Hello there. How are things going with you? Still planning on buying abroad?
Chatting to people about buying property abroad, I find that one of the main concerns is how to chose a good and trustworthy developer if you are buying off-plan.
This problem has been made worse by the current economic climate – many developers are going under, and sometimes taking unwary buyers and their dreams with them. It is therefore absolutely crucial that you have a really god look at the credentials of your developer before signing on the dotted line..
An email that I received recently bears this out. It tells of the endless problems encountered by one of the OGC readers who had failed to do his homework – and he really paid a heavy price, both in financial terms and in the stress that such things bring with them.
The property he bought was about one third completed at the time he paid his deposit to the developer. All went well until the house was ready for the final finish and, at this point, the developer sacked the builders and employed his own low paid and unskilled labour. The result was that the finish was very poor and, although the complex was completed, only 7 or 8 properties have been sold to date.
Financial penalties for late completion were not paid although there was a six month delay. The unhappy owner only discovered when it came time to address this problem that his solicitor also represents the developer!
All this could so easily have been avoided. I am going to outline a few essential and non-negotiable points for you to think about:
- If possible, move into rented accommodation nearby BEFORE you plan to buy and chat to locals about the developer/s you are thinking of buying through
- Search the Internet for expat forums on your town or city of choice. Some highlight poor practices and name and shame shoddy developers
- Google in the name of the developer you are thinking of using and see what comes up
- Get a developer that is a member of a regulatory body if at all possible
- Consider using a reputable estate agent instead of going to the developer direct – to protect themselves they will have done the checks
- Insist on visiting a couple of the developers’ previous projects and on talking to previous buyers
- Retain a solicitor independent of the developer so that there can be no conflict of interest
- Make sure your solicitor draws up a contract that protects YOU
- Make absolutely sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of build stages and not simply by date
- Buy a bond or take out insurance to protect yourself if the developer goes bust or there are any major issues with the build
- Take your time and refused to be rushed
If you follow the above to the letter the chances of anything going wrong will be dramatically reduced.
Chatting to someone in the property business abroad, she told me that she was stunned by how many people simply abandoned all the normal checks and balances that they would apply if they were buying property in the UK – don’t be one of them!
Speak to you soon – and I’d love to hear from you.
Take care until next Friday – warm wishes,
Carol and Kim
http://www.portugalbuyingguide.com
Showing posts with label smart currency. Show all posts
Showing posts with label smart currency. Show all posts
Friday, 28 May 2010
Friday, 7 May 2010
A ray of light in the gloom...
The news from The Euro Zone is not good this week, to say the very least.
An estimated 100,000 people took part in the march in central Athens to protest austerity measures being pushed through by the government and sadly three people died in the ensuing mayhem. The measures were instituted at the insistence of the EU and the IMF (International Monetary Fund) and it looks as though Portugal and Spain may follow hard on Greece’s heels…with many wondering whether the UK will face similar problems.
Moody’s, the international rating agency, warned on Wednesday it may downgrade Portugal’s government bonds in the next three months because of deteriorating public finances and “long-term growth challenges”. The warning came as the Lisbon Stock Market fell for a second consecutive day and the cost of government borrowing rose amid market fears that the Greek debt crisis could spread to Portugal and Spain.
The Portuguese government has promised that it would immediately implement austerity measures initially planned for 2011-2013 in response to “speculative attacks against Portugal’s sovereign debt.” The measures are part of a stability and growth programme that aims to cut the budget deficit from 9.4 per cent of gross domestic product in 2009 to 2.8 per cent in 2013.
Portugal's great weakness, however, remains its slow growth as competition from elsewhere in the world makes their traditional industries redundant. Factories have closed while new industries, such as renewable energy, have not yet been set in operation. Unemployment is at 9.7 %, lower than Spain, but unlike Spain, Portugal failed to create growth or get its public finances under proper control after it joined the euro in 1999.
The Government has however decided to work with the opposition party in an attempt to persuade the markets that Portugal is serious about controlling its deficit. Measures already announced include higher taxes for the rich, rising from 42 to 45%, and later retirement for civil servants, where retirement age has now been set at 65 instead of 62 ½ - strange to set it the extra half isn’t it? Public sector workers in hospitals, schools and courts went on strike last month to complain about this change…
It does seem that there is a singular lack of forethought as to how strike action and protest marches will effect the economy – mind you, I suppose the same could be said about the BA strikes at a time when BA is struggling to keep afloat. Add to this the natural disaster of volcanic ash making tourists wary of travelling to Europe and it really does seem a recipe for financial disaster as it may well put holiday makers off.
All this would seem to be unremittingly gloomy, but interestingly enough, if you are in the process of buying property abroad right now it may not be.
On Wednesday sterling hit €1.16/£1 against the euro. If there is one single thing that you can do right now to protect yourself, it is to sign up with a reputable currency company like Smart Currency and consider ‘forward buying’ your currency. As Smart mentioned in an email sent out to all clients, and I quote: ” Even though the European Central Bank and the IMF say they have agreed a debt rescue package for the Greeks the markets remain unconvinced. And problems are spreading to other European countries such as Spain and Portugal, whose debts are much greater than the Greeks.”
You can buy currency at today’s rate for up to a year in the future. This means effectively that you will know in advance exactly how much your currency transfers will cost you. You will not have to be in the hands of whatever financial disaster may arise, and that includes any problems that may hit the UK. Frankly, the wisest course of action would be to pick up the phone and have a chat to a currency expert about this. Right now! Go to www.smartcurrencyexchange.com
Let me know how your plans to visit or buy in Portugal are going. I am planning a visit in August and I can’t wait! Any ideas out there – what’s your favourite place? I’m toying with the idea of Lisbon which, believe it or not, I have never visited!
Take care…bye for now!
Carol.
www.portugalbuyingguide.com
An estimated 100,000 people took part in the march in central Athens to protest austerity measures being pushed through by the government and sadly three people died in the ensuing mayhem. The measures were instituted at the insistence of the EU and the IMF (International Monetary Fund) and it looks as though Portugal and Spain may follow hard on Greece’s heels…with many wondering whether the UK will face similar problems.
Moody’s, the international rating agency, warned on Wednesday it may downgrade Portugal’s government bonds in the next three months because of deteriorating public finances and “long-term growth challenges”. The warning came as the Lisbon Stock Market fell for a second consecutive day and the cost of government borrowing rose amid market fears that the Greek debt crisis could spread to Portugal and Spain.
The Portuguese government has promised that it would immediately implement austerity measures initially planned for 2011-2013 in response to “speculative attacks against Portugal’s sovereign debt.” The measures are part of a stability and growth programme that aims to cut the budget deficit from 9.4 per cent of gross domestic product in 2009 to 2.8 per cent in 2013.
Portugal's great weakness, however, remains its slow growth as competition from elsewhere in the world makes their traditional industries redundant. Factories have closed while new industries, such as renewable energy, have not yet been set in operation. Unemployment is at 9.7 %, lower than Spain, but unlike Spain, Portugal failed to create growth or get its public finances under proper control after it joined the euro in 1999.
The Government has however decided to work with the opposition party in an attempt to persuade the markets that Portugal is serious about controlling its deficit. Measures already announced include higher taxes for the rich, rising from 42 to 45%, and later retirement for civil servants, where retirement age has now been set at 65 instead of 62 ½ - strange to set it the extra half isn’t it? Public sector workers in hospitals, schools and courts went on strike last month to complain about this change…
It does seem that there is a singular lack of forethought as to how strike action and protest marches will effect the economy – mind you, I suppose the same could be said about the BA strikes at a time when BA is struggling to keep afloat. Add to this the natural disaster of volcanic ash making tourists wary of travelling to Europe and it really does seem a recipe for financial disaster as it may well put holiday makers off.
All this would seem to be unremittingly gloomy, but interestingly enough, if you are in the process of buying property abroad right now it may not be.
On Wednesday sterling hit €1.16/£1 against the euro. If there is one single thing that you can do right now to protect yourself, it is to sign up with a reputable currency company like Smart Currency and consider ‘forward buying’ your currency. As Smart mentioned in an email sent out to all clients, and I quote: ” Even though the European Central Bank and the IMF say they have agreed a debt rescue package for the Greeks the markets remain unconvinced. And problems are spreading to other European countries such as Spain and Portugal, whose debts are much greater than the Greeks.”
You can buy currency at today’s rate for up to a year in the future. This means effectively that you will know in advance exactly how much your currency transfers will cost you. You will not have to be in the hands of whatever financial disaster may arise, and that includes any problems that may hit the UK. Frankly, the wisest course of action would be to pick up the phone and have a chat to a currency expert about this. Right now! Go to www.smartcurrencyexchange.com
Let me know how your plans to visit or buy in Portugal are going. I am planning a visit in August and I can’t wait! Any ideas out there – what’s your favourite place? I’m toying with the idea of Lisbon which, believe it or not, I have never visited!
Take care…bye for now!
Carol.
www.portugalbuyingguide.com
Friday, 30 April 2010
Take the ‘luck’ aspect out of renting your home out abroad…
Hello there!
What a week I have had! One of the things I did was to go on an arranged walk to Belgravia, here in London, which promised to visit Chester Square among other places.
The reason I wanted to see Chester Square comes down to what I thought was a rather amusing experience I once had. Very many years ago now, my husband and I had befriended a young English chap, Nick. He had popped in for dinner at our home in South Africa and stayed for 6 months!
Anyway, fast forward to a number of years later in London and his rather pompous brother, whom I had not met, was to collect me for a lunch with Nick. He phoned to get directions from me and I could hear by his voice that he thought I was a rather common-place ex-Colonial type. I happened to be staying with a friend of my Dad’s - an ex-Air Force friend - who had ‘made good’ and lived in one of the best addresses in London, where Roman Abramovich now lives and where houses are among the most expensive anywhere in the world, costing up to £125 million.
“Chester Square, Belgravia” I said; “Do you know where that is?”
There was a long pause…and then he answered “Yes, I know where THAT is.” It was a very satisfying moment…I must admit I had a bit of a giggle!
Back to buying abroad.
Watching the news and reading the newspapers, there is a very definite sense that the economic stresses of the past while are still with us. Many people are foregoing those expensive cruises or hotel holidays in favour of renting a home abroad for the family. If you have either bought a home abroad or are planning to do so, and you are thinking of renting it out, then you need to be aware of a number of things if you want it to rent out quickly and easily.
Location is of major importance, but a close second is how your holiday home abroad is presented - people are strongly influenced by their immediate impression of your home. I don’t know whether you watch those TV programmes like ‘House Doctor’, but I found myself thinking that there is a great deal of truth to what they reveal. Plus there are a few extra touches that can make all the difference and keep people coming back to your home year after year. Here are a few ideas to get you started:
- When buying, be aware that people do not want to spend hours getting to a place. It must be easily accessible if renting it out is your main objective
- Think clearly about why people are coming to the country. If it’s for sunny weather and beaches, then you must be near the beach. Also, the expense of a pool may well pay dividends
- It needs to be near shops, restaurants and transport. You may like seclusion but most people require facilities relatively close to hand
- You need someone reliable locally to clean and change bedding etc. and to assist with any problems that may occur: burst geysers and so on cannot be dealt with from the UK!
- Before you think about renting your home out, stay there for at least a week or two. Test out what it would be like for a guest, what they require and how you could make it more pleasant so that they want to return time after time
- Before they set off, send them an email or pack with directions as to how to get to your home plus names of car rental companies or how to get there via local transport
- Make up a welcome pack to greet them on arrival: pop in things like transport amenities and timetables, flyers for local pubs and restaurants, a list of annual festivities or fairs and emergency phone numbers. Plus perhaps the name and phone number of a cleaner should they want to use one. Always have milk and a bottle of wine waiting in the fridge to welcome your guests…it’s amazing how these small things will give the impression that your guests are important to you
- Leave a form asking for feedback. This is essential as it will give you a clear indication if you are getting it right
- Decorate your home in a simple yet welcoming way. It should be as relaxing and stylish as a hotel. Neutral colours are cool and inoffensive – you can introduce splashes of colour with pictures. Ikea is King when it comes to decorating touches, but good, sturdy furniture will last longest and give fewer problems in the long run.
- Remember too that the very last thing guests will want to do is to be constantly cleaning. There must be a hardy dishwasher and a washing machine. Hard floor surfaces are best, where a quick sweep will do the trick. Guests are often wet from the pool or the beach and greasy from sun lotion, so sofas and chairs need to be easily laundered and robust – perhaps throws may be a good idea? Simple shutters could be a great idea rather than curtains that need to be laundered. I personally now have blinds at home: I love the sleek look and I became very tired of bulky, grubby curtains.
I would say “Good luck”, but that is the point. You need to take the ‘luck’ aspect out of the whole process and work towards a recipe that ensures certain rentals and repeat business on an ongoing basis.
Bye for now and I hope this has been helpful!
Carol
http://www.portugalbuyingguide.com
What a week I have had! One of the things I did was to go on an arranged walk to Belgravia, here in London, which promised to visit Chester Square among other places.
The reason I wanted to see Chester Square comes down to what I thought was a rather amusing experience I once had. Very many years ago now, my husband and I had befriended a young English chap, Nick. He had popped in for dinner at our home in South Africa and stayed for 6 months!
Anyway, fast forward to a number of years later in London and his rather pompous brother, whom I had not met, was to collect me for a lunch with Nick. He phoned to get directions from me and I could hear by his voice that he thought I was a rather common-place ex-Colonial type. I happened to be staying with a friend of my Dad’s - an ex-Air Force friend - who had ‘made good’ and lived in one of the best addresses in London, where Roman Abramovich now lives and where houses are among the most expensive anywhere in the world, costing up to £125 million.
“Chester Square, Belgravia” I said; “Do you know where that is?”
There was a long pause…and then he answered “Yes, I know where THAT is.” It was a very satisfying moment…I must admit I had a bit of a giggle!
Back to buying abroad.
Watching the news and reading the newspapers, there is a very definite sense that the economic stresses of the past while are still with us. Many people are foregoing those expensive cruises or hotel holidays in favour of renting a home abroad for the family. If you have either bought a home abroad or are planning to do so, and you are thinking of renting it out, then you need to be aware of a number of things if you want it to rent out quickly and easily.
Location is of major importance, but a close second is how your holiday home abroad is presented - people are strongly influenced by their immediate impression of your home. I don’t know whether you watch those TV programmes like ‘House Doctor’, but I found myself thinking that there is a great deal of truth to what they reveal. Plus there are a few extra touches that can make all the difference and keep people coming back to your home year after year. Here are a few ideas to get you started:
- When buying, be aware that people do not want to spend hours getting to a place. It must be easily accessible if renting it out is your main objective
- Think clearly about why people are coming to the country. If it’s for sunny weather and beaches, then you must be near the beach. Also, the expense of a pool may well pay dividends
- It needs to be near shops, restaurants and transport. You may like seclusion but most people require facilities relatively close to hand
- You need someone reliable locally to clean and change bedding etc. and to assist with any problems that may occur: burst geysers and so on cannot be dealt with from the UK!
- Before you think about renting your home out, stay there for at least a week or two. Test out what it would be like for a guest, what they require and how you could make it more pleasant so that they want to return time after time
- Before they set off, send them an email or pack with directions as to how to get to your home plus names of car rental companies or how to get there via local transport
- Make up a welcome pack to greet them on arrival: pop in things like transport amenities and timetables, flyers for local pubs and restaurants, a list of annual festivities or fairs and emergency phone numbers. Plus perhaps the name and phone number of a cleaner should they want to use one. Always have milk and a bottle of wine waiting in the fridge to welcome your guests…it’s amazing how these small things will give the impression that your guests are important to you
- Leave a form asking for feedback. This is essential as it will give you a clear indication if you are getting it right
- Decorate your home in a simple yet welcoming way. It should be as relaxing and stylish as a hotel. Neutral colours are cool and inoffensive – you can introduce splashes of colour with pictures. Ikea is King when it comes to decorating touches, but good, sturdy furniture will last longest and give fewer problems in the long run.
- Remember too that the very last thing guests will want to do is to be constantly cleaning. There must be a hardy dishwasher and a washing machine. Hard floor surfaces are best, where a quick sweep will do the trick. Guests are often wet from the pool or the beach and greasy from sun lotion, so sofas and chairs need to be easily laundered and robust – perhaps throws may be a good idea? Simple shutters could be a great idea rather than curtains that need to be laundered. I personally now have blinds at home: I love the sleek look and I became very tired of bulky, grubby curtains.
I would say “Good luck”, but that is the point. You need to take the ‘luck’ aspect out of the whole process and work towards a recipe that ensures certain rentals and repeat business on an ongoing basis.
Bye for now and I hope this has been helpful!
Carol
http://www.portugalbuyingguide.com
Friday, 23 April 2010
Planning On Renting Your Property Out? This Is For You...
Hi there.
This has been a very strange time for me: a deathly hush suddenly fell over my flat recently. Yes, you’ve guessed it: I live in Fulham, directly on the flight path to Heathrow Airport! It really drew attention to the volume of noise that we have subconsciously adapted to and no longer consciously hear.
Having just recently experienced the vagaries of the BA strikes you would think that I would be a bit more sympathetic. Indeed, my heart does go out to all those very many people who have been inconvenienced, but I have to say that the silence was delightful!
Back to Portugal…I just wanted to point out a few things to you about renting out property there - a law was passed quite recently, only about a year ago, so you may not be aware of it. The purpose of the law is to make sure that homes that are let out meet all utility and structural requirements – after all, a safe and happy tourist is one that may well return!
Holiday accommodation in Portugal is now split into two main categories, classed as either an Empreendimento Turístico (tourist establishment), or an Estabelecimento de Alojamento Local (Local Lodging Establishment).
What does this mean?
Empreendimento Turístico or Tourist establishment
The following properties fall into this category:
- Conjuntos Turísticos - non residential complexes where the complex is solely used for tourism purposes and people cannot buy property
- Hotels
- Public campsites
- Other types of commercially owned establishments that provide temporary accommodation to paying guests such as guesthouses, apartment complexes, youth hostels and holiday villages
Estabelecimento de Alojamento Local or Local Lodging Establishment
A property must have an Alojamento Local licence if it meets all of these three criteria:
- It has a Licença de Habitabilidade (habitation licence), which is provided by the local authorities. It proves that the property has been inspected and meets the required legal standards for occupation.
- Any property built from 1951 onwards as a habitable dwelling must by law have a Licença de Habitabilidade. If the property was built before 1951, you must have a certificate from local authorities stating this. If a property built before 1951 is then renovated, an application for a Licença de Habitabilidade must be made.
- It provides temporary accommodation to paying guests
- It is not considered an Empreendimento Turístico (as above)
Private holiday home rentals will fall into this category. Properties with an Alojamento Local licence must:
- Be in good condition externally and internally
- Be connected either to mains water or a bore hole
- Be connected to mains sewer or a septic tank
- Have both hot and cold running water
- Have adequately furnished rooms
- Have sufficient ventilation
- Have blinds or curtains
- Have suitable locks on the outer doors
- Have at least one bathroom for every three bedrooms, with toilet, basin and a bath or shower
- Have sufficient fire extinguishers as well as first aid equipment
- Have instruction manuals for all appliances
- Display the international emergency phone number of 112 in a prominent position
- Have bed linen and towels changed at least once a week
- Have an official complaints book
To obtain a licence you will need to submit an application at your local town hall. They may arrange an inspection trip to ensure that all is as it should be at your property. Once they have authorised your licence you automatically have permission to rent your property out.
Remember, if you are thinking of recouping some of the cost of the property by letting it out, you need to make very sure that it conforms to the licence requirements BEFORE you sign on the dotted line. That, or be aware of the changes that the property needs to bring it up to scratch – and the accompanying costs.
Depending on who you are buying the property through, they should be able to assist you with this plus advise you as to how to get the licence. In fact, it would be quite a good test of the estate agent’s service ethic to find out in advance if they are prepared to help you with this. I hope this helps – do let me know if you have had any experiences with this won’t you? Have a good week and take care!
Carol Dunning
http://portugalbuyingguide.com
This has been a very strange time for me: a deathly hush suddenly fell over my flat recently. Yes, you’ve guessed it: I live in Fulham, directly on the flight path to Heathrow Airport! It really drew attention to the volume of noise that we have subconsciously adapted to and no longer consciously hear.
Having just recently experienced the vagaries of the BA strikes you would think that I would be a bit more sympathetic. Indeed, my heart does go out to all those very many people who have been inconvenienced, but I have to say that the silence was delightful!
Back to Portugal…I just wanted to point out a few things to you about renting out property there - a law was passed quite recently, only about a year ago, so you may not be aware of it. The purpose of the law is to make sure that homes that are let out meet all utility and structural requirements – after all, a safe and happy tourist is one that may well return!
Holiday accommodation in Portugal is now split into two main categories, classed as either an Empreendimento Turístico (tourist establishment), or an Estabelecimento de Alojamento Local (Local Lodging Establishment).
What does this mean?
Empreendimento Turístico or Tourist establishment
The following properties fall into this category:
- Conjuntos Turísticos - non residential complexes where the complex is solely used for tourism purposes and people cannot buy property
- Hotels
- Public campsites
- Other types of commercially owned establishments that provide temporary accommodation to paying guests such as guesthouses, apartment complexes, youth hostels and holiday villages
Estabelecimento de Alojamento Local or Local Lodging Establishment
A property must have an Alojamento Local licence if it meets all of these three criteria:
- It has a Licença de Habitabilidade (habitation licence), which is provided by the local authorities. It proves that the property has been inspected and meets the required legal standards for occupation.
- Any property built from 1951 onwards as a habitable dwelling must by law have a Licença de Habitabilidade. If the property was built before 1951, you must have a certificate from local authorities stating this. If a property built before 1951 is then renovated, an application for a Licença de Habitabilidade must be made.
- It provides temporary accommodation to paying guests
- It is not considered an Empreendimento Turístico (as above)
Private holiday home rentals will fall into this category. Properties with an Alojamento Local licence must:
- Be in good condition externally and internally
- Be connected either to mains water or a bore hole
- Be connected to mains sewer or a septic tank
- Have both hot and cold running water
- Have adequately furnished rooms
- Have sufficient ventilation
- Have blinds or curtains
- Have suitable locks on the outer doors
- Have at least one bathroom for every three bedrooms, with toilet, basin and a bath or shower
- Have sufficient fire extinguishers as well as first aid equipment
- Have instruction manuals for all appliances
- Display the international emergency phone number of 112 in a prominent position
- Have bed linen and towels changed at least once a week
- Have an official complaints book
To obtain a licence you will need to submit an application at your local town hall. They may arrange an inspection trip to ensure that all is as it should be at your property. Once they have authorised your licence you automatically have permission to rent your property out.
Remember, if you are thinking of recouping some of the cost of the property by letting it out, you need to make very sure that it conforms to the licence requirements BEFORE you sign on the dotted line. That, or be aware of the changes that the property needs to bring it up to scratch – and the accompanying costs.
Depending on who you are buying the property through, they should be able to assist you with this plus advise you as to how to get the licence. In fact, it would be quite a good test of the estate agent’s service ethic to find out in advance if they are prepared to help you with this. I hope this helps – do let me know if you have had any experiences with this won’t you? Have a good week and take care!
Carol Dunning
http://portugalbuyingguide.com
Friday, 16 April 2010
Planning...Before Rather Than After Your Move!
Hello there.
What an erratic time it has been weather-wise hasn’t it? After a particularly warm day last week I set off for a long day out, only returning in the evening. I optimistically left my coat at home – MISTAKE! I have learnt the ‘umbrella lesson’ (never leave home without one…!) and I am now rapidly learning the coat one!
I was recently reminded of my move abroad in that a really good friend of mine has fallen into a trap that I narrowly avoided - he left South Africa without actually going through the emigration process. His wife has a British passport so there was no problem when it came to entering Britain, but the problem has arisen now that he wants to transfer the balance of his funds to the UK.
If he had officially emigrated this process would have been comparatively easy but since he did not do so it has become highly restricted and complex. Plus of course there is the added problem of trying to get things done from a distance. For myself, it took me a full month of visits and endless phone calls to tax and government offices before I finally had all the papers I needed to formally emigrate – I don’t want to think of the frustration and the cost of trying to do this from abroad. Quite apart from anything else, it was a personal relationship that I forged with one of the people in the tax office that finally ‘cracked the case’ – never lose sight of the personal touch and of being remorselessly pleasant and patient throughout! A few tantrums and ill temper can delay you by weeks as obstructive staff may decide that it’s payback time!
You obviously need to make sure in your own mind that you intend to remain abroad, but once you are absolutely sure of this – as I was – you need to go into all the tax implications of your move in order so that you get the most possible value from your savings.
For instance, British pensions – when paying out – are now deeply unattractive. One of the reasons for this is that the income generated by a pension is restricted by the fund it is invested in. Then only 25% of the fund value is available as a tax-free lump sum, plus of course the annual/monthly amount paid is taxed at source. And sadly the final proceeds on death often disappear back to the insurance company rather than going to loved ones.
Alternatives are available and benefits can be extremely advantageous - this is what you need to look into before rather than after your move. In 2006 new EU legislation opened up opportunities for UK pension holders to move their pension abroad, thus giving greater control to the pension holder. However, the scheme, called Qualifying Recognised Overseas Pension Scheme (QROPS – pronounced Crops) needs to meet certain criteria.
To get you started you can access a short guide that the Overseas Guides Company has put together which details exactly how this works. It's about what can be done about increasing the income you get, eliminating or reducing the tax you will pay and effectively ensuring that beneficiaries get ALL of the funds upon death rather than just a percentage plus lots more. This may be a good way to start the process - if you are interested in getting a copy of this guide, please go to: http://www.overseasguidescompany.com/downloads/OGCQROPSGuide.pdf
Also, Smart Currency has put out a brilliant FREE relocation report. One of the toughest lessons I learned was that I should have used a currency company to transfer my money abroad rather than my high street bank. Why? Well, this report will explain all that and tell you how to save money…always useful! Go to http://www.smartcurrencyexchange.com/emigrationreport.aspx if you want to access this.
Once again, it’s all down to planning and homework but seriously, not a minute of the planning I did was time wasted and, in the end, it allowed me to move seamlessly and with the minimum of trouble.
More next week! Please jump in and add anything that you feel may help or that you would like me to discuss won’t you?
Best,
Carol.
http://www.portugalbuyingguide.com
What an erratic time it has been weather-wise hasn’t it? After a particularly warm day last week I set off for a long day out, only returning in the evening. I optimistically left my coat at home – MISTAKE! I have learnt the ‘umbrella lesson’ (never leave home without one…!) and I am now rapidly learning the coat one!
I was recently reminded of my move abroad in that a really good friend of mine has fallen into a trap that I narrowly avoided - he left South Africa without actually going through the emigration process. His wife has a British passport so there was no problem when it came to entering Britain, but the problem has arisen now that he wants to transfer the balance of his funds to the UK.
If he had officially emigrated this process would have been comparatively easy but since he did not do so it has become highly restricted and complex. Plus of course there is the added problem of trying to get things done from a distance. For myself, it took me a full month of visits and endless phone calls to tax and government offices before I finally had all the papers I needed to formally emigrate – I don’t want to think of the frustration and the cost of trying to do this from abroad. Quite apart from anything else, it was a personal relationship that I forged with one of the people in the tax office that finally ‘cracked the case’ – never lose sight of the personal touch and of being remorselessly pleasant and patient throughout! A few tantrums and ill temper can delay you by weeks as obstructive staff may decide that it’s payback time!
You obviously need to make sure in your own mind that you intend to remain abroad, but once you are absolutely sure of this – as I was – you need to go into all the tax implications of your move in order so that you get the most possible value from your savings.
For instance, British pensions – when paying out – are now deeply unattractive. One of the reasons for this is that the income generated by a pension is restricted by the fund it is invested in. Then only 25% of the fund value is available as a tax-free lump sum, plus of course the annual/monthly amount paid is taxed at source. And sadly the final proceeds on death often disappear back to the insurance company rather than going to loved ones.
Alternatives are available and benefits can be extremely advantageous - this is what you need to look into before rather than after your move. In 2006 new EU legislation opened up opportunities for UK pension holders to move their pension abroad, thus giving greater control to the pension holder. However, the scheme, called Qualifying Recognised Overseas Pension Scheme (QROPS – pronounced Crops) needs to meet certain criteria.
To get you started you can access a short guide that the Overseas Guides Company has put together which details exactly how this works. It's about what can be done about increasing the income you get, eliminating or reducing the tax you will pay and effectively ensuring that beneficiaries get ALL of the funds upon death rather than just a percentage plus lots more. This may be a good way to start the process - if you are interested in getting a copy of this guide, please go to: http://www.overseasguidescompany.com/downloads/OGCQROPSGuide.pdf
Also, Smart Currency has put out a brilliant FREE relocation report. One of the toughest lessons I learned was that I should have used a currency company to transfer my money abroad rather than my high street bank. Why? Well, this report will explain all that and tell you how to save money…always useful! Go to http://www.smartcurrencyexchange.com/emigrationreport.aspx if you want to access this.
Once again, it’s all down to planning and homework but seriously, not a minute of the planning I did was time wasted and, in the end, it allowed me to move seamlessly and with the minimum of trouble.
More next week! Please jump in and add anything that you feel may help or that you would like me to discuss won’t you?
Best,
Carol.
http://www.portugalbuyingguide.com
Subscribe to:
Posts (Atom)
