Tax Planning for Expats

Welcome to our tax planning investment page for expats! We understand that managing your investments as an expat can be complex, especially when it comes to taxes. That’s why we offer a range of investment options and tax planning services designed specifically for expats.

Our tax planning investment services include:

  1. Tax-Efficient Investment Options: We offer a range of tax-efficient investment options, including ISAs, SIPPs, and offshore investment accounts, to help expats minimise their tax liabilities while growing their wealth.

  2. Tax Planning Consultancy: Our tax planning consultancy service provides expats with personalised tax planning advice and strategies to help them maximize their tax efficiency and minimise their tax liabilities. Our tax experts will work with expats to identify tax planning opportunities, such as utilising tax treaties and taking advantage of tax reliefs and allowances.

  3. Estate Planning: Our estate planning service helps expats plan for the future by providing them with personalised advice on inheritance tax, wills, and trusts. Our estate planning specialists will work with expats to ensure that their assets are protected and their estate is managed according to their wishes.

  4. Compliance Services: Our compliance services ensure that expats remain compliant with all relevant tax regulations, including reporting requirements and tax filings. Our team of compliance specialists will work with expats to ensure that their investments are managed in a tax-efficient manner and that they remain compliant with all relevant tax laws and regulations.

We take pride in our ability to offer expats access to a range of investment options and tax planning services that are tailored to your needs. We have a team of experienced investment and tax professionals who are dedicated to helping expats make informed investment decisions and achieve their financial goals while minimising their tax liabilities. Contact us today to learn more about our tax planning investment services for expats.

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If you reside in one main country, you could change your residency to that country and live under their taxes and laws, providing they are better than where you came from. For example, if you come from a country where there is high tax (United Kingdom) and move to a country where there is lower tax to pay (Vietnam), you can change your residency there so that the money you earn is taxed via Vietnamese rules. You don’t always need to live in the country to reside there, you can gain residency by investing a certain amount of money, buying property or putting so much in a bank to get a residency. This can give you true freedom for your business.

On this occasion, it might be helpful to clear up some ambiguous terms for expats. 

Domicile – This is where you originate from. For example, if you are born in the U.K, you are British, unless you tell the government otherwise. This can play a big part when you die, if you die, you normally fall under the rules of where your domicile is. This can have a massive impact on tax and inheritance for your children.

Residency – You will be considered a resident (for tax purposes at least) if you’re present in a country for 183 days or more per tax year – this is true of the UK HMRC and also other governments around the world. Additionally, if you go and work abroad for more than one year, you must not be back in the UK for more than 91 days, on average, in any 365 day period, for the duration of your time abroad. 

Ordinarily Resident – This is where you may spend most of your time and not take extended holidays. You can be an Ordinarily Resident and not a Resident because you don’t take extended trips out the country. 

Multiple Residency – You can be a resident of more than one country, obviously this can be costly to you however, you will be taxed according to the country you are working in. This is why you need to be careful on your residency program and what you do with your residency and domicile. 

The difference – Domicile and residency usually go together but for certain taxation purposes (eg income tax or inheritance tax) your particular mix of residency, ordinary residency, domicile and domicile of origin will make a difference to what tax you have to pay.

 As an expat if you think it would benefit your investments to change your residency or domicile, please contact us and we can help support you to see if it is the correct decision.  

If you have an established business and you are paying high rates of tax, there are ways you can reduce the amount of tax you pay. A way to reduce the amount of tax is to change the residency of the business. 

 

A second passport is exactly what it says on the tin. A second passport can help you with international investments and save you from strict regulations in some countries. Essentially, having a dual citizenship means that no one country ‘owns’ you, you are free to travel under either rules! 

 

If you only have one citizenship then you must follow the rules of that country, that could restrict you from investments, business opportunities and tax efficiencies. Those with a dual citizenship may be able to invest money through a different bank account which acquires less tax and higher flexibility in what you can invest in with lower charges. 

 

Firstly, on second passports, this is a rife market for scams, there are many saying that they can get you a second passport very quickly, this is unlikely because you are dealing with governments and citizenship’s, plus you need certain rights to get a dual citizenship or second passport.

 

Here are the types of second passport you can get! 

 

  • Economic Citizenship
  • Naturalisation
  •  By Descent

If you think a second passport would help you with your investments as an expat or it will help you with your taxes personally or as a business, contact us and we can put an individual plan together to see if it is right for you.

 

Inheritance Tax or IHT is something we do help expats with. IHT does require some planning because you are taxed on your worldwide assets as a UK citizen. 

Becoming a non-domicile is hard and although many do try, you need to physically cut ties with everything before they will let you escape tax because it means that they don’t get paid. 

In all honesty, the best way to remove IHT is to gift it and make sure it gets past the 7 year period. The only problem is you can only gift up to £3,000 tax-free and if you are over the IHT allowance, it will take many years to pass the estate on. 

The other way to reduce IHT is to use trusts and offshore trusts. To find out which are the best then please message us and we can arrange a time to call because platforms have a wide variety of fees deoendin g in what you are looking to achieve! 

 

Tax Articles

Frequently Asked Questions

What is the double taxation agreement?

The UK has signed various agreements with countries around the globe to make it easier for residents to avoid paying tax twice.

What is a trust?

A trust works by taking assets owned by the person establishing (‘settling’) the trust and putting them into the hands of a trustee. An offshore trust is simply one based in an offshore jurisdiction, with its profits not usually taxable in that location.

Can I change my residency?

Yes, this is a perfectly normal thing to do if you don’t spend much if any, time in your home country.

When is the right time to change my residency?

There is no right time as such, however, if you are being taxed a considerable amount then it is worth looking at. The cost upfront usually outweighs what you save after. You can explore options without needing to purchase the residency so you can understand the costs, savings, and requirements for each residency. 

Will my domicile change?

No, your Domicile is normally where you are born and your residency is where you are currently staying.