• Global opportunities for relocation

Global opportunities for relocation

06 May 2019

Accountancy and business advisory firm BDO LLP has launched its bi-annual study of tax regimes around the world to help high net worth individuals make informed decisions when looking to relocate.  

BDO’s Global Opportunities for Relocation report provides an overview of tax regimes across 40 different jurisdictions, including the most popular locations that people choose to live and work.

Compiled through the contributions of BDO’s private client tax specialists worldwide, the report includes insights into the trends and factors influencing global relocation.

Richard Montague, BDO’s Head of International Private Wealth in UK and Chair of BDO’s Global Private Client Strategy Group, comments:

“Unlike the corporate tax world – where we’re seeing greater international cooperation and convergence, and countries applying a more unified, global approach to taxation (such as BEPS, digital services tax) - governments are still using personal tax treatments to attract wealthy individuals and investment to their countries.”

The BDO report states that, despite the many different tax regimes across the globe, most countries have attractive qualities and are favourable for differing circumstances.

Countries with higher tax rates such as US and Canada, for example, may still attract investment due to economic opportunities, while those with lower tax rates, such as Singapore, are perhaps more attractive from a tax perspective.

Richard Montague adds: “When emigrating from your home country, personal circumstances and preferences will determine your destination of choice. However, globally we have seen legislative and regulatory changes increasing the cross-border flow of foreigners and investment – in part through tax.

“We live in an increasingly globally-mobile world and it’s important high net worth individuals consider the tax implications to avoid unexpected and unwanted surprises. Wealthy individuals will often have a footprint in more than one country, either as dual residents or with international business or family interests – and complexities can easily arise. These individuals need to focus on ensuring long-term asset preservation while complying with their global tax obligations – and an understanding of the tax regime in the country of choice continues to be key. 

“There are many pitfalls for the unwary and the consequences can be hugely damaging if wealthy individuals are not advised properly.”