• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Sonic Boom

  • Home
  • About
  • Travel
  • Music
  • Business
  • Lifestyle
  • Health
  • Home & Garden
  • Finance
  • News
  • Blog
  • Contact

February 24, 2021 by Eddy

Investing 101 for Ex-Pats: A Simple Guide to Your Investment Opportunities

The investment options available for ex-pats typically differ from those living in the UK. For example, the Individual Savings Account (ISA) is a popular UK-based investment option that isn’t available to ex-pats. This is unfortunate because the ISA is largely viewed as one of the safest, most convenient, and most tax-efficient options for people looking to invest. What are your choices as an ex-pat then? Here is a guide to available investment opportunities for you.

Offshore investment bonds

Offshore bonds are a tax-efficient option since these aren’t subject to income and capital gains tax. Meaning, it will grow tax-free, which could lead to faster and bigger returns compared to onshore bonds. You pay a single lump sum to invest, and this amount depends on the provider.

However, when you bring the money from an offshore bond back into the UK, you’ll be subject to income tax, so before investing in offshore bonds, you may want to plan for the long-term. You can discuss the encashment with your financial adviser to maximize your profit.

QROPS and other private pensions

Your pensions can serve as a source of a steady income in your retirement years, and for ex-pats, a Qualifying Recognised Overseas Pension Scheme (QROPS) is fast becoming one of the preferred pension schemes. One of the reasons is that QROPS allows you to hold or withdraw your pension in a currency of your choosing, saving you from volatile exchange rates. Furthermore, UK pensions can only be transferred to your spouse when you die but QROPS allows for more flexibility with who can inherit your pension.

Relying only on your state pension may not be the best route since you can only claim it at 66. It’s better to diversify your pension plan to give you more retirement options. Visit www.pensionsforexpats.co.uk for more information.

Property

Purchasing property is one of the ways you can diversify your investment portfolio. You can buy property in the UK or the country you’re based in. You can sell off your property once the value has appreciated enough or you can use it to gain passive income in the form of rent. However, there are a few things you need to consider before buying property in the UK.

As an ex-pat, it may be hard for you to manage the property and rent collection since you’re out of the country. You also need to file income tax on any rental income. In this case, you may need to hire a property management agency to deal with all this.

You also need to consider any tax filings or laws associated with owning property in your current country to determine if it’s more financially sound to buy property there or in the UK.

Understanding your investment options as an ex-pat can help you better plan your investment portfolio better. It can get complex with all the taxes and fees from cross-country transactions, but if you have a qualified financial adviser, you can make smarter decisions that could save you thousands in fees and taxes.

Filed Under: Finance

Primary Sidebar

About Us

Hi Everyone. My name is Eddy and I'm a 28 year old American guy. I live outside the box and do things on my own terms. I quit my job a few years ago to pursue my writing passion, so here I am sharing this blog with you!

Connect with us

  • Facebook
  • Instagram
  • Twitter

Newsletter

Future Post

Five Important Reasons One Shouldn’t Delay Foundation Repairs 

Imagine a homeowner unwinding after a busy day and suddenly noticing a crack in the wall. He thinks it is a minor issue, but this could be a significant foundation problem. Most homeowners try to cut costs and think of dealing with such issues any other day, but foundation issues are not something one should […]

What is the Role of Predictive Analytics tools in Data Science?

Predictive analytics software uses historical data to predict future outcomes. These tools can be used for various purposes, including identifying potential risks and opportunities, detecting patterns and trends, and making data-driven decisions. The advanced tools use algorithms to automatically learn from and improve on data without being explicitly programmed. Predictive analytic tools can go beyond […]

The Benefits of Business-specific Credit Cards from a Credit Union

Getting a business-specific credit card is an important step for any small business owner. Business credit cards offer various benefits for those looking to manage their business expenses. But what about the benefits of business-specific credit cards a credit union offers? With lower interest rates, fewer fees, and more flexible terms, getting a business expense […]

CNC Router Signs: Tips for Making Perfect CNC Signs From Scratch 

CNC router machines have several uses. From modern-day sculpting to engraving and wood carving, there are no limitations to what a router can do for you in professional and personal ways. Engraving wood signs is a time-honored tradition that has been here for many years. From welcome signs in homes or businesses to door markers, […]

Unbeatable advantages of elopement

More and more couples tend to choose elopement with a smaller budget and an intimate ceremony. Running away from everyone and having an amazing day just for the two of you is so romantic. Let’s see what other advantages can be found during the elopement preparation. Saved money Traditional wedding costs a lot. Its budget […]

Basic Necessities For Your Pets

The same way as us humans, they also need proper care and the right amount of necessities for them to live well and healthily. The moment we’ve come to take them into our homes, we must consider all the responsibilities that we’ve come to partake in as their parents. Taking care of pets is high […]

3 Tips for Choosing Car Insurance

Having a car means you have a lot of responsibilities, one of which is to get the right car insurance. Otherwise, you could be left paying out of pocket for expensive damages should something unfortunate occur. But choosing the right one can sometimes be a tricky task, as there are so many different policies available […]

Calistoga: Oasis Of Sacred Springs

Do you want to soak, steam, and rest in a relaxing hot spring where you can enjoy it at the same time? I got you covered! Calistoga is well-known for its hot springs, sparkling mineral pools, and mud baths. If you want to relax here and have no place to stay, check out Calistoga vacation […]

Footer

About Us

Hi Everyone. My name is Eddy and I'm a 28 year old American guy. I live outside the box and do things on my own terms. I quit my job a few years ago to pursue my writing passion, so here I am sharing this blog with you!

Latest Post

  • Five Important Reasons One Shouldn’t Delay Foundation Repairs 
  • What is the Role of Predictive Analytics tools in Data Science?
  • The Benefits of Business-specific Credit Cards from a Credit Union
  • CNC Router Signs: Tips for Making Perfect CNC Signs From Scratch 
  • Unbeatable advantages of elopement

Connect With Us

  • Facebook
  • Instagram
  • Twitter

Copyright © 2023 · Executive Pro on Genesis Framework · WordPress · Log in