Illustrative case studies for Spanish clients

A Spanish resident entrepreneur is a tax resident in Madrid. His son lives in Mexico. The father wants to move to Mexico.

Needs

• Tax-efficient asset management solution
• Succession planning to secure family

 Solution

Estate Planning. Efficient and fast transfer of assets to heirs. No probation period, no collection of worldwide assets, no inheritance declaration.

• Asset Protection. As the assets will no longer belong to him but to the insurance company (subject to the rules for avoiding creditors’ defrauding).
•  Simplified Obligations. Only the policy value to be included in his tax return.
• Taxation. Spanish Tax Reform - Exit Tax, The life insurance is not included in this law. 

A Spanish resident is living abroad. He owns a portfolio of securities under a trust structure. His daughter and only heir lives in Madrid, Spain.

Needs

• A solution that complies fully with all regulations
• Replicate the existing trust

Solution

• Investment  Flexibility.  The  policyholder  can make investment decisions because he is not resident in Spain; therefore article 14.2h f f PIT does not apply.
• Taxation. Reduces inheritance and gift tax.
• Estate Planning. Efficient and fast transfer of assets to heirs. No probation period, no collection of worldwide assets, no inheritance declaration.
• Full Access. The client is entitled to withdrawals at any time, with full access to the underlying assets.