Utmost International Spanish Collective Investment Bond
Utmost Spanish Bond
The Utmost International Spanish Collective Investment Bond (formerly Quilter International and Old Mutual) is a popular tax-compliant investment option for more experienced expatriate investors residing in Spain. It is a unit-linked, whole-of-life, lump sum investment policy, designed for long-term holding, typically five years or more.
Key Features & Benefits
A standout benefit of this investment is its flexibility. Unlike its competitors, this investment is open architecture, meaning that most ETF, Index Fund, or Mutual Fund can be held within, provided they are European-compliant or a UCIT. This provides greater freedom with investment strategies, making it suited for experienced or sophisticated investors. Some may want to replicate strategies held within their previous tax-efficient investments or have personal preferences for specific investment funds. However, this flexibility comes at a cost compared to other Spanish Complaint Bonds and typically requires a larger minimum investment amount.
Estate Planning & Tax Efficiency
Since the bond is structured as a whole-of-life policy, it allows for multiple policyholders (e.g., spouses), ensuring that 100% of the investment passes directly to the surviving holder without Spanish inheritance tax or probate delays.
Additionally, this type of investment structure has the potential to mitigate Spanish wealth tax, making it a strategic option for tax-efficient investing in Spain.
Pros & Cons
Pros
Strong reputation
One of the largest international life assurance providers
Tax-efficiency
Benefits from tax deferral, compound growth, and proportional tax relief
Flexible investment approach
Suitable for both cautious and adventurous investors
High investor protection
A well-regulated and secure investment structure
Multi-currency options
Multiple currencies can be held within one bond
Diverse fund selection
Access to a wide range of EU-regulated funds
Spanish wealth tax advantages
Can help reduce exposure to Spanish wealth tax
Cons
My Verdict
The Utmost Spanish Bond is an excellent choice for experienced expatriate investors in Spain who seek a highly flexible, tax-efficient investment structure. Its open architecture allows access to a wide range of ETF, Index, and Mutual Funds, making it ideal for those with specific investment strategies. Additionally, its estate planning and tax advantages make it a strategic option for long-term financial security.
However, if you prefer a smoother, lower-risk investment approach with built-in protections against market volatility, the Prudential International Investment Bond might be a better fit. It offers a well-established smoothing mechanism and a strong track record, making it more suitable for those prioritising stability.
If you are an existing Utmost or Quilter policy investor requiring a health check of your portfolio, or if you are new to investing as a resident of Spain, please contact us for further information by filling out the form below.