How is financial planning for expats in Spain like a game of chess?

Peter Dougherty of BISSAN Wealth Management thinks an important trait for a financial planner is being able to anticipate client needs. “Our business is similar to chess,” he says, “clients need financial planners that read the chess board well and know what the next moves should be before they are obvious.”

As Peter explains: “In chess, the movement of each chess piece is restricted. The knight moves in an “L-shape”, one (or two) square left or right horizontally and then two (or one) squares up or down vertically. The more we know about these limitations, the better. The same holds true with taxation for expats in Spain: local restrictions differ from what they knew at home. In fact, the entire philosophy of Spanish taxation is different.”

One way to improve one’s chess game is enrolling in a chess academy. More than a year ago, Mr. Dougherty enrolled in the equivalent - a Spanish tax institute. His efforts have now paid off: Instituto Europeo de Asesoría Fiscal just awarded him a master’s degree in taxation.

“I selected a Spanish taxation program with a comprehensive course of study called ‘Máster en Ficalidad y Tributación’ because of its across-the-board curriculum”, says Dougherty. “We studied the ins and outs of Spanish inheritance taxation, corporate taxes and income taxes, as well as taxes that are unique to Spain such as the Spanish wealth tax.”

An unexpected outcome of Mr. Dougherty pursuit of a master’s degree was that it led him to write and publish a new book. As he researched information for his tax program’s required thesis, Peter unearthed interesting information he thought others would find useful. His book is entitled: “La Hoja de Ruta Fiscal y Financiera para los españoles en EE.UU.” or “The Fiscal and Financial Roadmap for Spaniards in the U.S.” Published in May 2024, it has already received the Literary Titan Book Award, which “recognizes outstanding nonfiction books whose authors excel in creating informative, enlightening, and engaging works that offer valuable insights.”

Mr. Dougherty says: “You might think of Spanish taxes as just one more chess piece on the board of cross border financial planning. For an American expat in Spain, for example, U.S. taxes are another important piece. So, too, are investment and legal considerations, transfer and reporting policies, and currency exposure.

“A good financial planner, like a good chess player, must have knowledge of these diverse factors and take them into consideration in evaluating the entire (chess) board. Only then can they help their clients determine the best long-term strategies and move-by-move tactics.

“As Emanuel Lasker, holder of the world Chess Champion title for 27 years said, ‘When you see a good move, look for a better one.’”

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Peter Dougherty is certified as a European Financial Planner (EFP) by the European Financial Planning Association of Spain, as a Chartered Retirement Planning Counselor® and a Foreign Account Tax Compliance (FATCA) specialist in the United States, and as an Investment Adviser Representative by the North American Securities Administrators Association.

More information

Peter Dougherty, BISSAN Wealth Management

Mail: pdougherty@bissan.es

Telephone: +34 677 998 261

Web: www.bissan.es