Offshore Banking, Savings and Investment News
News and information for expatriate and international investors and savers.
All expats have financial concerns it seems: the solution is to be as informed about your options as possible
The Bank of Montreal’s Wealth Institute has conducted a survey of newly arrived expatriates in Canada to determine what their main challenges are when attempting integration in their newly adopted nation. And the findings universally and unequivocally underpin Shelter Offshore’s overriding objectives when writing for our readership: i.e., expats must get money matters straight when moving abroad.
The survey has highlighted that a range of financial challenges face expats when they relocate to Canada, and that overcoming these will make a real difference when it comes to successful integration and ongoing happiness within a new nation.
Many who plan a relocation overseas fail to closely estimate how much such a move will cost, neither do they factor in the changes to their financial position such as tax status and how that can impact on disposable income for example. If you’re planning a move abroad you need to do so from as strong a financial position as possible, and if you’re living abroad you need to be informed about the range of possibilities open to you for the best management of your wealth.
How taking a sceptical approach to any pension or QROPS advice is critical in order to avoid tax traps and bad advice
The money headlines in the mainstream British press today are focusing on the new pension freedoms that will come into effect in April 2015. You’ve probably all heard about the fact British retirees will no longer have to buy an annuity – bringing British pensions in line with QROPS to a certain extent. But from April 2015 those over 55 will be able to dip in and out of their pension pot whenever they so choose. And the big bonus that’s being promoted is that every sum withdrawn will be 25% tax-free.
Wow! So 75% of what a British retiree takes will be taxable then? If you read the neatly spun descriptions of what the new rules will mean, you’ll learn that Chancellor George Osborne is all about putting pension power back in the hands of the pension pot owner. And if you read all the positive headlines about QROPS for expats you’ll discover the same sort of rhetoric. No longer forced to buy an annuity, 25% tax-free lump sum(s), no 55% tax charge upon death…
But the real truth is this: everyone is gambling with your pension. The Chancellor, the financial adviser, the pension company, the investment specialists…they all have a genuine (financial) vested interest in your pension. And if you’re not careful you could be walking into the biggest tax trap of your life when you retire. So, here are 3 ways you can protect yourself:
Why expats need to think at least twice before buying a property abroad
There are probably plenty of countries where you’d really think twice before committing to a property purchase. Countries where it’s widely accepted that legal practices are non-supportive of foreign buyers for example, places where political or economic instability undermine the real estate market perhaps, or locations where there is simply very little desire to live!
However, these aren’t the countries that can teach us the biggest lessons about why expats really should avoid buying property abroad! In fact, you need look no further than Italy if you want to truly understand why we at Shelter Offshore, (and many others), strongly believe all expats should rent a property abroad, at least until they know their chosen nation’s laws inside out!
In an incredibly thought-provoking article in the Telegraph’s Expat Life section, British expatriate writer Nicholas Farrell lays bare his family’s almost unbelievable struggle to buy and sell property in Italy. The well-written article should serve as a warning to any expat thinking of buying property anywhere in the world!
A new TV series is looking for expats who’ve escaped abroad to live an extreme existence in a remote location
Whilst many of us dream of starting a brand new life abroad, only a very small handful of people dream of escaping abroad and starting a brand new life a million miles from the beaten track. But does this sound like you? Have you escaped abroad for a new life far from your old routine? Are you living in a remote part of the world, on an island, in a forest, up a mountain?
If you have, would you like to share your experience with the wider world? A British television production company is planning a series of programmes focusing on expatriates who’ve made a brave and bold escape to a hidden corner of the world.
The show, Escape to the Wild, will be presented by Kevin McCloud, and he will spend a period of time living with the featured expats, getting to understand why they’ve chosen an extreme escape, and trying to discover whether the remote or isolated life they’ve chosen has benefitted them as they most probably planned and hoped when they set out upon their adventure.
How to succeed in applying for an immigration visa to live, work or retire to New Zealand
If you’re considering applying for a visa to live in New Zealand one of the most important pieces of information you can have is why your application might potentially fail. Knowing what you’re up against may enable you to structure your application appropriately to avoid the hurdles! In this article we’re going to discuss the application process, and where it often fails for Britons who want to live in New Zealand.
The good news is that New Zealand is a very welcoming country in terms of its visa policies – at least in theory! By that I mean that the visa programme has been designed to enable the nation to remain as economically strong as it can be – therefore if you possess the skills or indeed the investment capital that the country wants to support its economy, you will be welcomed with open arms!
However, as anyone who has visited the Immigration New Zealand website will already know, there is a heck of a lot of red tape involved in the actual application process. Don’t be put off! If it’s your dream to live, work or retire in New Zealand here’s what you need to know.
FACTA is impacting on American expats’ financial freedom and is perhaps an indicator of things to come for all expats
We receive many requests for information and advice from American expats reading our website. They all want and need assistance with sorting out their increasingly complex financial affairs. I say ‘increasingly complex’ because that is the reality for every single American expat…because of the US’s own extreme crackdown on money laundering and tax evasion that’s seemingly having a far bigger impact on the lives of normal expats than any potential criminal.
And the sad fact is this, if you’re an American living abroad or you’re an expat living in America we can’t help you. And neither will any financially related organisation in Europe it seems. None of the companies that we have professional connections with that offer British, European or even Australian or New Zealand expats regulated financial advice and solutions can offer even so much as an opinion about an American’s financial position.
As a direct result of the US’s crackdown on illegal money movements every single American expat has been left out on a financial limb. The workarounds that these expats have to go to in order to get their hands on their own money is extreme. But the worrying thing is that the American model is much admired by many in the UK and Europe. So could these financial shackles be the future for all expats, no matter what their nationality and where in the world they want to live?
If you own an ailing expat hotel business abroad you can get help from the Hotel Inspector Alex Polizzi
Many Britons dream of escape abroad – and one way of making the escape a reality is to take on a new business overseas, and turn your plans for a new life abroad into a practical reality funded by your hard work! For anyone who has already taken the plunge only to discover that perhaps it’s not as easy as it once looked…help is now at hand!
The Hotel Inspector Alex Polizzi is set to return for a brand new series: and the show’s producers are looking for expat owners of struggling hotel, gite or B&B businesses overseas. Chosen applicants will get the help of this exceptionally successful hotelier and hopefully be able to turn their ailing business around.
Fans of the show will be aware that this isn’t the first time Alex Polizzi has ventured abroad to help those in need of her no-nonsense style of approach to the hospitality business. Previously Alex went to Switzerland. Now the show’s producers are looking at the likes of Spain and Portugal’s Algarve region for struggling expat hotel owners who want Alex’s help.
HMRC wants to change the law to be able to brand an expat with inadvertent unpaid taxes a criminal with no grounds for mediation or settlement.
HMRC is behaving like a wounded animal, it’s lashing out in confused and violent anger, attacking any soft target because of the pain it’s suffered at the hands of professional tax evaders.
Rather than focusing on sorting out the real problems with the global giants which utilise poorly worded tax rules to move tax liability to non-tax-charging nations, HMRC is consulting on new rules to brand unsuspecting expats criminals – even in their absence from the UK tax system, and even in the absence of any criminal intent!
Yes, as confusing and even as nonsensical as that may sound, it’s the truth. HMRC has an open consultation running until the end of October to try and pass measures that will enable it to levy criminal charges at the doors of those who may inadvertently have missed a declaration to the UK taxman of taxable income.
Expats in Turkey have been left confused by the government’s changing policies relating to compulsory health insurance.
In June the Turkish government decided to change the rules relating to the requirement of all expats to have compulsory health insurance if they wanted to gain residency to live in Turkey. Now, if you’re over 65 you no longer have to have medical insurance in place – however, was taking this step a sensible one?
British expats like to play by the rules if they possibly can – it’s the British way! But a country like Turkey can try the patience of a saint…let alone a British expat who wants to remain on the right side of the law when attempting to gain or retain residency to live in Turkey. The confusing rules about who must have health insurance and where they are allowed to buy it from have been creating a lot of difficult for many expats.
Those who are considering moving to Turkey have apparently been put off the nation because of the expensive addition of the medical insurance requirement to the whole relocation business. And some living in Turkey already who have taken out expensive medical insurance now believe they needn’t have done so. So, for the record, we will explain the truth about compulsory medical insurance for any expat/would-be expat who wants to go and live in Turkey.
Could you be about to lose £4,000 income a year? Here’s how can you fight back and protect your position.
The British Chancellor first introduced the question of whether British expats should be exempt from benefitting from the UK’s personal income tax allowance in his March 2014 Budget. Since then the idea has been relatively well-documented in the media, therefore many expats are already aware of the threat to their UK sourced income.
However, now is the time for all expats to take direct and decisive action against this threat by taking part in the government’s current consultation on the matter. Expats and other interested persons have until October the 9th to get involved by sending their responses to consultation questions to the Specialist Personal Tax Consultation team at HM Treasury.
In this article we will lay out the threat to your income, and everything you can do about it. From getting involved in the consultation process, to restructuring your income producing assets, from selling UK property to moving your pension abroad for example. The majority of those in the expat financial services and international taxation industries with whom we’ve spoken are in no doubt that expats will be affected by this proposal – and that the loss of the UK personal income tax allowance or expats is inevitable…which means you need to protect your position now.