Hoxton Wealth’s educational event in Doha found that over 70% of expats are unaware of how their assets will be taxed based on future residency. While wealth accumulation and retirement planning are primary goals, only 35% have a financial plan. Common mistakes, such as poor asset structuring and currency risk, were discussed, emphasizing the need for better financial guidance.
Hoxton Wealth recently hosted an educational event for expatriates in Doha, focusing on essential financial planning strategies. Surprisingly, over 70% of the attendees confessed they were unsure how their future residence would affect their tax liabilities on current assets. This illustrates a significant gap in financial awareness among the expatriate community in Qatar.
During the seminar, a survey revealed that 57% of attendees prioritized wealth accumulation while living in Qatar, with 28% aiming for retirement planning. Only 14% sought to make income-generating investments. Alarmingly, just 35% of them reported having a financial plan in place, which raises questions about their long-term financial security.
Chris Ball, CEO of Hoxton Wealth, commented on the favorable financial conditions for expatriates in Qatar: “The financial landscape for expats in Qatar is very attractive. There are no income tax obligations, no capital gains or dividends tax, access to global financial markets, and, typically, inflated salaries and bonus packages.” However, he also pointed out that many expats make critical financial errors that could affect their future.
Common pitfalls cited include failing to adequately structure their assets, neglecting to set up a pension plan similar to those in their home countries, and underestimating inheritance tax exposure. Additionally, expats often hold significant capital in local banks, which can expose them to currency risks. Ball emphasized, “We’re here to help them avoid those mistakes.”
The survey also unveiled plans regarding retirement destinations, with 21% of attendees eyeing the UK and another similar percentage preferring Europe. Notably, 14% indicated they might retire in Asia, while the remainder chose various other locations. A striking two-thirds of attendees reported managing assets across multiple jurisdictions, which complicates their financial planning needs further.
The seminar addressed specific financial considerations for expatriates primarily from the UK, the US, and Europe. It delved into the implications of UK inheritance tax for those residing in the Middle East, alongside strategies for individuals returning to the UK after lengthy stays abroad. In particular, they discussed a tax relief program, known as the FIG regime, which benefits former non-UK residents during their first four years of return. They also covered mechanisms like Discounted Gift Trusts to help mitigate tax liabilities.
In summary, the recent event by Hoxton Wealth highlighted a significant disconnect in financial planning among expatriates in Qatar. While the financial landscape is promising, issues like tax exposure and investment structures need addressing. With many attendees unaware of their tax implications and lacking concrete financial strategies, the seminar underscored the importance of tailored financial advice for expats.
Original Source: www.zawya.com
