Spain’s mature market for wealth management and the high quality of life are attracting international families, especially from Latin America.  Jesus Cano, Head of Spain and Latam at Gatsby & White, expects that recent tax changes, putting pressure on how families manage their wealth, will lead to increased demand for independent and experienced insurance advice.

How are you and Gatsby and White serving markets like Spain?
I recently joined G&W as Head of Spain and Latam. I have had 30 years in the financial sector and 20 years in the life insurance industry. This experience has shown me that life insurance is an excellent tool for wealth management, asset protection, and succession planning, especially for families living in Spain. We find the best options available in the life insurance industry by having long-term relationships and agreements with the most important providers and partners like private bankers, wealth planners, tax advisors, lawyers, and family offices.  I am based in Spain/Madrid, providing the best service to the clientele in resolving their complex issues.

What are the trends and opportunities?
In the last two decades, we have seen a lot of European, Latin American, and other international families moving to Spain attracted by the high quality of life and seeking peace of mind settling in a new country. We have actively participated in helping them “land smoothly.” This includes asset protection for entrepreneurs, top executives, and businesspeople providing for the transfer of wealth to the next generation, including succession planning and replicating fiduciary solutions like trusts in Spain.

Liquidity is essential during the transition of shareholdings from one generation to the next, particularly taking into account illiquid holdings like investments in companies and real estate. We can offer high-death cover solutions that can provide liquidity in the event of conflicts between family members or generations. It is important to have a solution in place that can provide additional liquidity at the time of transition such as the death of a parent as it can help to prevent conflict.

How can the life insurance solutions help with Spain’s recent tax changes?
In July 2021, the Spanish Government approved changes that included measures affecting the most important investment vehicle for wealth management, the Spanish SICAV. Clients must adapt to the new scenario before the transition that ends in June 2023. The Spanish Government has also announced important tax changes regarding personal income and capital gains taxes and the creation of a new wealth tax called “Impuesto a la Solidaridad” that will be effective in 2023. Life insurance is a well-regulated solution at the national and European levels and the only investment structure that allows the deferral of income and capital gains. Investing through insurance in asset classes including bonds equity, hedge funds, private equity investment funds, and ETFs avoids any tax impact until the moment of surrender, partially or totally.

As the leading European life insurance platform, Gatsby and White is perfectly positioned to advise a suitable and compliant solution, helping clients to navigate through these political and legal uncertainties, and providing peace of mind.