At the moment it there is only the slimmest possibly of a sudden and dramatic Brexit u-turn, with the consequences of the June 23 2016 referendum set to be formalised on March 31 2019. That’s why if you live in Marbella now is the time to ensure that your financial advisers in Marbella are fully attuned to all the issues that might affect you once Brexit becomes final.
Inevitably for many expats this will involve a discussion about their pension arrangements. Yes, expats already settled in the EU should continue to receive yearly inflation-accounting increases to their pensions, but as this is only guaranteed for three years, it is a quite significant caveat.
Against this background it becomes all the more important that financial advice is sought in relation to private pensions. For a start, double tax treaties allow for enormous tax benefits to the expat retiree, while arrangements such as Qualifying Recognised Overseas Pension Schemes (QROPS) present many opportunities from a wealth management perspective. These of course include reduced income tax on drawdown, the flexibility to pass on tax-free pension funds to beneficiaries on death, greater investment freedom, and more.
The concern is that the politics surrounding Brexit could ultimately mean that expats are left with less enviable options post-March 2019. Given the way that finances work it is useful to remember how even small margins can, with large sums of money over long periods of time, make a significant difference, ultimately resulting in significant losses on what might otherwise be enjoyed.
This is why it is so important that expats in Marbella seek financial advice now so that they can make the most of the rules as they currently stand, rules that in the most part allow for an advantageous degree of efficient, personalised and regulated management that helps them ensure that their money works for them.
Unfortunately, although in all probability the post-Brexit landscape will not be that much different for expats who are already resident in the EU, there are no guarantees about what the future holds. By taking financial advice now you can limit the possibility for nasty surprises, however unlikely they might now seem.