Where in the World ? Tax Wealth Estates Where do - PowerPoint PPT Presentation

Where in the World …? Tax Wealth Estates

Where do we start? Tax Wealth Estates

About us Wilfred T Fry - Founder Tax Wealth Estates

Where in the World …? Tax Wealth Estates

Running Order Ed Read-Cutting Director, The Fry Group (Belgium) Marc Quaghebeur Lawyer and Partner, De Broeck Van Laere & Partners Jeremy Woodley UK Board Director, The Fry Group (UK) David Denton Head of International Technical Sales, Old Mutual International Tax Wealth Estates

And now … Tax Wealth Estates

The Tax Questions Marc Quaghebeur

Retirement planning in a nutshell • Income Tax • Capital Gains Tax • Wealth Tax • Inheritance laws and Inheritance Tax • Estate Planning • Gift tax

Every country is a tax paradise … if you know how

Put your affairs in order

Retirement income State pension Occupational pension Private pension saving Savings : • Investments : bonds and stocks • Real property

Double taxation Generally taxed in country of residence e.g. France, Italy, Portugal, Spain except Germany Luxembourg UK (country of source )

Double taxation Generally taxed in country of residence e.g. France, Italy, Portugal, Spain in country of source Germany Luxembourg UK

Double taxation Generally taxed in country of residence except UK (country of source )

Double taxation Generally taxed in country of residence

Double taxation Savings are generally taxed twice: Withholding tax at source and in country of residence

Double taxation Real property is taxed in country of source generally not in country of residence exemption with progression Italy, Spain, UK : foreign tax credit

Personal allowance : €7,270 Standard rates : 25-50% (€38,830) + BE standard rates BE standard rates Pension capital @65 : 5.55% + 10% = 15.5% 8% deducted @60 interest : 30% dividends : 30% BE standard rates on cadastral revenue

Personal allowance : €7,270 Standard rates : 25-50% (€38,830) + BE standard rates BE standard rates Pension capital @65 : 5.55% + 10% = 15.5% 8% deducted @60 interest : 30% dividends : 30% No Capital Gains Tax BE standard rates on cadastral revenue except SICAVS (bonds): 30%

€9,710 26.8-57.8% (€152,260) 12.8% FR standard rates FR standard rates > 8 y : 15.5% + 7.5% : 23% FR standard rates interest: 15.5%+21% = 36.5% dividends: 15.5%+24% = 39.5% FR standard rates on actual rent [exempt*]

€9,710 26.8-57.8% (€152,260) 12.8% FR standard rates FR standard rates > 8 y : 15.5% + 7.5% : 23% FR standard rates interest: 15.5%+21% = 36.5% dividends: 15.5%+24% = 39.5% Capital Gains Tax: FR standard rates 15.5%+19%= 34.5% on actual rent [exempt*] 0% movables : 12 years real property : 30 years

Wealth Tax If private wealth > €1,300,000 €0 - 800,000 : 0% €800,000 - 1,300,000 : 0.5% €1,300,000 - 2,570,000 : 0.7% €2,570,000 - 5,000,000 : 1% €5,000,000 - 10,000,000 : 1.25% >€10,000,000 : 1.5% New residents : five years exemption non FR assets

€6,500 (@65) 19-45% (€60,000) ES standard rates ES standard rates some planning is possible ES standard rates interest: 19-23% dividends: 19-23% ES standard rates on actual rent [tax credit]

€6,500 (@65) 19-45% (€60,000) ES standard rates ES standard rates some planning is possible ES standard rates interest: 19-23% dividends: 19-23% ES standard rates Capital Gains Tax: 19-23% on actual rent [tax credit]

€6,500 (@65) 14.5-48% (€80,640) (+ 0 - 3.5%) Habitual Non-Resident PT standard rates PT standard rates Tax Regime PT standard rates PT standard rates 10 years interest: 28% dividends: 28% PT standard rates on actual rent [exempt*]

€6,500 (@65) 14.5-48% (€80,640) (+ 0 - 3.5%) PT standard rates PT standard rates PT standard rates PT standard rates interest: 28% dividends: 28% PT standard rates Capital Gains Tax: 28% on actual rent [exempt*]

- 23-43% (€75,000) (+ 1.23-3.41%) IT standard rates IT standard rates IT standard rates IT standard rates interest: 26% dividends: 26% IT standard rates on cadastral revenue [tax credit]

- 23-43% (€75,000) (+ 1.23-3.41%) IT standard rates IT standard rates IT standard rates IT standard rates interest: 26% dividends: 26% Capital Gains Tax: IT standard rates Movables : 26% on cadastral revenue [tax credit] Real estate : standard rates > 5 years : 0%

Inheritance law Civil law countries • Inheritance rules : who inherits • Inheritance rules can be varied by will • Forced Heirship Rules : clawback • EU Succession Regulation : opt for national law

Inheritance Tax 3 Regions = 3 Inheritance Tax Codes Spouse/civil partner 3 - 30% Descendants 3 - 30% Brothers/sisters 20 - 65% Nieces/nephews 25 - 75% Others 30 - 80%

Inheritance Tax 3 Regions = 3 Inheritance Tax Codes Spouse/registered partner does not pay inheritance tax on the family home Flanders & Brussels Wallonia (€160,000) Ends when you give up Belgian domicile

Inheritance Tax Spouse / civil partner 0 Descendants (over 100,000) 5 - 40% Brothers/sisters 35 - 45% Nieces/nephews 55% Others 60%

Inheritance Tax Only on property in Spain or on what is inherited by a Spanish resident Rates vary per Autonomous Region according to value/kinship

Inheritance Tax Portugal has no inheritance / gift tax But 10% Stamp Duty on transfer not spouses/partners descendants

Inheritance Tax Spouse 4% (over €1,000,000) Descendants (over €1,000,000) 4% Brothers/sisters (over €100,000) 6% Others 8%

Estate Planning • Plan before you move • Use Belgian favourable tax rules • Invest wisely in view of the tax rules there • Make a Will

Estate Planning – Family Home • Sell Belgian home without capital gains tax • Buy new family home with the children children bare ownership parents usufruit • Donate bare ownership to children

Estate Planning – Pensions and Savings • Realise capital gains … tax free • If possible, redeem your pension • Invest tax efficiently whole life insurance tax exempt if > 8 years insurance wrapper tax exempt in Belgium

Estate Planning – Pensions and Savings • Joint life second death delays inheritance tax between husband and wife • In Belgium • Check inheritance tax treatment there

Jeremy Woodley UK Board Director The Fry Group (UK) Tax Wealth Estates

Try to avoid surprises Tax Arbitrage www.statutoryresidencetest.co.uk Tax Wealth Estates

CGT Income State Pensions Property Pensions Rental Investments Savings Employment Tax Wealth Estates

20 17 Tax Wealth Estates

www.savinginheritancetax.co.uk www.statutoryresidencetest.co.uk Tax Wealth Estates

EXPATRIATE WEALTH PLANNING DAVID DENTON FPFS TEP Chartered Financial Planner Head of Technical Sales Old Mutual International 53

This presentation does not form a personal recommendation and any products mentioned or shown may not be suitable for all investors Independent financial advice should always be sought to identify the most appropriate solution for an individual’s specific needs for contracts or products that might be appropriate. DISCLAIMER 54

AGENDA 01 02 03 04 WHO WE ARE? WHAT WE DO? WHERE WE A SELECTION OF DO IT OUTCOMES 55

OLD MUTUAL FOUNDED 1845 33 19.4m £393.3b Countries in which Customers Funds under we operate management Source: Old Mutual as at 30 June 2017 56

VOTED BEST INTERNATIONAL LIFE GROUP IN SIX OUT THE LAST EIGHT YEARS International Investment – International Fund and Product Awards 2016 International Adviser – International Life Awards 2017 - Europe Best single premium investment product • Best trust/estate planning product • Best online proposition • Best advice/customer support service • Best overall product range • 57

The only difference between death and taxes is that death doesn't get worse every time Congress meets. WILL ROGERS 59

WEALTH PLANNING Substantial tax codes Fast changing rules Numerous tax traps 60

WEALTH PLANNING WEALTH PLANNING = INVESTMENT STRATEGY (selection / monitoring / adjustment) + WRAPPER SELECTION (taxation / flexibility / simplicity) + ASSET PROTECTION (taxation / family / business / governments) 61

OLD MUTUAL INTERNATIONAL IRELAND’S (OMII) PROPOSITION IN EUROPE OMI Ireland market solutions in to the following jurisdictions: Spain • Sweden • UK • Belgium • Cyprus • Luxembourg • Malta & Gibraltar (Trustee pension bus. only) • 62

INVESTMENT OPTIONS EUROPEAN COLLECTIVE INVESTMENT BOND Structured Cash deposits Open ended investments Unit Trusts companies Exchange Investment Trusts Traded Funds 63