Investments News & Insights

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.

If you've moved overseas or have a second home in France, you may be used to calling several places home. After all, living in France won't always mean completely cutting ties with your country of origin as you may still have family living there or own other property.

But when you own property abroad, it's crucial to stay up to date with any tax legislation and law reforms in that country, or you could be in for a nasty shock. That’s why it’s so important to take charge of your wealth management to make the most of your second property in France.

If recent news about great Spanish property investment opportunities has convinced you to go full steam ahead with plans for a move to Spain, here are a few top tips to get the best deal.

2018 has brought good news for many expats tackling the idiosyncrasies of finance in Spain and, especially for those who want to manage their legacy planning successfully.

This is because British and other EU citizen expatriates in Spain have received a boost in relation to succession tax laws.

Under the Spanish regional system, expats in Spain (but not those from outside the EU or EEA) can avoid costly Spanish state succession rules on passing; instead they are able to take advantage of kinder regional laws, such as those just implemented by Murcia and Andalucía.

In these areas, if you have Spanish assets but have not quite yet become a fully-fledged expat or indeed if you have Spanish property but still reside full-time in the UK; your heirs, wherever they may live, are entitled to the full range of succession tax reliefs offered by the region in which your assets are invested. Sometimes this may be as much as 99% succession tax relief or, in some cases, total exemption.

Expat pension needs are one of the major reasons behind the £15.3 billion the Financial Conduct Authority (FCA) say was was taken from pensions during 2016/17.

The high level of withdrawals is no doubt attributable to the increased flexibility afforded UK pension savers by the introduction of landmark reforms over the past few years.

The £15.3 billion figure was disclosed following a Freedom Of Information request to the Financial Conduct Authority (FCA) and is a massive 173% increase on the £5.6bn that was withdrawn in 2012/13.

In fact, the second quarter of 2017 saw the highest quarterly level of pension withdrawals in five years – no doubt including many expat pensions withdrawals – with more than 40,000 people withdrawing £4.3bn from their pensions.

Buying property, whether in the UK or abroad, is rarely straightforward, so it's important to find out which countries and regions will suit you best and to look into property prices so that you can be as certain as possible that you're making a good investment.

Luckily, there's a lot of information out there, and according to current reporting, it seems as though now may be the perfect time to buy property in Spain.

Several property industry commentators are, once again, urging those who have been hesitant about moving abroad, to do so now because the favourable property market has turned Spanish houses into a worthwhile investment.