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The global economic situation is far from positive and affluent at the moment, which means that many people are considering a move overseas in a bid to escape the worst of the financial doom and gloom in their own home country.  The only trouble with taking this approach is that you have to ensure you pick the right nation to relocate to, otherwise you could be in a worse situation if you’re not careful!

Many of the world’s countries have been affected – whether directly or indirectly - by a whole host of negative fiscal issues, therefore choosing the nation you relocate to next must be done very carefully indeed, if you are to prosper.

The good news is, if you have your heart set on moving to a nation where you can earn more and/or have greater disposable income, HSBC’s Expat Explorer survey results for 2011 reveal the top 5 countries where expats currently earn more money, and have more money to spend and enjoy.  In this report we’re going to take a look at each of the top 5 nations in turn…

If you’re thinking about moving abroad you’ll probably repeatedly read about the fact that you need to get your money matters in order before you go.  The most responsible sources will advise you to ensure that you have the means to afford your relocation abroad, and that you’re aware of the cost of living overseas for example. 

You will most likely read that further consideration should be given to your realistic salary expectations abroad – or whether your current pension income will be enough to buy you the lifestyle you’re seeking perhaps.  However, confusingly you’re also likely to come across advice that tells you that expatriates have a very real financial edge over their peers back in Blighty, and that you won’t be able to access these potential advantages until you relocate.

This is seemingly contradictory advice.  So, we’re here to clarify your main financial dilemmas ahead of any move you make overseas…because the fact of the matter is, you do have to get some of your money matters in order before you move, and some straightened out after you relocate.  We will explain what to do as well as how and why!

It’s at this time of the year every single year that enquiries from would-be expats go through the roof.  It’s a case of a selection of factors all combining to push people to the point of making a very radical decision.  For some it’s the whole ‘new year, new life’ thing: for others, as the clock strikes 12 on the 31st of December it’s a very clear marker that another year has past and time is ebbing away…

For some the Christmas holidays were a fantastic respite from a horrible job, and when it’s time to return to work they really want to make a change.  The list of reasons people give for wanting to make a new life abroad is the same year-in, year-out.  However, whilst for seasoned expats it can be really hard to remember what it was once like to be in a similar situation, it’s imperative that we at Shelter Offshore can keep that memory alive so that we can help people realise their dreams.

So, if you’re in the position of having decided you want to move abroad but you’ve yet to begin the planning and preparation because – quite frankly – you have no idea where to start, allow us to assist with an action plan that you can follow to ensure 2012 is the year you really start living the life you want.

I don’t know about you, but as soon as I get to about November-time every year I start to become so distracted at work and at home that I begin to repeat a terrible phrase over and over again.  The phrase in question is: “I’ll get around to doing that in the new year…” 

Now ‘that’ could be anything from finding a new accountant - (mine is utterly useless and I’ve been meaning to find a new one for about 3 years) - to catching up with long-lost friends who’ve relocated elsewhere abroad and who’ve subsequently slipped off my network radar.  Inevitably the new year makes an appearance of course, but my long-sliding commitment to get my various tasks ticked off slips even further!

If you’re like me then chances are you’ve been putting off a review of your savings accounts for month after month.  But trust me, the time has now come for you to prioritise this task – because interest rate offerings have crept up significantly in the very recent past, and you could be missing out on some inflation busting deals if you continue to ignore a review of your financial affairs.  Don’t worry however, this dull task can be made much easier if you re-utilise the assistance of your financial adviser…

Many of the headlines and statistics being published in Britain at the moment paint a very bleak economic picture for Britons resident in the UK.  According to the Family and Parenting Institute for example, an average family with children will see real income levels fall by 4.2% over the next four years specifically because of tax increases and benefit cuts.

According to an article in the Daily Mail: “families will be £1,250 per year worse off” in coming years, and according to the GMB, Britain’s General Union, “the Government’s strategy for an economic recovery is in tatters as living standards drop.”  Everywhere you look you can see evidence of how inflation is eroding income, and how tax increases and benefit cuts are affecting every sector of society to a lesser or greater extent.

Therefore, in our opinion at Shelter Offshore it’s a case of ‘now or never’ as Britons contemplating a move abroad for a better life either take the necessary steps to expatriate, or they hunker down and bed in for the long-term in a broken and virtually bankrupt Britain…

In the UK the working population are being squeezed from all angles.  Salaries for the employed are frozen or growing only marginally, the self-employed are lucky if they’re even keeping up with inflation, (because no one wants to pass on the increased cost of living when they quote for what little business is about at the moment), and all the while the cost of everything is going up.

There are many estimates about how much the average household has been impacted by, fiscally speaking.  And whilst people may argue about the bottom line, the bottom line is actually this – most households across the entire UK are paying out more and bringing in less, month on month.  So, where can you earn more by working abroad in 2012?

It depends in which sector you’re working of course, but there are countries and territories around the world where you can potentially earn more.  In addition to this, there are of course nations where the cost of living is far less than in the UK.  You may be able to enjoy foreign sourced or retirement income tax free in some countries – and so if you do your homework carefully, you may well be able to find somewhere in the world where you can be better off living in 2012.

It’s of absolutely no surprise to us that HM Revenue and Customs has announced draft legislation changes to QROPS in the form of their ‘The Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2012’ document.  When large swathes of an entire industry set out to explore the boundaries of the legislation, those who create the legislation are going to ensure those boundaries are reinforced.

In the past we’ve discussed the adverse effects that those who’ve sought out loopholes in the QROPS rules have created – from bringing down excessive tax charges on those who have unwittingly signed up to unrecognised schemes, to bringing an increasing air of suspicion to the entire industry.  Now those who have exploited QROPS have brought the full attention of HMRC back to the matter in hand, and as is their way more often than not, HMRC’s reaction has been significant and potentially damaging.

The draft legislation does bring much needed clarification to some aspects of QROPS, but it also makes the schemes potentially far less unattractive for anyone wanting to move their pension abroad from April the 6th 2012 onwards.  Fortunately HMRC is willing to listen to feedback about the proposed changes, and interested parties have until the end of January 2012 to comment.  Hopefully the final legislation will eradicate the risk of abuse of QROPS, without eradicating the overall appeal of these schemes.

Earlier this week Shelter Offshore was asked to give our opinion on the most and least expensive property markets globally, and what we believed a buyer could get for a relatively modest budget in some of the world’s economic hotspots today, (London, Tokyo, New York etc…), we declined to comment!  Then we were asked to comment on an article in the Daily Mail that points to where in the world buyers can bag the cheapest distressed properties currently…

It seems that the British obsession with real estate cannot even be dampened by all the negative economic data we’re constantly being inundated with these days.  However, we’ve chosen not to comment publically about property opportunities, because at the moment we feel that only the savviest and wealthiest investors (i.e., those who could survive a dodgy punt on a poorly performing property economy!) would be wise to act.

Yes you can find bargain properties abroad – in abundance in some markets as we discuss below.  But there are many pitfalls the unwary buyer needs to be acutely aware of before they commit still serious amounts of money to what is a very illiquid asset.  The only difference is if the buyer in question is purchasing a home to live in…but even then there are traps and hurdles to be aware of.