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CSG Changes for Expats in France

The wealth management plans of many expats in France have received a welcome boost with an announcement by the French government that there will be a reduction in the rate of social charges on investment income, meaning that low income expats will now be subject to a 7.5% charge compared to the previous 17.2% rate. However, the basic rates will remain as they were in 2018.

The news, which was announced as part of the social security budget for 2019, is of particular interest to expats in retirement as well as those who draw investment income. It also benefits those who do not live in France but receive income from investments in the country.

Brexit? What should I do about Tax and Residencia?

By now you are probably really fed up hearing about Brexit!  Yet, it's important that you are prepared financially; not just for a Deal or NO Deal Brexit, but also by being ready to meet the Spanish requirements for living in the country. 

You will have, no doubt, heard lots of horror stories about what Brexit means either way for UK expats and I do not intend to go into that here. Having said that, please read on, as I explain some fundamental issues that may need your attention sooner, rather than later.

Cayman Islands Wooing International Investors

Professionals working in financial management in the Cayman Islands have many regional and jurisdictional advantages that they can bring to the benefits of their clients' portfolios, whether they are standard retail investors who have built their wealth through pension schemes, diligent individual savers or institutional investors who are looking for a desirable place to do business.

These are all undoubtedly factors in why, according to the Cayman Islands General Registry, the number of Grand Cayman-registered companies recently reached an all-time peak, with steady growth in Grand Cayman investment on the part of expats just one of many causes behind the growth which also saw Cayman GDP rise by 2.8 percent in 2017, with a further 3 percent rise predicted for 2018 figures.

Expat Tax Planning in 2019

Tax planning should be a New Year priority for any British citizen who has recently become an expat.

Just last year HM Revenue & Customs increased its efforts to ensure expats met their full tax obligations and has begun to successfully use EU laws that encourage co-operation between member states. "We will not hesitate to use all legal means to collect taxes that are owed," commented an HMRC spokesperson. Despite this tough talking, the EU this year criticised the UK for its poor record of cross-border tax collection.

It is important to remember that although the HMRC's new stricter approach remains at an early stage, it is already paying dividends for the government, which estimates that it lost £1.7bn in tax revenue in 2016-17, compared to £4bn in 2011-12. Furthermore, 1,006 requests for tax information were made to EU authorities in 2017. This resulted in the recovery of £5 million. In comparison, similar requests in 2013 yielded just £800,000.

Spain Axes Expat Mortgage Tax

Spanish property ownership is a fairly common part of many expat wealth management strategies. However, Spanish taxes have been known to present obstacles to some expats in this regard and the uptake of both home ownership and property investment in Spain has suffered as a result.

Previously, the law held that expat buyers must pay mortgage tax out of their own pockets, which, as well as being an administrative annoyance also left many expats feeling a little like second-class citizens; however, with changes recently introduced by parliament, the tax will instead be paid by the bank financing the mortgage, with the new rules taking effect immediately.

Modelo 720 (Overseas Asset Declaration) – Legal or Not?

The Modelo 720 is a controversial topic for UK expats in Spain. Translated to ‘Form 720’, it is the form that has to be submitted every year, declaring any assets that you own outside Spain worth over €50,000.

Blacktower Ready to Respond to New Challenges

Let's face it: Brexit is a confusing time for everyone. However, it is important that panic doesn't set in. This applies at every level, from the uppermost echelons of government and business leaders to expatriate workers and the everyday retiree.

The same applies to financial advisers. Not only do clients – and of course the markets – require their calm to steer them through uncertain and uncharted waters, but firms themselves need to stay composed and attentive to ensure that they continue to meet regulatory standards as Brexit unfolds and transition periods take effect.

Sensible SIPP Management

SIPPs (Self-Invested Personal Pensions) are a flexible retirement saving vehicle, offering choice, freedom and investment opportunity.

However, as it is by definition, self-invested, a SIPP also brings with it certain amount of responsibility. Of course, the burden can to some extent be minimised if you have a financial adviser or wealth manager to act on your behalf, but even if you take advice, there may still be an element of DIY investment to your SIPP.

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