I'm investigating about the 'Spanish Compliant Bonds', an investment product that is tax-friendly for Spanish tax residents.
The most detailed report I have found about them is here. Still, I don't understand at all what are these bonds.
First, are these bonds actually bonds? Can they be mutual funds? One of the rules in the above document says: Funds must be invested in a tax compliant life insurance bond. What is a tax compliant insurance bond?
My understanding is that 'Spanish Compliant Bonds' are any fund that accomplish certain rules (listed in the above document), Is this correct? e.g. Investment funds available for selection have to be EU UCITS.
This document still doesn't clarify my above questions, but I have read that this kind of investment is only for foreigners. It seems it's not suitable for Spanish nationals. How is this?