Bad News for Offshore Savers Tempered by Good Advice

The European Parliament has been in action again trying to erode even more offshore advantages for expatriates and European citizens, but the fact of the matter is, even if they do force even greater exchange of information and you’re worried about losing your right to privacy, there are actions you can take.

According to EU parliament feedback, a report suggesting that all European Union member states agree to the exchange of taxation information on interest earning savings accounts by 2014 has passed the first hurdle by being accepted by the parliament.  (This is in contrast to the current situation where certain nations take a withholding amount of taxation on such accounts rather than exchanging account holder’s information.)

The next hurdle will be when the suggestion goes before the Council…but it is thought highly likely the requirement will pass and it will become law that all EU member states have to willingly exchange all relevant information about account holders who have interest earning offshore savings accounts in one EU nation, whilst residing in another.  For many people this is bad news – not because they have anything to hide, but because they simply do not want their personal information being handed about between multiple agencies across Europe.  But the good news is that this bad news for offshore savers can be tempered by good advice…

The fact of the matter is, it is thought highly likely that the pressure from the EU, coupled with the weight of the OECD and the G20 nations will lead us to the point where greater amounts of privacy currently enjoyed offshore is eroded.  But in this current case where we’re talking about specific types of accounts held in Europe, there are simple and cost effective ways to wrap up your savings accounts and protect them from this enforced exchange of information.  All you need to do is speak to a financial adviser about your status and your situation, and they will advise whether the likes of offshore portfolio bonds could save you from having to face this annoyance in the form of exchanged information.

Whilst we can all appreciate nations wanting to prevent tax evasion – particularly nations like the UK where they desperately need every penny of tax revenue to bail them out of the hideous mess they find themselves in thanks to poor economic management – we can all appreciate an individual’s right to privacy.  So for those who quite legitimately advise their tax authority about their taxable assets onshore and off, there should be a way for them to prevent their information being potentially spread around Europe and listed in multiple agencies’ databases etc.  And the good news is, there are ways to protect yourself, your wealth and even your confidentiality.  As mentioned, there is one particularly effective product that can work for many, it’s called a portfolio bond and it works as a wrapper.  It wraps up the vast majority of your assets so that they are held and managed under one confidential umbrella.  You can then manage your assets easily, cost effectively and confidentially.

So, if you live in Europe and have savings accounts on which you earn interest, or you’re an expatriate and you really want to simplify the management of your assets, you need to speak to a financial adviser about the appropriateness of a portfolio bond for your own personal situation.