A weak euro is allowing Brits to snap up French property at a 10% discount.
Pounds sterling are currently hovering at about EUR 1.20–the best rate they’ve seen since the summer of 2010 (and before that, December 2008).
This has created some property bargains. Because of the favorable rates, French property can now be had for 10% less.
According to data from Offshoreonline.org (which helps source euro mortgages for UK buyers) the pound has risen from EUR 1.10 to EUR 1.20 in the last 6 months. Buyers can therefore look forward to lower upfront purchasing costs, higher rental yields and ultimately higher real yields.
Expats could lose Guernsey as a QROPS destination.
Guernsey is being unfairly targeted by UK taxmen and the press, claims Peter Niven, Chief Executive of Guernsey Finance. The Channel Island is fighting to preserve its QROPS business and reputation in the face of a new law intended to cut down on pension abuses.
In a statement, Niven accused Her Majesty’s Revenue & Customs (HMRC) of blindsiding the jurisdiction, and the media of unfairly singling out Guernsey in its coverage.
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Our checklist helps you identify urgent actions–and will save you money, time and hassle in the long run.
Saudi officials want to keep expat funds from flying out of the country, but businessmen think it’s a bad idea.
Saudi Arabia has turned heads recently with a proposed cap on expat money transfers. Expats send the majority of their money out of the country, which officials say hurts the non-oil economy and keeps local unemployment high.
The proposed transfer limit has sparked heated discussion not only among expats, but also Saudi businessmen and officials. The Saudi Gazette presented the opposing views in a recent piece.
The US has imposed steep penalties on expats who fail to report their overseas assets.
2011 is drawing to a close and with it the tax year. In keeping with the seasonal spirit, the US government has given expats an early Christmas present: a revised Form 8938.
The new form is an integral part of the Foreign Account Tax Compliance Act (FATCA), designed to punish tax cheats with overseas assets. But it could also hurt wealthy expats who fail to properly report overseas assets.
Hong Kong has gotten cheaper for expats because its currency is pegged to the US dollar.
Despite the euro crisis, your expat pounds (or euros, or yen) will go furthest in the US or countries with currencies pegged to the dollar, such as Hong Kong.
Of the 50 most expensive cities identified by ECA International’s most recent cost of living survey, only one was located in the United States. New York City ranked #46, behind Beijing (#35) and even Shanghai (#41).
The sun may be setting on Guernsey as a QROPS haven.
The Channel Island of Guernsey has long been a popular destination for Qualified Recognized Overseas Pension Schemes (QROPS). But it stands to lose that status when new UK tax rules go into effect in April.
QROPS were originally created to help expats transfer their pensions overseas without crippling tax charges. But Her Majesty’s Revenue and Customs (HMRC) is now convinced both investment firms and expats are abusing the structures.
In lieu of a financial superhero, expats can use forward contracts and currency options to protect themselves from a falling euro.
Expats paid in euros are slowly but surely bleeding value as the common currency falls.
Similarly, those living in troubled economies like Italy and Greece may want to protect themselves against the possibility of a euro exit and currency devaluation. One way is to park money in accounts denominated in safer currencies like British pounds or American dollars.
In both cases they are at the mercy of foreign exchange risk.
There are only 13 countries where British expats can receive uprated pensions; click to enlarge.
A “fun” fact: if you are a British expat who retires to a country where your pension isn’t uprated (adjusted for inflation), you stand to lose GBP 24,000 worth of potential income in 20 years.
Freezing expat pensions is an unpopular policy. There is a veritable chorus of criticism out there written by individual expats. Now a report from The Runnymede Trust, To Stay or Note to Stay, argues expat pension freezes are not only unfair but economically ineffective.
Expats in Saudi Arabia prefer to send money home rather than spend it locally. Only 1/3 even have savings accounts.
Expats send an extraordinary amount of money out of Saudi Arabia each year–the equivalent of USD 7.1 billion in the second quarter of 2010 alone. As a result, the country may try to limit the amount of money expats can send home.
Take data from a recent kippreport.com survey. It found 74% of expats in Saudi Arabia and the UAE have a savings account in their country of origin, but only 33% abroad. The stat points to a crucial theme: expats at all income levels send more money home than they spend locally.