European hidden gems that are perfect for a spring break

With so many headlines about tourists taking over popular holiday spots and governments introducing restrictions, such as tourist taxes and bans on new hotels or souvenir shops, you might find it harder than ever to decide where to travel next.

Luckily, Europe is filled with amazing places you can visit to get the authentic experience of that country without fighting your way through crowds of tourists.

Read on to discover our top 10 hidden European gems for the perfect spring break.

1.  Naxos, Greece

If you’ve always wanted to visit Santorini but don’t want your holiday interrupted by tourists queueing for the perfect picture, you might want to head to Naxos instead.

This beautiful island boasts ancient ruins and traditional white-washed buildings that draw people to Santorini without the huge crowds. Discover the island’s fascinating history by visiting the Temple of Apollo, or relax on the long stretches of sandy beaches.

2.  Berat, Albania

Berat is often referred to as the “City of a Thousand Windows” because of the incredible stack of Ottoman houses on the side of Berat Hill.

Visit the Bogovë Nature Park and Lake Komani to experience the gorgeous natural landscape and secluded waterfall, or climb to the top of Berat Hill to explore the incredible 13th-century castle.

3.  Valencia, Spain

This stunning port city sits on the same coastline as Barcelona, so you can enjoy the gorgeous beaches and incredible architecture without battling your way through a crowd.

Explore the rich history of Valencia through an interactive museum, explore one of the many walking trails through the beautiful landscape, or soak up the sun on the beach.

What’s more, research concluded that Valencia is the most affordable city in Europe for a pint of beer!

4.  Kotor, Montenegro

If you were considering visiting Croatia, you might want to pop next door to Montenegro instead.

With the same picturesque Mediterranean coastline and sunny weather, Montenegro has the same rugged mountains and enchanting medieval villages while being less crowded than more popular destinations like Dubrovnik.

Visit the Venetian fortifications in Kotor for a taste of history or take a dip in the stunning Bay of Kotor if you’d prefer to relax.

5. Graz, Austria

If you’re looking for a sustainable city break, Graz is the place to go. Although it’s Austria’s second biggest city, it’s often overlooked.

Surrounded by the Styrian countryside, the city takes fresh produce, vegetarian dishes, and creative recipes to a new level that will deliver the best of Austrian cuisine.

6.  Wroclaw, Poland

With the Czech Republic introducing increasing restrictions on tourists in Prague after they started taking over entire zones of the city, you can avoid the hordes and get a similar experience by visiting Wroclaw instead.

Explore the dazzling Gothic architecture and the picturesque Oder River in the daytime, and visit Speakeasy-type bars and fine-dining restaurants to make the most of the city’s electrifying nightlife.

7. Porto Santo, Portugal

Madeira is currently enjoying its moment in the spotlight, but a smaller island only a three-hour ferry ride away remains one of the best European beach escapes.

Porto Santo is more beach than island, with a nine-kilometre stretch of sand backed by rolling hills and lush greenery. Relax in the sun, or venture out into the wilderness along the island’s many hiking routes.

8.  Ghent, Belgium

If you’re looking for the same fascinating architecture and local culture as Amsterdam without having to pay extra for tourist tax, why not head to Ghent in Belgium instead?

Filled with quirky bars and an amazing pedestrianised city centre for you to explore, Ghent boasts a medieval castle and Michelin-starred restaurants, so there’s something for everyone to enjoy.

9.  The Frosinone Valley, Italy

Halfway between Rome and Naples, the Frosinone Valley is often no more than a stop for travellers. However, it hides the incredible Abbey of Montecassino and the Valle di Comino, where some of Europe’s deadliest battles have taken place.

But if you’d prefer to search for postcard-perfect views, Frosinone is also the place for you. Sip award-winning cabernet in the vineyards or head to San Donato Val di Comino for incredible mountain views.

10. León, Spain

There are so many popular cities in Spain. However, León is another that escapes most people’s notice.

Home to one of Gaudi’s designs, the architecture is the city’s main attraction. Casa Botines, one of his only works outside Catalonia, makes it the perfect place to visit if you want to experience history without the hustle and bustle of Barcelona or Madrid.

Business owners: 5 reasons you could benefit from saving into a pension

Building a business can be exciting and rewarding, and it might play a key role in ensuring you’re financially secure now and in the future. Yet, focusing all your attention on your business could mean you miss alternative ways to provide security later in life, including overlooking a pension.

Indeed, according to a January 2024 report in This Is Money, around half of business owners aren’t regularly contributing to a pension.

Many business owners may plan to use their business to create an income once they’re ready to step away from work. You may plan to sell your business to a third party and live off the proceeds, or remain a shareholder of the firm and take a dividend income.

While your business could provide for you in retirement, it isn’t always a reliable option, and it might not be the right one for you. Read on to find out why and discover how a pension could support your long-term financial security.

Your business might not deliver the retirement security you expect

Even if your business is thriving, there are some challenges you could encounter if you plan to use it to fund retirement.

The funds might not be readily accessible

While you might have enough money tied up in your business to fund retirement, it’s not always simple to access the money, especially if you plan to sell your company.

Finding the right buyer for your business can be a time-consuming and lengthy process. Delays may mean you need to push back your retirement date if you don’t have other assets you could use to create an income. This could be particularly challenging if changing circumstances, such as your health, mean you want to retire sooner than expected.

Selling your business for the “right” price isn’t guaranteed

Whether you plan to sell the business to a family member or need to find a buyer, you’ll often need to negotiate a price, and selling the firm for “enough” to support your retirement goals may not be guaranteed. 

In some cases, a business owner might struggle to find a suitable buyer too. As a result, relying solely on your business could mean your retirement plans are uncertain.

So, even if you plan to use your business to support your later years, taking other steps to create a retirement income could help you feel more confident about your future.

The tax-efficient benefits of using a pension to save for your retirement

It’s important to remember that you can’t normally access the money saved in your pension until you reach retirement age, which is 55 (rising to 57 in 2028). So, if you’re saving for short-term goals, alternative options could be better suited to your needs.

However, if you’re thinking about your long-term financial security and how to create a retirement income, a pension could be an option worth considering for these five reasons.

1.  Your pension contributions could benefit from tax relief

To encourage you to save for your retirement, your pension contributions will benefit from tax relief, providing a boost to your savings.

The amount of tax relief you receive usually depends on the rate of Income Tax you pay. So, if you pay Income Tax at the basic rate and want to increase your pension by £1,000, you’d only need to add £800 as your contribution would benefit from £200 of tax relief.

To boost your pension by £1,000, the amount you need to add as a higher- or additional-rate taxpayer is £600 and £550 respectively.

Your pension scheme will often claim tax relief at the basic rate on your behalf. However, you may need to complete a self-assessment tax return to claim your full entitlement if you’re a higher- or additional-rate taxpayer.

2. Your pension contributions are often invested

Normally, the money you place in a pension is invested. This provides an opportunity for the value of your pension to rise over the long term.

As your pension contributions may remain invested for decades, the compounding effect could mean your initial contribution has significantly increased by the time you retire.

Of course, investment returns cannot be guaranteed and it’s important to weigh up what level of financial risk is appropriate for you. However, historically, financial markets have delivered returns over a long-term time frame.

3. Investments held in a pension are not liable for Capital Gains Tax

Returns from investments that you don’t hold in a tax-efficient wrapper may be liable for Capital Gains Tax (CGT).

Fortunately, investing in a pension means your returns won’t be liable for CGT. So, if you’re investing for the long term, a pension could offer a way to mitigate a potential tax bill.

4. Contributing to your pension could reduce your business’s tax bill

Employer pension contributions are often an “allowable expense”. This means your business could deduct contributions to your pension for Corporation Tax purposes, which might reduce your business’s overall tax bill.

Tax treatment varies and is subject to change. If you’d like help understanding how you could balance retirement planning with your firm’s finances, please get in touch.

5. Separate your business and personal finances

For some business owners, separating your personal finances and those of your firm could be useful.

Using a pension to save for retirement might offer you some security – even if the circumstances of the business or personal goals change, you may have a safety net to fall back on should you need to. For example, if ill health means you want to retire earlier than expected, having a pension, rather than relying solely on your business, could provide you with more freedom to choose what’s right for you.

We could help you create a long-term financial plan

As financial planners, we could help you build a long-term financial plan that considers your goals and circumstances, including using your business to support your aspirations. Please get in touch to arrange a meeting with one of our team. 

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.