Learn how to pay less taxes as an expat

Talking about taxation probably isn't the most exciting task on your to-do list when you move abroad. But once you're settled and worked a little on your tan, you might want to make sure all is well as your formally become a tax resident of your new home country. Things can get quite complicated when understanding expat taxes abroad.

Making the right financial decisions as a expat is critical for success in a new country and its easy to make mistakes and difficult to find trusted contacts in a foreign language. Expatriates have the added complication of having to deal with the tax rules for more than one country at a time, when global tax scrutiny is at its highest. There may be some concessions to look forward to, however getting it wrong can lead to an unwelcome and unexpected tax bill for you or your heirs.

Why effective tax planning is so important

When it comes to savings and investments, is your main objective to preserve your wealth, provide an income or generate growth? Perhaps it is all three? How do you complete a tax return or should you find someone to do all the heavy lifting for you?

Whatever the answers, tax planning plays an important role in protecting and making the most of what you have. There are numerous benefits to strategic tax planning, especially for expatriates who have cross-border considerations. Its important to understand double taxation agreements and what the benefits are in both countries.

It's easy to get DIY tax planning wrong, especially with the regulatory goalposts changing all the time. Getting it wrong can not only lead to an unwelcome and unexpected tax bill for you or your heirs, you could end up facing a tax investigation. It is important to make sure your tax planning is not done in isolation or as an afterthought - it should be a fundamental part of your investment, pensions, estate planning and overall wealth management approach.

Income or capital gains tax?

Your new country of residence is likely to have different rules around tax declarations than you're used to and different tax rates to apply accordingly. In some countries you will have to declare your worldwide income and capital gains tax to be taxed in line with local rules. Becoming tax resident in one country, isn't to say you won't be liable for tax in other countries.

Its important to understand how different sources of income are taxed and make appropriate plans, ensuring you become as tax efficient as possible in your new country of residence. Choosing an expat tax advisor will not only make life easier to understand in plain English, but maximise the money that stays in your pocket.

What's the difference between tax residence and domicile?

Expats often get confused between where the are tax resident and their tax domicile. The answers to these questions can have a big impact on not only your tax liability now, but also that of your estate/family when you die. Understanding the complications of your personal tax situation is the first step, thereafter to explore tax advice to see what is available to mitigate these issues.

What about Wealth Tax?

As the name implies, a wealth tax is a direct tax imposed on wealthy individuals with the aim of reducing wealth inequality. This is not a taxation applicable to all regions, however the idea is that the more valuable your assets are, the greater the taxation can be subject to in certain counties.

With careful planning it is possible to reduce or even eliminate Wealth Tax entirely.

How do I find out?

Our trusted partner is an independent company, with access to the all of the world's leading product providers. Their tax experts will ask you about your tax situation and help you to navigate the through the local tax rules and plan accordingly. Your advisor will prepare and send a personalized recommendation to you via email. Join 1000's of other expat's in reviewing your finances and understand what's important to plan for your future.

A professional, financial review will give you a clear understanding of how best to do this, whilst minimizing charges and avoiding unnecessary tax triggers. Always get expert advice from someone familiar with the local tax regime and experienced with national and international accounts. Speaking to someone who's an expat themselves always helps.

As a member of Expat.com, you can request a free Financial Review and expat financial advice with our recommended partner. Working with the world's leading financial institutions they bring you exclusive offers that are unavailable anywhere else. They will also show you how to take advantage of any tax breaks and other benefits available to you as an expat. As an award-winning expatriate adviser, you will also have access to expat-only accounts and the ability to minimize charges - so your money can grow faster and safer than ever before.

A reduced tax bill for you

The most obvious advantage is reducing your overall tax liability including income tax, capital gains, death and wealth taxes on your worldwide estate.

If there is a more tax-efficient way to hold your capital and assets, it makes sense to explore what options are available to you. Many people fail to do just this and unknowingly end up paying more than they should, such as income tax on bank interest they are not even withdrawing, or tax on profits when switching between investments. Residents have access to alternative investment instruments available offshore, that can provide better tax efficiency, estate planning, and currency benefits.

Don't fall foul of selling assets, including property, without fully understanding the tax implications in both the country where you live and where the assets are held. Tax rules differ drastically between countries and there may be tools available to you to minimise / refund tax to you, depending on your circumstances.

What is included?

A full review of your current situation and liability to taxation in your country of residence. Understand what tax breaks you may be entitled to, for both you and your family. Take peace of mind from a video consultation with highly qualified adviser, who will quickly examine your affairs and explain what concessions may be open to you. They specialise in understanding your local tax regime, armed with effective, financial planning tools to reduce your taxes efficiently. Topics included within your free consultation - wealth tax, succession/death tax, capital gains tax.

What are the potential benefits?

There's nothing to lose from claiming your free financial review, but potentially lots to gain. In the worst case scenario, the adviser will tell you that you're already in the best position with nothing to improve your current situation. In most cases however, there will be at least one aspect area of advice to enhance your financial planning.

The adviser will provide you verbally with the specific topics that can be improved, thereafter to provide you with a written report detailing how this can be done. This report is provided to you free of charge in collaboration with Expat.com.

  • Learn what can be done to reduce your wealth tax liability
  • How to plan for your succession & minimise 'Death' taxes for you and your family
  • Understand tax efficient savings & investments are open to you in the open market
  • Fully independent & regulated advice to give you full peace of mind
  • No obligation report provide summarising your options in black and white

Who is the service for?

The service is designed for those who have any of the following

  • Liability to wealth tax
  • Liability to death tax in their home country and/or country of residence
  • Children whom have liability to death taxes in their country of residence
  • Ownership of investments / assets outside your home country and/or country of residence
  • An unclear succession plan

How do I get my free review?

You can request your free review by completing the form below. You will then receive a message to schedule a convenient day/time for your appointment. Our recommended service provider is Holborn Assets, who are an award-winning, cross-border financial planner that specialises in financial planning for our expatriate members worldwide. You are entitled to up to 2 hours of free consultation, courtesy of Expat.com. Please complete the form below

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