THE CASE: James Thornton, a UK-domiciled retiree, is moving to Spain's Costa Blanca with his wife, Elena, and holds a Luxembourg offshore bond with £3.6 million in unrealized gains. This discussion covers UK exit considerations, Spanish tax treatment, and multi-jurisdiction estate planning.
EXPERT PANEL:
Stacy Lake (Bolt Burdon) - UK cross-border tax specialist
Gonzalo Garcia-Perez (One Life Luxembourg) - International insurance structuring
KEY TOPICS COVERED:
UK exit tax implications for offshore bonds
Temporary non-residence rules (5-year trap)
Spanish tax treatment of offshore bonds vs UK treatment
Modelo 720 overseas asset reporting requirements
Spanish Wealth Tax (Impuesto sobre el Patrimonio) for £6.8M bond
Bond portability when changing tax residency
Carrier compliance requirements across jurisdictions
Future relocation planning (Spain to Portugal scenarios)
Multi-jurisdiction estate planning strategies
Currency considerations (EUR vs GBP)
CRITICAL PLANNING POINTS:
Understanding UK temporary non-residence rules before leaving
Spanish tax treatment differences: no 5% yearly allowance Wealth tax exposure above the €3M threshold
Documentation requirements when notifying the carrier of a residency change
Future portability to Portugal or other jurisdictions
COMPARATIVE TAX ANALYSIS:
UK vs Spain: Tax treatment of bond withdrawals
Wealth tax implications unique to Spain
Estate planning across UK, Spanish, and Portuguese law
Currency risk management strategies
WHO THIS IS FOR: Wealth managers, tax advisors, trustees, and family office professionals advising UK clients retiring abroad or relocating to Southern Europe—particularly those managing offshore insurance-based structures.
