A Spanish approved investment bond is the answer that you have been looking for!
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 supplement their pensions. With the security of a familiar company, choosing a cautious investment arrangement could be the best option.
Remember; Euro deposit accounts often only pay 3.5% per annum (or 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 approved investment bond is extremely tax efficient.
This Search is for Spanish Banks that provide Mortgages for Buying Spanish Property
With a Spanish investment bond capital grows free of income or capital gains tax and the bond is recognised by the Hacienda. The EU Savings Tax does not apply, making this a favourable tax environment when compared with holding excessive cash on bank deposit.
Exempt from EU savings tax directive
Interest from an offshore deposit account attracts 15% Retention Tax. From 2008 this increases to 20% and from 2011 this rises to a whopping 35%! Based on a deposit paying €7,000 interest the actual tax payable for 2007 is €1,050. From 2011 the tax payable will rise to €2,450.
Excellent alternative to UK & Spanish bank deposits
For those resident in Spain holding bank deposits, 18% tax is deducted at source. Therefore, €7,000 interest amounts to €1,260 tax. UK banks tax slightly more at 20% which amounts to €1,400.
Good News is here! A Spanish approved investment bond grows free of taxes as only income or encashments are taxed and even this amounts to very little. See the case study above.
Reducing Spanish inheritance tax
Considerable savings from Spanish inheritance tax can be arranged so that your wealth can be passed on intact. This can be a simple exercise where savings of more than 80% could apply.
11%
A.P.R.*
Interest paid on maturity
Nominal annual interest rate: 10,48%
Minimum amount: 3,000£
Minimum amount: 30,000£
Offer valid until 31st December 2008
RBE: 699/08
This deposit is available to customers who, in 30 calendar days, prior to contracting the deposit, have increased their net balance with Bankinter by at least the minimum investment amount of the deposit, either in euros or in other currencies. Capital from other Bankinter products cannot be used to benifit from this offer
One month fixed term Sterling Deposit
bankinter
Come and visit us if you want to know more about it. You can also call us on 901 523 523 from uk 0034 91 657 88 71
