4 investment tips every expat should know

Posted on: 1st October 2021 in Expats

Managing your investments while living as an expat in another country or even continent can be a riddle to some. Dealing with an investment portfolio is never an easy task. If you add to the mix the distance of hundreds or thousands of kilometres, management could become confusing and complicated. In this blog, we will share 4 investment tips to make your life a bit easier and reduce stress.

Nevertheless, there are ways to manage your portfolio in a way that would be profitable for you even if you live far away from your country of origin. All that is required is thorough research and good preparation, which you can do yourself or with the help of a qualified financial adviser. 

Know your tax status

Taxes never bring smiles. On the contrary, declaring your income equals loss of funds that you could use elsewhere. Things could get worse if you make a mistake when you file your tax return. This is the reason why we suggest asking the help of an experienced financial adviser that would surely save you some money.

Being an expat makes things more difficult as you should know details about taxation in every country that you hold investments. In some countries, you are required to declare your worldwide income; in others this is not needed. However, failure to comply with each country’s tax rules means that there will be penalties which is surely something you want to avoid. Things become easier if you have an experienced and qualified financial adviser by your side to give you the right information.

What about investing in property

One of the more profitable and stable investments for many years is property. Brick and mortar investments are always considered one of the pillars of a well-planned portfolio. Even the riskiest investors tend to have a part of their funds invested in real estate to act as a safeguard in case of market fluctuations.

Property is an ideal investment for most expats. It is resilient even during a financial crisis plus it doesn’t need constant monitoring as other types of investments. It can also be easily repurposed whether you want to rent it or live in it. With interest rates at an all-time low, this could be the moment to add an asset such as this to your portfolio.

Pay attention to exchange rates

Exchange rates may work in favour but also against your financial plans. Unfortunately, many expats don’t realise the importance of exchange rates and how they affect their budgets. As expats sometimes get paid in US dollars, British pounds or euros, they tend to forget that local currencies may strengthen or weaken depending on the market conditions.

Another factor that should be considered is the cost of conversion which can be high if expats do not monitor rates and charges of the service they use. Living abroad means that expats often convert a part of their funds to other currencies, so finding the right provider is quite important.

Consult an independent financial adviser

The financial world is rapidly changing so today’s opportunities might be tomorrow’s money pits. Even though it is very easy to get access to financial information via the internet and other sources, the ability to filter it and use it in a constructive way is the difficult part of building a solid financial plan. Working abroad and not in your home country means that you face more obstacles as there could be different rules and regulations that could weigh in on your financial plans.

The best way to reduce risks is to consult a financial adviser. You will have to find who has the necessary qualifications and experience to help an expat. This might not be an easy task, but once you get in touch with the financial adviser of choice, things will become easier as you will be receiving accurate and qualified advice. Expats should know that there are professionals with many years of experience who can design solid investment plans according to your budget and goals.

Put your trust in Holborn

At Holborn, we have a wealth of experience, successfully working with clients for over twenty years to reach their financial goals. Our team of experts can provide detailed, bespoke advice and investment tips based on your situation and needs. Our global complement of 200+ independent financial advisers deliver top quality, globally-compliant services locally to clients in Dubai, Malaysia, Vietnam, Hong Kong, South Africa, the United Kingdom, Spain and Cyprus.

Get in touch with us today by filling in the contact form below and let’s build your future together.