Autumn is a natural time for checklists. As the year winds down, many expats and retirees take stock of their finances, review investments, and prepare for the year ahead. Yet legal and insurance matters — arguably the foundations of security abroad — are too often left to the bottom of the list.
For those living in Spain, Switzerland, or across the EU, cross-border life brings opportunities but also complexity. Laws differ, insurance policies don’t always travel well, and what works in one country may fall short in another. As we move into 2025, there has never been a better time to future-proof your life abroad.
Inheritance rules across Europe can differ sharply, and for expats, these differences can have costly consequences if left unchecked.
Fact check: According to the European Commission, over 450,000 cross-border successions occur every year in the EU, representing more than €120 billion in assets. Without planning, many heirs face delays, disputes, or double taxation.
Don’t assume your UK, Swiss, or home-country insurance automatically protects your overseas property. Local, specialist cover is almost always required.
Estate plans “must account for both UK inheritance tax law and the local succession or wealth tax rules in your country of residence” (Private Client Consultancy). In 2025, the UK switched to residency-based inheritance tax (IHT): a Long-Term Resident (LTR) will have been a UK tax resident for at least 10 of the past 20 years, and under the “tail” rule, will remain liable for IHT for 10 years after they left the UK. In addition, non-UK assets now fall within the range of IHT for LTRs. Fast forward to April 2027, and unused UK pensions will be included in an individual’s estate for IHT purposes.
These significant changes make it crucial for HNWIs with UK connections to review the impacts on their financial affairs and broader family succession plan. In contrast, Spain offers near-zero exemptions on succession tax in regions like Ceuta and the Canary Islands (www.movingtospain.com/spain-regional-tax-comparison/).
Fact check: In 2023, Spain recorded over €850 million in insured losses from natural disasters, according to UNESPA (Spanish insurance association).
If you own property or assets abroad, ensure your wills are aligned in each jurisdiction and updated to reflect current family and tax circumstances.
Did you know that Madrid offers 0% wealth tax? This exemption means that “moving assets out of the UK could potentially improve your tax liabilities for yourself and your heirs in the future” (Blevin Franks, ‘UK tax in 2025 and beyond: What British expatriates in Spain need to know’, www.blevinsfranks.com/uk-tax-in-2025-and-expats-in-spain/, 2025), though it’s still just as crucial to coordinate local wills due to forced-heirship rules.
Knowing that allocating assets to international investment accounts held on EU platforms can alleviate the tax burden for your heirs, and offer a useful tool for international expats to manage wealth. Furthermore, it’s worth investigating using trusts, such as a usufruct structure, to reduce succession tax on property.
As ever, good organisation and record-keeping contribute plentifully to the process: categorising collectables; keeping good records for stock and property investments; listing gifts with their dates – and importantly, having clear communication with family members.
It’s not unusual for retired expats to make generous gestures while living, choosing to shed complicated assets, consolidate pensions, or gift in the form of charitable donations or future education funds. These choices will minimise future tax exposure.
On further reflection, intentional gestures teach later generations the power of kindness, the necessity of financial independence, and the fulfilment of charity. This emotionally driven behaviour often loops back to real life. Families who inherit thoughtfully are better equipped to manage wealth responsibly, internalising values instead of simply inheriting assets.
