Financial Advice is Important for Proper Expatriate and Offshore Tax Planning

Taxes (Photo credit: Tax Credits)

With the economy we are going through today many countries are finding budget shortfalls. The only way to meet their obligations is through increased taxes and more intense tax collection. This increased demand on the incomes of people have influenced their decision on where to live and work. Many people have moved abroad to enjoy the better climate and better financial climate.

The ever increasing trend to move abroad is something that many countries are facing. Many nationals are more and more dissatisfied with the yearly increase in taxes and decrease in services. While not everyone can move abroad the high earners that can are doing it in ever increasing numbers. They are registering their dissatisfaction with the situation by moving abroad

Working or living abroad can take some time to get used to and for you to feel comfortable in your new surroundings. Working abroad can be very confusing at first but with the proper planning the process can go very smoothly. One facet of your transition abroad should concern offshore tax planning. With proper planning by a qualified financial planner you can avoid over paying your taxes. One of the top reasons many people choose to make the move to another country is to reduce their tax liability. So it is important to plan correctly so you can meet and understand all the rules the tax system puts on you.

Many have difficulty in understanding the offshore tax and the expat tax in the UK, many have voiced their concerns about tax regulations. One rule in particular concerns annual visits and once you exceed the allowed days you become a tax resident. Strict rules like this one just makes things more complicated.

As an expatriate living abroad you are benefiting from a lower tax liability. As a result, you are paying less taxes than if you were living in your home country. It’s important you understand that your tax liability relates to your working situation and residency status. Working with your tax advisor you can properly plan for the complicated rules and regulations concerning your income. Planning is even more important if your income consists of dividends or pensions. Other forms of income like interest and royalties increase the difficulty of your taxes but a qualified financial advisor can sort it all out for you.

Your expatriate and offshore tax planning doesn’t just involve your current tax obligation. It also concerns planning long term for income and your families future financial needs, like a child’s education abroad. To plan correctly, your financial advisor must design an overall, encompassing plan that will take care of you and your families needs present and future.