News & Insights

In my business, when I think about what’s important for clients, it´s about getting to the heart of the most important issues and understanding the most pressing concerns, be that now or in the future.

To do this, it’s important to ask the right questions, both of yourself and your financial adviser.

Here’s my list of important questions, there are lots more I am sure, but these are what I believe you should start with:

As the "will they, won't they" saga of Brexit rumbles on it is useful to look at some of the things expats can actually do to reaffirm their ties with the UK in the event that they plan to move back to Blighty at some point in the future.

The issue has taken on a new urgency for expats, particularly in regards to property, in light of the new surcharge that the government plans to introduce alongside stamp duty on second home and buy-to-let purchases in England.

Although Prime Minister Theresa May says that the surcharge is for "foreign buyers" and is being introduced with a view to assisting UK taxpayers buy a property – especially first-time buyers – it may have some unintended consequences.

This is because it is not just foreign buyers who are likely to find their pockets hit by the tax. Returning expats – who could well be a prominent demographic over the next few years – may also find themselves liable for the surcharge, potentially setting them back significantly on their way to reaching their wealth management objectives.

Expats are in many ways the most forward-thinking of global citizens; living abroad shows a desire to embrace something more complex than a simple national identity and way of life. Yet, at the same time, it is also the most ancient act; humans began as nomads and then migrants, so being on the move is part of our species' natural curiosity.

But there is more to being an expat than simply picking a destination on the map and moving there. By looking at all the available options and factoring in the many variables, people have an opportunity to make the most of their prospects and to enjoy the richest and most varied life possible.

Fortunately, this is what most expats do: the most recent HSBC expat explorer survey found that a move abroad adds around USD21,000 to the average salary, with some countries offering even more. For example, Switzerland, which has long been a destination of choice for the globally minded expat, boosts income by an average of USD61,000 a year.

A luxury property in the Canary Islands is up for sale. No, this doesn't sound like news, but there's an important and unusual detail: the five-bedroom villa in the lofty hills of La Caleta, Tenerife, is being sold for 525 Bitcoins (approximately €3.2 million).

But why would someone exchange a near 2,700 square metre plot, comprised of house, swimming pool, gardens, Atlantic views and palm-lined outdoor eating area, for a "virtual currency"?

We have long been told that Bitcoin is a bubble that's going to burst, so surely exchanging such a valuable asset for an unstable and unregulated "pseudo currency" is financial madness of the most extreme kind. There are certainly detractors of the currency, such as Warren Buffet, who would argue this point. Perhaps the vendor's expat financial advisers in the Canary Islands should reach straight for the phone to dissuade him from such a move?

Here in Spain, I hear no end of horror stories regarding the country's financial institutions and laws. Unfortunately, I too have been on the receiving end of unscrupulous and downright unfair treatment, but last week a client of mine of over four years called me in distress. For the avoidance of doubt, this is a true story.

My client is 86 years old and, sadly, her husband died eight months ago. Over four years ago she followed our recommendation of investing in a purpose-built Spanish portfolio bond with both her husband and her as lives assured. This meant that should either partner die before the other, the bond would continue as if nothing had happened, thereby not triggering a Spanish Inheritance Tax calculation. In Spain unlike the UK, there is Inheritance Tax between spouses, however, because this particular bond is held outside Spain it avoids inheritance tax. This is a tool that we often use for clients in Spain.

When I first meet a client it takes time for us to get to know each other, and every single person is different with different needs. However, at the root of those needs is usually the desire to find out how best to keep all those hard earned savings, investments and pensions as tax efficient as possible.

Once you have left the UK and become resident in France, the ISAs and other tax efficient savings you may hold in the UK are no longer tax-free and you need to give careful consideration about how you deal with this.  With the new Common Reporting Standards that were introduced recently we can no longer bury our heads in the sand and think that the French taxman will not know about the assets you have left in the UK and will not look to tax you accordingly.

The Conservative Party has used its annual conference in Birmingham as an opportunity to reassure British citizens living in the EU of the future of their expat pensions.

Speaking at the event Ester McVey, the Secretary of state for the Department for Work & Pensions (DWP) said, "We will ensure that people with UK pensions that have moved to the EU will have their pensions protected.

"We will provide a triple lock on people with UK pensions living in the European Union. We are delivering a private pension revolution, with more people than ever contributing to their pensions."

Here, we look at some dos and don'ts for anyone planning a move to Spain: