Contact

Blacktower

News & Insights

Posts matching 'Tax'

Dutch Tax Exemption Rule Change Hits Expats

Pen and checkboxOpposition to the imminent changes to the Dutch 30% tax reimbursement scheme (see the Blacktower news feed) is growing. Now, VCP, the Dutch white collar workers’ union, has joined the dissenters by calling for, at the very least, a transition period for expat workers who will suffer unwanted changes to their Netherlands wealth management plans as a result of the amendments.

It is easy to see why so many people find the timetable for the ruling so unjust; those affected could see their incomes reduced by around 20% once the ruling comes into force in under six months.

It could also result in unwanted damage to the Dutch economy, with real fears that it could deter expat workers from coming to the Netherlands in the first place.

Tax and the Big Decision – Buying a Property in Spain

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?

Expat Finances in Spain, Tax and Data-Sharing

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.

Reforms to pension tax relief may happen soon

TaxThe importance of putting money into a pension cannot be understated, and the British government has a regulation in place – the pension tax relief scheme – to encourage people to save. But many experts are predicting significant changes to the scheme. If you’re planning to retire overseas as an expat and take advantage of international pension transfers, you’ll need to stay updated with these changes.

How does pension tax relief work?

The pension tax relief scheme is an incentive to entice people to put money into their pension pot. To reward people for thinking ahead to their retirement, the government currently tops up their pension contributions based on the rate at which they pay income tax. So, basic rate taxpayers will receive 20 per cent tax relief (meaning they only need to pay £80 into their pot to get £100), while higher rate taxpayers are entitled to 40 per cent relief.

Tax changes for second home owners in France after Brexit

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.

Expats Can Take Advantage of Tax Changes in Murcia and Andalucía

Goals for 20182018 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.

Petition to abolish “unfair” expat retirement transfer tax takes shape

The Houses of ParliamentAs it stands, its been nearly a year that expat retirement transfers of pensions have incurred a charge when moving to or between Qualifying Recognised Offshore Pension Schemes (QROPS), with only expats living within the European Union or a select group of 13 other countries immune to this charge.

However, British expats across the world have recently joined forces to question the fairness of the charge and to lobby parliament for its removal.

It’s easy to see why they have taken this course of action – the charge for overseas expat retirement transfers comes in at 25% of the value of the pension fund; plainly a crippling and punitive amount for people who have already worked hard and paid their taxes in order to prudently fund their retirement.

Keeping the NHR Tax Regime Could Be Good for Portugal in 2018

In September 2017, it was announced that the Portuguese Government, following pressure from Sweden and a number of other European countries, was looking to water down the country's non-habitual residency (NHR) tax regime, potentially bringing to an end a programme that has worked in the interests of expats since 2009. The uncertainty this proposed move provoked certainly threatened to put a dampener on the financial plans of quite a number of expats and would-be expats as they moved into 2018.

However, the budget proposal presented by the Portuguese government in November seemed to allay these fears. There was not a single mention of the scheme, which would have seen the introduction of a flat rate of tax of either 5% or 10% on income drawn from the pensions of NHRs.

In all probability any such move would have seen the pensions of existing expat NHRs unaffected; however, it would have presented a significant stumbling block to the retirement plans of many looking to move both their wealth and their residence status to the country.

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.