GENERAL NEWS
CLICK ON THE LINKS BELOW FOR EACH SUBJECT (THE DATE IS THE MAGAZINE ISSUE IT APPEARED IN)
save money by using the leaders in foreign exchange. TorFX is one of the UK’s leading currency brokers, providing individuals and companies with money saving foreign exchange services. March 2010
“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.”
Private Clients
Whether you are buying an overseas property, emigrating, paying bills, or making a foreign currency transaction for any other reason, TorFX can save you money on your international money transfers.
Saving Money
TorFX deal directly with the currency markets, which means we can offer highly competitive exchange rates on all major currencies, often beating the bank’s rate by over 3%. With in depth knowledge of what drives foreign exchange markets, TorFX can help you optimise the timing of your transaction so that you achieve the best exchange rate. There are no charges, and we offer fast, free international money transfers. Opening a trading account is quick, simple and completely free.
Protection
TorFX let you fix your exchange rate for up to one year, whereas banks don’t usually offer this option. This protects you from exchange rate movements that could cost you thousands of pounds. This is a vital tool for anyone buying a foreign property, as exchange rates can fluctuate by over 30% in just a few weeks. That means your purchase could cost a lot more than you budgeted unless you fix your rate.
Peace of Mind
By using the experts, you can be sure of getting the best advice on your transaction, as well as the best exchange rate.
Safe Hands
TorFX operate segregated client accounts with Barclays Bank PLC. We are regulated by HM Revenue and Customs, are members of the AIPP, and UK Money Transmitters Association. In 2008 we were awarded second place in the prestigious Sunday Times FastTrack 100 league table.
Regular Payments
The Regular overseas payments plan allows you to pay a mortgage, school fees or any other foreign expenses. Just set up the standing order instruction and let TorFX do the rest. This means you get better rates, free transfers, and don’t need to worry about the hassle and expense of arranging payments each month.
Keeping you informed
Regular free market updates on your chosen currency.
Testimonials
I can’t tell you what a pleasure dealing with Caroline has been. She has made my business and holiday exchanges as seamless and smooth as ever I could have wished for. I am sure she must have gritted her teeth a few times as I telephoned again and again, but her cheerfulness and professionalism carried the day and she sent my transactions directly to where they were needed. Suffice to say I will spread the gospel of TorFX and Caroline everywhere I can. Brian Brookner.
If only our other business contacts were as diligent, patient and understanding as you have been with Sue and I throughout this whole exercise, life would be a lot easier! TorFX got the business not because they were the cheapest, but because of your general attitude and demeanor right from the first phone call. Mike and Sue Rowan.
I have just completed my first transaction with your company and I cannot praise highly enough the efficiency, courtesy and customer care given by your account manager Jeremy. He has kept us fully updated and I have already recommended him and your company and will have no hesitation in doing so in the future, I have made other transfers with other companies in the past, however yours has surpassed all their efforts. J. Edgington
Thank you very much for your outstanding service over an extended period of time in keeping us informed and educated on the currency market. In the time period we had available, we hit the most favorable exchange rate thanks to your accurate and objective advice. The whole transfer process was amazingly simple and easy. E. Playfair
Wow, what a fantastic service. I was emigrating and I needed a broker so I talked to four different forex brokers and without a doubt Torfx was the best. Not only did I get the best rate available but the paperwork was kept to a minimum and I could always pick up the phone and get straight through to Tony. Excellent service and I would highly recommend them to anyone. W. Dawes
I would like to thank the team at TorFX, for all their help with realising the maximum amount of sterling from my euro savings. I was a little worried initially about handing over such a large sum of savings to a third party but they have made the whole transfer process smooth and stress free. I will definitely be recommending TorFX to all my colleagues and clients and look forward to using them myself again in the near future. Charles Herbert.
Dear Beverley, I just wanted to thank you for keeping in such regular contact to keep me up-to-date on the latest changes on the USD/£. You have helped me to take full advantage of maximizing our profitability. Mike H.
For more information and/or advice on your currency transfers then please contact the New Business Development Team at Tor FX and they will get in direct contact with you. Email currency@torfx.com and they will ring you back or when dialing from Spain call 00 44 1736 335292 – Always quote The ‘Olive Press Magazine in Spain’ so they’ll have an indication of your requirements. Alternatively call their agent in Spain on 672 655 931 or email: info@catalunyabiz.com
______BACK TO TOP________
TIPOS DE SUELO
TYPES OF LAND
by David Piqué March 2010
Today we are going to address the legal nature of the different types of land controlled by law. We will do this generically, taking into account that in some communities there may be some variation on what is stated here.
Basically, there are three types of land, urban land, land not for development or rural land and land for development. We will now explain the principal characteristics of each:
a) Urban land: Land that is considered to be urban land is that which counts on the following basic urban services: a) road access (passable by vehicle); b) water supply; c) water drainage; d) electricity supply. In this same category can be found land that is included in areas consolidated by building which corresponds to the form and characteristics established by town planning laws. The owners of such land have the right to build on this land, with the only condition being that prior to proceeding with the construction they apply to the local administration office for the mandatory building licence. Said office will verify that the project to be built conforms to urban standards.
b) Land not for development: Land which can be called land not for development (also called rural land) is that which includes any of the following characteristics: -Land which is subject to special protection thus preventing urban development due to its scenic, historical, archaeological, scientific, environmental or cultural value. -Land which under general planning laws is considered necessary to maintain it for its agricultural, forestry or livestock value or perhaps for its natural resources, as well as that which could be considered as unsuitable for urban development. Rural land owners have the right to use, enjoy and dispose of their terrain according to its nature, whether it be agricultural, forestry or for livestock but under no circumstances do they have the right to build on it. There are exceptions under which it is permitted to construct barns but these buildings are only destined for agricultural use (for storing machinery and fruit) and under no circumstances may be used as a legal residence.
c) Finally, there is land available for development, which is any land that does not come into the above mentioned categories. With this land the owners recognise not only the right to use, enjoy and dispose of it according to the rural nature of the land but also to be able to transform it into urban land.
This transformation must follow a procedure which we will refer to in future articles.
by David Piqué
any legal questions can be sent to davidpique@advocatsreus.org or The Olive Press direct
DIVORCIO CONTENCIOSO
CONTESTED DIVORCE
by David Piqué FEB 2010
In our last article we dealt with the mutual agreement divorce, today we are going to examine the main characteristics of a contested or contentious divorce.
The contested divorce, as opposed to the mutual agreement divorce, is applied for by one of the spouses without the consent of the other, and is not accompanied by a settlement proposal. Neither is it necessary to state due cause, the only requirement, except in exceptional cases, is that more than three months must have passed since the marriage took place.
This process is longer and more complicated and costly than that of a mutual agreement, not only economically costly for both parties but also emotionally as its name indicates: contest = dispute = fight. The spouses do not negotiate the outcome of the divorce but try to distort the reasoning of the other in order to obtain a favourable sentence. Normally this process is also painful for the children of the marriage as they are able to perceive that not only have their parents stopped loving and respecting each other but that during the whole process of the divorce they do not hesitate to carry out certain manoeuvres which will lead to a beneficial sentence without caring about, in many cases, the moral consequences of their actions or the impact they may have on their loved ones who in many situations maintain a neutral position.
The process is initiated by the presentation of the divorce petition by one of the spouses against the other, together with the marriage certificate and birth certificates of the children as well as documentation to vouch for the financial situation of the couple in order to take measures regarding child support, maintenance, family property, etc.
Once the petition has been presented, the other party must reply in a maximum period of 20 days. It is necessary to add that in this process both parties must have their own lawyer and solicitor which doubles the legal costs. Once the other party has replied to the lawsuit, the Judge will summon them both to a hearing, at which they must attend with their respective lawyers and solicitors. If there are any children from the marriage who are minors then a representative from the Department of Public Prosecution will also be summoned to watch over their interests. In the hearing the measures to be adopted regarding the guardianship and custody of the children will be dealt with as well as visiting rights of the parent who does not have guardianship and custody, use of the family residence, child support or where relevant, maintenance. Any children over 12 years of age, with sound judgement, will also have to attend the hearing.
Finally, the Judge will pronounce sentence of the divorce with the measures to be taken and against which an appeal may be made before the provincial court.
by David Piqué
any legal questions can be sent to davidpique@advocatsreus.org or The Olive Press direct
DIVORCE - DIVORCIO
by David Piqué jan 2010
Without doubt, one of the happiest days of our lives is the day we are married. Whether it be a traditional church wedding, before a judge or another competent authority, nobody will dispute the fact that it is a very special day which is hard to forget. But luckily or not, the mythical phrase “Those whom God hath joined together, let no man put asunder” is no longer like Utopia seeing that (according to statistics) one divorce is produced every 3.7 minutes in Spain.
When living together has become impossible due to a lack of love, it seems that a divorce is the solution to the problem as neither the husband nor the wife can bring about the dissolution of the marriage without pleading due cause. The only established requirement according to law is that, except in exceptional cases, more than three months have passed since the marriage took place.
There are two types of divorce. The most recommended, economic, rapid, efficient and in general the least traumatic, is that of mutual agreement which can be applied for by both parties or by only one with the consent of the other. In this case, the divorce petition must obligatorily be accompanied by a proposal of settlement on behalf of both parties and should cover the following aspects: a) who will make use of the family home and its contents; b) who will be awarded custody of the children, what visiting rights the other spouse will have as well as communication and holidays with the children; c) how each will contribute to the various financial costs (child support, any expenses derived from the marriage); e) the maintenance to be paid by one spouse to the other.
Once the petition for a mutual agreement divorce has been presented together with the settlement proposal, which must be endorsed by a lawyer or solicitor, the judge will summon them for ratification and if there are any children under the age of 12, the Department of Public Prosecution must approve the settlement so that sentence can finally be pronounced to approve the proposal of settlement.
The second type of divorce is a contested divorce which means that one of the spouses, through a lawyer or solicitor, lodges a divorce petition against the other spouse. Once the petition has been received by the other spouse, he/she will have 20 days to contest it and subsequently a hearing will be held where a judge will determine the measures to be taken according to the claims made by both parties. We will cover this process in more detail and the effects of divorce in a later article.
by David Piqué
any legal questions can be sent to davidpique@advocatsreus.org
Rental Contracts - Contrato de Alquiler by David Piqué dec 2009
Nowadays when trying to obtain a mortgage it has become a mission impossible for many people so renting property has suddenly become popular. Until a short time ago, renting was thought to be an investment without return and that it was much more appropriate to purchase but now, with so many obstacles to overcome in order to obtain the necessary finance, the tenant has once more come into his/her own in which case I consider it worthy to briefly summarise rental contract details.
At present, town rentals are subject to Law 29/1994, of the 24th of November although certain points of earlier laws are applied in specific cases. This law includes the rental of town property and business premises and excludes, among others, the seasonal rental of houses and rental of rural property, even though it consists of house + room, if the main object of the contract is to make use of the land.
The duration of the rental agreement will be agreed to by both parties. But one has to bear in mind, that if the period that appears in the contract is less than five years, it will automatically be prolonged to five years if the tenant so wishes.
The obligations of the landlord are basically to hand over to the tenant the property named in the contract and maintain it in optimum living conditions. On the other hand, the tenant must pay the amount agreed to as well as any corresponding expenses, treat the property with due care, refrain from construction/building work unless authorised by the landlord, as well as taking care of small repairs whenever necessary or informing the landlord of any repairs that need to be done.
If the case arises that the tenant does not pay the rent, the landlord could lodge an official complaint before the trial court of the area in which the property is located requesting that the tenant be evicted and that the money owed be duly paid.
The rental contract and the documents which show the breach of contract should be submitted along with the official complaint, which must be presented by a lawyer or solicitor, plus a declaration from the landlord to say that he could halt the process if the tenant pays the total amount due, but this option can only be applied on one occasion.
One can appeal to the Provincial Court against the sentence passed, but the money owed must be paid up beforehand. Otherwise, the appeal will not be processed.
by David Piqué
any legal questions can be sent to davidpique@advocatsreus.org
Small Claims Court - Monitorio by David Piqué
It’s not news to anyone that we are going through a bad crisis period, companies, and above all families are suffering severely from this recession. Spending decreases because people in general do not have sufficient disposable income to acquire the goods or services they wish and that previously in not-so-distant prosperous times they were able to obtain without batting an eyelid.
In these economically difficult periods there is a lot of non-payment which does nothing less than aggravate the situation of those ‘lucky people’ who have found work. So many of them are fed up saying they have to think twice before accepting a job as the risk of non-payment is extremely high and if this does happen not only are they not deservedly paid for the work done, but what is worse, they have to use their own resources without getting anything in exchange.
Fortunately, the law has come up with a novel solution that I personally consider to be effective, it is the Small Claims Procedure. This procedure allows the creditor to lodge, without the necessity of a lawyer or solicitor, a simple claim before the magistrate’s court which should be accompanied by the necessary documentation which shows that the debt does not exceed 30,000€
The procedure in itself is extremely simple, once the claim has been lodged before the magistrate’s court in the area of the debtor’s residence, the debtor will, in no more than 20 days, pay the creditor or present a written document before the court explaining why the debt cannot be paid. If the amount to be claimed exceeds 900€, the written document must be presented by a lawyer or solicitor. If the debtor does not pay the debt or present a written document of opposition once the 20 days have passed, he/she could have their possessions seized up to the value of the debt; on the other hand, if a document of opposition to the debt is presented, then the corresponding action will have to be considered.
In short, it is a mechanism that in practice has proved itself to be quick, easy and effective, but let’s hope we don’t have to put it to use and that we can all pay our bills without any problems.
by David Piqué
any legal questions can be sent to davidpique@advocatsreus.org or The Olive Press direct
MOVING MONEY FROM THE UK TO SPAIN OR VICE VERSA? SAVE £'s AND €'s ON YOUR TRANSFERS WITH Tor Fx oCT 09
UK based independent foreign exchange providers Tor FX offer a variety of services that can ensure you obtain a fair and preferential exchange rate for your money transfers between the UK and Spain, while also helping to manage the risks associated with volatile currency markets. The worst recession in a generation has caused the Pound to depreciate 23% versus the Euro, so it’s even more important to choose the best course of action to prevent transfers / purchases becoming any more expensive, and maximise your buying power.
On contacting Tor FX (who in December 2008 were ranked the UK’s 2nd fastest growing company in the prestigious ‘Sunday Times Fast Track 100’) you will be allocated a personal Euro account manager who can help you effectively manage your exposure and develop a strategy to ensure that you plan the timing of your purchase to your benefit. A major benefit of dealing with an independent broker is the ability to talk to currency experts throughout the course of your transaction. The banks simply do not offer this service.
Opening a private trading account couldn’t be simpler through our website, and usually takes a couple of minutes. Tor FX is a regulated company and we are bound by law to identify every client that trades with us as part of our anti-money laundering regulations.
Once you are registered, your dedicated account manager will contact you and begin plotting the best course of action for you to purchase your currency. We offer a range of services including daily market updates by email, forward contracts and the use of stop and limit orders.
Forward buying means that our clients can reserve their currency for a date up to two years in the future if the current rate of exchange is attractive for them to do so. We will only require 5-10% deposit on forward purchases with the remaining balance on the due date specified by the client.
If you have a view on where the market is likely to go, you can place a limit order at your desired rate. The order will be closely monitored by our dealing desk and we will guarantee you that rate if the trading rate reaches the specified level (day or night).
A limit order can be used if the client believes that the rate is likely to improve. However, what if the rate of exchange seems to deteriorating? Your account manager can recommend price levels for a ‘stop order’, characterized as your ‘worst case scenario’. If there is a particular rate that you deem to be your worst acceptable level, then Tor FX can work an automatic buy order that is triggered if the rate reaches that level. This mechanism protects you against a sudden adverse movement in the market. Many clients use stop and limit orders in combination. This allows the possibility of obtaining a better rate, with the added protection against unforeseen events that can cause unexpected volatility.
Regular Overseas Payments
Tor FX also offers a regular overseas payment facility for smaller amounts of money, ideal for pension transfers and mortgage payments. This service is available on a monthly or bi-monthly basis for transfers ranging between £250 and £5000 per month. It also cuts out the hassle of having to arrange individual transfers each month. All you need to do is set up a standing order, and Tor FX will do the rest. You can elect to receive the prevailing spot rate for each payment, or you can fix your exchange rate so you know exactly how much currency will reach your account each month.
As well as providing highly competitive exchange rates on regular overseas payments, Tor FX also charge 0% commission, providing a saving on average of 3% over the exchange rates offered by high street banks. Your funds are held in a segregated client account to provide that extra bit of security and Tor FX will guarantee same day delivery of your currency.
The table left outlines the typical minimum savings achieved by using Tor FX rather than the bank.
For more information and/or advice on your currency transfers then please contact the New Business Development Team at Tor FX and they will get in direct contact with you. Email currency@torfx.com and they will ring you back or when dialing from Spain call 00 44 1736 335292 – Always quote The ‘Olive Press Magazine in Spain’ so they’ll have an indication of your requirements.
Blacktower Financial Management Group
‘Pension Changes’ DEC 2009
Your column where you can send in your financial questions and receive a professional answer. Please send them directly to Ian Whitby or to the editor of The Olive Press magazine and we will aim to answer as many as we can.
In 2006 the Government announced some significant changes to when and the way, in which you can take the benefits from Personal Pensions, Company schemes and State benefits.
Unlike most changes in legislation this was retrospective. Most individuals in the UK will have received confirmation from their provider that the changes are imminent. However, we have discovered a number of clients living here in Spain who have not received any notification.
This may have occurred due to changes of address not being notified to the provider.
The main changes which could impact on individuals are detailed below.
When can you take your personal pension?
By April 2010, the minimum age at which you’ll be able to take your company or personal pension will have increased from 50 to 55. You can put off taking it until age 75.
However, you may still be able to take your pension before age 55 in certain circumstances, for example if you are unable to work due to ill-health. Your pension administrator will be able to tell you what your scheme allows.
Options since 2006
Following changes made to pension rules in April 2006, there is now more choice for how and when you can take your pension benefits. But bear in mind that pension schemes are subject to individual rules so you’ll need to check with your pension administrator what your particular scheme allows.
A more generous tax-free lump sum
You can now take up to 25 per cent of the value of your total pension savings from all sources as a tax-free lump sum when you retire, up to a maximum of 25 per cent of the ‘lifetime allowance’ for that tax year.
For the tax year 2009-2010 the lifetime allowance (tested against your total pensions savings) is £1.75 million, gradually rising to £1.8 million by 2010-2011.
If your total pensions savings exceed the lifetime allowance you can take the excess as a cash lump sum, subject to a 55 per cent tax charge.
Lump sums from small pension funds
If your total pension savings from all sources was £17,500 or less (one per cent of the ‘lifetime allowance’) you may be able to take the whole amount as a cash lump sum, with 25 per cent tax-free.
The limit for being able to take the whole fund in cash will gradually rise to £18,000 by the 2010-2011 tax year.
Drawing an income from your pension
You have the following options (after you’ve taken any tax-free lump sum):
use the (remaining) fund you’ve built up to buy an annuity (a regular income payable for life) from a life insurance company; this does not have to be the same company that you have your pension plan with
draw a taxable income directly from your pension fund, as an ‘unsecured pension’ before age 75
draw a taxable income directly from your pension fund, as an ‘alternatively secured pension’ from age 75 (similar to income withdrawal but with lower withdrawal limits)
If you would like more information on these changes or indeed have any questions about your Personal Finances please contact Ian Whitby at Blacktower Financial Management International
on 0034 968 959 331
or email him at
ian.whitby@blacktowerfm.com
Remember to send in your questions!
Blacktower Financial Management Group
‘Save Tax in Spain’
This is a new column where readers can send in their financial questions and receive a professional answer. Please send them directly to Ian Whitby or to the editor of The Olive Press magazine and we will aim to answer as many as we can.
In the present economic climate, people are finding it even more important to manage and reduce their tax liability. Over the centuries, whether in the UK or Spain, this has always been the case. ‘Why pay more than you need to?’
You can reduce your tax liability and increase the ‘money in your pocket’ if you have money invested in any of the following;-
-UK Bank - currently taxed at 20% at source
-Spanish Bank – currently taxed at 18% at source
-Offshore Bank -currently taxed at 20% rising to 35% in 2011
Indeed, it is worth checking any investments you hold are in the most efficient tax environment.
There are now several companies who offer Spanish approved investment bonds that are extremely tax efficient for your savings and investments.
Case Study
Mr Jones invests 50,000€ which grows by 5% to 52,500€ after 1 year. He decides to take this 2,500€ to supplement his income.
If we look at the tax to be paid on the options above and the Spanish approved investment bond the difference is startling.
Under the Spanish approved investment bond the withdrawal is split between return of capital and gain for tax purposes.. Tax is only payable on the gain element, the majority of the withdrawal is classed as return of capital,hence a saving of over 420€. There would be no liability to tax if a withdrawal was not made.
The Spanish approved investment bond can hold a variety of investments including capital guaranteed products.
A particular favourite is an investment that, up to the end of July 09 has delivered the following performance;-
1 Year 10.75%
2 Year 22.24%
In addition it has delivered 44 consecutive months of growth and importantly is not reliant or connected to stock markets.
If you would like more information please contact The Olive Press or Ian Whitby at Blacktower Financial Management on
968 959 331 or
email him at ian.whitby@blacktowerfm.com web site: www.blacktowerfm.com
Blacktower Financial Management (International) Limited is licensed in Gibraltar by the Financial Services Commission (FSC) License Number 66805B. Blacktower Financial Management Limited is authorized and regulated in the UK by the Financial Services Authroity (FSA)
Remember to send in your questions!
Blacktower Financial Management Group
‘Don’t chance with Finance- QROPS’ sept 2009
This is a new column where readers can send in their financial questions and receive a professional answer. Please send them directly to Ian Whitby or to the editor of The Olive Press magazine and we will aim to answer as many as we can.
Confused about pensions
Many individuals find pensions confusing, whilst they understand some of the tax benefits. The Financial services industry has not always helped with use of a variety of terms that seem to add more confusion. Personal pensions, Sipps, money purchase, final salary, Serps , section 226, drawdown and phased retirement are just a few that understandably cause confusion. At Blacktower Financial Management we believe in making the confusing and complicated simple, ensuring you fully understand what you currently have and importantly whether it meets your needs both now and in the future. This philosophy is important for any individual who holds a pension, the importance often intensifies for expatriates, as they feel removed from the day to day news and as a result feel even more lost in the pension minefield.
How secure is your pension?
The global recession and credit crunch have created a lot of concern around investments. An individual’s pension represents their second largest investment decision, usually their main residence is the largest.
So how secure is your pension? For many clients they are already in receipt of their pension income and there is no cause for concern. However there are risks for those who were in a final salary scheme or who have deferred pensions, generally these pensions are thought of as guaranteed. But the guarantee is only as good as the ability of the scheme to meet it, falling stock markets and increased life expectancy have put a great strain on these schemes with most being closed to new members.
All expatriates with a UK pension should review their fund carefully particularly as non residents have the opportunity to move their UK fund to an International pension.
What is an International pension?
New UK legislation has created international pension products known as Qualifying Recognised Overseas Pension Schemes (QROPS), in essence the scheme must mirror the UK requirements for tax free cash and income benefits. The HMRC (HM Revenue & Customs) will only allow overseas transfers to schemes which have an official QROPS status. The benefits of transferring to QROPS are detailed below. Great care must be taken when considering a transfer as the HMRC are aware that some jurisdictions are promoting the scheme as a blatant way of tax evasion, Singapore was delisted by the HMRC in 2008. At Blacktower Financial Management we work closely with the authorities concerned to maximise tax advantages wherever possible.
What are the benefits?
Free from UK Inheritance Tax following death even after the age of 75 (Finance Act 2008).
No requirement to purchase an Annuity – under a UK scheme a possible tax charge of 82 % is payable if an annuity is not taken by the age of 75.
Transfer of the fund to future generations upon death.
Freedom to Control Investments – the possibilities become more or less unlimited and can include antiques, jewellery, and works of art and in certain circumstances, residential property.
Flexibility to access funds at any time between the ages of 50 and 75 with the potential to access the funds outside these ages.
Access to income and capital without deduction of tax.
No deduction of tax at source although taxation will apply in accordance with the legislation governing the QROPS scheme member’s country of residence.
All of the above advantages become possible after your UK pension fund has been transferred to a QROPS and you have been a non UK resident for five complete tax years. Why wait?
Blacktower Financial Management Group
Formed in 1986, the Group consists of our UK Company, Blacktower Financial Management Ltd and our International Company Blacktower International Financial Management International Ltd, who leads the field in offering independent financial advice to expatriates. We have also been awarded the prestigious title of Chartered Financial Planners, with just over 100 other Financial advice firms globally. Our UK Company is authorised and regulated by the Financial Services Authority and our International Company in licensed by the Financial Services Commission in Gibraltar. Blacktower have been providing advice to expatriates on the transfer of their pension rights from one scheme to another i.e. Qrops, since they became available in April 2006.
Contact Ian Whitby , Regional Manager Costa Blanca/Calida. Office 0034 968 959 331. Mobile 0034 634 706 748.
Email: ian.whitby@blacktowerfm.com
web site: www.blacktowerfm.com
Remember to send in your questions!
______BACK TO TOP________
Blacktower Financial Management Group
‘Don’t chance with Finance’ Aug 09
This is a new column where readers can send in their financial questions and receive a professional answer. Please send them directly to Ian Whitby or to the editor of The Olive Press magazine and we will aim to answer as many as we can.
In an increasingly complex world of finance and investments, independent, experienced wealth management advice has never been more important. The market is full of different products and solutions offering a myriad of features and benefits - but finding the right one for you can be a daunting task.
Blacktower Financial Management Group has the knowledge and experience to save you time and money by providing a bespoke service to individual and corporate clients.
Formed in 1986, Blacktower Financial Management Limited is regulated and authorized through the Financial Services Authority (FSA) in the UK. Blacktower Financial Management (International) Limited leads the field in offering independent financial advice to expatriates, and is licensed by the Gibraltar Financial Services Commission. With established office in Spain, Portugal, Gibraltar and France, BFMI specializes in providing advice on all types of investment, pensions, life assurance and mortgages for individuals and businesses together with cross border investment and tax planning for English speaking Expatriates.
The Chartered Insurance Institute (CII) has awarded the prestigious ‘Chartered Financial Planners’ title to Blacktower Financial Management Limited.
Chartered status is an exclusive title only awarded to firms which meet rigorous criteria to professionalism and capability. All Chartered Financial Planners commit to the CII’s Code of Ethics and Conduct reinforcing the highest standards of professional practice in their business dealings.
Mr John Westwood, Managing Director, says: “Securing Chartered Financial Planners status is a landmark for our company, we have always prided ourselves on being thoroughly professional in everything we do, and to receive external recognition in this way is very gratifying. As Chartered Financial Planners, we reinforce our commitment to the highest levels of service to our customers.”
To date only just over 100 firms have achieved Chartered status, indicating that this is a highly exclusive award reserved for the leading firms within the financial advice market.
The CII has 90,000 members in 150 countries and it the world’s largest financial services professional body. Serving the insurance, savings and financial services markets it works to enhance professional, ethical and technical standards.
Blacktower Financial Management (International) Limited has a team of regulated and qualified advisers covering the regions of Valencia, Alicante, Murcia and Almeria. Our team include Ian Whitby, Dave Wallis-Powell, Lee Hodges, Chris Sidman and Carole Jackson with over 100 years experience between them, Make sure you ‘Don’t chance with Finance’
Contact Ian Whitby
Regional Manager Costa Blanca/Calida
Office 0034 968 959 331
Mobile 0034 634 706 748
Email: ian.whitby@blacktowerfm.com
web site: www.blacktowerfm.com
Remember to send in your questions!
The Spanish Property Inheritance Tax Time Bomb advertorial from wincham consultants JUNE 2009
Non-Domiciled property owners in Spain are sitting on a ticking IHT time bomb. Most owners do not understand that their Heirs and their Estate will pay IHT in two jurisdictions, Spain and their Country of Domicile. The reason for this is that in Spain the individual inheritor is taxed whereas in other countries, like the UK, it is the estate that is taxed. This could mean that on the death of an owner the surviving partner, or the owner’s Beneficiaries, could have a Tax Bill that virtually wipes out the entire Spanish Inheritance. Added to this is the cost of Probate in both countries for the Inheritors too. Most Lawyers in Spain recommend to owners that having a Spanish Will deals with the problem; this is incorrect as a Will only deals with the issue when there is a death and does not remove Taxation in Spain.
Other advice given is that double Taxation treaties between Spain and the UK help with the Tax being reduced, this is true in identical Taxes but these are not, as in the UK it is the Estate which is Taxed and in Spain it is the Beneficiaries who are Taxed. It therefore should not be assumed that one Tax can be offset against the other as they are both totally different taxes on totally different entities.
Many owners are advised to re-finance the property as IHT is not charged on the property amount if there is an outstanding mortgage and loan, but this may end up leaving the Beneficiaries with a huge debt they cannot pay off. Owning a property with your children is a favourite, this is not a good idea either as their share of the property may end being at risk through money or marital issues and if they die before the parents then the parents have to pay Taxes to get the property back too.
Our solution to the IHT problem in Spain is for the owner/s to Transfer the property to a UK Private Limited Company. There would not be a 7% Transfer tax in Spain on this transaction unlike other property transfer transactions. This method may eradicate all Taxes in Spain in the future, in respect of the property, as under EU Law a UK Company is only taxed in one jurisdiction, the UK, and no taxes are payable onwardly in Spain. A UK Company is not an Offshore Company like Gibraltar or the Isle of Man as they are charged an annual Tax by Spain of 3% for not being part of the EU Community.
Shares in the UK Company can be dealt with in a UK Will and depending on the structure of the Company; the Shares may be exempt from Inheritance Tax in the UK. A further advantage of the Company Structure is that attributable expenses such as Mortgage Interest, Council Tax Bills, Water, Electricity, Repairs and Maintenance can all be Tax Deductable by the Company; this may also include car hire and flights for the Directors.
If a purchaser wishes to acquire a property from a seller into a UK Limited company the purchaser can form a UK Limited company using the Wincham Scheme, with the seller as the Shareholder of the company, the seller can attend the Notary and instead of selling the property to the company he can Gift the property to the company. In this instance there would be no 7% Purchase Tax to the purchaser and no 3% retention to the seller.
There is a simple Sale of Shares to complete the deal. This is a simple solution costing less than most probate and legal fees in Spain when there is a death of an Owner of the property.
Wincham Consultants has been providing this service to Clients for many years. This is an exciting new opportunity to participate in and introducing a concept that can only benefit and protect Clients who are failed time and time again by both Spanish and UK professionals, as they are unable to advise on more than one jurisdiction. The Clients website is: www.winchamiht.com
This information has been provided by Mark Roach, Company Director and Professional Spanish Tax Consultant.
NEWS RELEASE
NEW MASONIC LODGE PLANNED IN THE COSTA AZAHAR
A group of British Freemasons who now live in Spain is planning to start a new Masonic Lodge based in Vinaros later this year. They are inviting Masons and people who might consider joining to get in touch so they can join the development from its beginning.
In Britain, Freemasons have adopted an open door policy in recent years to demonstrate that many myths and suspicions about the ancient brotherhood are unfounded and ill-informed. Modern Masonry in Spain is still relatively new, having been re-instated in 1987. The first English speaking lodge was formed a year later in Javea.
Two years ago, White River Lodge – which carries out its ceremonies in English – was established in Valencia and some masons from Vinaros and further north enjoyed the opportunity of continuing an affiliation they had to leave behind when they moved from Britain to Spain.
Now, with encouragement from their colleagues in Valencia, a venue has been found in Vinaros for monthly meetings once the new Lodge is formally consecrated at the end of this year.
Edward Ward, who lives in Riba Roja is to be the first Master of the new lodge and says he is delighted to be actively involved in the movement again. Edward had enjoyed sharing in a number of lodges in the Bristol area before he and his wife moved to Calatunia.
Mr Ward says; “I am delighted that we have a nucleus of people who share the same aspirations and enjoy their membership of Freemasonry. Many people who might consider joining us are reassured encouraged by the fellowship we enjoy and heartened to see sums of charity money raised to help worthy and needy causes in Spain. It is a sure sign that masonry is international.”
The new lodge will be recognized by the governing body of freemasons in Spain, the Gran Logia d’Espana, which means that fellowship will be shared with existing Spanish speaking lodges in Castellon and Tarragona. Many of their members are looking forward to the dedication of the lodge in Vinaros.
The new group is looking for Masons, former Masons and would-be initiates (new members of Freemasonry) to join them during the coming months. They are willing to answer any questions about what is involved and to welcome people to this new and exciting project.
Contact for more information:-
In Cataluna – Edward Ward
977 416 476
teddy.edward2@virgin.net
In Vinaros and Costa Azahar
– Les Beech 678 357 713
lesbeech@hotmail.co.uk
ACCORDING TO THE BANK OF ENGLAND- ADVERTORIAL MARCH 2009
According to the Bank of England, Britain is in a deeper recession than expected, Gordon Brown is spending money he has not got, and we are getting poorer. To hear that it will get worse before we see a light at the end of the tunnel makes for rough times ahead. This also has wide ranging effects on the global economy, including Europe and Spain in particular.
So what is the financial situation here in Spain and how does it affect us? The finance Minister confirmed that the economic policies adopted by the Spanish Government have and will not work. With 14% of the country unemployed and growing daily what is the Government going to do? What does this mean to the British still here, trying to work or find work and juggle the finances? Spanish banks have approached the crisis the same as the English banks, they have adopted the “Scrooge” approach. Keep the tax payers money and save it for ourselves. So what can you do?
For anyone who has regular money payments from the UK to a Spanish bank, currency companies can offer a better exchange rate and if you set up a monthly direct debit you may be able to negotiate a high rate over the year. For example:
Mortgage interest rates are very high from the Spanish banks at the moment, which is affecting everyone’s financial security. On top of that with the pound weak against the Euro, pensions in Spain have become a lot less. With this in mind if you find yourself needing to re-evaluate your finances, we may have the solution to your problems. Unlike most banks in Spain we can offer a wide range of mortgage packages to suit your wants and needs. This includes mortgages for the over 60’s with no repayment. One example of a mortgage we can offer is a “Low Free Mortgage” which offers: variable interest rates from under 2.65%, 5 year fixed rates from 3.75%, up to 75% of valuation (residents), 50% (non residents). No redemption penalties for partial repayments. Low bank arrangement fee of just 0.5%. All other fees paid by the bank.
Example: €150,000 25 years repayment mortgage - 6.5% = €1,013 per month, 2.65% = €684 per month. On the example shown above you could save €328.00 per month or €3,936 per year
Our solutions are tailor made to suit you needs and requirements. We appreciate at this time in the current financial market everyone wishes to save money. We are also aware that this recession is going to last 2/3 years possibly even longer. Now is the time to re-evaluate your financial circumstances and implement a change which will help you ride out the difficult times ahead. We offer a totally confidential service and are confident that we will be able to assist you. We have over 25 years experience in the Financial Services and mortgage industry both in the UK and Spain and are therefore able to assist you in getting the right mortgage package to meet your needs. 
For your no obligation assessment, in the comfort of your own home, call Chris or Mary on 977 493 607. We can also assist you with Spanish Inheritance Tax Planning and all your general insurance product needs. For further information about the currency exchange companies please call us for a leaflet.
______BACK TO TOP________
Good news for those retiring after 2010
Changes have recently been made to the State Pensions system. In the main, these changes will only affect you if you reach State Pension age on or after 6 April 2010.
These reforms will make it easier for people who reach State Pension age on or after 6 April 2010 to build up full State Pension provision.
These changes were introduced by the Pensions Act 2007 and the Pensions Act (Northern Ireland) 2008.
Basic State Pension is the retirement income you can claim once you have reached State Pension age if you have paid or been treated as having paid sufficient National Insurance contributions, or received credits during your working life. Key changes to basic State Pension include:
* reducing the number of qualifying years needed for a full basic State Pension to 30 for people who will reach State Pension age on or after 6 April 2010
* any number of qualifying years will give entitlement to at least some basic State Pension
* people who have fewer than 30 qualifying years will get 1/30 of full basic State Pension for each qualifying year they have
* both paid and credited National Insurance contributions will count towards basic State Pension in the same way
* replacing the system of Home Responsibilities Protection (HRP) with a new weekly National Insurance credit for people caring for children or severely disabled people and converting past years of Home Responsibilities Protection into years of credits.
Find out more about this
* increasing basic State Pension in line with earnings, rather than prices, which means it should rise more quickly each year than it does now. (This change will happen from 2012 at the earliest and by 2015 at the latest, and will also apply to people currently getting their state pension or who reach State Pension age before 6 April 2010)
http://www.thepensionservice.gov.uk/pensions-reform/home.asp
Non-resident home sellers encouraged to claim tax rebate
Lawyers point out they were wrongly charged 35% instead of 15% capital gains
Owners selling property in Spain between 2004 and 2007 can claim
Foreigners not resident in Spain who sold a property in this country between 2004 and the end of 2006 could be entitled to a 20 per cent tax rebate from the Spanish Government. According to the Spanish law firm Costa, álvarez, Manglano & Associates, foreigners who sold their Spanish properties before 2007 paid a Non Residents’ Income Tax rate of 35 per cent on any capital gains, compared to a rate of 15 per cent paid by Spanish residents. The law firm has pointed out that this contravenes European Community Treaty rules on discrimination and was therefore unduly charged by the Spanish Government.
“This tax trap is thought to have affected hundreds of thousands of people across Europe and in the UK”, explained lawyer Emilio álvarez of Costa, álvarez, Manglano & Associates.
“A change in the law at the start of 2007, which saw the standard Capital Gains Tax for non residents being brought in line (a reduction from 35% to 15%), passed by largely unnoticed. As a result, thousands of people who had previously sold property in Spain are entitled to a 20% rebate. Due to stringent legal restrictions people who bought at the end of 2003 have already missed out, as claimants must register within four years, but thousands can still join forces and fight to get the Spanish tax authorities to pay back the money owed,” continued álvarez.
Thousands affected
Currency exchange brokers HiFX say that a conservative estimate is some 4,500 Britons could be affected and are owed an average of £8,300 each, plus interest, taking the total up to as much as £11,000.
Anyone choosing to make a claim can expect a long process, as taking this sort of case through the European courts can take three or four years.
Costa, álvarez and Manglano are offering to assist people with their claims on a no-win, no-fee basis, taking 35 per cent of the amount gained if the claimant wins. They have set up a helpline for British residents (0845 680 3849) and a website (www.spanishtaxreclaim.co.uk).
Alternatively anyone who thinks they may be entitled to a rebate is advised to find their copy of the tax form labelled “Modelo 212” and any other relevant documentation and seek legal advice.
Spanish Wealth Tax Abolished
UPDATE JAN 09
No More Wealth Tax Although yet to be ratified, the abolition of wealth tax approved last April by the Spanish parliament will come into force in 2009. The liability for the tax has been eliminated by a 100% tax relief. The measure will apply for the Spanish tax year 2008 for which returns are due in 2009. Wealth tax is a tax on assets held as at 31st December each year. Residents are taxed on worldwide assets and receive deductions. Non-residents are taxed on Spanish assets without allowances. The tax rate ranges from 0.2% to 2.5%. There are still other taxes due on Spanish property. On buying a property in Spain one has to pay 6% transfer tax (ITP) (7% in Andalucia). If the property is a new build or a resold unregistered property there will be 7% Spanish VAT (IVA) to pay. Annual local property tax will range from £100 to £400 depending on the size of the property. There may be additional taxes in some areas for rubbish collection and special projects. If the property is let there will be a tax on the rental income. Only 50% of the net rental income of a Spanish resident is taxable at the normal scale rates from 24% to 43%. Non-residents pay 24% on gross income. On disposal of the property one is liable for capital gains tax at 18% for residents and non-residents plus a tax on the gain on the land called Plusvalia of 20%-30%.
________
The Spanish wealth tax, known in Spain as patrimonio (Impuesto sobre el Patrimonio), has been abolished by Spains socialist government, fulfilling an electoral promise made 4 years ago before the Socialists took power. The wealth tax has been abolished as of 01/01/2008, so the change does not affect tax declarations for the tax year 2007. For most non-resident property owners the tax bill for the wealth tax was never very big but for most owners will nevertheless be welcome at a time when municipal taxes, mortgage rates, and other overheads for property owners are on the rise.
For more details visit http://www.spanish-taxes.co.uk/services/spanish-wealth-tax/
Spain to change banking practices
By h.b. - May 24, 2008 - 9:29 AM
The Bank of Spain 
The Bank of Spain is to join the Basel II agreement this year.
The banking system in Spain will this year adopt an international practice, known as the Basel II agreement, which will allow it to free up more assets, but will also see it penalised when it carried out high risk operations. It means that the banks will have to take greater care when granting a mortgage, and those of more than 95% of the value are expected to vanish from the market.
Each bank will now be obliged to offer greater transparency in a yearly report which explains the profile of their business and their exposition to risk.
Initially only a group of eight of Spain’s largest banks will be approved by the Bank of Spain to take part in the scheme – Santander, BBVA, Banco Popular, Banco Sabadell, Bankinter, La Caixa, Caja Madrid and the Caixa Catalunya.
.
If you have trouble viewing this web site in Internet explorer then try a new browser. Mozilla firefox is similar to use, free and more secure.
Disclaimer: No part of this web site or publication may be reproduced by any means without prior permission in writing from the publisher. The Olive Press does not accept responsibility for the contents of the articles supplied by contributors nor for the claims made by advertisers