The OPES International Pension Plan Spain is aimed at enabling UK expat residents in Spain to avoid a range of inheritance and wealth taxes there, and to allow for multiple wealth succession options.
According to OTAP director David Higgins, the product has “overcome some of the issues that trust structures face from civil law countries, whilst enhancing the established advantages. OPES can be used to enhance the benefits of Spanish compliant bonds and consolidate client assets”.
A key feature of the product, which reports in various currencies, is a highly tax efficient income with minimum tax liability irrespective of the level of income generated.
On the investment front, it can hold EU compliant life bonds, UCITS investments, DFM arrangements and deposits.
Minimum investment is £50k with annual fees starting from £975.
Rex Cowley, co-founder of OTAP, said this product “sees the marrying of Guernsey law and Spanish Civil law to create a very country specific product that offers a far more robust environment that a pure international product offers.
“By doing this we have overcome a host of issues expats face in Spain in terms of asset reporting, wealth taxes and also have the ability to provide income which is highly tax efficient at around a maximum of circa 3.5% irrespective of the level of income taken.”
He added: “OPES was initially launched by Close Brothers in 2005 and has served clients well. However, following our acquisition of this business, from Kleinwort Benson, we were compelled to further enhance the product given changes to Spanish legislation and client demand. The enhanced OPES is as a results of a significant investment and is backed by multiple legal opinions from leading law firms which build on its successful past. So as clients come under increasing pressure from hard-hitting tax and reporting requirements OPES is a welcome solution”.
The plan falls outside of the EU Tax Directive and can be converted into a QNUPS if and where required.
Other key features highlighted by the company include:
- Not subject to the new Spanish asset reporting rules prior to benefit
- Not subject to Spanish wealth tax prior to benefit
- Accumulation of income, interest and gains free of tax during accumulation phase
- Full fund available after age 50
- Retirement age up to 80
- Income can be structured at any level without restrictions unlike QROPS or QNUPS
- Income provided by temporary annuity so any remaining fund available post death
- Personal Spanish income tax liability on income benefit reduced to between 2.5% pa and 3.3% pa depending on clients’ marginal rate
- Can hold Spanish compliant offshore life bonds or capital redemption bonds
- Open architecture investing via UCITS funds and cash deposits
- Facilitates use of discretionary fund managers
- No cap on contributions
- The plan is Guernsey domiciled
- Not subject to MIFID or IMD
- Option to switch to QNUPS at any time if desired
- Mitigates probate costs
