Investing your money as an expat living and working abroad isn’t always that simple. The opportunities, as well as the regulations that apply, vary significantly compared to residents. Although there are many variations, expat investments are typically offshore or onshore. Investing offshore is often more attractive because of the tax benefits. Also, most expats choose to invest overseas because there are opportunities that are only available to locals. Below, in this article, you can find the details about exploring investment opportunities for expats.
Indeed, if you want to grow your money for retirement or simply to take advantage of investment options while still favorably employed, the best way is to diversify your funds. Most people with limited knowledge about financial matters would hire a wealth manager or financial advisor. This strategy is great because, according to tailormadepensions.eu, getting help from an expert will help reduce your exposure to risks.
What are offshore investment bonds?
Expats have the option to invest their money in offshore bonds because they may be ineligible to invest in onshore bonds. It acts like a life insurance policy containing multiple investment funds and allows for tax breaks. Oftentimes, these types of bonds aren’t subject to income taxes and capital gains taxes. These tax breaks make the investment more attractive because it grows faster. However, there are still some fees that apply, such as commission and other charges. Knowing these charges will help you understand whether investing in an offshore bond is the best strategy to grow your money.
Investing in your pension
Another tax-efficient investment option is your pension. Every individual planning a comfortable retirement should always include their pension in the investment portfolio. Pensions come in various forms and are usually either provided by the state or the employer. Some even take out a private pension to augment their finances for retirement. But if you’re living abroad and want to use your pension for investing, there may be some regulatory limitations. There’s a possibility you can’t take out your pension and use it to invest offshore. In line with this, you can always seek a finance expert’s assistance to determine the options available to maximize your pension as part of your investment strategy.
Is investing in property an option?
Similar to a pension, most people often include property as part of their investment portfolio. For an ex-pat, this usually includes rental properties and their primary residence in their home country. Buying homes intended for sale, later on, is a good investment strategy but can be vulnerable to the volatile housing market. Nevertheless, holding on to the property and waiting until the housing prices rise before selling guarantees high profits.
What may be challenging with this option is how being an ex-pat impacts your ability to take out a mortgage for buying a house. Banks may have different regulations if you aren’t living in your home country anymore. Nevertheless, this opportunity is worth exploring, especially if housing prices are anticipated to increase in your home country within the next several years. If you’re skeptical about buying property while living abroad, let your financial adviser look into the viability of property investment and its overall impact on your portfolio.