Home » Offshore Banking and Savings Guides » Expat Tax Saving Guide
What are the Benefits of Going Offshore for Expats?
Fri, November 20, 2009 - 9:16 am EET
If you’re just starting out on your journey abroad and beginning a new life overseas as an expat, chances are you will not yet be necessarily well-versed in the advantages of ‘offshoring’ your finances. After all, when you live onshore you’re almost indoctrinated against putting money offshore by your own government.
In part this is because your government needs to keep reminding you of your reporting obligations when it comes to taxation – and in part it is simply because they prefer your money and assets to be onshore where they can keep an eye on them! However, when you move abroad, naturally all of this changes – and it changes very much for the better.
When you leave your old home nation behind and start on a new path abroad, your entire tax status changes and this can have a positive and beneficial impact on your wealth. It is at this point that the concept of ‘offshore’ - when it comes to your fiscal status - needs to be explored. So, what are the benefits of going offshore for expats? Allow us to explain and guide you through the very straightforward ways in which you could actually be enhancing your fiscal status by going offshore.
Expatriate Wealth Management
Thu, November 19, 2009 - 10:47 am EET
The concept of wealth management is one that all expatriates should come to grips with – it is not sufficient to go abroad and ‘just’ concentrate of sorting out your taxation position or ‘just’ ensuring you bank sufficient funds when overseas to see you right in retirement. Rather, you need to take a complete and an holistic approach to managing your entire fiscal status if you want to enhance your financial position to the best of your ability…
…and expatriate wealth management as a concept is just that – i.e., the complete and holistic management of your financial affairs – from how and where you bank to how your tax status is managed, how your physical assets are owned, where your money is invested and how you structure your affairs so that they are ‘appropriate’ for your status and position today, tomorrow and into the future.
In this report we’re going to outline the main fiscal elements that you need to consider when you move abroad, and how they all interlink when it comes to the effective management of your wealth. We will explain why a given aspect of your financial status is important to focus on, and give suggestions about where you might begin getting the help and advice you need to effectively manage your wealth for the best possible returns.
Do You Have to Leave UK to Avoid British Taxation
Mon, November 16, 2009 - 8:56 am EET
According to The Sunday Times newspaper, David Landau, former owner of the Loot newspaper and current arts patron who has donated millions of pounds of his wealth to causes in the UK, is the latest victim of Brown’s taxation assault and is packing his bags and leaving his life in the UK behind.
Whilst you may never have heard of this man or be at all interested in the arts for example, you may like to learn that Landau’s a foreign national, resident in the UK who has paid taxes on his British generated wealth in the UK and as stated, has donated a lot of his wealth to British causes. However, he is so unhappy at the way the UK has introduced a non-dom levy and is now poised to hike income tax even higher, he’s leaving.
Landau has quit his charitable roles and is leaving the UK – proving once again that the idea to tax us all harder and harder is a bad one and that it does have a negative effect on the nation. But do you actually have to leave the UK to avoid British taxation?
Do Expatriates Escape Inheritance Tax by Living Abroad
Fri, November 13, 2009 - 7:44 am EET
If you move abroad and leave the UK behind pretty much permanently, chances are you will become non-resident in Britain for tax purposes. At first this may mean you’re no longer liable for income tax on anything you earn outside the UK, then after a period of time you may no longer be eligible for capital gains tax. You might even escape taxation on your savings by going offshore – and of course if you no longer own property in the UK you can escape council tax.
Of course, the above tax escape scenarios depend on your expatriate status and every individual’s status is different so do check your tax liabilities before you just turn you back on the British taxman – but is there ever a scenario where expatriates escape inheritance tax just by living abroad?
Many people have been sold homes overseas for retirement or relocation purposes on the back of claims by developers and agents that a property in a given nation is not subject to inheritance tax in that nation. This can lead people into the false sense of security that if they just up sticks and go and live in that property, they escape their IHT liability full stop. However, as we will now show, when it comes to IHT or estate tax, it is NOT that simple.
Offshore Savings Accounts and Interest Rates
Thu, November 12, 2009 - 9:35 am EET
An assumption can often get us into trouble – for example, if we assume that the weather in the Mediterranean will always be warm and sunny and we relocate to Cyprus and discover that actually, in the winter it’s cold and it rains, such an assumption will find us wet and miserable!
When it comes to money matters – any assumption can be highly costly! For example, if you assume that an offshore savings account will offer you the best interest rates simply because it is offshore, you could well be barking up the wrong tree.
Some offshore savings accounts offer more dire rates of interest than you can actually get by staying onshore – and they lure you in to taking out such an account with the taxation saving advantages that you may be able to prosper from with such an account! The moral of the story therefore is that when it comes to your money, it matters so much that you really need to look closely to make sure you’re getting the best deal for your wealth.
Why Nothing’s Been Published About British Offshore Financial Centres Report
Tue, November 10, 2009 - 10:04 am EET
Isn’t it interesting how, in the build up to the publication of Michael Foot’s independent review of British offshore financial centres, the media were right on the story telling us how it would reveal that centres like Jersey and Guernsey not only drain the UK tax coffers of billions, but that they are now in crisis and that the British tax payer will have to bail them out.
Then, when the report is published and it actually reveals that British offshore financial centres are responsible for propping up the British economy, are very well run in many cases and that they have a vital role in the ongoing health of Britain’s banks and overall economy, no one wants to publish such interesting yet seemingly ‘boring’ news!
In this article we’re going to explain why nothing’s been published about the British Offshore Financial Centres Report because the facts and findings contained therein are not the stuff of scurrilous headlines that will sell papers on the back of fear. Rather, the findings are fascinating and prove to anyone who has an interest in all things offshore that offshore jurisdictions are critically important not only to international business, but to the British government as well!
Why Offshore & Expatriate Financial Advisers Don’t Want American Clients
Tue, November 10, 2009 - 9:37 am EET
It’s not a good time to be an American if you want advice about how to grow your wealth – even if you’re an American living abroad no one will give you financial advice! The IRS is cracking down on tax evasion – and in so doing it is turning American citizens into pariahs in their own country and overseas.
We understand why the American authorities have launched an all out assault of taxation evasion in a bid to prevent it, bring all their citizens in line and in some small way shore up the American economy, but their incredibly heavy handed approach is the equivalent of using a sledge hammer to crack a nut.
It is because the American authorities are being so threatening in their pursuit of supposed lost revenue that offshore and expatriate financial advisers do not want American clients – it is just not worth the risk and the hassle. You see, American tax authorities are now opening new offices around the world in a bid to streamline their investigations into taxation avoidance – and they are looking at who has advised Americans and who has assisted them in going offshore. So it’s no wonder no one wants to touch American clients, after all, who wants to be the subject of an investigation.

