment with someone else
2:16
i'll cash that investment in come to us
2:18
no concept of in
2:19
of capital gains tax not interested in
2:21
what they've got in state pensions
2:24
what you've got to do is a full
2:25
financial review not
2:27
cherry pick the bits that are going to
2:28
earn you money you've got to put mate
2:30
you've got to make this person's
2:31
financial future secure as possible
2:34
state pensions in spain again what used
2:37
to happen before if you were in the eu
2:39
they combined the pensions so if you'd
2:41
done 15 years in the uk
2:43
15 years in spain you lived in spain
2:45
they did them together and you've done
2:47
30 years in spain and you get the
2:48
equipment that's been split apart now
2:50
because of brexit
2:51
so you will get a separate uk spencer
2:53
pension if you're entitled to it and a
2:55
separate spanish pension if you're
2:56
entitled to it
2:57
now for both of you've got spain you've
2:59
got to work for at least 15 years
3:01
before you can get a pension the state
3:04
pension agent at the moment in spain
3:05
is 65 and 10 months now that is going up
3:08
two months each year until 2027
3:11
when the state pension age will be 67.
3:14
right
3:15
okay you can retire still at 65 if
3:18
you've paid in 37 years
3:20
to the social security system in spain
3:22
when you take your pension you are not
3:24
allowed to work
3:25
so you can't have a pension and what
3:27
state pension works you have to say
3:28
you're not going to work anymore
3:31
and once you do that you can get your
3:32
pension now it's quite high the maximum
3:34
in 2020 was 2 683
3:39
euros a month compare that to the uk
3:43
i think it's one of the highest in
3:45
europe obviously not higher than france
3:48
um and if you've done 15 years you get
3:50
50 of that so the average is about 1
3:52
200 euros a month for men and sadly for
3:55
women it's only 715.50
3:58
but you've got to have paid in 15 years
4:01
contribution
4:02
and when i say a month so you actually
4:03
get 14 payments a year in spain
4:06
so that's uh you know you get that every
4:09
what i don't know
4:10
three three point something four weeks
4:13
so you must have done but when you get a
4:16
spanish
4:16
pension you've got to done 15 years and
4:19
you've got to have been contributing for
4:21
at least two years
4:22
in that 15 years before you know before
4:25
you retire so the two years
4:26
before you retire if you want to know
4:28
anything about spanish pensions
4:30
there is actually information on it in
4:32
english on the social security page and
4:34
that is
4:34
seg social.es
4:38
or there is an eu page which is really
4:40
really good which is ec
4:42
dot europa dot ec
4:45
forward slash social what i'll do is
4:47
i'll type this up and i'll give it to
4:48
bay radio and you can put it on
4:50
your facebook page so people have it
4:53
how come the women's one is just a daft
4:55
question how come it's so much less than
4:56
the money because
4:57
most women in spain still haven't worked
5:00
in a full-time job so haven't
5:01
contributed
5:02
enough okay um it is very sad it's still
5:05
that that's still the case
5:06
i think that's very very wrong i think
5:08
if a woman stays at home and this is my
5:10
idea for politicians if a woman stays at
5:12
home
5:12
and looks after the children and the man
5:14
goes to work he should be made to pay
5:16
more
5:17
into the state pension scheme to top up
5:19
the woman's pension
5:21
so that when she retires she gets a full
5:23
pension as well
5:24
i think it's very unfair that you stay
5:26
at home you bring up a family
5:28
you're helping society you're bringing
5:30
up hopeful
5:31
hopefully good individuals who are going
5:32
to contribute through work in later life
5:34
and you get penalized by less of a
5:36
pension so that's why
5:38
it is still happening if you are from
5:40
the eu
5:42
and you have contributed in your state
5:44
and you do live in spain
5:45
again they will your years in your other
5:48
countries say france
5:49
italy will will count towards your years
5:51
in spain and they will add those
5:53
together
5:54
um spain can put in place a bilateral
5:58
agreement with the uk after brexit
6:00
which says that the pensions will be
6:02
combined but for most people keeping
6:04
them separate is actually better
6:06
financially unless you've done under the
6:08
15 years in spain
6:10
or unless you've done under the minimum
6:12
in the uk
6:14
if you've done the 15 years in both it's
6:16
better to have them separate
6:18
there's also the banks they offer very
6:21
good if you go into some of the banks
6:22
like bbva
6:23
they have pension calculators and what
6:25
that would do is you can
6:27
you can put in how much you're going to
6:28
get it will tell you what your shortfall
6:30
is
6:30
also it tells you about saving in spain
6:32
if you can save
6:33
8 000 euros a year tax-free into a
6:36
pension scheme as long as it's approved
6:38
by the spanish government so it's not
6:39
like a cure ups or a sip
6:41
which we'll go on to uh in a little
6:43
while so that is good if you're earning
6:45
good money
6:46
putting a for away 8 000 a year is a
6:49
very very good idea
6:50
yeah um so that's something you need to
6:52
look in as well but as i said i
6:54
will we'll type all that up and you said
6:56
we were going to talk about pensions and
6:58
i don't have the daily mail or listening
6:59
because i went onto their money page
7:00
today
7:01
and the first page is british workers
7:03
have no idea
7:04
how their persons work and only a third
7:08
realize that workplace pension schemes
7:10
are invested in the stock market
7:13
which is very very worrying but it does
7:16
actually mirror what i find when people
7:17
come to see to me and talk about
7:19
pensions
7:20
people seem to hear the word pension and
7:21
they just glaze over
7:23
yeah i can sort of understand that they
7:26
just seem to think that someone is
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taking care of it for them
7:29
they can just sit back and relax don't
7:31
need to worry no
7:32
that's a fatal mistake and the people
7:34
who thought it wasn't invested in a
7:36
stock market
7:36
they thought it was put to fight aside
7:38
in some safe place
7:40
that grew in an unspecified way
7:44
i wish i'd be doing that every day the
7:46
only reason you're going to get any
7:47
growth on anything is by investing
7:49
so therefore you have risk and they had
7:51
the percentages
7:52
it was 22 of um
7:56
women and 40 of men um
8:00
didn't realize had no idea how their
8:02
pension worked
8:03
um and what we got retirement options
8:07
only 24 of women and 38
8:10
of men knew what their retirement
8:11
options were we could talk about that in
8:13
a little while
8:14
um only 23 of women and 36
8:18
of men were confident they could afford
8:21
to retire
8:22
okay and 23 of women and 36
8:27
had no idea of how much money they
8:30
needed
8:31
when they retired um now this is very
8:34
worrying and i
8:35
can i will go into how you what you need
8:38
to do to address this to understand more
8:40
about your pension
8:41
and uh to understand how you factor in
8:44
your state pension etc
8:46
yeah okay a little post i put up on our
8:47
facebook page to uh sort of tease this
8:49
it's a little cartoon there i'm going to
8:52
retire and live off my savings
8:54
well i'm going to do the next day i have
8:55
no idea anyway
8:57
just backed very quickly to the uk
8:58
pension bit so it will be the case that
9:00
meant many people may
9:01
if they've been in spain for a while
9:03
probably just forgotten about it
9:04
most people do so what happens if they
9:07
broke off and became a spanish tax
9:08
resident
9:09
whatever you contributed up until then
9:11
you still do that you still get a
9:13
pension
9:13
and most people when they've moved to
9:15
spain if you've moved here in your 50s
9:17
late 50s or 60s
9:18
you've done 20 you've contributed for 20
9:20
30 years in the uk
9:22
so you may have forgotten it and if you
9:24
suddenly find out that age 66
9:27
and a half which seems to be the average
9:29
age now you're going to get an extra 9
9:31
000 pounds a year
9:33
guaranteed you know for life with the
9:35
triple lock if that exists we can talk
9:37
about that later
9:39
it's it's it takes a lot of worry off
9:40
because for most people nine grand in
9:42
spain isn't
9:43
is is nearly enough to live on if you
9:45
don't have a mortgage and you don't have
9:46
many other debts
9:48
so it can actually give you some sense
9:50
of relief so we will post that link and
9:52
please advise people don't try and crash
9:54
the link
9:55
take your time but go on and find out
9:57
what you are due
9:58
and when and it will tell you if you're
10:01
under what you can make in contributions
10:03
to build it
10:03
to bring it up so you do get a pension
10:05
and for some people that is a very
10:07
viable option
10:08
yes it came up it gives you the figure
10:09
as things stand and then it will give
10:11
you the figure
10:11
at your retirement date if you keep up
10:13
the payments and contributions yeah
10:15
we should remind people that with a uk
10:17
state pension you can't get at age 55
10:19
right it has to be the state pension age
10:21
the minimum state pension age as i said
10:23
in spain
10:24
that is now 65 and 10 months and in the
10:27
uk for most people is 66 or 66 and a
10:30
half
10:30
also you cannot transfer a state pension
10:33
you cannot move it you cannot invest it
10:36
yourself it is a state pension you it's
10:38
given to you by the government it's
10:40
managed by the government
10:42
you just accept that money and at the
10:44
moment in the uk
10:45
it rises there's a triple lock so you
10:47
get the higher of
10:49
uh is it the retail price index
10:53
or two percent or coming up is two or
10:55
three percent
10:56
or the higher of how you start of
11:00
earnings growth yeah price inflation or
11:01
two and a half percent
11:02
two and a half percent however there has
11:04
been talk of getting rid of that to pay
11:06
for the kovid
11:07
um some part people in the government
11:09
against it some are for it i think
11:10
they'll wait
11:11
if they want another election then and
11:13
get rid of it whoever wins the next
11:14
election will get rid of it because they
11:16
can't sustain it
11:17
it looks like um rishi sunak looking to
11:19
maybe get rid of it but
11:20
boris johnson not so keen i think he's
11:22
worried about the voters but
11:24
um but at the moment when you've got
11:26
negative inflation and they're
11:28
guaranteed two and a half percent
11:30
um it doesn't seem fair i would
11:31
temporarily suspend it i wouldn't get
11:33
rid of it but the trouble is when they
11:35
temporarily suspend something they tend
11:36
never to bring it back
11:38
and for pensioners for some of them that
11:40
is their lifeline
11:42
so just remember your state pension you
11:43
can only get at whatever the state
11:46
pension
11:46
ages in the country you live in you you
11:49
can get sometimes a little bit earlier
11:50
if you've got a disability etc but it's
11:52
not a lot earlier
11:54
and then we'll go back onto normal
11:55
pensions we were just talking about how
11:57
many people didn't know much about their
11:59
pension
12:00
um there was something that said most of
12:02
them didn't know what their retirement
12:04
options were
12:06
most of them didn't even know how much
12:07
was in their pension pot what you should
12:09
do
12:09
is you should take control and you need
12:12
to take control you get in touch with
12:13
your pension companies you ask them to
12:14
send you an annual pension
12:16
that pension will tell you how much
12:17
you've got in your pension pot and if
12:19
you're near
12:20
your nominated retirement age so you can
12:22
nominate retirement age any
12:24
age after 55 it doesn't mean you have to
12:26
retire at that age
12:27
most people nominate ages either 60 or
12:30
65
12:30
you can extend that up to 75 as long as
12:33
you take your pension before 75
12:35
or you can you can take it whenever but
12:37
just ask them
12:38
how much is in your pension pay uh pot
12:41
what your nominated retirement ages and
12:43
what their predicted pension will be at
12:45
that age
12:46
um that's one start that's a good thing
12:49
also
12:49
there's an online pension calculator
12:51
where you can put in
12:52
um what you your what you want to get
12:55
from your retirement
12:57
uh what you're earning now what you
12:58
think you're coming in it will tell you
12:59
what shortfall you've got if anything
13:01
which is always a good thing to know you
13:03
put in what you think you need to live
13:04
on when you retire it will tell you
13:06
now with options when you retire you've
13:09
got various options one option
13:11
if you've got flexible drawdown on your
13:13
pension now quite a lot of private
13:15
pensions that were taken out in the 80s
13:17
late 90s early 90s
13:19
don't have flexible drawdown flexible
13:22
drawdown means that you could take
13:23
income
13:24
when you want how much you want whenever
13:26
you want
13:27
they don't have the option so you have
13:29
to transfer it elsewhere
13:31
now if you're in the uk it's easy
13:33
usually a provider can transfer it into
13:35
a flexible drawdown scheme
13:36
if you live abroad they can't and you
13:38
have to transfer it into another pension
13:40
scheme
13:41
now abroad you have two options you have
13:44
either a sip
13:44
a self-invested personal pension or a
13:47
cure ops
13:49
of the two sips tend to be cheaper
13:52
uh cure ups may depending on what
13:55
happens with brexit
13:56
not be a viable option after december
13:59
they are now if you've got one now it
14:00
will always carry on being a good idea
14:02
um and also if you're coming up to 75
14:06
a sip is not a good option because ewing
14:08
occur
14:09
uh death tax in the uk because the sip
14:12
is still governed by uk
14:13
tax law that's what you have to remember
14:15
if you go to a cure ops
14:17
you're opting out of uk jurisdiction so
14:19
you're no longer governed by uk tax law
14:21
so for a cure ops if you've got a large
14:23
pension you're no longer subject to the
14:25
lifetime allowance which is a key thing
14:28
you don't have to worry about when you
14:30
get to 75 that you're going to be
14:31
subject to a death tax so there's pros
14:33
and cons for each
14:34
so you really need to talk to a
14:35
financial advisor to find out which one
14:37
is best for you
14:38
also another so they'll offer you the
14:40
option if you have got flexible drawdown
14:43
to move to take flexible drawdown
14:45
they'll offer you to take a pcls now
14:47
that what that is
14:48
it's a pension commencement lump sum and
14:51
in the uk that is tax free
14:53
and that's up to 25 of your pension pot
14:56
and that could be paid as soon as you're
14:58
55 now that is only tax free
15:01
in the uk in spain that is taxable so
15:04
you tell the tax man
15:05
he will tax you your pension company
15:08
unless they know you live in spain well
15:10
that actually they don't report it at
15:12
all because it's tax-free in the uk
15:14
so they'll give you that you can either
15:16
cash in your whole pension
15:18
if you do that you get 25 tax-free the
15:20
rest of it is taxed
15:21
at usually the higher rate of tax which
15:23
can be 45
15:24
50 whatever percent so that really isn't
15:27
an option i would say to most people
15:29
please don't do that
15:30
you're throwing away so much money it's
15:32
better to keep it
15:33
um so they'll offer you those you can
15:35
transfer it or you could buy an annuity
15:38
now an annuity offers you an income for
15:41
life
15:42
you can either get that fixed or you can
15:43
get it so it raises with inflation
15:46
raises with cpr you can get it on a soul
15:48
life or a joint life
15:49
at the moment annuity rates are very
15:51
very low so what they'll do is they'll
15:53
say we give you an annuity rate of three
15:55
percent so that means if you've got a
15:56
hundred thousand in there
15:57
you'll get three thousand for life right
16:00
which is not a lot the annuity rates are
16:02
based on guilt rates
16:04
and on well interest rates come into
16:06
play as well so if they're low
16:08
you're going to get a very low return on
16:09
your money i had someone who'd taken out
16:11
annuity
16:12
in the 90s and they were guaranteed 15
16:16
for life so that is a huge amount so for
16:18
most people annuities are not an option
16:21
because the returns are so low
16:23
so if you're going for a soul life you
16:24
may get three or four percent if you're
16:26
going for a joint life
16:27
you may only get two percent um which is
16:30
not very good with annuity as well
16:32
you take it out for life so say i took
16:34
it out today
16:35
and i had a hundred thousand in there
16:37
i'm guaranteed three thousand a year for
16:39
life
16:40
i don't die next no let's say i die in
16:42
six years time
16:43
that dies with me there's nothing to
16:46
leave to anyone else they keep it
16:48
okay but if i live for more than 30
16:51
years
16:52
or whatever how many years i need to use
16:53
up that money
16:55
uh it'd be more than 30 years but that's
16:56
a bit but you know if you say you've got
16:59
30 000 and they're going to give you 5
17:01
000 a year
17:02
if you live for longer than that then
17:05
you're obviously they're paying you
17:06
money for nothing
17:07
sort of okay but it's very very rare
17:09
usually they factor in so you're going
17:10
to live to be a minimum of say
17:12
86 or 90. so most people don't think
17:15
they're going to live that long so
17:17
for some people annuities are good what
17:18
you have to remember as well in spain
17:21
annuities are taxed very very favorably
17:24
in spain you pay hardly any tax
17:28
on an annuity be a permanent nuity or a
17:30
temporary annuity so for some people
17:32
even if the rate they're offered is say
17:34
four or five percent the amount of tax
17:36
they're gonna save makes it worthwhile
17:38
doing
17:38
again you need to speak to a financial
17:40
advisor and i know it seems like there
17:42
are lots of options
17:43
but that once you set them on when
17:45
people come to me i write them all down
17:47
and i explain every single one and i'll
17:49
give it to people to go away and read
17:51
and i make it as simple as possible to
17:52
understand because it can seem confusing
17:54
but it really really isn't and people do
17:57
need to take control of their future
17:59
if you go into a flexi drawdown if you
18:01
transfer your pension to
18:03
a sip or a cure ops away from a pension
18:06
provider like aviva pru
18:07
roll under standard life you have more
18:10
control over what it's invested in
18:12
a financial advisor will give you advice
18:14
uh some people
18:15
chen something's not very often i'd say
18:18
99
18:19
of people go with the advice you give
18:20
them but there's the odd one or two
18:22
percent that think they know better i
18:23
had someone
18:24
who wanted advanced 100 of his pension
18:26
pot in tesla shares
18:28
now that's not diversified that gives
18:31
you no risk protection
18:33
so he had to sign an insistent client
18:35
absolve off of any liability
18:37
and we did it for him and he has made a
18:39
fortune in the last few months but as he
18:40
said
18:41
all you need is for mr musk to make a
18:45
another a weird weird comment yeah
18:48
and it could plunge again so some people
18:51
do come to us they want sustainable
18:52
funds
18:53
they will want to invest in certain
18:55
countries
18:56
certain markets at the moment technology
18:58
biotechnology is key
19:00
people are coming in saying they want
19:01
that although the prices on that are
19:03
quite high at the moment you have to be
19:04
careful
19:04
i'd only put a small percentage in there
19:06
so they'll come with some ideas
19:08
we talk about it i would never dictate
19:10
to someone what they have to invest in
19:13
we go through it it's very flexible i'll
19:15
give them my ideas i'll give them the
19:17
returns those funds have had
19:19
but some people may have a preference
19:21
and if you go to a financial advisor who
19:23
says
19:23
this is what i recommend for all my
19:24
growth clients my balance clients my
19:26
cautious clients
19:28
not everyone's the same you all have
19:30
different wants and needs
19:32
so that has to be tailored to meet your
19:34
wants and needs it can be
19:35
you know there can be a basic template
19:38
but it needs to be flexible
19:39
never ever be bullied into doing
19:41
anything you don't understand
19:43
if investment returns see seem very high
19:47
then the figures have been manipulated
19:48
to make them seem high
19:50
or it's something you shouldn't be
19:51
investing in so please be very very wary
19:54
i've had some people have been to see
19:55
people and they've said look
19:56
the ftse went down and if you'd been in
19:58
my portfolio you wouldn't have gone down
20:00
you would have made 60
20:01
when that's a load of border dash what
20:02
they've done is they put portfolio
20:04
together
20:05
after the fall with shares that did well
20:08
so it makes it look really really good
20:10
you know everyone suffered a little bit
20:12
through that downturn
20:13
some people more than others depending
20:14
what you're invested in but if you have
20:16
a diversified portfolio
20:18
you didn't take too much of here and i
20:20
can honestly say
20:21
that most portfolios that we managed not
20:24
that have been put with the provider
20:25
that does their own portfolios but ones
20:27
we manage
20:27
are either back to the level before the
20:30
crash
20:31
or i'd say most of them are above that
20:32
level and doing very very well people
20:34
are very very happy
20:35
um but as i said with your pension you
20:37
can have flexibility
20:39
the um it's relatively recent isn't it
20:42
that you were able to
20:43
i would say attack your pension at 85
20:46
forever
20:47
that funny prime minister we had who did
20:49
the vote on brexit what was his name
20:51
um cameron oh it wasn't yeah and he's
20:53
he's a
20:54
chancellor who whose name george osborne
20:58
that's the man
20:59
i tried to forget both of them because
21:00
it was a nightmare but he brought into
21:01
place
21:02
uh pension freedom and i mean how's it
21:05
going
21:06
have you seen people come into grief
21:08
because they've taken too much out
21:09
in the uk there has been lots and lots
21:12
of people coming to grief what they've
21:13
done
21:14
is they've cashed in final salary
21:15
pensions that they shouldn't have done
21:17
uh they private pensions they've cashed
21:19
in all of them not realising the tax
21:20
implications
21:21
had to pay a huge amount of taxes
21:23
invested unwisely
21:25
they've been targeted by lots of
21:26
scammers offering them huge returns
21:29
and people are gullible people you know
21:32
anyone can fall for a scam these
21:33
scammers are so so good
21:35
so quite a few people have lost out and
21:38
as i said people are scared of pensions
21:40
they don't understand it
21:41
so people are cold calling them saying
21:43
we can make your pension easy for you
21:45
we can take over control we can do this
21:47
i've known people and you've seen the
21:49
advert on the telly when you see someone
21:50
on a jet ski
21:52
riding around in the bahamas having a
21:54
while over time and someone's at home
21:55
with nothing of their pension pot
21:57
you think that's not true i met someone
21:59
the other day and that had happened to
22:01
them 150
22:02
000 had gone overnight they said they
22:06
were a financial advisor
22:08
but said oh we can advise your stuff off
22:10
market we can get you returns of 16 20
22:13
these people thought oh yes went for it
22:16
money gone no right of recourse we'll
22:18
never get that money back
22:20
what are you going to do when you're in
22:21
your 70s you can't go out to work
22:23
you've got to be really really careful
22:25
so please i am urging everyone
22:28
er on the side of caution where your
22:30
pensions are
22:31
at stake focusing on pensions this week
22:33
uh sort of my idea this
22:35
but i thought that you know it's your
22:36
core business well part of it
22:38
and also there is the you know the uk
22:41
and spain both sides of things and
22:43
how they cross over sometimes um so if
22:46
you
22:46
become tax resident in spain obviously
22:49
things change a little bit yeah last
22:50
week when i mentioned
22:52
that people were stranded here because
22:53
of the cv 19.
22:55
the oecd has said to countries please
22:57
don't enforce tax rules on them
23:00
oh well spain has gone against that
23:02
advice i did mention it last time but
23:03
it's been confirmed
23:04
spain extends tax residency rules to
23:07
lock
23:08
down to lock down enforce and it's going
23:10
to be enforced so spain has announced
23:11
that all individuals who spend more than
23:13
183 days
23:15
in any given tax year will be treated as
23:17
tax resident
23:18
of that current of spain even if their
23:21
stay was
23:22
mandatory due to covid 19 travel
23:26
restrictions so this was announced by
23:29
the spanish
23:30
directorate of gen directorate general
23:32
of tax this week
23:34
and it will apply to any foreigner who
23:36
originally intended only to stay for a
23:38
few weeks or months in the country and
23:40
ended up staying here longer
23:42
because of the cv 19. so what spain is
23:45
saying is that you are now liable
23:47
for personal income tax on the year
23:51
2020 if you were here for more than 183
23:55
days and including that
23:56
he has put wealth tax as well and this
23:59
announcement has caught many foreigners
24:00
by surprise
24:02
um and so it's affected people not only
24:05
from england
24:05
from the u.s from canada from australia
24:08
we had some lebanese people who took it
24:10
to the courts and the courts ruled in
24:11
the tax people's favor
24:13
um so that is quite worrying when they
24:16
go against the advice because the oecd
24:18
in april issue guidance to all tax
24:21
authorities across the world
24:23
advising them not to treat individuals
24:25
stranded
24:26
through no fault of their own as tax
24:28
resident of their country
24:30
but spain no
24:33
okay so what are they taxing them what
24:35
where's what they do what they're doing
24:36
is they're saying if you were here for
24:37
more than 183 days we want to know what
24:40
you earned
24:41
in the whole of this year and we will
24:42
tax you on it even if it wasn't earned
24:44
no no your taxes in spain so that's on
24:46
your worldwide assets oh okay
24:48
okay and wealth taxes worked out on your
24:51
assets as well
24:52
so people be very very wary obviously
24:55
the spanish have to find out that you've
24:56
been here more than 183 days
24:59
um so if you were careful you know they
25:02
won't know but the onus if they come to
25:03
you
25:04
is for you to prove that you weren't
25:07
here
25:07
more than 183 days they don't have to
25:09
prove you were
25:11
you have to prove you weren't so if you
25:13
weren't keep copies of your
25:15
airline receipts if you flew or if you
25:17
came on a ferry just keep whatever you
25:19
have so if they do happen to come to you
25:21
you've got proof um but just be wary of
25:24
that so
25:24
don't go announcing to everyone oh i've
25:26
been here over the six months because i
25:28
got stranded
25:29
just keep it to yourself that's all i'm
25:32
saying are people still contesting this
25:33
could it be that it's no it's negative
25:35
or is that it no that's it
25:37
they've ruled so you may come down and
25:39
say it's not right you know
25:40
you can't do this but we know spain just
25:42
completely disregards anything the eu
25:44
says and does whatever they want so if
25:47
any of you've got
25:48
any questions on anything we've
25:50
discussed today especially pensions
25:52
or investments anything at all you can
25:55
get in touch with us you've got
25:56
two email addresses one is bay radio or
25:59
one word
25:59
at black tower fm that stands for
26:02
financialmanagement.com
26:04
or info at blacktowerfm.com
26:08
if you put the attention of christina
26:09
just come straight through to me
26:11
um or you can go onto our website which
26:13
is blacktowerfm.com
26:16
look under spain i'm under costa blanca
26:18
uh you'll find my details
26:20
there's a contact form just fill it in
26:22
send it in and put the attention of
26:23
christina it saves the girl at the other
26:25
end having to fish through and find out
26:26
who you want to speak to
26:28
and it will come through to me and we'll
26:29
get back to you you can always email
26:31
studio bay radio dot fm is that right
26:34
that's one
26:35
yes or you can call the office which is
26:38
uh
26:39
zero zero three force for spain nine six
26:42
five
26:42
oh five eight two one two and we will
26:45
come back to you on the phones
26:46
if you don't get an answer it goes
26:48
through to answer machine please leave
26:50
a uh a message if you can and we'll come
26:52
back to you or try again it usually
26:54
means we're in a meeting
26:55
but we are here to help you and to make
26:58
sure you don't worry unnecessarily give
26:59
you proper guidance on your financial
27:01
future
27:02
so if you need good advice impartial
27:04
advice um
27:06
as i said the person who came to see me
27:07
the other day was really worried put
27:08
their mind at rest no business for me
27:10
but they went away happy
27:12
that's good for me they refer me on to
27:14
other people i get very good business
27:16
and as you were saying um some even some
27:18
of the terms you've thrown out there
27:20
like your flexible drawdown and all of
27:21
that
27:22
um pensions still may not be quite as
27:24
complicated as people imagine you you'll
27:25
be able to explain it
27:27
pretty easily what we were saying in the
27:28
break we were saying that pensions
27:30
always seem complicated same as
27:31
mortgages
27:32
when you actually break them down
27:33
they're not that complicated some
27:34
financial institutions
27:36
financial advisors like things to appear
27:38
complicated because they seem more
27:40
they're full of their own
27:40
self-importance but i think it's key for
27:43
individuals to understand about their
27:45
finances and their financial future
27:47
and i wish someone had done this when i
27:49
was younger we were saying when you're
27:50
in your 20s and 30s
27:51
you don't care about pensions because
27:53
you don't think you're gonna well
27:54
you don't really comprehend living to 70
27:56
or 80 it seems so far away
27:58
but when you get to your 40s and 50s you
28:00
wish you had because then you could
28:01
retire at 55
28:03
when you've still got some life in you
28:04
and enjoy life
28:06
and if you are retired you need to make
28:08
the most of your retirement income and
28:10
make sure it carries on supporting you
28:13
till you don't need it anymore
28:16
um so please don't worry just get in
28:18
touch we are here we can give you
28:19
guidance and help
28:34
you
#Financial Planning & Management
#Retirement & Pension
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