Country Specific Tax – Efficient Bonds

• Spanish Government Bonds (Bonos del Estado, Letras):
  • 0% WHT for EU/EEA residents
  • Short-term T-bills particularly tax-light
• Double Taxation Treaties reduce WHT for eligible non-residents

If you’re a Spanish tax resident and hold over €50,000 in:

• Offshore bank accounts
• Foreign investments (bonds, funds, shares)
• Real estate abroad

…you must file Modelo 720. Penalties for late or missing filings used to be severe but were eased after EU legal action. Still, non-compliance is risky.

Tip: Spanish residents can use EU bond funds or ETFs held via domestic platforms to reduce reporting burdens.

• OATs (French Government Bonds) and corporate bonds
  • WHT: capped at ~10% for non-residents with treaty status
• Foreign investors must often claim WHT relief after payment (no exemption at source)

• A life insurance-based investment wrapper used by millions in France
• Tax benefits:
  • Tax-deferred growth
  • Lower tax on withdrawals after 8 years (flat 7.5% after €4,600/€9,200 allowance)
  • Inheritance tax exemption up to €152,500 per beneficiary

Smart Move: Hold bond ETFs or UCITS funds inside an Assurance Vie for full tax efficiency and succession planning.

• WHT on interest: 30% standard
• But:
  • Zero-coupon bonds are often tax-neutral
  • EU financial institutions & funds may access reduced WHT via exemptions
  • Accumulative UCITS bond ETFs are popular with Belgian tax planners

Note: Belgium does not tax capital gains on bonds or ETFs unless they derive >25% from interest (under the Reynders tax rule).

• Greek Government Bonds: treaty-based WHT relief available
• UCITS-compliant bond funds/ETFs:
  • 0% WHT for non-residents
  • Favorable for residents under Greek fund tax regime

Local Insight: Greek tax residents enjoy 0% tax on capital gains from UCITS ETFs. Perfect for bond exposure with low complexity.

• Government and corporate bonds: WHT typically 28%, but treaties can reduce this to 10–15%
• Local income tax on interest can be avoided or minimized for certain residents

• Tax-advantaged retirement savings plans
• Tax deferral + reduced exit tax (~8%) for long-term holding
• Bonds, funds, and insurance-based structures allowed inside

• Investment residency scheme (now restricted, but historical bonds and funds still held by GV investors)
• Previously allowed investment in Portuguese bonds or PPRs to qualify for residence
• Recent reforms phase out property-based Golden Visa; fund investments still viable

• Up to 10 years of flat tax on foreign income:
  • 0% on most foreign bond income (if not Portuguese sourced)
  • 10% on foreign pensions
  • Exempts some categories of capital income
• Ideal for retirees or entrepreneurs relocating to Portugal

Pro tip: Combine PPR with NHR for ultimate low-tax growth on bonds and pensions.

• Bonds taxed at 26% standard flat rate
• Tax treaties reduce WHT for non-residents

• Tax-free wrapper for Italian/EU stocks, bonds, and funds
• Benefits:
  • Tax-free after 5 years
  • Up to €40,000/year, €200,000 total investment
  • At least 70% in EU/EEA assets; 30% must be small/mid-cap or private equity

Ideal for Italian residents building long-term portfolios with bond components.

• France: Use Assurance Vie for tax-efficient bond income and estate planning
• Spain: Use T-bills + comply with Modelo 720 for foreign bond accounts
• Portugal: Combine PPR with NHR for powerful tax breaks
• Greece: Go UCITS-only for true 0% income tax exposure
• Italy: Use PIR for long-term, tax-free EU bond accumulation
• Belgium: Hold zero-coupon or reinvesting bond funds to avoid WHT