What exactly is a unit-linked life insurance plan (Fondovida)?
A unit-linked plan combines two things in one contract: life insurance and an investment. With Allianz Fondovida, your contributions are invested in a portfolio of funds, so your savings can grow while keeping the structure and legal advantages of a life insurance policy.
Why is it more tax-efficient than investing directly?
Because of tax deferral: while your money stays in the policy, you pay no tax on the gains, even when you switch funds. You only pay income tax when you withdraw, and only on the gain portion, so compound growth works on your full balance in the meantime.
Is my money locked in?
No. You can withdraw part or all of your money from the second month of the plan, without the lock-in of pension plans or fixed-term deposits. You receive the value of your funds on the day of the withdrawal.
I have savings in a UK ISA or on a foreign platform. Why consider a Spanish unit-linked plan?
Once you're tax resident in Spain, most home-country wrappers lose their tax advantages, and their income and gains are usually taxable here. A Spanish unit-linked plan follows Spanish rules: no tax while you stay invested and only the gain taxed when you withdraw. We review your situation with you, and with your tax adviser if needed.
What does 'switch funds at no cost and without tax' mean?
Inside the policy you have an open range of funds. If markets change or your risk profile evolves, you can move your money from one strategy to another (for example, from equities to fixed income) as often as you need, free of charge and without paying tax on the gains made.
How much do I need to start?
You can start from €50 a month with regular contributions, or with a single premium, and add extra contributions at any time, for example after selling a property or receiving an inheritance.
Who manages my money inside the plan?
Depending on your profile, your money is invested through leading asset managers such as Allianz Global Investors, PIMCO and BlackRock.
What happens to my investment if I die?
As it's a life insurance policy, the accumulated value goes directly to the beneficiaries you designate, which makes the process faster for your family. They'll pay Spanish inheritance tax on it, with reductions that depend on the region and their relationship to you.
What level of risk do I take?
You decide. After a suitability test with your adviser, you can choose from very conservative fixed-income options to equity, thematic or sustainable (SRI/ESG) funds. The value of your policy is not guaranteed and moves with the funds you choose.
Can I follow how my funds are doing?
Yes. You have access to your private My Allianz area with the daily value of your investment, and we can set up alerts on gains and losses so that you and your adviser can react quickly when markets move.
