Financial Planning Archives - Holborn Assets Cyprus

Filing Your Personal Income Tax Return In Cyprus

Michael Hiden — Fri, 17 Sep 2021 11:11:00 +0000

*This blog has been updated on June 22nd 2022

Albert Einstein commenting on his tax returns, said: “This is too difficult for a mathematician. It takes a philosopher.” As the Cyprus tax filing deadline is getting closer, our blog will give you some basic information on what you have to do to get your tax return straight if you live on the island. The Cyprus Tax Department has announced that the deadline for the timely submission of the Income Tax Return is July 31st 2022. According to the Tax Department, the digital Income Tax Return for employees and self-employed/individuals who do not prepare audited financial statements (FormT.D.1) for the year 2021 is now available for submission.

How to apply for a Cypriot tax number

An individual who spends more than 183 days in the Republic is a tax resident of the Republic of Cyprus. If you need to apply for a Cypriot tax number, the process is quite easy.

All you need to do is fill in the form TD2001 given to you by the Cypriot Ministry of Finance. Once the form has been completed, you should submit it to the local district office of the Tax Department accompanied by copies of your passport, a recent utility bill and your permanent registration certificate (yellow slip for EU nationals).

You can either submit the documents yourself by going to the local tax department offices or email the copies to specific email addresses that you can find here. The process is quite simple and usually, it takes 48 hours to get your unique Tax Identification Code (TIC).

TAXISNET Registration

Once you have received your unique TIC number, you can register to the Tax Department’s online portal called TAXISNET. Registering to TAXISNET is an easy and secure process.

To successfully register to TAXISNET, you will be asked for your TIC, your phone number, an email address that you use and a unique registration number which you can find in the TIC document that the Tax Department has sent to you.

We have to note that the user interface may look simple but sometimes it could be difficult to navigate, so we advise you to use the Draft document function before submitting any forms. That’s how you will be able to double-check if any data is wrong, avoiding costly mistakes.

Tax Rates in Cyprus

Tax rates in Cyprus are among the lowest in the European Union. Income and capital gains taxes are low when compared with the rest of the eurozone countries, whilst there is no inheritance tax. View our graph for the personal income tax rates in Cyprus:

For more information on taxation in Cyprus, you can request our comprehensive tax guide by filling in the contact form below.

Expat living in Cyprus? We have the answers

Expats living in Cyprus usually have many questions regarding their finances and how the Cypriot tax system works. While the system is not so complicated when compared with other countries, it is best to have fully qualified and experienced advisers by your side.

Holborn’s advisers have the necessary financial knowledge to assess your financial situation and give you guidance that would help you achieve your goals. Get in touch with us by filling in the contact form below or even come to visit us in one of our offices in Limassol or Paphos.

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The Cost of Raising a Child: 0-17 Years Old

user — Fri, 07 Jun 2019 13:01:23 +0000

It’s no secret that having children is expensive but you might not realise just how expensive.

Whether it’s supporting a child through university or helping them on to the property ladder, the cost to parents after the age of 18 could be as much as £85,000 – But what about the years leading up to adulthood?

Research by Child Poverty Action Group revealed that the basic cost of raising a child until the age of 18 stands at just over £75,000 for a couple.

This figure didn’t account for childcare and other costs. Factoring in all expenses at the national average, NatWest found that the actual figure could be a little over £192,000 – that’s around £890 per month.

Figure 1 – A breakdown of costs using the NatWest calculator

Unlike the UK, schools in the Middle East charge yearly fees. Expats may have school fees included in their relocation package, but expecting parents already working abroad may not be so lucky.

Rent and school fees are considered the two biggest expenses for expats living in the UAE. The cost of education varies depending on location and the fees can be substantial.

Figure 2 Figures account for all curriculums, not just those teaching the British curriculum

Schools in the UAE teach a wide range of curriculums. For expats wanting to know about fees for schools teaching the British curriculum, check out our interactive map.

Managing your finances as a new parent has never been so important and our industry experts can help guide you through the best way to do this. If you would like to get in touch, please contact us using the form below.

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6 Months Until Brexit – Where Are We Now?

user — Tue, 30 Apr 2019 08:08:21 +0000

It’s coming up for 3 years since the first Brexit referendum. The UK has yet to leave the EU and may never do so. Uncertainty continues to prevail. If you are a UK expat, make sure your finances are Brexit-proof (and non-Brexit proof!) by speaking to an IFA.

So when is the UK leaving the EU?

Currently, British MPs have agreed to a 6-month extension of Brexit until 31 st October 2019. The UK may leave the EU sooner than that in the event that agreement is reached between British MPs and the EU. And all sorts of things can happen otherwise…

Can Brexit still be cancelled?

Yes – if the UK parliament says so: “the European Court of Justice ruled on 10 December 2018 that the UK could cancel the Article 50 Brexit process without the permission of the other 27 EU members, and remain a member of the EU on its existing terms, provided the decision followed a “democratic process”, in other words, if Parliament voted for it.” (bbc.co.uk)

Can Brexit be delayed?

Yes, if all EU countries as well as the UK agree.

Could there be another referendum?

Yes, if changes are made to UK law. The Government could do this theoretically. Some academic experts have said that another referendum would take a good five to six months to organise with all the appropriate legal mechanisms in place correctly. The first UK Brexit referendum took place almost 3 years ago now – on 23 rd June 2016. There was less than 4% of the vote in it – with Leave winning by 51.9% over Remain’s 48.1%. That’s very close! No wonder now UK politicians are failing to find a clear way forward. There wasn’t much a consensus to begin with!

How much does UK owe the EU if/when we do leave?

£39bn. That’s the sum which the current withdrawal agreement prescribes. It’s an irony of the Brexit process that Leave voters were promised that leaving the EU would save money for the UK.

Brit Expats in the EU: what happens if the UK leaves with a No Deal?

Widespread disruption to most areas of UK life – but particular worrying times for UK expats living in the EU: “for British citizens in the EU after a no Agreement Brexit, they will become third country nationals and will need to bring themselves within either EU law on third country nationals or national law of the Member State where they are living. Very few of the EU 27 have set out detailed instructions for their authorities on how to deal with British citizens after Brexit in that case.” (Professor E. Guild, Queen Mary University, London)

Brit Expats in the EU: what happens if the UK leaves with a Deal?

Until 31 st December 2020, British expats living in the EU will be able to stay as they are – if the UK Brexits according to the terms of the withdrawal agreement. Expats will need to ensure they are complying with the rules set out by the government of the EU country they are living in. And, after 31 st December 2020, no Brits will enjoy the automatic freedom of movement across other EU countries.

What does Brexit mean for my money?

That’s the big question! As long as Brexit uncertainty continues, the UK Pound Sterling will likely be weak. But, other than that, nobody really knows. Theories and observations bound, particularly in relation to the UK housing market.

How do I Brexit-proof my finances?

Give your financial picture a thorough review with your IFA. If you are a Brit living abroad, you need to be sure that Brexit does not deliver any personal nasty surprises in the area of:  Your status with the HMRC.  Your status with National Insurance Contributions (NICs).  Your UK state pension.  Your private and workplace pensions, some or all of which may still be held in the UK  Your cross-border investment interests, including property and funds.

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How to Make the Most of Tax-Free Earnings

user — Tue, 09 Apr 2019 07:20:16 +0000

Expats have plenty of spending options to enjoy – thanks to their earnings being free of taxation from their country of origin. (Except for US expats, notably.) But expats also generally know that there’s a bit of a trap in play with tax-free income. It goes like this: You leave your country of origin to take advantage of earnings that are not taxed by your home authorities. You end up with far more money than you would have if you had stayed at home. Your idea is to save enough abroad in a shortish spell to retire at home in comfort. But there are many spending temptations abroad. There are travel opportunities, there’s the brilliant weather – there’s a million reasons to put off investing in your family’s financial future. And what’s wrong with enjoying right now? Enjoying the expat lifestyle is all to the good. But it burns through cash. Can you find a way to spend money that will reap financial rewards in the long run? Here are two ideas – education, and property investment. Why not balance your leisure spending on some educational investment instead? And, if not, look at property, particularly in the UK.

You can’t start saving early enough for your kids’ education!

It’s not like most expats need to be told that their children’s education is important. But many expats fail to start saving early enough to tackle the high price of education when it comes around. Over half of UAE parents polled by the HSBC in 2017 said that they wish they had started saving earlier for their children’s education. And failing to start saving early enough means that money has to be begged, borrowed or mortgaged. Give yourself a break, and start looking into how you can start saving – and start making what money you do save start working harder. Get serious with your education planning and speak to an IFA! Parental spending on education in the UAE was the second-highest in the world in 2017 – at just under $100,000 per annum. We don’t hold back. The good news is that, internationally speaking, UAE schools are quite cheap. In Expatfinder’s 2018 analysis, the UAE was ranked 18th most expensive provider of International Schools out of 27 countries. International school fees began to rocket in 2017. Expatfinder’s 2018 survey of almost 700 international schools across almost 30 countries revealed “a startling 19% rise in prices compared to 2017”. When it comes to spending on education as an expat, be assured of one thing: by becoming an expat, you have done your children an enormous favour. You’ve made them into what are known as Third Culture Kids – which means the expat experience as children you are giving them makes them ready for anything as adults. Third Culture Kids enjoy expanded employment opportunities because they are going, as teenagers, into a global work market – and they are already far more globalised than their peers. UAE-based anthropologist Dr Joanna Seraphim says Third Culture Kids “are clearly more open-minded and tolerant because they have seen and experienced things that are different from the people in their own country. For example, a person in the UAE has tried lugemat (fried dumplings) from the UAE, masala chai from India, attended the Chinese New Year festivities and enjoyed Iftar with friends.” You won’t waste a penny giving your kids such advantages through international education.

Property investment opportunities – Britain?

Brexit has got many markets in Britain in shutdown. Nobody wants to spend any money – or risk anything – until the future of Brexit becomes clearer. Read here for an update on a conflicted UK property sector that could go either way. Pay close attention to the UK property sector in 2019. There will be opportunities, whether you are looking to buy-to-let, to settle down or even buying off-plan; speak to a Holborn IFA about your best way to secure a helpful UK mortgage from out in the UAE. Transnational mortgage resolution is bread and butter for the Holborn mortgage team, and will be much easier for you to navigate with experienced hands to deal with the paperwork. Decent off-plan opportunities in the UK are increasingly easier to find. That’s because developers and management companies are wising up to demand from overseas – as well as learning that high levels of support and flexibility for expat clients reap rewards. Off-plan in the UK isn’t the unreliable business that off-plan is held to be in Europe; we’ve all heard the European horror stories. Development and business regulation is high in the UK, and unlikely to slacken off post-Brexit. Of course, the UK is not the only off-plan market currently looking good; off-plan opportunities in the emerging economies of Asia (Vietnam, in particular) are opening up as regulation of foreign investment eases up.

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Can You Marie Kondo Your Finances?

user — Wed, 03 Apr 2019 07:23:50 +0000

Spring clean your personal finances with Marie Kondo!

In the UK, the clocks have gone forward and the season of Spring has begun. It’s time for a financial Spring clean. And why not take some celebrity tidying-up tips from Japanese “organising consultant” Marie Kondo? “Tidy your space, transform your life.” Says Kondo on the website for her KonMari brand. She’s talking about household items, like clothes, books and furniture. But her principles apply to personal finances too!

What’s the KonMari method?

“First, put your hands on everything you own, ask yourself if it sparks joy, and if it doesn’t, thank it for its service and get rid of it. Second, once only your most joy-giving belongings remain, put every item in a place where it’s visible, accessible, and easy to grab and then put back.” And that’s it – a great summary of Kondo’s New York Times best seller The Life-Changing Magic of Tidying up by style blog One Kings Lane. Can you begin to see how the Kondo clean-up method for the home might work (with a little adjustment) for personal finances? Just follow the same two basic steps: STEP 1: REVIEW & OPTIMISE: Assess your entire financial picture and get rid of anything that no longer makes any sense (or “sparks joy” as Kondo puts it). STEP 2: MAINTAIN & REVIEW: Now you’ve got your financial machine lean and clean, keep it under regular review. Enjoy your new-found sense of clarity and financial flexibility! A great place to start with Step 1 (Review & Optimise) is to tackle any outstanding debt, particularly credit card debt. There’s no point in having healthy investments and great financial habits if debt interest is eating away at your financial situation from the inside. You will also want to review any investments you have, and particularly your pension arrangements. As an expat in particular, powerful ways to make the best of your money can open up; but only if you are prepared to be ruthless about changing your old ways! You just need somebody to point you in the right direction and ensure you fully understand every risk that comes your way. If you are a Brit living in the UK and thinking of transferring your pension, it is actually a UK government requirement that you take professional financial advice “if you have what’s called ‘safeguarded benefits’ – in particular if you’re in a defined benefit pension scheme or have a guaranteed annuity rate – and your benefits are worth £30,000 or more.” (moneyadviceservice.org.uk) Whatever your plans, if you are serious about giving your finances a brush-up – get an IFA! An Independent Financial Advisor (IFA) is ideally suited as a qualified professional to guide you through reviewing, optimising and maintaining your overall financial picture. This is what IFAs do for a living, so you can expect exactly the rigorous approach to cleaning out your financial cupboards that Marie Kondo recommends for the home: Kondo Top Tip 1: Tackle the Big Picture Kondo’s first rule is to tidy by category rather than location. If you’re tidying up the home, that means tidy all your clothes at once (for example) rather than tidy up room by room. In the world of personal finance, this means not getting bogged down in local detail. This means holistic personal finance (in which Holborn IFAs specialise). As an absolute priority, you must look at your finances as a holistic whole; at how the pieces link up. Decide what life goals you want to support with your finances, and make sure your whole machine is working together in the right direction. Kondo Top Tip 2: Purging feels Great Kondo treats tidying up the home as a spiritual experience of cleansing and revitalisation. She lights a candle and says a prayer before purging a property of junk. Maybe that’s not for you when it comes to detoxing your financial situation. But it’s certainly true that an honest cull of toxic financial obligations and investments can make you feel a lot better than you expect to when you first face up to them. It’s OK to fear change. But only change can lead to better things! So talk to an IFA and be prepared to shine a light onto a brighter financial future. Kondo Top Tip 3: Rediscover your Style Ever positive, Kondo points out that sorting out your clothes leads you to rediscover all sorts of style successes that you had in the past (and style failures too, no doubt!). In the world of personal finance, the lesson here is positive too: once you have given your finances the once-over, you will be able to see “what is what” in your life generally; maybe gain a whole new clarity and resolution about your life goals. Your finances are your future, after all!

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5 Tax Considerations for Expats

user — Tue, 19 Mar 2019 09:07:03 +0000

Looking to become an expat? Holborn Independent Financial Advisors (IFAs) in your new country of residence can help you out. All international Holborn offices offer a no-obligation financial review to new expats.

Financially, there’s so much to get sorted out when becoming an expat. Not only do you need to review all aspects of your big financial picture, which can be overwhelming, but you can’t just do this by simply following a checklist you’ve found online. What you need to do to protect your family’s financial future will depend heavily on your exact circumstances, so you need qualified advice as a priority.

Get in touch with Holborn before you go to get your expat finances right from the beginning.

Key expat priority – tax!

Managing your tax situation is the key priority for new expats. Maybe the very reason you are leaving your home country is to take advantage of lower income tax in your new country of residence. Great! But there’s far more to tax than income tax if you are planning to move abroad. You’re going to have a complex web of cross-border tax obligations – and opportunities!

IFAs working in expat markets excel at getting your international tax situation straight across your pensions, investments (including property), mortgages and estate planning:

Income tax

Whatever your country of origin, you will need to notify your tax authorities that you are leaving. Otherwise, you might end up paying tax on income and/or investments twice – once in your home country, and once in your new country of residence. Tax rules differ from country to country. Find out whether your home country has a Double Taxation Agreement (DTA) with your new country of residence.

Taking in your new cross-border status, you need to know for certain what tax rules apply, how they work together, and how you can make the best of them. A local IFA in your new country of residence can offer reliable support in this key area.

Pensions

Tax is a key consideration in the area of pensions. If you have a state pension (as UK citizens do, for example), you will need to clarify how that works for expats.

But what about your work pension? Expertsforexpats.com point out that, “As an Expat, depending on your plans, you may have unique opportunities available to you and an adviser will be able to discuss each of the options enabling you to make a decision.” As a UK citizen, you can move your pension pot from a workplace Defined Benefit pension into a variety of overseas arrangements and unlock great tax benefits. In the UK as in other countries, managing exposure to inheritance tax can be tackled by prudent reframing of your pension (into a SIPP, for example).

Moving pension schemes is a huge step requiring professional advice, and not one that is not often recommended (that’s certainly what Holborn IFA statistics point to). Transferring your pension might work for your financial situation, or it might not. The only way to find out is to ask an IFA or other pension specialist.

Investments

Any lump sum investments you have will need to be checked for their tax efficiency, as well any property you retain in your country of origin or elsewhere. As an expat, your investment taxation will become more complicated. But you will also enjoy access to opportunities that non-expats do not have. Offshore banking and investment often makes sense for expats; there is an old rule of thumb that says “If your Country of Origin is A, and your new Country of Residence is B, then you should keep your money in Country C.”

Mortgages

Often expats rent when they first arrive in their new country of origin, and take a while to check out the property market. But you can get going sooner if you like. You can arrange a mortgage in your new country of residence remotely via a local mortgage broker. Holborn, for example, offers an experienced mortgage desk at our Dubai HQ that has been successfully arranging mortgages in the complex UAE market for getting on 20 years. Local knowledge counts – so use it as soon as you arrive, or even before leaving!

Estate Planning

Are you planning to retire in your new country of residence? Or like many UK expats, for example, retire back home? You need to decide now what your endgame plan is, and work towards it. Whatever your plan, be sure to get a new Last Will and Testament drafted in your new country of residence. In the UAE, for example, expats can get wills drawn up in international common law with the DIFC Wills & Probate Registry.

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Jargon-busting Personal Finance

user — Tue, 19 Feb 2019 00:38:39 +0000

Does your IFA sometimes lose you when they are explaining stuff? It’s their job to explain your financial affairs simply. But there’s a lot of jargon in personal finance. You can only get so far by knowing nothing! Get a head-start on your next meeting with your IFA, as we get to the bottom of what some really useful personal finance terms mean. We bust some key jargon across all five of Holborn’s specialist service areas:

Investment

AER: Annual Equivalent Rate AER is a % figure. It commonly shows what savings rate you will get over the course of a year with a particular bank account. AER is a useful figure because it shows you the annual gain, regardless of whether the interest is paid monthly or annually. Asset Allocation Your IFA may talk about asset allocation a lot. The term broadly describes how your investment portfolio is split up – into different types of asset. Specifically, the term describes how different assets are allocated different percentages of the portfolio based on their characteristics. For example, a common rule of thumb in asset allocation is to invest 10% of your portfolio in the commodity gold. This is because gold generally holds its value when the main stock markets slump. Base Rate You may have heard about the Base Rate on television. The Base Rate is a banking term. It impacts directly on your own personal finances. How? Because it describes the rate of interest that the Bank of England is using in lending. And this Base Rate is often adopted by high street banks to determine – or, at least, influence – their own lending rates. So, if you hear that the Base Rate is high, expect high interest on your savings, and also high interest on any debts you have.

Retirement Planning

Annuity An annuity is a type of financial product related to pensions. An annuity allows you to transform some of your pension pot into a guaranteed income for life. Annuities derive their name from the fact the fixed income they provide is paid annually. In the UK, it used to be mandatory to buy an annuity with what are known as Direct Contribution (DC) pensions. Now taking an annuity is optional. It is just one of many choices available thanks to the Pensions Freedoms introduced by the UK Government in 2015. DC & DB pensions In the UK, there are two main types of pensions. There are DC (Direct Contribution) pensions and DB (Direct Benefit) pensions. DB pensions are workplace pensions that are dying out because they are too expensive to run for employers. DB pensions are paid by your employer with the payout based on your Final Salary. DC pensions, on the other hand, describes other workplace pensions as well as private pensions (such as SIPPs). DC pensions are characterised by a greater degree of flexibility for the pension-holder, and can be passed on as part of your financial legacy. Intestate It sounds like a painful medical condition, but “intestate” is actually a term that relates to your Will. If you are serious about your financial planning, then your Will should form the centrepiece of the legacy you pass on. So it is important. “Dying intestate” means that somebody dies without a Will – whether because they haven’t had one produced, or because they have but it has not been found; it can cause all sort of problems for surviving relatives.

Insurance

Act of God Also know as “Vis Major” (Latin), “Act of God” is a term in insurance that describes circumstances in which loss is incurred on insured assets – but over which the owner is deemed to have no control. It ain’t your fault, in other words! The precise legal definition of Act of God derives from an old legal case, Nugent v Smith (1876): ““Natural causes directly and exclusively without human intervention and that could not have been prevented by any amount of foresight and pains and care reasonably to have been expected”. Ex-gratia payment An ex-gratia payment is usually good news for a policyholder. It describes a payment that the insurer makes even though there is no legal requirement to do so. An ex-gratia payment might form the basis of an out-of-court settlement, for example. Utmost Good Faith Insurance contracts are made in what is known as “Utmost Good Faith.” This means that legally it is understood that each party must be pro-active in sharing relevant information. Utmost Good Faith means, simply, that as a policyholder you can’t get away with saying ever “I didn’t know.” Your insurer can throw a claim back in your face if it is shown that you have not acted in Utmost Good Faith.

Mortgages

AIP (Agreement in Principle) An important term, this. Your Agreement in Principle from your mortgage lender is what you show to a seller in order to provide that you can afford to buy the property. Particularly in the UAE market, it is critical to get an AIP or risk not being seen by sellers or being gazumped. Capped Rate A capped rate gives peace of mind. It means that the rate of interest charged on your mortgage will never exceed a certain level – even though the rate may otherwise fluctuate in line with changes to the Bank of England’s Base Rate. Interest Only With an interest only mortgage, you really do only pay the interest on the loan. At first! But when the term of the loan is up, you are expected to pay back to the full lump sum on which that interest was charged. This means that a requirement of interest only mortgages is that you can demonstrate an investment vehicle to account for the lump sum; property is often used. Buy-to-let mortgages are generally interest only.

Employee Benefits

Auto-enrolment This term relates to workplace pensions. Auto-enrolment is a UK government scheme – now firmly in place – which requires companies to enrol their employees automatically in a pension scheme. This means you cannot work (other than freelance) and avoid having some sort of pension (other than your state pension) – which is good news! Employee Benefits Platform This means the technology, the software, that underpins a company’s provision of employee benefits. If you are asked to “interface with the platform”, it means “ log on to our website”. Platforms allow companies to automate the administration of benefits – which cuts costs. But, to the benefit of the policyholder, a lot more flexibility is usually provided; you can make your own choices online rather than have to get an appointment with somebody and exchange emails. Core & Voluntary Benefits There’s no trick here – this is one of those few bits of jargon that does what it says on the tin. Core benefits refers – as you would expect – to benefits which come as standard to the policyholder and are paid for by the employer. Voluntary benefits are chosen and paid for by the policyholder, and provided by the employer.

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Brexit – ask your IFA!

user — Tue, 23 Oct 2018 12:28:56 +0000

As confusion reigns supreme in the Brexit no-deal debacle, and the UK economy holds its breath in anticipation of a no-deal outcome, millions of Brits and expats can look forward to disruption and uncertainty in many aspects of their lives. Association of British Insurers director of regulation Hugh Savill highlights the wide scope of the potential impact: “Leaving the EU without a deal would cause major inconvenience to millions of pensioners, travellers and drivers.”

The time is now for expats

Major changes ahead signal that this is the perfect time for a financial check up – particularly so for expats. With less than six months to go until Britain’s proposed exit from the European Union, and uncertainty being the only certainty on the negotiating table, Holborn’s COO Simon Parker states the case plainly for British expats: “with uncertainty over Brexit, it is more important than ever for British expats to give their personal finances a professional check-up.”

So where do you start?

Expats need to get a holistic, 360 degree view of their finances: what’s coming in, what’s going out – and, most importantly, what Life Goals need to be supported in the future by strong financial planning. What financial products do you already have that need to be looked at? Well, start with your pension – and consider transferring out of the UK if you haven’t already done so. A no-deal Brexit has several implications for Brits particularly in the EU already drawing on their pensions, as well as those who will receive their UK state and private pensions in the future.

UK pensions in the EU

According to the Office for National Statistics (ONS), there are 900,000 British citizens living overseas in the EU. Spain hosts the majority (293,000 British expats) with France the home of 152,000 more. 220,000 of these expats (one quarter of the total figure) are of retirement age (65 plus). That’s a substantial amount of British expats whose private and state pensions stand to be affected by a no-deal Brexit. Will my private pension be affected if I’m a British expat in the EU? As it stands, hundreds of thousands of Brits who have retired abroad receive their pensions into bank accounts they have set up in their country of residence, made possible and painless by EU laws that regulate “passporting” – reciprocal arrangements between your UK pension provider and your European bank. A no deal Brexit looks set to end passporting – meaning that your pension provider may not be able to pay into your account. While the UK Government has made arrangements for EU residents receiving their pensions into UK bank accounts, a reciprocal arrangement from the EU has not yet been laid out for Brits abroad. The Association of British Insurers (ABI) suggests that its not just pensioners who could be affected. Up to 38 million people could be affected by passporting arrangements coming to an end. Will my state pension affected by a no-deal Brexit? In short, possibly! There are a couple of factors for you to bear in mind. Up until now, the state pension has risen each year in line with the triple lock agreement (2.5pc, rate of inflation, or average earnings) and British expats have benefitted from this guaranteed increase. This year, UK state pensions have actually gone up, thanks to the Triple Lock. The system only currently benefits expats in EU countries (expats in Canada, or Australia for example, do not benefit from such an agreement) but turbulence thanks to Brexit means that the Triple Lock arrangement may no longer apply in Europe; it’s a possibility, but so is much else at this point – just something to bear in mind. A further factor that could affect your entitlement as an expat to your UK state pension relates to NI contributions. The UK is currently part of an EU system that collates social security entitlements for people moving around within the European Union. Under the current system an expat within the EU can submit just one application in their country of residence, and ALL countries in which the person has worked must calculate their contribution to the payment. Outside of the EU, co-ordinating these cross-country contributions could make claiming your pension much more difficult. What DO we know? With so much uncertainty about how British expats will be affected by a no-deal Brexit, one thing we can say with absolute clarity is that seeking expert cross-border advice from your IFA will keep you expertly informed about your changing financial future as Brexit plays out; be prepared!

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International schools just got 19% dearer!

user — Mon, 06 Aug 2018 23:35:38 +0000

International schooling is a must for expat kids. But prices are rocketing.

Expatfinder’s International School Fees 2018 survey of almost 700 international schools across almost 30 countries “reflects a startling 19% rise in prices compared to 2017”.

There is too much demand for places at International Schools. Why? Because it’s no longer just expat kids (and rich kids) who are lined up for places; “While it is challenging enough for international schools to cater to growing expat demand, we now see that the demand for places is coming from the exploding middle classes of host countries as local parents regard international schools as a stepping stone for their children to compete for spots in prestigious Western universities.” (Sebastien Deschamps, CEO and co-founder of ExpatFinder.com) Parents of non-expat kids are muscling their way into International Schools. And this is why it is China which is now the global leader in hosting International Schools with 807 (ISC Research, 2018) as well as hosting the most expensive on average; “In China the need to get into top 100 universities is more intense than even 10 years ago and an international school is seen as a secure track for a very good education.” (Laurence Cook, Dulwich College International, Shanghai)

Snapshot: International Schools 2018

4.5m pupils globally with more than 8,000 English medium International Schools globally (ISC Research).
Most expensive International School: Surval Montreux, Switzerland ($92,240 per annum).
Most expensive country for International Schools: China ($33,591 average per annum).
West still more expensive than East: average fees of $22,730 per annum are asked for in the Americas and Europe compared to $16,403 per annum in the Middle East and Asia.
Shop around by country! Belgium, for example – with average fees of $29,613 per annum – is over 3 times more expensive than the neighbouring Netherlands, with average fees of $8,859 per annum.
Shop around by School System! Expat parents should be aware that the French and Dutch School Systems work out as half the price of the popular General International System which comprises over 80% of all International Schools curricula.
A huge future as a sector: the global International Schools market will be worth US$89 billion by 2026 (forbes.com).

Snapshot: UAE International Schools 2018

There were 627 International Schools in the UAE at the beginning of 2018, according to ISC Research. The Middle East hosts roughly 1600.
International Schools in the UAE are relatively cheap. In Expatfinder’s 2018 analysis, the UAE was ranked 18th most expensive provider of International Schools out of 27 countries.
The International Schools at home in the UAE might be relatively cheap, but UAE parents are big spenders on education across the world. HSBC’s 2017 Value of Education survey revealed that UAE parents spend more on their kids’ education than any other group of parents in the world other than Hong Kong.

Snapshot: UK International Schools 2018

International Schools in the UK are relatively expensive. In Expatfinder’s 2018 analysis, the UK was ranked 4th most expensive provider of International Schools out of 27 countries.
Perhaps confusingly, 3,700 of all 8,000+ international schools, both in and outside of the UK, are “British International Schools: “schools with a British national orientation, and/or using elements of the UK national curriculum.” (Cobis)
UK parents spend an average of $24,862 on a child’s education each year, making Brits the 9th-most avid education investors surveyed by the HSBC in 2017.

About the Expatfinder Survey

The Expatfinder International School Fees Survey 2018 covers 688 schools in 27 countries.
The Expatfinder survey is growing in authority as a reliable source for international education financial data alongside the established HSBC annual Value of Education survey.
Check out the full Expatfinder survey findings here.

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