Taxation for expats
Depending on the country in which your investments are held, the type of product utilised and your tax bracket, the amount of tax due will vary. With regards to where taxes are paid, withheld and claimed back, this is relatively simple.
The majority of countries have Dual Taxation Agreements (DTAs), which dictate how your investments will be taxed and where. Subject to there being a DTA in place, by obtaining the right tax code you can receive any withdrawals as gross payments and pay the relevant taxes where required.
Tax-efficient investing for settled expats
Once settled in a country, there are often locally compliant solutions that offer significant tax benefits, including the reduction of capital gains, income and social security taxes. However, some countries have jurisdictional risk to consider, where it may be best to utilise FCA or SEC regulated products to negate this.
Tax-efficient investing for transient expats
Tax-efficient investing for expats with a transient lifestyle can be defined by two words: regulation and flexibility. Regulation equates to protection for the investor, which is often a concern when moving to different countries throughout your working life.
Flexibility is key in both contributions and withdrawals, in terms of offering tax efficiency in both growth on the portfolio and when drawing a lump sum or income.