Investments for Expats in Asia
Maximise your opportunities and beat inflation with smart investment planning.
We help expats in Asia maximise their time in Asia with our knowledgable expat investment advice.
The income tax advantages and attractive employment packages in Asia mean that many expatriates can accumulate significant wealth while working abroad.
Conventional savings accounts rarely keep pace with inflation, let alone provide significant capital growth. Our expertise and market knowledge enables us to provide expat investment advice on a large range of investment opportunities for a variety of different budgets.
$400,000
or more to invest?
You might benefit from Infinity’s wealth management service – arranged exclusively through the UK-based, Tilney Group – multiple winner of the prestigious Wealth Manager of the Year title and numerous other awards. Now, Infinity clients can have their portfolios actively managed by the best in the industry and have access to exclusive information, expat financial advice and investment opportunities not available to the broader investment market.
To find out more about Infinity’s wealth management service, please click here.
How we do it
Income generation, diversification, capital protection, and asset classes are all necessary considerations when making investment decisions. We can guide you in the right direction by asking all the right questions.
We make investment decisions easier by asking the right questions at the right time.
First, we perform a comprehensive analysis of the lifestyle objectives and financial goals of our clients. After your free consultation, we will give you a detailed financial report that describes every step of the journey to reach your financial aspirations.
Our investment advice and recommendations are diligently reviewed by our Compliance team to ensure high-quality and thoroughly regulated solutions.
Investment choices don’t have to be so complicated. Allow us to ease the process.
An Overview of Expat Investments
Competent expat investment advice can lead to various investment options that can be either onshore or offshore investments. An offshore investment bond is frequently the more favourable option due to the extensive tax benefits.
Expats face unique challenges as they need to be familiar with the tax rules and tax rates of various different countries, and they are required to declare their worldwide income. Furthermore, withholding tax or failing to satiate tax liability could be devastating.
Some of the more conventional investment options for UK residents are inaccessible for non-UK residents and expats living abroad.
The various types of expat investments can be confusing, and consulting an independent financial adviser with Infinity can greatly boost the success of your investment funds.
Many expats rely on a combination of financial plans and investment products that a financial adviser frequently manages.
Expat Investments: Offshore Investment Bond
An offshore investment bond serves as a life insurance policy that protects investment funds from capital gains tax and income tax. This characteristic makes offshore investments a tax efficient investment.
The value of investment funds continuously increases as it grows tax-free. Having capital gains tax and income tax deferred enables expats to enjoy the tax benefits that investing abroad offers.
Even if an expat returns to the UK, the investment funds will continue to grow free of income tax and capital gains tax. This is not the case with most personalised investment bonds. For these investments, income tax can be as high as 45% when the expat returns to the UK.
Financial advisers can provide independent advice and analyse your personal situation, including your investment journey, various tax rules, and interest rates, and help you make an informed decision on structuring a tax efficient savings plan.
If the expat receives income from the offshore investment bond, the investment funds will be subjected to the income tax determined by the country’s tax rules in which the investor resides.
Investment bonds offer many advantages regarding tax implications, but there are still other fees to consider, including commission, management fees, and charges.
High fees associated with investment bonds is often charged when an investment is initially made. Financial advisers will likely charge annual management fees.
The expat’s wealth management services will largely determine the minimum investment amount for offshore investments. Offshore bonds can be viewed as a return of capital instead of an income, but the money will nevertheless be taxed as income in the country where the money is withdrawn.
An offshore investment like offshore bonds is one of the most advantageous investment options that logically makes sense for expats.
With an offshore investment, a UK resident or non-resident has a wider range of potential earnings than their local bank can offer.
Whether you are a UK resident or a non-resident in a new country, offshore investment is an opportunity to invest in a different currency that will have a substantial positive impact on their future and bring them a step closer to a comfortable retirement.
Offshore investments are not only beneficial for tax purposes; they also reap the rewards of favourable exchange rates and ensure that investment funds are readily accessible by the time you reach retirement age.
Pensions, Qualifying Recognised Overseas Pension Scheme, and Properties
Investing in a pension scheme means investing in an extremely tax-efficient savings plan that will provide you with sustainable income for many years. The investor can manage their investment fund themselves or assign competent financial advisers to the task.
If a non-UK resident has a large pension, they can pursue a Qualifying Recognised Overseas Pension Scheme that enables non-UK residents to transfer money from a UK pension out of the UK.
Like a pension scheme, property investments are common in an adequate investment portfolio. Property investments may include their primary residency and additional properties that account for their monthly rental income for UK expats. Expats in the UK face difficulties when attempting to secure additional properties. Only individuals who outright may money for a given property are qualified to do so.
If expats plan on securing properties, financial advisers and managers should be hired to regulate all relevant fees such as UK income tax and the rental income received from the property. The rental income of a property will be subjected to the tax rules applied to UK income tax. Failing to pay tax liability when filing your tax return could have detrimental effects.
Investing through an International Bank
An alternative means of building investments is by investing in an international bank. However, you may be limited to the regulations of the relevant international bank even if you utilise the services of an independent financial adviser beforehand. It is worth investigating the limitations and restrictions of an international bank before investing.
Most renowned international banks offer wealth management services for expats who are looking for viable investment options. An expat’s investment options will greatly depend on the amount of money you are able to invest at a given time.
The restricted nature of expat investment advice is a primary factor to consider when investing in an international bank.
Many expats believe that wealth management services and financial advisers provide independent advice, but to officially be considered independent, financial advisers and managers must have the ability to choose from the market as a whole. Most managers and financial advisers are restricted to products and investment services of the given bank. This significantly limits the potential of expat investments and tax advantages they could have gained.
