A recent event in Doha by Hoxton Wealth highlighted gaps in financial knowledge among expatriates in Qatar. Over 70% were unsure of tax implications regarding their assets. Most attendees focused on wealth accumulation, yet only 35% had financial plans. The seminar also discussed topics including UK inheritance tax and strategies for expatriates.
In a recent educational event hosted in Doha by Hoxton Wealth, a leading financial advisory and wealth management firm, over 70% of the expatriates surveyed expressed uncertainty regarding how their existing assets would be subjected to taxation based on potential future residences. This finding has raised alarms about the level of financial literacy among expatriates in Qatar.
The survey yielded additional insights into the financial motivations of attendees. Sixty percent indicated that wealth accumulation was their primary goal while living in Qatar, followed by retirement planning at 28% and generating income through investments at 14%. However, despite these ambitions, only 35% reported having a solid financial plan in place.
Chris Ball, CEO of Hoxton Wealth, commented on the favorable financial climate for expats, highlighting the benefits such as the absence of income tax, no capital gains or dividends tax, and access to global markets. Furthermore, he pointed out that expatriates often receive competitive salary packages, along with potential gratuities upon leaving their positions. However, he cautioned against several common pitfalls.
Many expatriates tend to make several mistakes, according to Ball. These errors include holding assets in inappropriate structures, neglecting to establish pension plans similar to those in their home countries, and underestimating both inheritance tax threats and future tax obligations tied to their assets. Furthermore, there is significant currency risk for those holding substantial capital in local banks.
When asked about their retirement plans, respondents indicated varied preferences. Twenty-one percent expressed intentions to retire in the UK, while an equal proportion preferred Europe. Fourteen percent had Asia in mind, and the rest preferred other regions. Notably, over two-thirds of the attendees reported managing assets across multiple jurisdictions, indicative of a diverse investment strategy.
The seminar covered crucial financial planning considerations for expatriates from the UK, US, and Europe. Topics included the implications of UK inheritance tax for Middle East residents, claiming tax relief under the Foreign Income and Gains (FIG) regime for individuals returning to the UK after extended absences, and the benefits of Discounted Gift Trusts in estate planning. Each of these elements is critical for responsible financial management for expatriates navigating a complex global landscape.
Overall, the event shed light on the pressing need for expatriates in Qatar to enhance their understanding of financial planning. Many attendees appear unaware of potential tax liabilities and proper asset management strategies. Financial advisors like Hoxton Wealth aim to guide these individuals through nuanced terrain, promoting informed decisions and effective fiscal strategies especially relevant in light of the diverse retirement plans and asset locations presented by survey respondents.
Original Source: www.zawya.com
