1. THE BIG PICTURE
HOW TO LOOK AT ALL YOUR FINANCES AT ONCE,
AND PLOT THE RIGHT COURSE
2. The financial markets generally are unpredictable. So that one has to have
different scenarios... The idea that you can actually predict what’s going to
happen contradicts my way of looking at the market
George Soros
Introduction
An increasing number of professionals of all nationalities have been moving and working abroad in
the last decade. Whether you are a young executive or a high net worth individual with a diversified
portfolio of global assets, you will have specific financial requirements and objectives.
Offshore financial products and services can help you achieve financial security and provide you with
the quality of life you require as an expatriate or international investor.
Investing in international accounts is no longer the premise of the rich and famous; all expatriates
living abroad may now enjoy flexibility, among other benefits, by investing their money overseas. The
offshore financial industry has become more popular as financial institutions from around the world
have entered the offshore market as a result of the high demand.
There are now many providers that offer a broad range of services ranging from saving schemes to
pension and retirement plans and wealth management accounts to lump sum investment products.
Over the years, deVere has developed strong partnerships with some of the world’s leading investment
houses and insurance companies, all of which offer some of the most competitive products in the
marketplace and a high level of protection for the investor.
In this guide, we provide you with essential information on how to plan your finances efficiently in
order to save for a more secure future.
As an expatriate or international investor, there are fundamental questions you may want to ask
yourself when it comes to your personal finances, for example:
• Are you financially making the most of your time overseas?
• Does the country in which you now live and work have a lower cost of living than in your
home country? Do you benefit from a lower taxation?
• Do you benefit from extra financial incentives offered in a bid to get you to accept a
position with more risk or to take a contract that others may find unattractive?
As an expatriate, you are possibly in a privileged position to maximise your wealth and secure your
financial future whilst living overseas. You may be able to save in three to five years what an average
investor may save throughout his entire working life simply by considering some of the options
available to you such as:
• Taking advantage of your offshore earnings and invest over the short, medium or long
term
• Taking advantage of the many offshore tax friendly possibilities
• Using your time overseas wisely
Furthermore, you are legally entitled to take advantage of any tax savings offered in your country
of residence.
THE BIG PICTURE: HOW TO LO OK AT A L L YO U R
FINANCES AT ONCE, A N D PLOT T H E R IG H T CO U RS E
3. Income or gains may only be taxable if they are remitted to (or brought into) the country in which you
are now living. It may therefore be possible to remit only the basic minimum for living costs and save
on income and capital gains in your new country of residence.
In this guide we highlighted a few options you may want to consider to work towards building a
wealthier future whilst living overseas.
Choose the jurisdiction that is right for you
There are many offshore jurisdictions with tax friendly policies that offer attractive investment
opportunities to expatriates. When choosing the right jurisdiction as the harbour for your money,
considerations need to be made based on a number of factors, including:
• Your country of residence
• Your nationality
• Other countries to which you may wish to relocate
• If and when you will be returning home
To find out what investment opportunities are available to you and in which jurisdictions you will
benefit most from by investing your money, you should speak to a financial consultant.
A locally focused financial consultant with international knowledge and a comprehensive overview
and understanding of all ‘offshore’ options available is your most valuable contact when it comes to
planning how to invest your excess income.
Portfolio bond
A portfolio bond is a simple holding structure for a wide range of investment vehicles such as stocks,
shares, bonds and funds. It provides a flexible solution for your investments and usually offers greater
tax efficiency.
Key features include:
• Convenience of holding all assets in one portfolio
• Significant initial discounts from fund management groups
• Opportunity for greater tax efficiency
• Ability to transfer to existing quoted share holdings
• Greater investment freedom
• Flexibility to change your investment portfolio at any time
• Easy access to capital
• Regular income facility
A portfolio bond gives you access to a full range of investment vehicles and enables you to have all
assets handled by professional asset managers. In certain jurisdictions, portfolio bonds are 100% free
of local taxes.
THE BIG PICTURE: HOW TO LO OK AT A L L YO U R
FINANCES AT ONCE, A N D PLOT T H E R IG H T CO U RS E
4. Hybrid company
A hybrid company is limited by both shares and a guarantee and therefore has two groups of members
- shareholders and guarantee members. A guarantee member holds a contingent liability and agrees to
contribute to the debts of the company up to a specified amount. This contrasts with the shareholder
who holds an asset – the shares. The hybrid company can be structured in a way that may potentially
avoid or reduce inheritance tax, or probate yet still provide all the advantages and benefits of investing
offshore.
Online trading
In the past, investors would contact traders by phone, who in turn would buy shares on behalf of their
clients. However with modern technology it is now possible to trade online using an online trading
platform. For those who want to take a more active role in their investments, a trading platform can
provide easy access to a variety of investment funds and usually offer up to date market data and
analysis and instant portfolio access 24/7, 365 days a year.
For example, the deVere Fund Platform can provide you with instant access to your account where
you can trade in your own time and benefit from a choice of over 5,000 mutual funds
Offshore bank accounts
Most UK banks have offshore divisions. An offshore bank account will provide you with the comfort
of dealing with English speaking professionals who understand the needs of expatriates. However
do not forget that even though you will have moved your money offshore you will still have to pay
certain taxes. Please remember charges on offshore accounts can be high.
Offshore policyholder protection
In the present climate, most offshore investors require some level of protection. One way to evaluate
the types of protection available is to compare offshore options to onshore products.
Always ensure that the jurisdictions are well regulated. Ireland, Isle of Man, Guernsey and
Luxembourg are all jurisdictions that are highly regulated. Consistent reporting enables the regulators
to monitor the position of the insurer and inform them of any corrective steps that may need to be
taken in order to protect the policy holders of the insurance company.
The above jurisdictions impose minimum solvency margin requirements upon the life offices they
regulate and these companies are usually required to hold a balance of several millions of pounds or
euros more than their liabilities.
Ireland and Luxembourg have implemented the same EU solvency directives. The Isle of Man and
Guernsey have similar minimum solvency requirements.
THE BIG PICTURE: HOW TO LO OK AT A L L YO U R
FINANCES AT ONCE, A N D PLOT T H E R IG H T CO U RS E
5. Make a will
In the UK, if you die without a will (intestate) you can leave those you care about to face a number
of issues. However if you die abroad without a will, the arrangements can prove to be even more
complicated and difficult for your loved ones.
Having a will in the UK does not necessarily mean you will be protected. Every country has its own
laws governing what you can and cannot do with your assets.
It is important to investigate this locally and it may be necessary for you to complete a new will in the
country in which you reside. For example, some European countries do not allow you to leave your
home to your spouse alone; instead you are obliged to share it amongst your children too.
Receive financial advice
Getting to grips with the complexities of planning your finances and understanding how to protect and
build your wealth requires professional advice.
If you haven’t started planning yet, now is the time to start.
At the deVere Group, our consultants work with some of the leading investment houses and insurance
providers.
All our employees have been trained to provide the best advice and are familiar with the local
knowledge and requirements of the region you live in/may relocate to.
We can advise on the different options that may help you maximise your wealth in order for you to
look forward to a more secure financial future.
About the deVere Group
The deVere Group is the world’s largest independent financial consultancy group. We work with
international investors and expatriates to find financial services products that suit their medium to
long term requirements for investments, savings and pensions.
THE BIG PICTURE: HOW TO LO OK AT A L L YO U R
FINANCES AT ONCE, A N D PLOT T H E R IG H T CO U RS E
6. With in excess of US$7 billion of funds under administration and management, deVere has more than
fifty thousand clients in over a hundred countries.
Our independence and ability to offer financial products that are tailor-made to fit an individual’s
needs are behind our success.
As a result we now have offices in over forty countries.
You can find us in Abu Dhabi, Brussels, Dubai, Geneva, Hong Kong, Johannesburg, London, Mexico,
Moscow, Shanghai, Tokyo and Zurich, amongst others.
The advice we provide is free and without obligation.
THE BIG PICTURE: HOW TO LO OK AT A L L YO U R
FINANCES AT ONCE A N D PLOT T H E R IG H T CO U RS E
