Non-compliant offshore bonds hit by Spanish tax rises

Whilst the increase in Spanish personal income tax for 2012 and 2013 does apply to all offshore bonds, Skandia International says that there will be little or no affect on tax-compliant policies if surrender by Spanish residents is deferred to 2014. This is because the policy only becomes subject to tax in the year in which proceeds are paid out. Explaining further, Skandia International's Head of Product Law and Commercial Gain, Rachael Griffin, says that following these changes, from 1 January 2012 until the end of 2013, gains on tax-compliant offshore bonds will be taxed at a flat rat...