If you were looking for any more reasons to kick start your new life abroad in 2011 – besides the obvious ones of being bored at work, fed up of the weather in the UK and in desperate need of a change of scene – allow us to give you the top financial reasons to move abroad and offshore this year.
First things first there are all the tax increases in the UK that will be eroding a significant hole in the state of your family’s finances, secondly there are all the offshore savings and investment benefits waiting for you offshore, and then there are the tax incentives often open to expats once they become non-resident for tax purposes in the UK!
Want to know more? Want to know how and why you could be financially better off thanks to a move abroad and offshore in 2011? Read on to be inspired into booking that one-way ticket out of your currently high-taxed, low-quality lifestyle in the UK!
It’s not exactly news to anyone’s ears that January is typically the main month of the year when dissatisfied Brits begin looking around and even abroad for a significant change of life. Brits are more likely to look for new jobs in January, they are more likely to look overseas for a new life in January, and they are more likely to voice unhappiness about their current life in January.
If you’re an unhappy Brit looking for a method to kick start your way to a happier life, we’re here to show you how moving abroad could see you and your finances better off. The idea behind this report is arming you with the facts (and figures) you need to give yourself that final push off in the right direction – i.e., abroad.
Reasons Why the UK is Not the Best Place to Be for the Sake of Your Wealth in 2011
The UK is struggling with almost unprecedented debt levels in 2011 – which is why our pockets and our bank accounts and our wages and our financial security are all being eroded – VAT has gone up, NICs have gone up, the cost of fuel has increased, the cost of heating our homes has gone up and for some people, income tax has increased too.
For anyone with saved wealth or wanting to buy an annuity with a pension, interest rates remain stubbornly low – meaning that savings are not even being protected from the erosion effects of inflation…
At the same time, the UK government is slashing spending and British employers in both the public and private sectors are still slashing jobs.
So, there will be no more significant investment in schools, health or infrastructure – and whether you’re a doctor, a secretary, you’re self-employed or you work part time or 24/7, you will be hard hit financially speaking in 2011.
You will be paying more – you will be getting less – so why would you want to stay in the UK?
The Offshore Financial Landscape is Exciting and Potentially Rewarding and It’s Open to YOU!
If you move to live abroad for the long-term, or even permanently, and as a result you become non-resident in the UK for tax purposes (see HMRC’s website for full qualification details), you are more than welcome to explore the wonderful world of offshore finance.
Whether you just choose to keep your income offshore in a bank account from a secure and reputable high street name such as HSBC and simply benefit from massive banking flexibility, or you decide to move your pension abroad with you and benefit from never having to buy an annuity with it thanks to HMRC backed Qualifying Recognised Overseas Pension Schemes (QROPS), you could benefit from going offshore with your money.
You don’t have to be a millionaire and you certainly don’t have to be in the business of avoiding tax to benefit from offshore bank accounts or savings and investment products. In fact, almost every single expat can potentially benefit financially from going offshore – even if all they do is open an offshore savings account and earn their interest without the deduction of taxation.
Even for those expats who still have to pay tax on such interest or investment related income, you may be able to defer paying it and a) enjoy increased compounding or b) pay tax at a time when it is more convenient or affordable for you to do so – such as if you become a lower rate taxpayer later in life when you retire for example.
Therefore, as you can see, anyone can potentially save money or improve their financial position or benefit their money’s management by going offshore.
Of course there are many more ways you could potentially benefit from going offshore too – these depend 100% on your personal circumstances however, such as the nation in which you are deemed tax resident, their rates of income tax and any double taxation agreements they have in place.
Potential benefits from going offshore include direct tax efficiency, improved confidentiality, greater risk management and diversification options and having improved international accessibility in terms of your finances.
You should explore your personal position with a qualified, regulated, independent financial adviser specialising in assisting expatriates.
Expats Don’t Have to Pay So Much Tax!
Depending on where you move to live, work or retire abroad you may be eligible to pay much less tax – for example, if you want to retire to Cyprus you may only have to pay income tax at 5% on your pension. If you want to live and work in Dubai or Qatar you could enjoy your income 100% free of income tax.
If you want to retire to Belize or Panama or Malaysia or the Philippines you could potentially enjoy your foreign sourced retirement income totally free from income tax erosion.
If you want to avoid capital gains tax, there is none in Barbados or Belize, and it’s charged at just 10% in Bulgaria!
You could pay a lower flat tax on income in Lithuania or Estonia – and potentially avoid local inheritance tax in a whole handful of nations around the world.
Therefore, it is entirely and easily possible for Brits to move abroad and live a less tax lifestyle as an expatriate. If you want to learn more about where in the world they pay less tax and how you should structure your own personal fiscal affairs to make the very most of your money when you relocate overseas, you must seek professional advice that is 100% personalised to you.
Everyone’s situation is different and you need to make sure you are correctly advised so that any steps you take are for the advancement and protection of your wealth status, and so that you work inside international laws and ever inadvertently evade tax!