Copyright 2009

The Expat Money Guide 2009
The definitive guide | By Bernie Warren | Page 1 of 55

Copyright 2009

The Expat Money Guide 2009
By Bernie Warren – The Expatriate Financial Expert

Important information This document has been prepared for general information purposes only. Individuals are advised that they will require specialist advice from a suitably qualified professional adviser before making any decision in relation to their eligibility for an offshore or onshore savings or investment. The information contained in this document does not, nor is it intended to amount to comprehensive financial or investment advice. Before making an investment or applying for any savings vehicle mentioned in this document you should seek professional advice | Page 2 of 55

Copyright 2009

Introduction About the author Chapter One: Understanding the Expatriate (i) Understanding You (ii) Contact Us Chapter Two: Offshore versus Onshore



Chapter Three: UK Offshore Financial Centre’s Chapter Four: Becoming an Expatriate – Initial Financial concerns (i) Your Tax Status (ii) Preparation is the Key Chapter Five: Expatriate Banking Options (i) A British Bank Account (ii) A Local Bank Account (iii) An Offshore Bank Account (iv) Expatriate Banking Advice Chapter Six: Getting the right help, right from the start





Chapter Seven: Expatriate Offshore Saving and Investment Accounts (i) Current Expatriate Savers (ii) The 8 Main Advantages of Offshore Savings and Investment Vehicles Chapter Eight: The European Savings Tax Directive (ESTD) (i) Are You Affected? (ii) The Future of the EU Savings Tax Directive (iii) Legitimately Beating the EU Savings Tax Directive – Solutions Available Chapter Nine: Expatriate Tax: Residency and Domicile Chapter Ten: Offshore & EU approved Portfolio Bonds (i) Holding your assets





Chapter Eleven: Investing for Expatriates

32 | Page 3 of 55

Copyright 2009

(i) How Much Do You Want to Invest? (ii) What Are You Saving or Investing For? (iii) Prepare Yourself for Investing Chapter Twelve: Long term Savings, Investments and Retirement Planning (i) Time In versus Timing (ii) Dollar Cost Averaging (iii) Offshore Pension (iv) Already retired? (v) What's the Difference Between an Onshore and an Offshore Pension? (vi) Who Can Benefit from an Offshore Pension? (vii) The Advantages and Special Features of an Offshore Pension Chapter Thirteen: Existing UK Pension plans, moving abroad & the QROPS opportunity



Chapter Fourteen: Company versus Private Pensions for Expatriates Chapter Fifteen: Avoiding the Credit Crunch Chapter Sixteen: Trusts and wills (i) The History of Offshore Trusts (ii) What is an Offshore Trust? (iii) When is an Offshore Trust the Right Decision? (iv) Wills Chapter Seventeen: Education Fee Planning (i) Private or State Schooling – Decisions and Potential Costs (ii) Higher Education For Your Student Child Chapter Eighteen: Life Insurance and Health Insurance (i) Health Insurance Policies (ii) Health Insurance Chapter Nineteen: Where to find help and advice







Chapter Twenty: For more information ™ ™ ™ ™ Contact Form Ask an Expert – Write about Press Information – Reference to use when using excerpts Contact details


55 | Page 4 of 55

Copyright 2009

About the Author
Bernie Warren

Bernie Warren is an independent offshore and expatriate expert whose expertise frequently results in his being called upon to offer advice and commentary on the offshore financial market place. Bernie has worked in the fields of financial advice, specialising in retirement planning. He is also an expert on expatriate financial planning as he has travelled extensively and lived in many different countries around the world. His expertise and the contacts he has with the best professionals in the international financial industry, meant that he was absolutely most appropriately placed to be the author of the Expat Money guide.

Contact the author direct at: | Page 5 of 55

as increased numbers of individuals seek work placements abroad and an escape from the negative financial climate in the UK. they are clearly wealthier on average as well. they found that over a quarter of all UK SMEs questioned want to leave the UK and relocate their enterprises abroad as well. all classes. recently surveyed Britain’s small and medium sized enterprises.000. a global leader in financial protection. According to a study of expatriate Britons conducted by the Alliance and Leicester recently. Proof of the irresistible lure can be seen in the fact that in 2006 some 400. www. 53% enjoy a higher standard of living. it spans all ages. because of the very real benefits that expatriates enjoy. for example. The Institute for Public Policy Research claim that there are now five and a half million British citizens residing abroad permanently. Entrepreneur think tank Tenon Forum. believe that in 2009 up to 500. and with the average salary in the UK reported to be £47. There is a lot of evidence to support their predictions too. 57% of those questioned ranked the better weather abroad as making their life more pleasant. and British businesses and individuals all share this common ambition too. A staggering 30% of Britons questioned for the survey also admitted to having a higher income now that they live abroad. The SMEs stated that their main reasons were related to the state of the tax system in | Page 6 of 55 . as it stands and as it is likely to develop. the latest financial industry surveys suggest that up to a further two million of us would seriously consider leaving the UK and living abroad in the near-term. and 49% find their new environment to be safer and to enjoy a lower crime rate than the UK. the average expat salary was shown to be £67.Copyright 2009 Chapter One Understanding the Expatriate It’s a well-known fact that Britons are drawn to explore more distant horizons we always have been and we probably always will be.000 Britons expatriated according to the Office for National Statistics. In fact. and AXA. 56% stated that they enjoy the better quality of life.expatmoneyguide. and this ties in well with findings from the NatWest International Personal Banking division.000 by the bank. They surveyed expatriates and discovered that 81% of people who have moved abroad now feel a greater sense of happiness and personal well-being as a direct result of their relocation. proving that not only are Britons happier abroad. these ‘very real benefits’ became apparent. This proves that the British fascination with expatriating is actually endemic.000 more Britons may leave the UK permanently.

’ or you’re retiring abroad and you’re going to be living on a relatively fixed income. Get in touch with us enquiry@expatmoneyguide. qualifications. you need to learn about the taxation implications and opportunities of your relocation. your changing status can be very good for you financially with huge benefits for the growth and preservation of your family´s wealth. Please let us know how we can make this guide better and what information you would like to see adding to the Expat Money Guide. this guide is ultimately designed to highlight some of the vast financial opportunities available to you when you move abroad. Arranged and utilised correctly. The guide is intentionally generic however. please don’t forget that you’re not alone. You also need to learn about the potentially significant benefits of offshore banking and saving. This is because we welcome your valuable feedback. You’ll quickly realise that as an expatriate you have many specific financial advantages to explore as well.expatmoneyguide. Email the author or one of his assistants at: info@expatmoneyguide. | Page 7 of 55 .com and give us your feedback – we genuinely value your time and comments. and you need to concern yourself from the outset with the fact that your changing status will have a significant effect on your financial affairs. www. at Expat Money Guide we have the expertise. contacts and experience to assist you with each and every aspect of your financial life as an expatriate.Copyright 2009 Understanding You If you’re about to expatriate or have recently joined the ranks of Britons discovering a brand new life abroad. and in this guide we will lead you through the intricacies of the offshore and international world of finance so that you can be well informed and well prepared for all aspects of your financial future. Written by an expert in expatriate related matters and under the direction of industry finance experts.expatmoneyguide. Please note: this guide is being offered to you at no cost for a limited time or complete the enquiry form on our website: www. Whether you’re an expatriate executive earning and we will be happy to help point you in the right direction. it’s not just new geographic horizons that you’ll be exploring. if you have specific personal questions please do not hesitate to contact us to receive more detailed information. spending more and in a position to save more than your peers ‘back home. Clearly by making the effort to download and read this guide you’re already aware that as an expatriate you have new financial challenges and opportunities.

expatmoneyguide. Please complete your details on this printable ´Contact Us´ page and send to us by email at enquiry@expatmoneyguide. Name: Age: (for retirement planning enquiries) Telephone Number: Email: Area of Interest Please tick the boxes below to highlight your areas of interest: The safest place for your savings? How to make sure you´re getting the best interest rates? How to legally reduce your tax liability? How to save for your retirement? Whether you should save offshore or onshore? The diverse world of savings and investment accounts I would like to receive the HMRC form P85 I would like information on Education planning Further comments: www.Copyright 2009 The Expat Money Guide 2009 Contact Us The Author and team at Expat Money Guide would be delighted to help you with any query or question you may | Page 8 of 55 .com. Our team will be delighted to contact you by return.

if you save. if you’re a Briton living and working in Germany.e. you’re protecting it from any negative fluctuations or situations that may occur in the country in which you’re living and working. I. you will not necessarily be best served by the same offshore jurisdictions as a Briton living and working in South America or the Middle East. if you’re working in a country with an unstable banking | Page 9 of 55 . and looking at the benefits and prospects that this particular jurisdiction offers. For some EU residents. This is largely due to the fact that within the European Union and specific designated ‘third countries. and your new nation of residence now that you have expatriated.Copyright 2009 Chapter Two Offshore Versus Onshore The term ‘offshore’ can relate to any jurisdiction. fully compliant. once you leave your home shores behind and move abroad to live. can reduce your tax liability to just 6% regardless www. by ‘offshoring’ your income and housing it in a stable. and what’s more. taxation or financial benefits for an individual to encourage them to bank or invest therein. For example. This legislation can be said to present new opportunities to the expatriate . typically the term offshore relates to low or no tax jurisdictions where there are specific regulatory.e. but can include: x Security for example. i.expatmoneyguide. x x x x x x The decisions you make relating to which jurisdictions best suit you and your financial circumstances and requirements will depend on your nation of origin. nation or financial centre outside the nation in which you’re currently residing – however.’ there is legislation in place that can have very distinct advantages for EU residents..e.. invest or bank your money in a jurisdiction other than the one in which you’re now resident. EU approved savings vehicles.such as exploring Dublin as an offshore centre perhaps.. well regulated environment. Once you expatriate – i. Improved accessibility to your cash Advantageous tax breaks Improved investment options Lack of a language barrier Improved confidentiality The tax efficient management of money or even housing money in a tax-free environment. work or retire – there are taxation implications involved in your relocation. there are often significant advantages for you if you ‘offshore’ your money. which is often referred to as your country of domicile. Benefits will always depend on your own personal circumstances of course.

maximising your expatriate advantages and staying on the right side of often changing laws. only work with institutions in the most reputable. protection and ultimately tax efficient growth. Confidentiality 3. You will need to ensure that the jurisdiction you favour has a high standard of regulation. Tax free or tax efficient growth The industry experts who have overseen the creation of this guide and whom we at Expat Money Guide recommend. and the advisers we recommend can advise you on which locations offer you the best protection for your wealth. you certainly have your work cut out when it comes to selecting the right environment for your money. and that there is supervision. With over sixty offshore jurisdictions or international financial centres to choose from. www. Security 2. they don’t take risks with our readers’ assets. Key areas to cover are: 1.expatmoneyguide. You can alternatively email us at enquiry@expatmoneyguide. What’s more. and at the back of this guide.Copyright 2009 of the amount invested. making the right decision is critical and key to securing and advancing your wealth. Detailed information can be received using our info request on page 3. well-regulated | Page 10 of 55 .

but geographically and culturally it is incredibly close to Britain. personal and transactional confidentiality and tax efficiency within a well-regulated environment. Alternatively. Guernsey and the Isle of Man. Dublin is of course in the Republic of Ireland rather than the UK. This guide has been written under the guidance and expert supervision of industry experts – and they are also available to assist and advise you. these centres are considered some of the most sophisticated. if you’re an expatriate within the European Union and potentially affected by legislation such as the EU Savings Tax Directive. which is why it is worth considering depending on your personal circumstances. means that Britain’s own offshore financial centres are widely used by qualifying individuals and companies resident both inside and outside the European Union.and the international banking and finance community generally respects the efforts that each island’s individual governing body makes towards regulating and supervising those who operate and practice within their boundaries. Guernsey and the Isle of www. Again. and even put you in touch with recommended and recognised industry experts. Physically located close to Great Britain. Simply email enquiry@expatmoneyguide. Determining the best location and savings and investment path for your funds can be a daunting task – but you needn’t attempt the impossible and go it alone. Offering financial security.Copyright 2009 Chapter Three UK Offshore Financial Centres You may already be aware that Britain has a series of offshore financial centres of its own – these are Jersey. please remember that at Expat Money Guide we can help and guide you according to your own personal circumstances. The three centres each specialise in certain specific financial fields – from fund management to insurance. from financial law to international estate planning for example . well-regulated and superior offshore jurisdictions in the world. another jurisdiction closer to home might suit your needs – namely Dublin. It is also an exceptionally well-regulated and respected jurisdiction. If you’re an expatriate it could make significant financial sense for you to explore your personal options and opportunities available within the UK’s offshore financial centres of Jersey.expatmoneyguide. get in touch with us and we will assist you or put you in direct contact with an adviser who can help you. But this jurisdiction has unique advantages that make it more appropriate than the UK offshore financial centres for some | Page 11 of 55 . If you have any questions or require specific advice.

of your changing status. or you may prefer to enlist the services of an accountant or financial advisor to register your details. the sooner you will be making the very most of the opportunities available to you now that you have left your country of domicile behind. and so if you’ve paid too much tax in the months of the current tax year before your departure. The point is. namely HMRC.Copyright 2009 Chapter Four Becoming an Expatriate – Initial Financial Concerns If you’re about to move abroad or you have only recently become an expatriate. Having said that. “helps us decide how you should be treated for UK tax purposes after you leave. Your Tax Status When you leave the UK you need to inform the British tax authorities. More importantly however. please email us by clicking on link below or by using the contact form on page three and at the back of this guide and we’ll be happy to supply you with one.” If you would like a copy of the form to complete. if you’ve picked up this guide after many years of living the expat life. You may find your employer does this for | Page 12 of 55 . the completion of the form can result in a tax rebate because the Revenue actually works out your annual income tax obligations over a one-year period. HMRC will eventually return the overpayment to you. you are in absolutely the best position possible for arranging your financial affairs correctly and most advantageously from the outset. www. You should complete form P85 that. For some people. at which point your status can deliver those often discussed expatriate tax advantages. the sooner you begin planning each element of your financial wellbeing and development.expatmoneyguide. Once you arrive in your new nation of residence you will be under a certain obligation to formalise your presence with the new local tax authorities. that’s not to say that it is of no benefit to you and that it is too late to get your finances in order. according to HM Revenue and Customs. the purpose of the form is getting you on the right road to being able to claim non-resident tax status in the UK.

Those who put significant effort into the planning and preparation of their move reap dividends when their transition abroad is a smooth and financially successful one. or even moving your existing UK pension offshore.. x Potentially arranging for any UK based pension income to be payable to you abroad.expatmoneyguide.Copyright 2009 Preparation is the Key “Failure to prepare is preparing to fail” John Robert Wooden Other financially related aspects of your move abroad will include the following: x Literally getting your house in order – | Page 13 of 55 . looking into your eligibility for a European Health Insurance Card (EHIC). determining the best course of action for the management or sale of any UK based property assets x Arranging the removal of your personal and household effects abroad x Preparing pets for relocation x Arranging your travel and accommodation x Sorting out travel insurance and at least short-term health cover. www. which can have massive benefits if you intend to be overseas for 5 years or already have been overseas for 5 or more years (See chapter 13).

expatmoneyguide. Unless you’re attempting to change your country of domicile and sever all ties with the UK forever. www. mortgage. incurring currency exchange costs and risks every time. You can combine the above three approaches (usually the most successful approach). such as paying a mortgage for example. it does not make sense to earn your money abroad and then transfer it all back to the UK. raise a mortgage or even apply for a credit card for example.e. You may well find that you will not necessarily have to go through such rigorous client due diligence checks upon your return if you want to rent a property. You can operate your main banking activity through your account back in the UK | Page 14 of 55 . even if you just leave fifty pounds in it. Nor does it make sense to manage international finances through a British account or to necessarily make your financial affairs known to British authorities when you legally have no obligation to do so – i. However. can make long-term sense for many expatriates. when you are no longer tax resident in the UK. You can bank offshore 4.. a British bank account will potentially allow you to manage any financial obligations that you still have in Britain with ease. A British Bank Account Retaining a UK bank account. rent. And in the interim.Copyright 2009 Chapter Five Expatriate Banking Options As an expatriate you have four basic banking options: 1. mobile phone etc 3. You can open a new account locally and use this for your transactional activity (normally used for local bills. retaining a British banking presence will mean that if ever you want to repatriate. schools. the path will be smoother for you.

offshore banks often attempt to entice new customers by offering them handsome incentives in the form of online services and tools to allow them to make the most of their deposits.e. Without tax deducted on a regular | Page 15 of 55 . For the vast majority of expatriates there are severe taxation disadvantages to bringing all of your money onshore into your new nation of residence.. In addition. However. or you can contact us for assistance.. For example. why keep all your money in your new country of residence when you don't have to. expatriates. the most commonly accessible advantage is that if you are able to invest offshore. You are strongly advised to discuss your individual situation at length with a financial adviser. your employer may insist you have such an account into which your salary can be paid each month. For many expatriates there are also specific taxation advantages to be had from banking offshore. If you are concerned about your banking options you should speak to an adviser who has been recommended to you.e. you don’t have to be a multi-millionaire to take advantage of the benefits of being an expatriate. no matter what their financial situation – i. your bank deposits and investments will grow a lot quicker. and to not make any decisions before you have covered everything with that adviser. if not impossible to change your mind or reverse this situation in the future. You may also need such an account to have utilities connected to your new property. rent a house. and when there can be very real advantages in not doing so? An Offshore Bank Account An offshore or internationally located bank account can be an incredibly secure and flexible account ideally suited to those who live an international lifestyle – i. This often proves to be financially beneficial to the majority of expatriates. or keep some of your money offshore in a bank account.from online banking to telephone banking. raise a mortgage or purchase a car for example. to get a mobile phone.expatmoneyguide. Remember. depending on how you structure your www. then there are usually ways to defer any tax liability until a time when it is convenient for you. Such an account can mean an individual has maximum accessibility to their assets. it is not usually in your best interests to bring all of your capital and wealth into your new nation of residence and bank it locally. and offshore banks generally provide multiple currency & account access options . For a start you don’t have to! If you do then your capital is immediately in the tax system of the country in question and it is very difficult.Copyright 2009 A Local Bank Account Opening a local bank account in your new nation of residence may make a lot of sense and also be a requirement. What’s more.

www. At Expat Money Guide we can discuss your options with you and help you make the right decisions based on your own personal circumstances. you may also legitimately only be required to pay tax on the growth that you bring into your new country of residence.Copyright 2009 affairs. you can move forward with maximising the expatriate savings and taxation advantages available to you and your family. Once you have this most fundamental element of your entire financial portfolio | Page 16 of 55 .expatmoneyguide. arranging your banking affairs is one of the first aspects of your financial planning preparations to get right. Expatriate Banking Advice As an expatriate.

Plus. then wherever you move to in the world they can remain your point of contact. getting to grips with all of the opportunities available to you. maintaining continuity for the continued growth of your finances. probably in the UK. Your previous onshore adviser may not be able to introduce you to the potentially tax saving and financially enhancing opportunities available offshore as you find that their focus and expert knowledge is based onshore. most of whom have been known to the author for many years. if you find an international adviser who specialises in working via the internet or telephone. In terms of where to seek advice perfectly structured for your special expatriate financial status. Furthermore. www. international adviser will be far more beneficial when reviewing your finances on an international and not just local level. and how you need to structure your affairs appropriately in case you should ever want to repatriate or relocate elsewhere abroad. Then you can tell all of your friends how you have benefitted and they can purchase one of our many planned Country specific publications. just contact us and we will do our very best to assist you. However. But it doesn’t have to be! In the following chapters we will help you to discover many of the potential options available to you for the utilisation of taxation advantages and the advancement of your wealth offshore for example. your wealth and your assets can be a daunting undertaking. expatriates are in a uniquely advantageous financial position.Copyright 2009 Chapter Six Getting Help Right from the Start As you may well have realised by now. a local adviser in your new country of residence. and they can be introduced to you! If you think you could well benefit from more information about any of the topics covered in this guide. seeking advice from an independent. The professionals who have contributed to this guide are trusted industry experts. Although you may speak the language of your new country of residence. is unlikely to understand your unique expatriate status. but there comes a point when it can make sense to utilise the services of experts in the field of international and expatriate finance – this is where we can help | Page 17 of 55 . how that relates to any tax saving potential in the nation in which you are residing.expatmoneyguide. it can be very difficult to know where to start looking and how to choose the right adviser with the correct knowledge.

com | Page 18 of 55 . limited allocations and institutional bank rates etc. Simply contact us using the form at the back of this book or email enquiry@expatmoneyguide. as an expatriate. and provides the best advice for your international outlook and risk profile if any. need from your adviser:x You need to select an international and independent adviser who has as international a perspective as you do. and no matter what your current financial situation. Did you know that reporting any suspicious activity is now a requirement by any UK based financial adviser or accountant.Copyright 2009 Here is what you. You need an adviser who understands expatriates and the offshore and EU international world of financial planning. and that suspicious activity may just relate to the movement of a large sum of money? x x x x x x x At Expat Money Guide we can help you find the right adviser to assist you. experienced. You need an adviser that is not owned or tied to any financial institution. You need to ensure that your adviser views your affairs in the same way as you. The adviser needs to be qualified. This is even more apparent if the adviser only specialises in advising clients where you are currently resident.expatmoneyguide.which means outside of the UK. There is no point finding a local adviser who will sit down with you and who you are comfortable with if you may move to another contract in another country in two year’s time. www. You need to know that your adviser can keep your details 100% confidential . no matter where in the world you’re living. You need an adviser who understands how your current status can benefit you. Independent is the key! You need an adviser with significant presence in the industry who can help you benefit from exclusive opportunities. professional and be backed by a group large enough to have influence with the major financial institutions so that you can access and benefit from the best accounts and opportunities available and they can advise you accordingly. and how your future requirements may lead you to or from certain courses of action.

We will show you how to avoid making the banks rich and instead make yourself the extra income. An expatriate savings account can help with the management of your cash deposits and is a beneficial tool for a number of specific reasons. After your cash deposits for emergencies the very first financial vehicle to consider for the protection and enhancement of this greater wealth is an expatriate savings account. As an expatriate you are maybe in the advantageous position where you’re earning more than you were back home and yet spending less.Copyright 2009 Chapter Seven Expatriate Offshore Saving and Investment Accounts With your bank accounts in order. the next thing for you to consider is saving and investing your excess income or making the most of your existing savings. or perhaps you’re living in a tax-free jurisdiction such as Dubai or Monaco. Statistics show that the average expatriate not only earns more than their peers back home. Never put all your eggs in one basket. you’re highly likely to be able to put it in an account where it will earn a far better rate of return than it will receive in a normal current | Page 19 of 55 . you owe it to yourself. Generally speaking. the better returns and lower charges you will incur. but they are in a better position to save and invest more of their wealth. The offshore and expatriate savings account options that you have are broad and varied. If you’re finding that you have a larger disposable income than you once did. You may be living in a lower cost environment. holding a certain percentage of your wealth in cash deposits makes sound fiscal sense. By placing a certain percentage of your excess income just that little bit further out of reach.expatmoneyguide. You may have been relocated abroad and be enjoying a preferential remuneration package as a result. It allows you to cover day-to-day expenses and have a small amount in reserve to deal with unforeseen circumstances. with your employer paying not only your salary but your living costs too. But diversification is the key. your tax status established and your awareness raised about your need to find a well-qualified and experienced international independent financial adviser. your family and your financial future to protect and grow that excess wealth. the longer you’re willing to save for. you’re not only preventing it from being easily spent and wasted. As any adviser will explain. www. because all institutions want to attract your savings related income. Indeed. one of the overriding reasons that many people have when they choose to move abroad to live and work is improving their financial lot.

if any. an offshore pension scheme is far more flexible in terms of the amount you can save.e.. Contact enquiry@expatmoneyguide. A professional and genuinely good adviser should send you regular recommendations of which funds and sectors you should be taking advantage of to get the maximum growth aligned to your individual risk profile. rather than going it alone and seeking out the best and highest returning offshore savings Therefore. whenever and wherever you want to. you need to decide for how long you want to save i. or tax deferred growth. you might like to bear in mind that the larger and more respected offshore financial advisers have the best relationships with financial institutions. the fund choices you have made the sectors you are exposed to and the accounts that you hold all need to be reviewed on a regular basis. as their client. What's more. which mean that certain holdings one year might not be the most suitable for your situation 12 or even 3 months down the line. you need to be in regular contact with a reputable adviser who knows the international marketplace inside out. savings and investment vehicles held offshore respect that it is your money to spend as you see fit. As an | Page 20 of 55 . instead of your normal low interest savings account. If you have opened www. As you are no doubt aware. These types of investment assets allow for tax free. there are certain account types and structures that can be selected to shield the automatic exchange of information between tax authorities. They often have exclusive access to attractive accounts and investment vehicles that you. Generally speaking. receiving the best ongoing advice about your investments is also essential. it is possible to earn interest on such a savings account tax-free.expatmoneyguide. Because there is such a wide choice of savings vehicles. I. or tax deduction terms of the directive. and changes will be recommended to you as and when necessary. unlike their onshore counterparts. For those in the EU who are potentially affected by the European Savings Tax Directive (see chapter eight). At Expat Money Guide we can help you find an adviser who’s right for you. institutions and jurisdictions for expatriate savers to choose from. This leads to greater flexibility .for more information about retirement planning see chapter twelve.Copyright 2009 For those who qualify and on accounts that qualify. how you save and even how you take the final benefits. and who is well aware of what’s going on in the markets. This is just another reason why it can make sound and logical financial sense for you to draw on the services of a recommend adviser when structuring your expatriate financial affairs. To benefit.e. Current Expatriate Savers If you’re already taking advantage of your expatriate status and saving or investing offshore. The benefit of using the best advisers and holding vehicles for your investment portfolio is that your holdings will be reviewed. you can then benefit from investing your money regularly into an offshore retirement or savings vehicle for example. what is the purpose and how much you can comfortably afford to save on a regular basis. Markets continually change as can your circumstances. can benefit from. the benefit of receiving good advice simply cannot be emphasised enough. which naturally gives your savings an instant boost.

or need to pay a mortgage in another currency. Before embarking upon an offshore investment strategy yourself however. seek out an adviser who understands your international status and who has access to the entire offshore and onshore marketplace. Such a benefit is mainly desirable to professional investors. and also the legitimate reduction of taxation.. Tax deferral – some offshore holding vehicles and a number of offshore savings and investment funds are set up in such a way that tax is not deducted on interest earned until the money invested by the onshore client is taken into your particular country of tax residence. don’t worry. Accessing alternative currencies – it is possible to save and invest offshore in accounts or schemes and policies denominated in alternative or multiple currencies. applies to you just as much as it applies to an expatriate starting on the road to getting their financial affairs in | Page 21 of 55 . The 8 Main Advantages of Offshore Savings and Investment Vehicles It’s impossible to categorically state what the benefits of an offshore investment policy might be to you as an individual. Getting the right advice (see chapter six). what you are looking to achieve and we will be happy to point you in the right direction without charge or obligation. Or maybe you live in the Euro zone but receive a pension in Sterling? 3.Copyright 2009 accounts on your own or lost touch with the adviser who recommended a particular course of action to you in the past.expatmoneyguide. and even then there are solutions to minimise any fiscal liability if structured correctly. Complex investment structures – certain investors need or desire access to more complicated investment structures which are possible to create in certain offshore jurisdictions where regulations are less strict than in others. Continued 4. enhance and positively develop your financial situation. I. there follows the 8 main advantages of offshore investments that the majority of people are able to explore and potentially benefit from. Expatriate advantages – expats who move overseas and reside in a new country may. 2. depending on the tax rules of the new country and the double taxation agreements in place with their country of domicile. be able to hold www. Professional advisories take on clients such as yourself on a regular basis and are happy to work with you to review. If in doubt let us know about your personal situation. However. This can provide greater security to those who live in a nation with an unstable currency for example. This can allow for the intensification of growth. remember that you will need to discuss your own personal situation with a financial adviser with these potential advantages in mind: - 1.

there is an incredible array of investment options available to those willing to explore the offshore world. simply because the tax regime is zero. 5. With less | Page 22 of 55 . The same fund offshore can grow significantly quicker than its onshore version. www. 7. but if you’re a professional or expatriate investor and you’re seeking greater diversification. 6. Other jurisdictions have sophisticated levels of supervision in place as well as investor protection in the form of compensation schemes. you let the growth roll up. Regulation.expatmoneyguide. Some are more attractive and secure than others of course. i. supervision and compensation schemes – certain offshore jurisdictions like the Isle of Man have seemingly better investment regulation in place than onshore centres like the UK. Diversification – there’s no denying it. you may benefit from investing offshore. growth is simply higher.Copyright 2009 investments offshore and legitimately avoid any taxation on income and interest derived from the investment as long as that money is not brought into their new country of residence. making them very attractive places to invest for those who require greater security. Fund managers & investment specialists – certain specialist fund managers and expert investment companies or individuals may reside in and operate from a jurisdiction other than the one in which you reside – to have access to their specialist skills you may benefit by going offshore.

Estonia. Latvia. but again remember that there are solutions if you look outside of the | Page 23 of 55 . Luxembourg. Lithuania. Slovakia. Czech Republic.Copyright 2009 Chapter Eight The European Savings Tax Directive We have briefly touched on the fact that EU domiciled individuals who are resident within another European Union member state are now forced to choose between 20% tax deducted or exchange of information. There are solutions and it is therefore essential that we completely outline the terms of the EU Savings Tax Directive before discussing expatriate tax. save then pay tax on your savings income. The full list of nations affected by the Directive is: Andorra. Channel Islands. Spain. Italy. Simply put. dependent territories and a number of additional nations known as ‘third countries’ since the 1st of July 2005. Aruba. Lichtenstein. Antilles. Netherlands. British Virgin Islands. Denmark. Portugal. Ireland. Cayman Islands. United Kingdom. Monaco. Cyprus. and moving on to explore further options available to expats seeking to maximise their offshore advantage and reduce any tax liability. Greece. is an agreement to automatically exchange information about customers who earn savings income in one EU nation but who reside in another. Finland. We should all be aware however that it doesn’t stop there. There is increased pressure from the EU to push the savings directive global. But that only applies to bank accounts and fixed interest coupons such as Government Bonds. Please contact us if you think you might be affected by the Directive and you would like to learn more about it and the solutions to it. Hungary. Austria. But there are solutions by looking outside of the banks! You just need to know where to look. Anguilla. Some people think it is bureaucracy gone mad that you pay tax as you earn your money.expatmoneyguide. Slovenia. Essentially the European Savings Tax Directive. Montserrat. The level of tax withheld on a customer’s account initially started at 15% in 2005. Poland. but a number of the above nations have instead adopted a policy of automatically withholding tax from the customer’s gross interest earned instead. The good news is it doesn´t have to be www. Belgium. Isle of Man. by 2011 the tax automatically withheld will have risen to a shocking 35%. Turks & Caicos. France. Switzerland. but quickly rose to 20% in the summer of 2008. (ESD). It has been in force in all EU member states. for many expatriates gone are the days of holding money in an offshore bank receiving interest tax free and no one being privy to this information. Germany. San Marino. then pay tax on your death. Malta. Sweden. Automatic exchange of information is of course the ultimate objective of the Directive.

or that you will ultimately lose up to 35% of your gross interest annually in order to keep your monies confidential. If interest is paid directly then the investment or account comes within the remit of the EU Savings Tax Directive. Instead it has resulted in thousands of individuals losing their right to privacy of account activity and personal information. unless they explore other options. it is highly likely that you will be affected by the EU Savings Tax Directive unless you have already taken appropriate measures. What’s more. where a savings or investment policy generates fixed interest direct to the client it is affected. you need to be aware that there is global pressure being placed on non-compliant countries to sign up to the Directive or a similar policy by the likes of the Organisation for Economic Co-operation and Development. deduct 3%. www. correctly and secure your personal | Page 24 of 55 . savings certificates and term deposits. saving or investment vehicle in another of the above list of nations. and the word ‘direct’ is the key here. the level of savings income received and the period over which it has been received will be passed automatically to the tax authority in the country in which the money is housed. All onshore and offshore bank accounts are affected. (OECD). Are You Affected? If you reside in one of the above nations and you have a fixed interest bearing bank account. In simple terms.expatmoneyguide. This information is then automatically passed back to the tax authority in the country in which the individual resides. and deduct inflation and what you are going to live on? In these times expats can benefit massively if they get expert advice and structure their savings and investments correctly. This either means an automatic exchange of information. Individuals are finding that their identity. Leave your monies in a bank account and with interest rates tipped to fall below 2%. as are the vast majority of deposit accounts. and you will have to choose between either paying the withholding tax or being subject to the automatic exchange of information on the monies being held in your name. will find themselves up to 35% down on annual returns by 2011. However. The European Savings Tax Directive was brought into being in an effort to prevent cross border tax evasion. The Future of the EU Savings Tax Directive Even if you’re not resident in. and to instead start exchanging information. offshore personal portfolio bonds do not receive the interest directly which can have massive fiscal advantages for the owners of such attractive structures. Germany is putting pressure on the EU to force those nations that are withholding tax to stop doing so. Those affected residing in a nation that has agreed to the automatic retention of withholding tax at source. It is still not too late to structure your affairs legitimately.Copyright 2009 this way. or holding interest earning financial assets in one of the nations listed above.

com | Page 25 of 55 . Every individual’s circumstances are unique. It is simply essential for you to get a personalised review of your situation. There are those in the financial industry who actually believe that the loss of freedom will ultimately be felt on a global scale.Copyright 2009 It is therefore deemed only a matter of time before loss of privacy or loss of the right to freedom of investment could become a reality for more and more of us. because your own personal situation is unique. It is no good thinking that an investment vehicle that your friend has would be suitable for you. (see chapter ten for more information about these options). and you may or may not be eligible to structure your investments in order to either avoid the automatic exchange of information or the loss of up to 35% of your gross interest.expatmoneyguide. but remember that there are solutions available to you. www. Legitimately Beating the EU Savings Tax Directive The good news in all of this is that there are effective and legitimate solutions and structures available to the majority of expatriates whose nest egg and savings are being affected by the European Savings Tax Directive. Expatriates should always seek tailored advice. and if you require further information. contact us at Expat Money Guide and we will put you in touch with an adviser who can review your status and advise you accordingly as soon as possible. Some of the solutions that you may be able to explore include offshore or EU approved portfolio bonds or other investment wrapper type vehicles that can protect your personal privacy and can protect the performance of your savings and investments as well. Contact us to find out who you should speak to for advice and how you personally can best structure your assets as an expatriate.

com. you need to make HM Revenue and Customs in the UK aware of your decision to become an expatriate. and as a result you will still be liable for UK taxation. and limit your future liability to tax in Britain. Italy. The list of countries already completed includes but is not limited to: Bahrain. If you do not see your nation of residence in the above list. Portugal. at Expat Money Guide we have produced free tax factsheets for our readers. before we go any further. France. Following a ruling in 2006 in the case of Robert Gaines-Cooper v HMRC. but people need to understand how the rules are applied and www. Belgium. What’s more. But as the Revenue has subsequently pointed out. If you wish to benefit from these factsheets all you have to do is contact us via email: info@expatmoneyguide. none of the rules have changed. Ireland. Please note.Copyright 2009 Chapter Nine Expatriate Tax: Residency and Domicile Having touched upon the fact that you have to deregister your taxable presence in the UK before establishing your tax obligations in your new country of residence in chapter four.expatmoneyguide. many have begun wondering whether the taxman in the UK has changed the rules about when a Briton becomes non-resident for tax purposes. The Netherlands. As mentioned. Spain. compiled with the help of reliable industry experts. Germany. Dubai & The UAE. The current list of countries for which we have dedicated factsheets available is expanding rapidly as we work on the collation of all pertinent material. in this chapter we will expand on the theme of expatriate tax. Sweden. Form P85 is key. Turkey. Hong Kong. please contact us anyway because the chances are we have the information you need already available. tell us where you’re resident. Greece. The point at which you leave one country of residence and become tax resident in another country (which can be a period of up to one year) is an extremely beneficial time for you to structure your finances correctly. Saudi Arabia. Your Residency Status If you expatriate to live abroad for less than one full tax year you will still be considered by HMRC to be resident in the UK. and we will send you the relevant | Page 26 of 55 . Cyprus. the sheets we have are constantly updated to ensure that they remain relevant.

There is another class of residency that can affect your taxable status in the UK. If you believe a day should be classed as a day in transit you must not do anything such as visit a property. and that is if you are considered ‘ordinarily resident’ – you may enter this status if. You should take nothing for granted when it comes to your tax status. The very first point to clarify is that the Revenue clearly states that the main factors taken into account when determining residence. x You have been resident in the UK and you leave to live abroad permanently or for a period of at least three years. This is why the UK has double taxation agreements in place with many other nations. you should seek qualified legal advice about your status before you assume you are resident or | Page 27 of 55 . This split year treatment is particularly important for working expatriates and it applies in the following situations: x You have been not ordinarily resident in the UK and you come to live in Britain permanently or to stay for at least two years. for example. it may be the case that you are still classed as resident or ordinary resident in the UK whilst having become resident in your new nation for tax purposes. with no exceptions. ordinary residence or non-residence are defined. attend a business meeting or engage in an activity such as that which is not related to your passage through the UK. if you are normally physically present in the UK at some point in a tax year then you are likely to be considered resident. This prevents you being taxed twice. To be classed as resident in the UK and therefore liable to income taxation in the UK for example. As you make the transition abroad and become an expatriate. they arrive in or leave the UK at some point within a tax year. In terms of what counts as a day spent in the UK…before April 6th 2008 days of arrival and departure were not generally counted. if you are in the UK at the end of a day that day will count as a day you have spent in the UK for residence purposes. but if you exploit these rules. if you’re usually resident abroad but return to the UK for 183 days or more in one tax year you would become resident but not ordinarily resident. From April 6th 2008. skirt the guidelines or are in any doubt about your status. You are then taxed as a resident from the date of your arrival. You are taxed as a resident only up to and including the date of your departure.expatmoneyguide. you are usually classed as resident but you go on a long holiday and are in the UK for fewer than 183 days in the tax year in which you take your long holiday.Copyright 2009 interpreted before they assume that they are non-resident for tax purposes in the UK. Or. What this means is that we will show you the rules that the Revenue applies. Additionally. for some people their tax liability will be split if for example. That is unless it is a day spent in transit in an airport for example. www. These 183 days needn’t run consecutively. however a decision relating to the individual will depend on their particular case and situation. where you arrive on one day and depart on the next. and on your departure are not ordinarily resident in the UK. If you are in the UK for more than 183 days in one tax year then you are always going to be considered resident.

or less than an average of 91 days per tax year over a period of 4 years. It is possible that HMRC will want to see some proof of intention when looking into your case – they will want to see that you intend to live permanently abroad and will assess this over a period of 3 years or more. if you are going to live abroad permanently then you must not spend an average of more than 91 days in the UK in a tax year. and any visits you have made to the UK since leaving have totalled less than 183 days in any tax year. The evidence you could show might be that you have bought or long-term rented a home abroad to live in. your non-resident tax status is extended to remove your liability to UK based capital gains tax as well. If you’re going to be living and working abroad and you have a full-time contract of employment then you may be treated as not resident and not ordinary resident from your point of departure.Copyright 2009 x You have been resident in the UK and you leave to take up full-time employment abroad. Note: if during your period of residence abroad there is a break in your employment contract. You are taxed as a resident only up to and including the date of your departure (and from the date when you return to the UK). x During your period of absence you return to the UK for fewer than 183 days in one tax year. and you meet certain | Page 28 of 55 . HMRC will review your situation again. and if you do still have property in the UK for your own use. If you go from one contract to another you may still be classed as non-resident – but do bear in mind that HMRC can always review your status if you fail to meet or comply with any of their guidelines. If you’re emigrating but you’re not going into a period of full time employment – perhaps you’re retiring abroad for example – then the rules differ once again. the reason is consistent with your stated aim of living abroad for three years or more. but only if you fulfil all of the following criteria: x Your absence from the UK as well as your employment contract last for at least a full tax year. otherwise you can be classed as resident. For example. As long as your absence from the UK has covered at least one whole tax year. As soon as your contract ends and you return to the UK you will be classed as resident and ordinary resident again. www. you will be treated as not resident and not ordinarily resident retrospectively from the day after the date of your departure date. If HMRC accept that you have indeed left the UK permanently or for at least three years. and have averaged less than 91 days a tax year over an average of 4 years.expatmoneyguide. If you remain an expatriate for five or more tax years.

and the terms of your will . No matter what people may tell you. However. changing your country of domicile is very difficult indeed. again HMRC will consider your intentions at your time of death. However. but they are unwilling to lose out on what can be a considerable sum of money upon your death if they determine your estate is liable for inheritance taxation. Cynics will tell you that HMRC are willing to let go of you and your income and capital gains tax liabilities in the UK. This is not simply a case of closing bank accounts and disposing of tangible assets. Whilst it is really relatively easy to change your country of residence with the help of time and the P85 form. Understanding and Changing Your Status There may be reasons for you to change your domicile status and there are certainly benefits to be derived from you changing your residency status. any time you have recently spent in the UK. your entire worldwide estate becomes potentially eligible for UK IHT. www.particularly relating to where you wish to be buried for example. it is not easy to change your domicility. Ultimately it makes absolute sense to employ the services of an international independent financial adviser to assist you. and it is of importance when it comes to estate planning and inheritance | Page 29 of 55 . if you are deemed to have been domiciled in the UK.Copyright 2009 Your Country of Domicile There is no dictionary definition of ‘domicile’ when it comes to ´HM Revenue and Customs’ consideration of it in relation to your taxable status. We are more than happy to put you in direct contact with the right adviser or advisers to help you – no matter what your personal situation. and it can certainly take at least seven years. It is likely to be the nation in which your father was born and/or where you were brought up and schooled. the simplest definition of your country of domicile is where you are grounded and rooted. to do either you have to follow certain steps and procedures and HMRC does not make it particularly easy to do so. To change your country of domicile you have to sever all ties with the UK.expatmoneyguide. Upon death.

Copyright 2009 Chapter Ten Offshore & EU Approved Portfolio Bonds There are many advantages to placing your savings and investments offshore if you’re an expatriate. if any. have a linked visa debit card. Where you are currently resident and where you plan to be resident in the future and when you retire are all fundamentals to be brought into the decision making process as well. virtually limitless choice of funds. Jersey or even sometimes Dublin – these have some of the best investor protection regulatory environments in the world. Within these secure structures you can hold your bank deposits. Depending on where you reside you can save and invest in locations such as the Isle of Man. you can follow diverse investment paths and ultimately you can maximise your wealth and secure your financial future by going offshore. These investment structures are called portfolio bonds or wrappers. It could be the case that opting for an EU approved savings and investment vehicle better suits you. Guernsey. Portfolio bonds are available from an expatriate you are eligible to affordably and easily establish an investment structure that can hold all your deposits. Ultimately you need to be aware that for some expatriates it may be more advantageous for them to invest offshore. offshore or onshore/EU approved . funds and assets under one tax efficient umbrella. A qualified international independent adviser will be best placed to discuss your eligibility for either type of investment vehicle before proceeding with any recommendations according to your future objectives and risk profile.e. equities. well-known financial institutions. and for others it may be more advantageous to choose an EU approved investment vehicle as stated. and top performing offshore and onshore funds. currency accounts. your circumstances and objectives. As we have however shown. personal confidentiality. You can benefit from superior investor protection schemes. virtually any asset that is not physical property can be held in such a structure. every expatriate’s situation is different and it would depend on your country of residence and your individual personal situation whether a particular offshore opportunity is the right solution for your own specific financial goals. fund managers and financial | Page 30 of 55 .. bonds. Holding Your Assets Whichever path you choose to hold your savings and investments – i. even your premium bonds. many of them household names. www.expatmoneyguide. for example you can have access to more fund managers who are able to operate more freely and therefore expose your funds to a wider array of opportunities. cash.

tax free income for up to 20 years. if structured as a life assurance product. certain Portfolio bonds allow you to take a 5% p. Other advantages include: x x Multicurrency cash accounts with all holdings shown daily in your chosen valuation currency. In future years. these can easily be transferred into one of these structures. You can enjoy 100% tax deferred growth each time you make a gain – which means you pay no capital gains tax whilst the monies remain within the portfolio. quickly. These vehicles are confidential with no tax deducted. x x x x x x x www. cost effectively and hassle free simply by sending off a fax signed instruction. So you can see your total worth at any time. You can legitimately avoid the exchange of information requirements that the European Savings Tax Directive may otherwise expose you to. They can be structured to allow you protection from the EU Savings Tax Directive as well. A portfolio bond can allow you to benefit from institutional fixed deposit rates from leading household names. you could combine the creation of an offshore portfolio bond with a trust structure.Copyright 2009 If you’re thinking about diversifying your financial assets by perhaps investing with different fund managers. and you may find you have a very effective vehicle for inheritance tax planning purposes. You can buy and sell funds or assets easily. or you can save up to 35% of your gain.expatmoneyguide. Once established. If ever you move back to the | Page 31 of 55 . No more having to prove who you are or where your money came from each time you want to buy or sell an asset. And what’s more. For those of you who already hold any funds or shares. or move to a better deposit account. For example. this sort of portfolio bond or wrapper structure is definitely worth looking at. such a structure is cost effective and easy to maintain. if you hold BT shares or a Fidelity fund then a simple asset transfer means you can hold your investments within the confidential structure of the portfolio bond. and also benefit from paying no capital gains tax (dependent on where you are resident). which makes them highly attractive and beneficial. the cost of cover cannot be taken from monies in an Offshore Bond. and if you want to find a secure home for your cash deposits allowing you to diversify your holdings even further whilst monitoring overall performance of all assets within your portfolio with your financial adviser’s guidance.

This is the sort of personal fact-finding that a financial adviser will complete with you. the term over which you’re willing or able to commit your savings will dictate which particular savings path you follow. How Much Do You Want to Invest? Are you in a position to invest a lump sum? Will you be looking for a regular savings scheme into which you can make monthly/quarterly/annual deposits? Are you paid bonuses sometimes which may result in you being in a position to make ad hoc contributions to an investment? Your answers to these basic questions will immediately bring up alternative investment opportunities for you. towards education fees. but what you need to know is that the sooner you begin investing. realistic and ideal for you. which are easily accessible to you for short-term liabilities and to cover the odd unforeseen circumstance. with dramatic effects from compounded returns over time. the longer you will have for your money to grow. for the deposit on a property or for a large purchase? It’s highly likely that your savings objectives will cover a number of final goals – for example. Therefore. most people do want to invest towards their retirement. it’s time to get a handle on why you want to invest. Work with a financial adviser to determine what is possible. www. The amount and frequency of your investment commitment combined with your ultimate savings goals will dictate the products and policies that are applicable to you.Copyright 2009 Chapter Eleven Investing for Expatriates Having covered an expatriate’s basic banking. do you want to save for your retirement.expatmoneyguide. savings and investment options and discussed the EU Savings Tax Directive and potential ways to legitimately avoid the restrictions it places on the individual. What Are You Saving or Investing For? Having placed a certain amount of your wealth in cash deposits. how much you want to invest and what the money will eventually be used for. and then allow them to guide you towards the best investment vehicles or savings policies to suit your | Page 32 of 55 . but it is also something you should spend some time thinking about yourself. whilst at the same time having shorter-term savings targets such as getting the money together to buy a new house perhaps.

managed funds and stocks & shares (known as equities) to choose from. Simply leaving your money in cash deposits is not usually sensible as you may struggle to even keep up with inflation. With the help of an adviser. You need to be more creative and look at ways to make yourself and not the banks richer – talk to your adviser or contact us if you want our help in receiving a detailed recommendation and financial health check. You have property. i. there are five basic underlying asset classes across which you will be investing.expatmoneyguide. www. you need to be aware of your own risk profile and what you want to achieve through investing – that way you will find it far easier and simpler to recognise the right investment or savings plan when it is presented to you. Look at each asset class. Remember that decisions made today may need to be revised and reviewed regularly..ask your adviser to explain the benefits and risks of each sector. understand the basics of it.e. the ultimate decisions you make about which savings or investments vehicle will depend on your financial circumstances and goals. bonds. cash deposits. and consider that a sound and well-diversified investment portfolio spans all asset classes . Understand that whilst there are many options when it comes to selecting the right investment policy. You need to know yourself and your | Page 33 of 55 . Therefore you need to commit to having a financial review at least quarterly or annually to ensure that your savings are still on track to match your ultimate targets.Copyright 2009 Prepare Yourself for Investing You need to make certain resolutions and decisions and reach various understandings before you are ready to invest.

’ The graphic story of 100 young people now aged 25. Investment and Retirement Planning One of the most fundamental savings objectives for any of us is securing enough to retire on comfortably. 93% will be depending on friends. and that is. namely ‘time in the market versus timing the market’.com | Page 34 of 55 . we will discuss this in chapter thirteen.. and this is for two main reasons. Note: if you have recently expatriated and you have the likes of a UK based.expatmoneyguide. relatives and charity. and ‘dollar (or pound) cost averaging. 40 years later at retirement Of those who live to retirement.. the sooner you start saving the better.Copyright 2009 Chapter Twelve Long-Term Savings. onshore pension scheme in place. When it comes to saving and investing there is a universal truth. Where will you be? www.

There are some excellent medium to longer-term investment vehicles available. Offshore Pensions Bearing all of this in mind. in light of the recent volatility of the stock market.expatmoneyguide. when it comes to getting the very best potential returns for your long-term savings. it could just be that a financial adviser will suggest you make the most of an offshore retirement www. many people may be initially reluctant to consider such an investment | Page 35 of 55 . However. cash or bonds or a combination.Copyright 2009 Time In versus Timing For expatriates there are excellent offshore savings or retirement vehicles which can be linked to the stock market. if you’re an expatriate of working age who is concerned about saving towards your retirement. Now. it is all about time spent in the market rather than trying to time your entry into it. all of which will be geared towards people with varying degrees of risk tolerance. A great many of these policies can benefit from exposure to stocks and shares.

there are plans and solutions available to you to help you do the very best for your retirement. and your expatriate status can give you a significant financial leg up the savings ladder.000 £50.304 £121. 9% income growth and a 5% return after retirement. Also.000 £1. How much money would you like to | Page 36 of 55 . Years until retirement Required annual retirement income Required annual retirement income in real terms (Assuming 3% inflation) Monthly investment needed (Assuming 9% p/a growth) 10 20 30 £50. You will not only feel much better about your future financial security.expatmoneyguide. It also assumes that you have no current retirement provisions. The table below demonstrates the amount you need to save to achieve a retirement find at age 60 with a purchasing power of £50. thus allowing your capital to effectively grow faster. you will also have set yourself head and shoulders above your peers back home in terms of getting money in place for a comfortable retirement if you begin your retirement savings now. However.Copyright 2009 scheme. but because they are concerned that having to save intensively will somehow encroach on their lifestyle and standard of living today.000 a year? £50.000 £50. and so to 'earn' the payout you require you are going to have to save and plan for your retirement. with careful planning it’s actually easy to get ahead without hindering your current lifestyle or having to save so intensively in later years. No matter what your financial situation is right now. your spouse and possibly even your family in retirement for just one year? Be realistic – what do you need . Remember also that as an expatriate you can benefit from tax advantages and often defer any tax liability when investing. many expatriates fail to get ahead in the retirement race. www.000? £200.£30. or would you need to write yourself a cheque for.454 NB: the table assumes 3% inflation.158 £90. Don’t think that tomorrow will never come. not because an offshore pension is wrong for them.360 £3. but whether or not it suits you will depend on your personal circumstances.358 £7. it is here soon enough and there are so many options open to you in the meantime to secure your financial future.000 per annum in today´s money.000? Now remember that no one is going to give you something for nothing.000 £67. Such a savings vehicle is an incredibly flexible plan. If you are still not convinced that today is the right time to begin saving into a pension plan. to ensure that you have enough in your bank to last you. it may help to imagine that you are retiring tomorrow.

that’s only 120 more pay cheques… Now you need to remember inflation. An onshore UK pension will force you into buying an annuity when you reach retirement.. that you owe it to yourself and your financial future to explore these options. the full lump sum. therefore the time could not be more right to begin getting a savings plan in place. and all of a sudden you begin to realise that you have a limited amount of time to get a substantial amount of money 33 into your final retirement pot.what if you're 50. you will quickly see how much more flexible the offshore option is. how many months have you actually got left in which to save towards your pension? If you're 40 and you want to retire at 60 you've got just 240 monthly pay days.e. because by saving and investing regular amounts . or even before. Basically there are so many more retirement savings options available to you as an expat that give you tax benefits. Despite the fact that all this is very concerning. and you look at it in light of an onshore UK pension plan and compare the two. you needn’t give yourself sleepless nights. by carefully investing a lump sum you can maximise your income potential.expatmoneyguide. avoid financial disaster! Already retired? For those of you who have already | Page 37 of 55 . What’s more. and how potentially appropriate it is to fulfil your needs. namely an offshore savings and investment scheme. can make a significant potential difference to your retirement income and quite simply.however small . i. or a combination of both when you retire. If you look at one of the most flexible alternatives that you have. any money left over is yours to give to your children or family.. but a carefully and appropriately chosen offshore equivalent can let you take an income. financial benefits and flexibility benefits..Copyright 2009 The next thing to think about is how many months you have got left before you retire.

Who Can Benefit from an Offshore Pension? Offshore pensions or savings structures are particularly appropriate and attractive vehicles for expats. The Advantages and Special Features of an Offshore Pension An offshore pension is a highly flexible savings policy. Our recommended advisors often can secure a significant bonus for you to make then even more attractive. We will simply need to know your age. when you would like to retire and how much you would like to save. if you're currently in a high paying job. Often a UK pension’s inflexibility makes them unsuitable & undesirable for certain groups of people such as expatriates. and which you may not be able to contribute into if you move abroad. offered in your home country or nation of domicile are savings products that the government often makes tax-attractive on the way in. and allows for www. Many offshore pension plans are wrapped by life assurance companies.Copyright 2009 What's the Difference Between an Onshore and an Offshore Pension? Onshore pension plans. It is their flexibility that makes them so attractive to so many people. Offshore pensions on the other hand are completely different – they are the embodiment of | Page 38 of 55 . Tax is only payable upon benefit withdrawal. would-be expats and residents in high-tax countries intending to become non-resident on or before their retirement.expatmoneyguide. and as a direct result many governments in the world recognise these investment vehicles as 'qualifying insurance products' – what this means is that they are products which allow for the tax deferred growth of the money in the pension. We particularly like Generali and Royal Skandia for their low charges. wide range of funds. if any tax is payable at all. but into which you can only contribute a set maximum amount annually. If you would like to receive a personalised recommendation. so add in. Naturally this gives your growing financial pot an extra lift. lump sums to top up your annual contributions. simply use the enquiry form on page 3 or at the back of this guide. (sometimes called domestic pensions). you can save intensively now so that you don’t have to worry so much in the future about getting ahead with your retirement savings. and the most common benefits are that you can contribute as much as you like into an offshore pension. flexibility and overall secure value for money. Additionally.

move to next. There are many substantial financial benefits to be gained from the utilisation of an offshore pension plan clearly. a larger retirement payout for you. As expats work around the world and can earn their salary in any currency denomination. in any form you wish. offshore retirement savings schemes such as these are often very flexible when it comes to the currency you save in. with no restrictions associated with a UK pension. An offshore specialist and independent financial adviser will be able to help you compare the options and help you find the one that best suits your personal requirements. but naturally you need to ensure you get the absolute correct policy for your current and future financial needs and | Page 39 of 55 . www. And finally. it’s important that they can save without being exposed to excess currency risk and also.Copyright 2009 faster potential growth and ultimately. take their pension in the income of the nation they’re retiring to.expatmoneyguide. Offshore pensions are also global schemes – as an expatriate you can save into one pretty much wherever you live in the world. or end up living when you approach retirement.

expatmoneyguide. In terms of defining QROPS. It does not have to be in the country you reside in. please complete the contact us form on page 3 or at the end of the guide. the majority of QROPS and related benefits are likely to be unavailable to you. In April 2006 it was announced that British expatriates could move their pension benefits to a QROPS. you intend to move abroad shortly or you have plans to retire overseas.000 or more. if you would like a recommended adviser to contact you. Others also realise that an offshore pension has such significant benefits over and above a traditional scheme that they want to divert their savings activity into a suitable offshore pension vehicle. this is a pension scheme set up outside the UK that's regulated as a pension scheme in the country in which it is established. If you’re already an | Page 40 of 55 . Basically this means that many British expatriates who have a frozen UK pension pot worth over £50. Moving Abroad & the QROPS Opportunity Many expatriates have already been saving into a traditional UK pension scheme before they move abroad. or find that it is no longer as advantageous for them to contribute into such a scheme. and which must be recognised for tax purposes in the country in which it is established. (or Qualifying Recognised Overseas Pensions Scheme).000 can potentially benefit from this ruling. and move their pension into a highly flexible offshore equivalent. For those who find themselves in such a position and who already have a pension pot in the UK that’s worth £50. Once they relocate however. As always. with HM Revenue and Customs’ approval. www. but residents of all other nations may apply. they may lose the right to continue contributing.Copyright 2009 Chapter Thirteen Existing UK Pension Plans. If you’re a US resident. Qualifying Recognised Overseas Pensions Schemes are a specific type of pension available and they are highly beneficial to expatriates and anyone contemplating living or retiring abroad. it’s important to be aware of recent changes to British pension laws. it may make significant financial sense for you to speak to a financial adviser about QROPS in relation to your personal situation.

expatmoneyguide. This restricts investment freedom and it can restrict how you pass your wealth on to your loved ones when you die. Simply put. With QROPS however. or you can access a great guide for free at www.Copyright 2009 In terms of defining QROPS benefits. upon death. you may be able to enjoy your pension income in a highly tax efficient way. you are under no obligation to use your pension to purchase an annuity. Remember that we can assist you. the most significant benefits come in to play when the account holder has been non-resident in the UK for at least 5 years and has no intention of returning to Great Britain for the foreseeable 37 future. protect your assets against possible future creditors. with a Qualifying Recognised Overseas Pensions Scheme you gain investment freedom. Other benefits of these Qualifying Recognised Overseas Pensions Schemes include the fact that you are under no obligation to ever purchase an annuity. you can invest in onshore or offshore funds and access the highest fixed deposit rates available whilst achieving total investment www. including the UK. This is because once your pension schemes have been transferred into QROPS and you have been non UK resident for at least 5 | Page 41 of 55 . you're planning on moving overseas or you have to retire abroad. If you are an expatriate. you work abroad. without the obligation to purchase an annuity. In addition to this. then your QROPS provider is under no obligation to report any actions such as withdrawals or payments to any tax authorities. A significant proportion of a traditional British pension has to be taken in the form of an annuity.then pension related income can be enjoyed without the deduction of tax. determine how you could benefit from QROPS. Although do bear in mind that your liability to pay tax may be dependent on your country of residence at the time of receipt of monies brought in. QROPS allow the investor significantly more freedom when it comes to how funds are invested and how income and gains are used. Depending on where you live. you can invest your hard earned pension pot into potentially better returning assets. imagine if your QROPS provider is in a country where payments from such schemes are paid tax-free . You can take your income in the currency of your choice. with the help of a specialist offshore adviser. You can also gain the very real advantage of passing remaining funds. to beneficiaries of your choice instead of having your pension fund die with you.qropsguide. and likely achieve greater confidentiality relating to all your retirement income & capital. For example. why not look into your eligibility for a Qualifying Recognised Overseas Pensions Scheme and.

This is of course an extreme and tragic situation. To illustrate this fact we draw on the case study of an expatriate living in the Far East who was opted in to his company pension. His company pension was of course made up of company stock.. graphically and clearly illustrate why one should never confuse the choice between a company pension and a private pension to be an ‘either’ ‘or’ choice. he not only found himself out of a job approaching retirement. the utilisation of both types of pension allows an expat to diversify their retirement savings. an expatriate has greater potential control over their retirement savings scheme. it should not be seen as an alternative to a private pension. and one ideally you will never have to face – it does however. however. and when his company suffered in the recent stock market turmoil and the value of the stock fell by almost 50%.Copyright 2009 Chapter Fourteen Company Versus Private Pension for Expatriates Some expatriates are fortunate enough to be able to receive a company pension the benefits of which have to be determined by the individual expatriate on a personal basis when they have all the information about the scheme to hand. Additionally. As something of a second thought this 58year old man had also decided to take out a small private pension. he also discovered that the value of his company pension had dropped significantly and now has little chance of recovery. Private and company pensions may have similar benefits ultimately – but through the utilisation of both. | Page 42 of 55 . one question will then immediately arise.e. His private pension meanwhile has stayed the course and made good return. However. or at the very least a private and personal pension. but it is far smaller than he would have wished. but he paid little heed to it.expatmoneyguide. i. is a company pension better than a private pension? And the answer is relatively simple – a company pension may well be beneficial and advantageous to the individual expat. and he sincerely regrets not having contributed more to this instead of his company pension.

Balancing risk and getting the very best for your money is all about taking a holistic approach to the overall secure management of your wealth. You can diversify across currencies and between jurisdictions for example – but you have to balance diversification with rewards and returns. This is diversification in its purest form.expatmoneyguide. However. and only then can you ensure you are successfully diversifying your entire financial portfolio against this risk.e. i. Look not only at the underlying funds in which you invest or the institution you | Page 43 of 55 . there are elements of our lives that we can control. You need to ensure you have a percentage of your portfolio in cash. you spread your cash deposits. and one is the way in which we protect our personal assets. It would also be an administrative nightmare. Life assurance savings vehicles & institutions are often far more protected than straightforward bank accounts. and you need to ensure that you have your money spread between underlying institutions and across asset classes. you could place £100 of you money with each bank in the world. it is possible to protect an overall financial portfolio. The fluctuating fortunes of stock markets. and the way in which bankers work and governments run economies are all outside of our control. spread across all major currencies and divided across asset classes.e. rather look also at the jurisdiction in which your assets are held and therefore regulated and protected. www. and it can be taken as far as you wish. Ultimately you need to have faith in the secure holding company managing your assets. Be informed about all elements of risk. Using an offshore or EU approved portfolio bond as the holding vehicle can make this a very easy task with added security.Copyright 2009 Chapter Fifteen Avoiding the Credit Crunch The recent ‘credit crunch. By diversifying an investment strategy as far as possible and balancing risk & reward carefully. I. the cyclical nature of housing markets.’ stock market turmoil and global financial crisis that have impacted all our lives are not necessarily things that any one of us can protect ourselves against completely. our savings and our investments as much as possible. savings and investments policies between banks and financial institutions. and between fund managers and across asset classes. a percentage in short to medium term Gilts (Government Bonds). Achieving the right balance of diversification is also important when balancing out risk. and a further percentage locked away for the longer-term.. however there would be very little in each account and investment vehicle to attract interest and returns and effect compound growth. The very first rule to observe is that you never place all your financial eggs in one basket.

an estate’s assets being frozen. but the most basic goal has always remained | Page 44 of 55 . Estates not carefully protected and wishes not correctly formalised and made clear can result in an individual effectively dying intestate. and around that time trusts were also being utilised in Britain. once created. Around 800 BC there is certain evidence to suggest that trusts were used by the Roman Empire. strict limitations and general restrictions were increasingly being placed on landowners. In addition to this fact. and the landowners’ heirs became the trusts’ beneficiaries. inheritance taxation and how an estate is divided up and passed on. Many of the taxes and restrictive legislation that applied to the landowner before transfer of deeds did not apply to the trustee after transfer and could therefore simply be ignored. www. your estate may incur a dual inheritance tax liability upon your death. i. Legal titles of any property the landowners held were transferred to a trustee.Copyright 2009 Chapter Sixteen Trusts and Wills When it comes to the ultimate and final protection of your finances and your assets. to preserve assets and wealth from threat and uncertainty whether that be political.expatmoneyguide. depending on the nation you herald from and are deemed domiciled in. The secrecy of this transfer to trust was key.e. The person who establishes the trust by placing the assets with the trustee can be referred to as the donor. What is an Offshore Trust? An offshore trust is a legal entity into which you can pass ownership and control of assets. you will need to consider how your estate will be managed and distributed upon your death. economic or familial. and spouses and dependent children being left out in the cold .so always have a will. In Europe during the Middle Ages excessive taxes. the trust and the assets within it are managed by a neutral third party called the trustee. In an attempt to circumvent this restrictive situation landowners began to make use of trusts. The History of Offshore Trusts The use of a ‘trust’ in the financial planning sense can be traced back to around 400 BC when Plato was using a non-profit trust to finance his university in ancient Greece. As an expatriate it is essential to get your affairs in order as soon as you arrive in your new nation because different countries have different laws and rules relating to succession. Throughout history the concept and form of the ‘trust’ has been developed upon.

2. i.Copyright 2009 grantor.e. 3. settlor and beneficiaries of the trust are resident elsewhere to the jurisdiction in which the trust is held then generally the trust will be subject to little or no taxation. The beneficiaries of the offshore trust can in certain circumstances include the settlor. According to the professionals who have overseen the creation of this guide. The trustee of an offshore trust is generally a trust company.e. the individual. Upon transfer of assets to the trust. Offshore trusts don’t always work in the way you want them to. the trustee becomes the legal owner of the trust property and the beneficiaries are the equitable owners. the assets within may very well be protected from any future taxation changes in the settlor’s country of residence and/or domicile. and any distribution of assets by the trustee is in accordance with the terms of the original trust deed. For the purposes of this guide. by establishing a trust in an offshore jurisdiction.. Examples of governmental interference would include the imposition of specific rules and laws relating to succession – i. and once created they can be very costly and complicated to unwind. The trustee is responsible for the management of the assets within the trust and for the distribution of any income or interest etc. The trustee does not hold the assets within the trust for their own use or personal benefit. rather they are bound to administer the trust and its assets for the benefit of the beneficiaries. Confidentiality can be assured because a trustee may not have to disclose the names of either the settlor or any beneficiaries of the trust that they manage to any legal authority . That said. Furthermore.depending on the jurisdiction www. to whom you can leave assets upon death – or the imposition of exchange controls for example. note a settlor is the original owner of the assets.. Confidentiality – An offshore trust in confidential jurisdiction is a private and confidential arrangement between the settlor and the trustees. It is extremely unlikely that most offshore centres would ever introduce such controls. (or company) | Page 45 of 55 . An offshore trust arrangement is normally recorded in a written document called the trust deed. in their collective experience often a trust is just a high cost pushed by a trust company on to an unsuspecting client. settlor. When is an Offshore Trust the Right Decision? It is not necessarily of benefit to establish a trust. Politics – The protection of a settlor’s estate from governmental interference may be another reason for the establishment of a trust. An offshore trust is usually set up in a tax haven or a low tax jurisdiction – it makes little or no sense. the advantages of ‘offshore’ in trust terms are generally threefold: 1. to establish trust in a country with higher taxation than your own. especially if using a trust to reduce taxation liability. the term settlor will be used. Tax – If the trustees. The obvious advantage of this is that the value of the trust fund will accumulate at a greater rate. An offshore portfolio bond can often do this just as well at a fraction of the cost. who transferred the assets to the trustee originally. or trustor. to the beneficiaries of the offshore trust.

And finally. Finally. www. its settlor and beneficiaries is often a key factor when establishing a trust offshore and when choosing the right jurisdiction to establish it in. international tax authorities will be greedily trying to get their hands on as much of your estate as possible. meanwhile everyone will have a legally valid opinion about how your assets should be divided up. In the background of this your grieving spouse and family will be left in a state of complete turmoil and uncertainty. Wills If you die intestate.. the confidentiality applied to a trust. Generally speaking.expatmoneyguide. without a will. Look into whether it is better for you to joint own assets with your spouse. an offshore trust can be an incredibly complex and expensive structure that does little to benefit the ordinary expatriate.Copyright 2009 in which it is established. i. or a serious crime is suspected to have been committed. ensure that you keep your will refreshed and up to date to reflect any changes to your family status or your asset base. simply because you never got round to writing a will. please contact us as Expat Money Guide because we can put you in touch with the right advisers to help you. and if you would like to talk through the options that are available to you or learn more. During this time.e. your entire worldwide assets will suddenly become of maximum interest to the UK taxman if you were deemed domiciled in Britain at your time of death. Additionally. There are many structures available and ways in which you can protect your assets and ensure your affairs are in order for the future though. and the assets you hold abroad will be of interest to the specific nation in which they are located. the country in which you were resident as an expatriate at the point of your death will also be potentially interested in your worldwide estate. a large number of offshore jurisdictions have managed to avoid double taxation and exchange of information agreements as well – unless of course a court order has been obtained. You owe it to your heirs to write a will both in your nation of origin and in the nation in which you have assets and/or reside. and an incredibly complex period of probate will begin. | Page 46 of 55 . The question of whether you could benefit from such a structure for the protection of your assets and the management of your estate’s future inheritance tax liabilities is difficult to answer.

if you’re choosing to move yourself and your family abroad. One of these luxuries was their access to private school education for their children. or whether local state schooling will suffice: x Are you in an environment where the local education standards differ greatly from the standards that you would like to achieve for your child? What choices are available to you? www. Private or State Schooling – Decisions and Potential Costs Clearly every child is unique. such packages are becoming rarer and what’s more. it makes sense to start saving as soon as possible towards the potential cost. or the method or standards of teaching are not appropriate. one of the criteria that the bank used to determine preferential nations was the expatriate respondents’ access to so-called ‘luxuries’ now that they had relocated. However. respectful adults with a wide cultural. A destination that ranked particularly highly due to the level of luxury that expats had access to was Dubai – and yet Dubai also charges famously high rates for private school fees. If you’re an expatriate. independent.expatmoneyguide. and will depend upon many different factors. the question of affording a private school education is not necessarily such a pressing one. Therefore every decision about whether a private school education is best for a child will be unique. there are a number of points that are worth considering when determining the right path for the educational needs of your child. What this means is that the financial burden falls solely on you. For English speaking expatriates moving to a nation such as Australia or Canada where their children not only have a right to state schooling but where the language of tuition is of course familiar to the child. as parents we all want our children to retain their individuality and to grow and develop into confident. Here are some of the considerations you need to contemplate relating to whether a private school is suitable. should you lose your job and you don’t want to drag your children out of their chosen | Page 47 of 55 .Copyright 2009 Chapter Seventeen Education Fee Planning In a recent survey conducted by HSBC into the best places in the world for expatriates to live. it may be essential for you to seek out educational alternatives for your child. If you’re being relocated to a destination such as Dubai by your company. chances are your new employer will not feel that they have any obligation to sponsor your child’s education. And what´s more. social and educational awareness. However. you may be lucky enough to have a remuneration package which includes financial provision towards covering the school fees for your children. if you’re moving abroad to a nation where the language of tuition is other than your own.

availability of extra curricular activities for social and personal development. does the environment in which you live match your family’s beliefs and ideals? If not. you need to accept that it is down to you to take the responsibility of providing your child with the educational opportunities to set them up for life. state funded school provide your child with the best chance to achieve the best qualifications? Class sizes. facilities.expatmoneyguide. appreciation and ability to help special needs and specially gifted children. teachers’ qualifications. there are ultimately three clear points that you and your spouse need to have in mind: 1. means that you will regularly have to travel or relocate? How can you overcome any worry or anguish involved in potentially sending a child away from their family? Do the best local schools guarantee places only to the best pupils? Does your child stand a chance of getting the education they deserve? Are you happy to leave your child’s education to chance and play the lottery of the state school? If only those children who leave education with the best qualifications stand a chance of getting the best | Page 48 of 55 . talents and desires? Is the language in your country of residence going to prove a barrier to your child’s development? Do the standards of qualifications achievable in your country of residence compare favourably to the standards back home? Do the standards of teacher qualifications in your country of residence compare favourably to the standards back home? Is there a potential for the repetition of any educational or social disruption to your child if your job. 3. what can be done to safeguard your child’s social welfare? Are the educational. 2.Copyright 2009 x x x x x x x x x x x x x x Are you living in an environment that is less than 100% safe or stable for your child? Could this adversely affect their educational development? If so. or that of your partner. Then you need to understand what that means to you in terms of selecting the right school and the right schooling method. Having covered these considerations. extracurricular and social facilities offered locally wide enough to encompass your child’s personal needs. www. morally or religiously. You need to make sure that you understand how important it is that your child has a good education. will your local. what action can you take to protect your child’s educational requirements? Culturally. Finally. Recognition.

Bear in mind inflation again when adding up the number of years your child will need schooling for. and the average university course is now 4 years in duration.000 per child. today couldn’t be a better day to start. and having identified the right establishment for your child or children. In terms of the fees you will have to pay.Copyright 2009 If private education is your decision based on your own personal circumstances. In this instance it really is a case of not putting off until tomorrow that which you can do today – after all. you clearly cannot afford to neglect your child’s future. In part this is because very few nations in the world now sponsor young adults through to University education. If your child is heading for university. entrance and school fees together with boarding fees and extras when you research your preferred schools. medium or longer term. Clearly the benefits of providing your child with the very best start in life may outweigh the costs. Carefully examine the registration. the next issue to face is the cost and meeting that financial liability. There are specific savings & investment schemes that can allow you to grow your money towards affording to pay for your child’s education. Fees charged in different countries and between different establishments vary massively. | Page 49 of 55 . their chosen path of study. A financial specialist adviser will help you identify the best solutions to meet your own specific requirements.000 per child for average school fees alone. they depend on a number of factors. the total cost of a university education has doubled over the past five years. and even the city in which they want to study. most parents quickly realise that they will be facing an annual average bill of at least £20. and if you want to start saving or want to put away a lump sum to cover the investment in your child’s future. If you have more than one child then obviously multiply costs applicably. and even where there is some state provision. take into consideration inflation if you’re planning ahead for the education of a young child – and inflation in educational spheres is currently running at about seven and a half percent per year. and factors to take into consideration will include whether you will need access to the money in the short. expatriate children are seldom eligible for it. for example the class of establishment your student child chooses. The scheme you choose will depend on your personal circumstances of course. the vast majority of expatriate parents do have to face the fact that they will have to pay towards their child’s higher educational needs. the country in which they want to study and whether they are going to be classed as an overseas student or not. www. Higher Education for Your Student Child Whether you’re going to have to pay to educate your child up to the age of 18 or your employer will. and you can quickly and easily come to a large and frightening sum of around £100. When you combine the average cost of a degree per annum with living expenses and a few extras.

you have to take into account inflation of course . you can use the ´contact us´ form on page 3 and at the back of this guide. Initial considerations relating to which savings or investment policy to choose should be made depending on the length of time until your child is of age to attend | Page 50 of 55 . The cost increase is likely to be further compounded as the state actively encourages our children into further education. the amount of capital hoping to be raised. to receive details of who we can recommend to help you. the best colleges charge the highest tuition this could double the money required to finance your child's higher education. quite simply. www. Or you can of course email: info@expatmoneyguide. The good news is that there are a hundred-and-one ways to save for university fees – especially as an expatriate.expatmoneyguide. If you simply base your future figures on inflation alone.and the cost of education is currently growing way beyond the rate of inflation at around seven and a half percent per annum in the West.Copyright 2009 Naturally the cost of obtaining a degree will continue to increase as more countries adopt the American system where. There are tax friendly options available to most people and an offshore & independent financial adviser used to working with the specific and unique needs of expatriates is well placed to assist you. and it may be fair to assume that this number will not reduce. and the level of risk you are willing to subject your education fee savings to. and university places will come at a premium. If University costs are of concern to you. Added to these facts. 1 in 3 children enter higher education compared to 1 in 20 in the 1960s. In the UK nowadays.

as do the standards of treatment available.or your family’s complete medical related requirements for that matter. yet it does need to be in place. Health Insurance Policies It's entirely possible to tailor a level of cover to suit your pocket or your personal health insurance needs . it needn’t be complicated. there are multiple companies all offering international health insurance. Once you arrive in your new nation there will also be plenty to keep you occupied – from settling in and making friends. you may prefer to select an international insurer who will cover you if you have to travel. What all this means is that you are likely to pay little attention to getting the most basic and fundamentally important insurances and assurances in | Page 51 of 55 . car finance costs. how would your family cope with day-to-day living. relocate again or repatriate. A policy needn’t be expensive. Health Insurance British expatriates soon realise how blessed they were to have the services of the National Health Insurance once they move abroad! Few nations in the world allow free and almost unlimited access to medical services. credit card bills and other basics if they were to lose you? Whether you’re the main breadwinner or not. Always make sure that you are comfortable with any restrictions or limitations of policies recommended to you. Find out what services are available in your country of residence. and any excess you may be liable for in the event of a claim. you have yet to sort out your life insurance cover.Copyright 2009 Chapter Eighteen Life Insurance and Health Insurance When you’re planning to move abroad there are many concerns and considerations to fill your day – from securing housing and employment to sorting out visas and flight tickets. to becoming familiar with your new environment and sorting out essential paperwork. if you have children and/or a spouse and you have joint responsibilities. even now if you’ve been living abroad for a few months or even years as an expat. Note that medical costs differ greatly around the world. After all. or you may prefer to choose a local insurance company. When it comes to finding the right policy. unlike the www. you absolutely owe it to your dependents and family to get life cover in place. the mortgage. and always make sure that you have the option to repatriate in the event of an emergency. Chances are.expatmoneyguide. what your insurance covers you for. And yet.

therefore one of the very first concerns for expats is getting the health insurances in place that they need for their | Page 52 of 55 . In some countries health insurance is a legal requirement.Copyright 2009 UK.expatmoneyguide. in others it simply makes absolute sense. www.

It is our aim to assist all of our readers with any financially related queries that they may have. make sure the adviser in question has as international a perspective as you do! If you prefer to speak in confidence about any questions that you have. international and experienced advice to assist you. This is what makes a place feel so unfamiliar initially. you need to know where to find qualified and experienced assistance. no matter where you go in the world next.Copyright 2009 Chapter Nineteen Where to Find Help and Advice Whether you want to determine which banking options best suit you. What´s more. We’ve already covered ‘getting the right help right from the start’ in chapter six. When you relocate you have to build new networks of friends and associates. But rest assured you are not alone. We are solely geared to helping the expatriate – we understand your unique challenges and we also appreciate the unique opportunities that you have thanks to your international status! All of the advisers we work with are qualified.expatmoneyguide. and when it comes to finding qualified. Therefore. and you have to learn how everything operates in your new country. you can get in touch with us at Expat Money Guide. outline tour basic query and allow is to put you in contact with the best people to assist you. and we are more than happy to help pass on our experience to our valued readers. One financial solution that suits your friend may not necessarily suit you – because we are all unique and have individual goals and personal objectives and challenges. all are independent and all have up to date access to the solutions and services that you need. because of the international nature of the advisers we work with. they will remain your point of contact for all your financial needs. but that if required we are more than happy to call on the advisers who have helped oversee the creation of this | Page 53 of 55 . but we’d like to add that not only is the author of this guide happy to pass on his knowledge. there are several ways of going about it. Simply get in touch with us today. One of the things that expatriates most commonly worry about once they have moved abroad is that they have lost touch with their support network. www. independent. and that they are unfamiliar with ‘how things work’ in their new nation. any elements of your financial life that you would like to get organised. We serve as a central advice network for our readers. or you would like to learn more from those really in the know. or you have queries relating to your short or long term savings and investing options. if you do take the advice of an associate or friend and contact a given adviser.

It has been written with bernie@expatmoneyguide. it may be that you have questions that have not been answered fully by the content herein. the Expat Money Guide contains generic information.. or use the online contact form. subscribe@expatmoneyguide. As stated at the beginning of this document. the expatriate in mind. If there are any elements of expatriate financial planning that you feel we have missed out or not touched upon in depth. Coming soon on-line from Bernie Warren & the Expat Money Guide team. we look forward to hearing from you and remaining your central point of reference for any aspect of your financial life as an expatriate. We hope you will be pleasantly surprised by the level of help and assistance that we offer. if you do have specific queries that we can perhaps assist www. Contact details Email the Expat Money Guide team for further information on: For general enquiries: Client information: Newsletter subscribe: Press releases and information: Contact the Author direct: info@expatmoneyguide. We also look forward to welcoming your feedback about this publication.Copyright 2009 Chapter Twenty For More Information. do get in complete the form overleaf or email us at enquiry@expatmoneyguide. Ultimately. Having read and digested this guide to expat money related press@expatmoneyguide.. ¾ ¾ ¾ ¾ Case studies on-line Ask the expert on-line Perhaps you Expat money club on-line – Huge savings from preferred providers passed directly onto you our readers Whatever you need.. let us know and we will do our absolute best to facilitate your requirements. we are always available to help with any expatriate or offshore related queries and we value your | Page 54 of 55 .

Please complete your details on this printable ´Contact Us´ page and send to us by email at 2009 The Expat Money Guide 2009 Contact Us The Author and team at Expat Money Guide would be delighted to help you with any query or question you may have. Our team will be delighted to contact you by | Page 55 of 55 . Name: Age: (for retirement planning enquiries) Telephone Number: Email: Area of Interest Please tick the boxes below to highlight your areas of interest: The safest place for your savings? How to make sure you´re getting the best interest rates? How to legally reduce your tax liability? How to save for your retirement? Whether you should save offshore or onshore? The diverse world of savings and investment accounts I would like to receive the HMRC form P85 I would like information on Education planning Further comments: www.

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