Investments News & Insights

Lehman Brothers filed for bankruptcy on 15 September 2008. With $639 billion in assets and $619 billion in debt. Their bankruptcy filing was the largest in history and prompted an immediate fall in the FTSE 100 of 4%. It was the beginning of a slump that by Christmas of 2008 had resulted in 23% being wiped off the value of Britain’s top 100 companies. As a stock market crash, it ranks alongside the dotcom bubble and the shock of 1987. However, while living standards have flat-lined since that date, the stock market revival has been spectacular. Many investors were, however, spooked by the financial crisis of 2008 and liquidated their investment portfolios. Unfortunately as shown below – they lost out on the bull run of the next 10 years.

A financial windfall can take many shapes: a lottery win, the sale of property and/or assets, a work-related bonus perhaps. However, for many, the word "windfall" typically means an inheritance when someone dies – something you don't ever wish for, but you more-or-less know will come your way.

Everybody's idea of a "life-changing sum of money is different, but if you feel your windfall is burning a hole in your pocket and you are unsure how best to use the money, our quick Guide to Expat Windfalls could offer some food for thought.

Spanish newspaper ABC has reported that tax authorities in the country are cracking down on expats who fraudulently claim Gibraltar residency for the purposes of wealth management.

Apparently the measures have already led to the collection of €20 million from 160 high-net-worth individuals (HNWIs) claiming residency in Gibraltar when in fact they lived in nearby Andalucía. This meant that, on average, €125,000 was collected from each HNWI.

Jorge Ramírez, a representative of the Tax Agency in Andalucía, told the newspaper, "A tracking system was used to collect verifiable documentary evidence, and we found some Gibraltarians whose primary financial interests were actually entirely situated in Spain."

Living in Germany brings a few challenges for the expat. Not only do you have to negotiate the language and the culture you also have to get to grips with the German insurance system, which to anyone whose experience of insurance has largely been confined to the UK can seem incredibly complicated.

Yet, once you overcome your unfamiliarity, and get your head around the innumerable syllables of all the various "komposita" involved, you may be able to take advantage of the system so that it works in your best interests. Finding an expat wealth management specialist who has familiarity with the system and the products on offer is likely to be part of the solution to finding the cover that is best suited to your needs.

For example, finding risikolebensversicherung (term life insurance) is about securing cover for all of life's eventualities so that your family and other dependents are properly looked after in the event you die before they do.

As I sit in my back garden, in "good ol' Blighty", I often watch the planes flying overhead. My house is on several major flight paths which cross the country and the Manchester to Marbella flights are a regular feature in the blue skies of June.

As the summer holidays kick in, I wonder how many passengers on these flights will fall so in love with their destination that they take a sneaky look at property for sale, and how many will dream of retirement in Spain or even make it a firm plan?

Your des-res might be a gorgeous sea-front apartment overlooking the med, or a rural stone cottage nestled amongst the vineyards of Burgundy, but wherever you live, once you are settled, understanding whether you are domiciled, non-domiciled or resident can be a bit confusing. However, clarity is essential: the amount of tax you pay hinges on knowing the difference and the relevance of each non-dom status versus residency status.

Firstly, don't just guess your residency or non-dom status, because if you get it wrong, you could pay too much tax or pay it in the wrong place, and failure to pay can lead to large fines and penalties. Sadly, mis-payments are not tolerated; your tax planning may be well-intentioned, but if you don't pay the correct amount of tax in the appropriate jurisdiction, you could be in hot water, so it is vital to get it right.

Generally, we recommend that you speak to a financial adviser working in your local region who will understand the jurisdictional rules applicable to your location and personal situation, but as a brief guide, read on and we will explain the fundamentals.

Malta's favourable residency schemes are likely to stay in place for some time after Brexit and this has propelled the Mediterranean archipelago to the top of the list for some UK citizens who are considering their options for relocation in the near future.

And it's not just retirees who find this destination appealing. Career-movers will find a number of growth industries on the island; however, wage levels are fairly low when compared to the cost of living so you may be unlikely to make your fortune on the island if you are an unskilled worker. Financial advice in Malta is essential if you wish to make the most of your income and assets.

To help you make a start, we have compiled a list of top tips for financial planning in Malta if you have recently made the move or you are considering making it your main place of residence.

Rapid developments in IT systems, financial databases and data-sharing platforms over recent years now mean that it is easier than ever for nation states to share and exchange financial information relating to the investments, income, taxes, savings accounts, properties and pensions of individuals who have assets placed in multiple locations across the world.

Inevitably, this also means it now crucial to ensure you disclose your full list of assets whenever required.

As a British native you might be a little complacent in this regard. The UK has one of the most stringently and best-regulated financial advice sectors in the world, and in many cases if your adviser fails to disclose your full spectrum of assets and interests it is he or she, rather than you, who will be liable.