Over 70% of expats in Qatar are unsure about future tax implications on assets, according to a Hoxton Wealth survey. Many attendees aim to grow wealth but lack financial plans; only 35% have one. The firm warns about common expat financial mistakes and provided insights during a recent seminar covering complicated tax and asset considerations for those returning to the UK, US, and Europe.
Hoxton Wealth, an international financial advisory firm, recently gathered insights from over 70% of expatriates in Qatar during an event in Doha. Alarmingly, many attendees admitted they were unsure about how their assets would be subjected to taxes based on where they might reside in the future. This finding highlights a significant gap in financial awareness among the expat community in the region.
In the same survey, attendees shared their primary financial goals while living in Qatar. The results showed that 57% aim to accumulate wealth, 28% are focused on retirement planning, and 14% are interested in generating income through investments. Despite these objectives, only about 35% reported having a structured financial plan in place.
Chris Ball, CEO of Hoxton Wealth, remarked on the favorable financial situation for expats in Qatar. With no income taxes, and absent capital gains or dividend taxes, the opportunities seem promising. Additionally, expats enjoy access to global markets and often lucrative salary packages. However, he also pointed out the limited structured pension plans and the typical gratuity payment upon leaving employment, which can leave expats vulnerable if unplanned.
According to Ball, there are many pitfalls that expatriates frequently encounter in terms of asset management. Common mistakes include improper asset structuring and neglecting to establish a pension plan like the ones available in their home countries. He also warned against underestimating inheritance tax risks or currency exposure and cautioned against keeping too much capital in local banks. “We’re here to help them avoid those mistakes,” he emphasized.
In terms of retirement plans, the survey showed that 21% of participants intended to retire in the UK, while a similar number favored Europe. Around 14% expressed interest in retiring in Asia, with the remainder considering various other locations. More than two-thirds of the attendees reported holding assets in multiple jurisdictions, underscoring the complexity of their financial situations.
The seminar provided key insights into planning for expats from the UK, US, and Europe. Discussions included detailed considerations regarding UK inheritance tax for residents in the Middle East. The event also covered how individuals who return to the UK after being away for at least a decade may be eligible for tax relief on foreign income and gains accrued during the initial four years back in the country—in a provision known as the FIG regime. Furthermore, the session approached strategies involving Discounted Gift Trusts to help alleviate future tax burdens.
Overall, the event highlighted the pressing need for expats in Qatar to not only focus on wealth accumulation but also to develop comprehensive financial strategies that account for their unique cross-border circumstances. Hoxton Wealth’s aim is to guide them in navigating the specific challenges that can come with living and working abroad.
The educational seminar hosted by Hoxton Wealth clearly illuminated the lack of financial planning among expats in Qatar. Many attendees are unaware of how their taxes might change as their circumstances evolve. While opportunities may appear abundant due to the favorable tax environment, there are crucial pitfalls to avoid. Establishing a proper financial strategy is essential, given that future residency could drastically alter tax obligations. Hoxton Wealth’s guidance could prove invaluable as expatriates navigate these complex financial waters.
Original Source: www.zawya.com
