Hoxton Wealth’s event in Doha revealed that over 70% of expats are unsure about tax implications of their assets. Many prioritize wealth accumulation and retirement, yet only 35% have financial plans. CEO Chris Ball emphasized the appealing financial climate in Qatar, while cautioning against common pitfalls in financial management. Attendees learned about various strategic planning considerations, including tax relief options and asset management.
Hoxton Wealth recently hosted an educational event in Doha aimed at addressing the financial planning needs of global expatriates living in Qatar. A staggering 70% of participants confessed ignorance regarding how their current assets would be taxed based on their potential future residency. The firm is focusing on raising awareness about crucial financial strategies tailored for expatriates who typically face a unique set of challenges and opportunities.
The survey revealed that 57% of attendees viewed wealth accumulation as their top priority for their time in Qatar. Interestingly, 28% aimed to plan for retirement, while 14% sought to engage in income-generating investments. However, only a modest 35% reported having a formal financial plan, underscoring a worrying gap in financial preparedness among expats.
Chris Ball, the CEO of Hoxton Wealth, spoke about the favorable financial environment in Qatar. “The financial landscape for expats in Qatar is very attractive,” he stated. There are virtually no income taxes, no capital gains taxes, and access to global markets alongside competitive salaries. However, he cautioned that expatriates often make critical errors in financial planning, such as choosing inappropriate asset structures and neglecting to establish pension plans akin to those in their home countries.
Further complications arise from underestimating exposure to inheritance taxes or failing to account for the future tax implications on their existing holdings. “We’re here to help them avoid those mistakes,” Ball added. In addition, holding substantial sums in local banks increases the risks associated with currency fluctuations.
During the seminar, attendees were also queried about their retirement plans. A notable 21% indicated they intend to return to the UK, while another similar percentage opted for retirement elsewhere in Europe. Only 14% had plans to retire in Asia. Curiously, over two-thirds of those surveyed acknowledged holding assets across multiple jurisdictions, a practice that can complicate their financial landscape.
The seminar encompassed a variety of key financial planning strategies relevant to expatriates from the UK, the US, and Europe. Attendees learned about the implications of UK inheritance taxes for Middle East residents and how individuals returning after ten consecutive years of living abroad might benefit from tax relief on foreign income and gains, specifically during their initial four years back in the UK, which falls under the FIG regime. The role of Discounted Gift Trusts and other strategic financial vehicles was also highlighted, emphasizing the need for personalized advice and planning.
In summary, Hoxton Wealth’s seminar in Doha highlighted the critical financial planning gaps faced by expatriates in Qatar. Despite the attractive financial environment, a significant number of expats remain unclear about their tax obligations and lack structured financial plans. The insights provided during the event, including guidance on inheritance taxes and strategic investment structures, aim to better equip expatriates to navigate their financial futures effectively.
Original Source: www.zawya.com
