PLAN YOUR EXPAT EXIT PLAN - 5 Things To Include
Sam Orgill of www.proactpartnership.com gives
5 Things Expats Should include in Their Exit Strategy - when Living and Working Abroad Goes Wrong
What gets missed, in the excitement and enthusiasm of relocating overseas, achieving your dream of Living and Working Aboard, investing in overseas property and business, is an exit strategy.
We all get carried away with something new, something exciting, and can easily allow our common sense to be left on the beach while we go in search of promised new lands, home and work abroad. But what then? How do we get back home? What if the dream fails?
Here’s a check list of 5 things for expats to include in their exit strategy.
1. Protect Your Family
In our experience it is better to prepare with the exit in mind. We have seen our client’s family lose their health through accident, disease or dementia. We have seen relationship break up in family, or between business partners, creating stress and financial loss. It could be that the children or parents back home need you to return, or that a partner dies or is seriously ill.
Asking What If? Questions means you can save thousands in expenses if something goes suddenly wrong or if you need to move on from your expat oasis.
2. Purchase Property Tax Efficiently
When purchasing property don’t assume there are no property taxes when purchasing or when selling the property. If you are buying an overseas property with a 20% Capital Gains Liability on sale, then do you want to accept that, or purchased the property in such a way as to avoid the tax when selling.
In some countries forced heirship means blood relatives only benefit. Meaning unmarried couples could lose out on a joint property purchase.
3. Purchase Business Tax Efficiently
What are the rates of tax for business? It’s not just corporation tax. 12,5% can look attractive for a business, but 17% dividend tax, 20% capital gains, 30% interest tax, plus audit fees soon eat into profits. Consider also VAT rates at 19% and social insurance in region of 20% in pricing and sales volumes.
If you have a plan to work, you need a profitable business, that can attract a seller when the need be. Don’t leave yourself tied into an expensive tax regime creating a low profit business that doesn’t build value and can’t be sold when you want to.
4. Make a Will
Death is always inconvenient, whenever and wherever it occurs. When you have assets in more than one country you have two lots of probate administration to do. Without the right planning this can become an expensive mistake for the family in the event of death.
Death without a Will could mean a court appointed administrator of the estate charging more than 10% of the estates value before the family receive any property or investments.
5. Protect Your Family - Look Forward – Plan Ahead
Overseas Property & Business Investment is a dream but can become a better investment with an planned exit strategy. ProTECT your family, your property, business and investments from the cost and expense of action after the event.
ProACT can offer Exit Strategy help and guidance for Expats. We focus on Asset Protection looking forward to make an exit strategy for tax savings and lower costs along with time saving at difficult times.
Find out more at our website.
ProACT Expat Experts offer tax saving for people living and working and investing abroad. Find out more at our website. We value your feedback, please comment and share on our articles on our website www.proactpartnership.com/blog
Of course the property purchase has to be completed quickly before it is ‘sold to the other buyer’. You can sort the details of finances while on the beach sipping cocktails, right?
EU Brexit for Expats could impact in this areas with forced heirship and taxes invalidating existing arrangements.
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