Once you’ve endured the stress of an overseas move, everything will eventually start to take shape and then you can finally begin building your expat life away from the UK.
Although the obvious choice, offshore investment can be a tricky one. So many people talk about it, and the rumour mill is constantly churning out conflicting opinions on the matter. So what’s the deal? Should you bother with an offshore banking account? Or should you leave your money at home?
There are numerous benefits of setting up an offshore bank account, especially if you are moving your family and your job abroad.
- Money Saving: With an offshore account, you have the ability to save in the currency you are paid in, and you avoid losing out on exchange rate fluctuations. Not only that, but if you expect to travel often, you can easily access your cash without having to deal with the exchange rates which can lead to you losing out on money.
- Tax Saving: If you achieve UK non-resident status, then you do not have to pay UK income tax on interest from your savings. Also, most offshore banks are located in so called ‘Tax Havens’, where you can gain more money in interest as you have to pay less tax.
- Flexible: Off-shore bank accounts have less government intervention means offshore banks are able to offer more inventive investment services and solutions to their clients.
- Private: Offshore financial centres can provide a central home for all your money. Most off-shore banks cannot even reveal the names of their clients, due to their strict jurisdictions on confidentiality.
- Convenient: Easy to manage property payments, rent, utilities, school fees and shopping in your new home, without the struggle of reaching your home bank. The conveniences of an offshore bank account are unbeatable and well suited for expats with children and require convenient services to fit all the needs which come with having kids.
- Stable and Secure: Offshore banks are often located in major financial centres, and what is more there are several companies at home in the UK who can help you choose the most suitable offshore banking for your personal needs.
Although maintenance fees of an offshore bank account can be slightly higher than of a traditional one, and certain fees may be required in order to set the account up, or a minimum amount may be compulsory to start the account up, the long term benefits of an offshore account can be endless. This applies to expats too.
If offshore banking isn’t for you, there are some less traditional
options for investment. Here are just a few:
If you’re not in need of the extra capital from selling your old home consider renting it out. Property is always a sound investment so have somebody else help pay off your mortgage and help you generate a little more income. Just make sure that you partner with a letting agency that you can trust that can help you get on with your life in your home while they take care of your old one. If you’re in the lucky position of having already paid off your mortgage, why not use the rent you’re receiving to invest in a new property? A buy to let mortgage is a fantastic way of acquiring another property which you will slowly own as you enjoy your life overseas.
If you’d like to try something different, consider investing your extra money in stocks and shares. A common perception of the stock market is that is akin to gambling and can be high risk with not much return on investment. However, most investment management and stockbroking companies will discuss with you how much risk you would like to take with the capital you would like to generate. While there is always an element of risk it is definitely more manageable. If this is investment, finances and accountancy are something that you don’t have much of a head for, consider looking into discretionary investment management as an option for you. This is essentially putting your money into the hands of experts and allowing them to monitor the holdings and make decisions on your behalf.
So, when it comes to moving overseas there are many countless options of ways to invest your money. It is essential that you research all of the options including all the legal requirements and tax obligations. It’s often a better idea to think of your financial options before the move instead of after.