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Expats urged to safeguard finances in country of residence
Expats urged to safeguard finances in country of residence
| Published: | 14 Feb at 6 PM |
Expats have been encouraged to manage their finances in their country of residence in order to prevent unnecessary charges, according to the Daily Telegraph.
The Guardian Wealth’s chief executive David Howell said that tax planning, savings, health insurance and pensions were areas expatriates should review after moving overseas. He explained that it is of particular importance to open a current account in the country where you live to avoid sizable charges on currency transactions.
Mr Howell said that leaving your money in a UK bank is an expensive option because banks charge high amounts for currency transactions and there is a chance the British and the foreign bank apply charges on the same transaction. He added that whatever the risk, opening a current account in your country of residence is “crucial” for making domestic payments.
If setting up a savings account, for example, it is important to consider the denomination as a number of offshore banks offer the choice of holding the account in sterling, euros or US dollars. Expats are also encouraged to check if the tax treatment received is different in their new country.
When it comes to pensions, a good QROPS should include no inheritance tax liability after having been living in that country for five years, investment flexibility and no need to buy an annuity. In addition, Mr Howell recommended opting for private medical insurance as the need to consider potential injuries or illness is even more critical for expats.
The Guardian Wealth’s chief executive David Howell said that tax planning, savings, health insurance and pensions were areas expatriates should review after moving overseas. He explained that it is of particular importance to open a current account in the country where you live to avoid sizable charges on currency transactions.
Mr Howell said that leaving your money in a UK bank is an expensive option because banks charge high amounts for currency transactions and there is a chance the British and the foreign bank apply charges on the same transaction. He added that whatever the risk, opening a current account in your country of residence is “crucial” for making domestic payments.
If setting up a savings account, for example, it is important to consider the denomination as a number of offshore banks offer the choice of holding the account in sterling, euros or US dollars. Expats are also encouraged to check if the tax treatment received is different in their new country.
When it comes to pensions, a good QROPS should include no inheritance tax liability after having been living in that country for five years, investment flexibility and no need to buy an annuity. In addition, Mr Howell recommended opting for private medical insurance as the need to consider potential injuries or illness is even more critical for expats.
