Financial Advice for Expatriates – Why Do You Need It?

So you’re moving abroad, so what?  How does that change anything when it comes to money matters?  Apart from the fact that you will have to pay out for your relocation, (unless you have an generous employer), and you may be moving abroad to a better paid job or to retire, both changes that will likely affect your income.  But why on earth do you, as an expatriate, need specialist financial advice?

You may already be living abroad and have kept the same bank account and mortgage back home, and simply opted to open a local account in your new nation for day-to-day transactions.  Maybe you’re squirreling away your cash into your old pension onshore in the UK, and haven’t given a second thought to the fact that now your tax status has changed, so has your greater financial status.

You see, few people who move to live abroad recognise the fact that they are in a very specialist position, financially speaking.  Your life may not have changed much despite moving nation, therefore you may find it hard to comprehend that you are now in a truly exciting position in terms of money management and making the most of your wealth.  Financial advice for expatriates?  In this article we’ll look at why expats really dorequire specialist, tailored and expert advice…otherwise they will miss out on the best opportunity of all – i.e., the expatriate advantage.

Once you leave your home nation and establish residence abroad, changing your nation of tax-residence will soon automatically follow in 99% of cases…as HMRC details it on their website: –

“Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if your absence and employment from the UK covers a complete tax year (i.e. 6 April to 
5 April), and you spend less than 183 days in the UK during the tax year, and your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years.  For visits to the UK, days of arrival and departure are not normally counted as days spent in the UK.”

Therefore, as soon as you change your nation of tax residence a whole wealth of potential opportunities present themselves to you.  A great deal will depend on the country you’ve chosen to move to, as some are more beneficial to those who want to make the most from their income and savings than others.  And to a certain significant extent, your own personal objectives and plans in life will come in to play as well when opting for the right methods for the correct investment of your wealth.  For example, if you’re only planning on living abroad for the short term, a long-term plan towards your pension income abroad may not be appropriate.

As a bottom line consideration for your – if you’re an expatriate you may well be able to save tax or defer the payment of tax on interest earned on savings made.  And if you are in a position to take the expatriate advantage even further, you may be able to benefit from long-term offshore pension savings products such as QROPS, dedicated investment solutions such as portfolio bonds, and you may be able to protect your wealth today and for the future benefit of your family through the utilisation of offshore products, services and solutions.

There are no two ways about it – as an expatriate you are automatically in a far better position financially speaking than you were when you lived onshore in the UK or your old home nation.  You have more opportunities available to you for banking, saving, investing, legitimately deferring taxation and protecting your assets – therefore, you need expert financial advice specifically for expatriates!

There are wealth specialists who assist companies, multi nationals and even individual expatriates like you.  Their specialist field is the utilisation of international options for the greater enhancement and protection of wealth and assets.  A dedicated expatriate financial adviser will be able to assess your position based on where you come from, where you’re living, which currency you’re earning in, your short, medium and long-term plans, and come up with the correct balance of options for the enhancement and protection of your wealth.  They will work with you holistically – i.e., they can help you get set up with health insurance and life insurance, perhaps even an accountant in your nation.  They will then look at your immediate needs for securing a savings pot in an instant access, yet high interest earning account.  They will guide you towards the most profitable and/or secure options for your longer term future, and finally they will be able to look at the pension plans you have in place onshore, and examine how best to protect or utilise those, as well as how best to make the very most of any offshore options available to you for pension planning perhaps.

Before you moved abroad perhaps you had already sought financial advice and created an effective portfolio for yourself, your family and your collective futures.  However, because your tax status changes and your eligibility for products such as personal pensions and ISAs change as soon as you move abroad, and your offshore options are opened up, your onshore adviser is no longer best placed to assist you.  At the same time, an onshore, local adviser in your new nation won’t understand how old onshore products, services and solutions work and should be looked after, taxed or transferred.  What’s more, they will also be totally ill informed about how best expatriates and non-tax residents can effectively manage and enhance their wealth offshore.

All of these are reasons why dedicated expatriate financial advisers exist.  They have a broad scope of expertise, understanding how an individual’s changing status affects their wealth from one year to the next.  They are au fait with the offshore solutions available, they appreciate and understand onshore obligations and opportunities.  Whether you’ve retired abroad, you’re a well paid executive on assignment, you just hate the UK and are living a similar life to before but just in a different location it doesn’t matter!  You need expatriate financial advice, otherwise you will not be doing the best you can for your wealth and your financial health.  It’s simple!

If you want assistance or to find out more, get in touch and start making the most of your expatriate advantage today…

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