This bond provides a straightforward and convenient investment product for expatriates living in Spain, allowing them to minimise the impact of local taxes on their portfolio.
If your client wants all the benefits of a diverse portfolio wrapped up in one policy that’s Spanish tax-compliant, then the Spanish Collective Investment Bond (SCIB) could meet their needs. The investments available through the SCIB are restricted to ensure compliance with Spanish personal income tax law so, for example, bank deposits are not allowed.
Choice and simplicity
This bond is ideal for expatriates living in Spain as it offers them access to over 400 Spanish tax compliant funds from many of the world's leading fund managers. It's a simple, flexible way to save as it enables investors to:
- build and refine a flexible investment portfolio that meets their needs and complies with Spanish (and UK) tax law
- hold portfolios of different assets whilst saving time and trouble by leaving all the day-to-day administration to us
- hold a wide range of investments in a single life insurance policy wrapper
- start the bond with an initial investment of only €37 500 (or currency equivalent) and add extra amounts of a minimum of €1 825 (or currency equivalent) whenever they choose
- appoint third party investment managers for additional oversight
- utilise top slicing relief if applicable to help further reduce tax liability. Watch this video for more information.
- keep track of their investments by viewing a single electronic report via our award winning online service Wealth Interactive
- adapt and move their bond with them as circumstances change, although there may be restrictions in certain countries so financial advice is crucial to maintain tax efficiencies
- pay in, withdraw and invest in multiple major currencies (subject to our acceptance)
- flexibly access their capital free of charge, subject to minimum withdrawal amounts and a minimum surrender value
- postpone taxable events by managing the timing of withdrawals as in most countries the gains are not taxed until realised
- benefit from significant savings on initial fund charges, thanks to our negotiating strength
- receive just one tax certificate each year no matter how many underlying investments they hold (from January 2016).
Under current Irish legislation, Old Mutual International Ireland dac enjoys tax exemption in respect of the bondholder’s funds, offering your client certain tax advantages.
- Investments within the bond can grow virtually free of Income Tax and Capital Gains Tax (CGT), although there may be an amount of withholding tax on income which cannot be reclaimed.
Your clients can make changes to their investment portfolio without incurring any immediate tax liability, although a small administration fee will apply.
- As your clients’ investments in the bond are Spanish tax-compliant and held within a life insurance policy, they won’t need to pay tax each year on any gains. Instead, they can defer tax liability until they make a withdrawal or cash in the policy.
Manage your Old Mutual International business online
With our award-winning online service, Wealth Interactive, it’s fast, easy and convenient for you to do business with Old Mutual International, and for investors to monitor their Old Mutual International investment products. As well as submitting business online, you can also manage the whole of your Old Mutual International portfolio bond business with us through the service.
Clients who take out a new Spanish Collective Bond will be able to set up their online service account on Wealth Interactive and keep track of their investment straight away.
Supporting your recommendation
Watch our Techcellence videos to help your decision-making and provide key facts about important subjects including the UK taxation of offshore bonds retirement options, inheritance tax and trusts.
You can view the latest Spanish Collective Investment Bond Fund List.
For all other application forms and other documents please refer to the literature library.
You can also email to your clients a link to our consumer web page explaining the Spanish Collective Investment Bond.
Contact your Old Mutual International Sales Consultant or e-mail firstname.lastname@example.org to discuss how this could be the right product for your clients.