Shelter Offshore - International Living News

Get more from your tax-free income abroad

Published on 13 August 2008

As an expatriate with a tax-free income you have a huge opportunity to use the additional cash to establish a substantial investment and savings portfolio before you return to UK or retire elsewhere. However if you don’t get your taxes in order you could well be risking loosing a significant proportion of that wealth.

Selecting the savings accounts and investment vehicles that offer the highest rates is only part of the wealth building strategy that you need to follow as an expatriate. Number one priority that should be dealt with preferably even before you leave for sunnier climbs, your tax situation. 

Here we cover what should be some of your main action points to protect yourself from paying taxes that you don’t need to pay and to ensure that you really do use your time working overseas on a tax-free income to your maximum advantage. Remember that HM Revenue & Customs will determine you tax status and resultant liability on an individual basis so you need to make the appropriate preparation to ensure your liability is minimal.

Firstly you need to ensure that you are outside of UK for one full tax year, not just 12 months as some people think, it must include being away from 6th April to 5th April the following year. If you are planning to leave UK soon make sure to complete form P85. 

Ensure you qualify for non-resident tax status

If you are in employment abroad you will most likely qualify for non-resident status from day one at you new job overseas this means you will cease to be liable for UK income tax on both savings and income arising from employment outside of UK. You will also not be liable to UK capital gains tax on any capital gains made on assets both brought and sold while you are non-resident.

As a non-resident, you should make it one of your first priorities to open an offshore savings account within a strictly regulated offshore jurisdiction such as the Isle of Man . You can visit websites such as the Offshore Investment Designer to find out what options are best for your particular investment and savings goals.

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British Behaving Badly Abroad

Published on 12 August 2008

The BBC has published some bad news for many expatriates who left UK’s shores to escape the ritual drunken thuggery and loutish behaviour which has become a dominant cultural feature of UK ‘s cities by night. It seems that cheap flights have enabled UK to export it’s appalling behaviour wholesale to the rest of the world. 

The BBC article British arrests soar 32% in Spain shows that the number of Britons arrested in Spain rose by almost a third last year following the publication of a Foreign Office report. Of course there will be some who will say that it’s the result of heavy handed Spanish policing which could be considered if the same dramatic rises in drunken yobbish British behaviour had not also increased significantly in many other countries. 

Amazingly all of the following countries have been hit by a rise in violent drunken behaviour from Brits on holiday, Australia, US, Thailand, Cyprus, UAE, France, Greece, Turkey, Indonesia, India and the Netherlands. Quite embarrassing and frustrating for the British who have made these countries their home, not only have we failed to escape from the behaviour we now find ourselves having to apologise to our hosts and friends for the manner in which a small proportion of our fellow citizens behave on their annual pilgrimage to the sun. 

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An exciting opportunity to own a charming and expertly renovated historic property in Rabat, Malta

Published on 11 August 2008

What do Gary Neville, David Beckham and Jean Alesi` have in common, besides being sport celebrities? The three of them together with a huge number of other international celebrities, business people, and common folk own property in Malta.

Throughout history, the archipelago has played a key role in major events due to its strategic location, and the future (in view of North Africa’s growing economy) looks even brighter for these sunny islands. Owning a property in Malta does not only offer a sound return on investment, but it also yields outstanding tax benefits for the buyer. The Islands are also an ideal place to raise a family due to the very low crime rate, excellent schooling facilities, outstanding health care, and genuine hospitality from the Islanders.

Due to Malta’s key roles in all the important eras in European history (from the stone-age to the end of the cold war), the Island is a living museum of historical sites, buildings, and artifacts. One of the gems that can be found on the island is the old fortified city of Mdina. Walking through the narrow streets of this city, one feels as though he was absorbed by a black hole and thrown back into medieval times. The architecture is jaw dropping, and the views are simply astounding. Needless to say, The Silent City (as it is nicknamed) is a host to some of the Island’s best restaurants and cafes.

As you walk out of the City’s main gate, you can start wondering how you can emulate Neville, Beckham and Alesi`; or whether you can outdo them in style without spending heaps of money. The answer lies five minutes walking distance away from Mdina.

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Can Egypt property market continue to offer high potential in a downward global market?

Published on 09 August 2008

The only press that property investment seems to get recently at home or overseas is negative with a continuous downward spiral of negativity. Egypt however may well be the one country where a property investor can expect to receive very healthy returns on investors and overseas holiday or retirement home seekers can find an absolute bargain at a fraction of the price of comparable overseas locations. 

The Egyptian property market never really got dragged into the sheer hype that was driving other more popular overseas property investment destinations such as Dubai or Bulgaria. It came onto the radar screens of global property investors much later, only really making headway since 2005. Today when we take a look at the current property market in Egypt there are quite a few good reasons as to why Egypt seems to be avoiding the dramatic crashes of the other property markets.

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Surge in Brits selling overseas property assets, is it time to buck the trend?

Published on 07 August 2008

As more Brits start to feel the effects of economic woes at home they’re starting to ditch some of those little luxuries that no longer seem quite so affordable or desirable, topping the list of such luxuries is the second home abroad.  The overseas holiday home or ‘property investment’ is often viewed as an easily expendable asset that will provide some much needed capital through a tricky period without having a dramatically negative affect on quality of life. But what happens when too many people all have the same idea at the same time? Is it time for the smart property investor to do the opposite?

Simon Walker manager of Knight Franks International Off Plan division reports that primary overseas investment and property in the sun hotspots such as Bulgaria are seeing a marked trend change from a British investment market to a British selling market as Brits hope to cash in on their overseas assets. He says “It’s not like a wholesale thing, but there is a definite sea-change. Because there is trouble at home, people are going: ‘What can we get rid of?’

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Could Dubai property market plunge by up to 80%

Published on 05 August 2008

Morgan Stanley report today that Dubai has been hit by an over supply problem as more and more projects reach completion while the demand fails to increase proportionally. They also say that in a worst case scenario that the Dubai property market could actually plummet by up to 80% in the same way the Singapore market did in the 1990s. So is the Dubai property market on the verge of collapse?

The first and critically important thing to take on board has been the huge 79% growth in property prices since early 2007. One would naturally expect some form of correction especially in the current world market situation where rational and logic have added a new air of caution to all investment markets. 

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Web Design, the perfect portable business

Published on 05 August 2008

One of the most common questions we get asked at Shelter Offshore by both expats and those who dream of packing their belongings and starting a new life abroad is, what jobs or businesses are available in country X? Well of course our answer depends on where country X is and the skills set of the person asking, there’s no point telling a carpenter who dreams of Dubai about the big openings for top medical professionals! 

But stop there, why look for a job in your new country when you can take it with you? More and more we’re all witnessing the power of the Internet and the successful businesses being built from it. Today more so than ever the possibility of packing your business along with your other hand luggage essentials and taking it with you without anyone even noticing your daring escape becomes a very viable option.

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UK property price crash hits overseas markets

Published on 04 August 2008

The fall in UK’s property market is already beginning to have a significant effect on many of the favourite retire to the sun destinations of Brits. During the past boom bust property swings we’ve all become too familiar with the traditional property ladder and its dependence on first time buyers keeping the market buoyant and preventing property chains from posing threats of a potential property grid lock.

It appears that the recent surge in interest for property overseas may well have resulted in the creation of a new ladder equally prone to the grid lock effect when first time buyers disappear off the radar.

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Should I stay or should I go? Have you got an escape plan?

Published on 04 August 2008

Have you been sitting in the office lately staring out of the window wondering whether there is something better out there?

Maybe you’re one of the millions of us who will soon be jetting off on the annual pilgrimage to sunnier climbs. We all know the routine, fall in love with the sunshine, the blue sky the friendly people and then by week two we’re saying ‘We should live here’!  Maybe even getting a little proactive at this point, gazing into estate agent windows or even going to see the home of your dreams… but then reality bites! Ouch! all too soon it’s time to board the plane back to UK and any dreams of living in the sun fade faster than that tan you wanted to preserve to at least make a few friends envious on your return to work. 

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The Expat’s Essential Guide to Networking

Published on 04 August 2008

When I moved abroad eleven or so years ago the concept of networking made me cringe – the thought of forcing myself to go out and glad hand people with a false smile on my face because ‘it’s the only way to get ahead’ actually made me nauseous!

But then I learned that networking is not so much about attending tedious functions and being boring, it’s got more to do with being positive and proactive.  What’s more, networking is the number one way for expats to get settled, get sorted and even get ahead.  In this, the expat’s essential guide to networking I will show you how you as a working expat, an accompanying partner or a go it alone explorer can use networking to your best advantage and even enjoy the process.

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