Private Wealth Portfolio

You can take advantage of the many benefits offered by Private Wealth Portfolio:

Effective tax management 

Effective management of tax liabilities is essential to optimising wealth management. Life insurance policies offer the highest degree of tax efficiency in Spain, and Private Wealth Portfolio has been designed to help you minimise your tax obligations.

  • Tax on the capital gains from investment growth within your policy is deferred until you make a partial or full surrender. This offers a significant advantage over direct investments where you pay tax on gains on a yearly basis.
  • If you make a partial or full surrender of your policy, tax is only applied on the proportional capital gain.
  • Proceeds payable to any beneficiary other than the policyholder are not subject to income tax. In a number of Spanish regions, proceeds paid to a spouse, ascendant or descendant also benefit from reductions in Inheritance and Gift Tax (IGT) of up to 99%.
  • A maturity date can be set for payment of the benefit, ensuring that part or all of your wealth is transferred to the next generation on a specific date. If you change your mind, you can extend the maturity date for consecutive periods of one year.
  • Private Wealth Portfolio gives you or your advisor the ability to determine when or if a liability to Spanish tax arises, and this can only happen on the occurrence of a chargeable event.

Dynamic transmission planning 

  • Private Wealth Portfolio is a valuable instrument for the smooth transition of your wealth from generation to generation.
  • Insurance is the only investment vehicle that sits outside the will and does not form part of the estate. Upon death, proceeds are paid directly to the beneficiaries.

Term options 

You can choose the length of your policy. Your options are:

  1. Whole of Life – the policy has no maturity date and ceases upon the death of the life or lives assured.
  2. Mixed – the policy has a fixed maturity date which can be subsequently extended for consecutive one-year periods. The contract then ceases upon the earlier of either reaching this maturity date or on the death of the life or lives assured.

In both cases, the policy can be terminated at any time by full surrender, ensuring immediate liquidity.

Life assured options 

The options for the lives assured on your policy offer a degree of flexibility that other wealth planning products cannot. Lives assured can be:

  • Single life
  • Joint life – First death
  • Multiple lives – Last death

Policyholder type options  

Policyholders can be individuals or companies, with the tax treatment in the case of the latter being in accordance with Spanish corporate tax rules.

Currency choice 

You can choose the currency of your investment in either Euro, US Dollar, Swiss Franc or Pound Sterling. The minimum initial premium is EUR 500,000 or equivalent in these currencies.

The information provided is based on our understanding as at 30th May 2016. Fees and charges apply. There may be a delay in processing surrender payments where the investment portfolio contains illiquid investments. You should discuss the taxes, fees and charges applicable to Private Wealth Portfolio with your financial advisor before you apply for this product. Your financial advisor will provide you with the guidance and advice that you need to make Private Wealth Portfolio work effectively for you.


Key Information