Becoming a citizen of the international financial community is a highly desirable goal. From international estate planning and foreign investments to concerns about how succession rights will impact one’s portfolio are nonetheless very real factors that must be taken into account. When we then address the complexities of tax obligations, it becomes clear that preparation is key. Let’s take a quick look at some proven techniques to employ before examining why in-house support is often the most logical solution.
Jurisdictional nuances
This is arguably the most challenging aspect of managing international assets. It is always crucial to appreciate the laws within specific jurisdictions, and how these may apply to the holdings in question. The primary issue here is that every country is governed by its own set of rules. Without a thorough understanding, mistakes (often costly) can be easily made. Civil law jurisdictions can also be quite different when compared to common law models; further impacting estate management strategies.
Tax obligations
Overseeing an international portfolio will naturally need to address the issue of tax compliance. Two relevant examples include capital gains tax, and possible obligations tied into double taxation agreements between two countries. Failure to comply with either can result in a frustrating amount of “red tape”, and in some cases, hefty fines.
This is why it is often wise to work together with a financial adviser who is already familiar with what you are required to pay. He or she may also be able to encounter legal loopholes; a potent way to maximise your holdings. Of course, this ability will vary between regions, and it might not always be possible.
Residency logistics
While those who live within the European Economic Community may be able to manage assets contained within this geographic region relatively easily, the same cannot always be said for residents of other nations such as the United States, the United Kingdom (particularly after the Brexit), or South Africa. The time required to obtain full citizenship, what assets need to be declared, and which governing bodies should be consulted if a question arises are some common variables.
One of the best ways to overcome these (and similar) hurdles involves working in tandem with third-party agencies such as Cora Partners Recruitment. The main benefit here is that in-house experts are available at a moment’s notice. This is not always the case when referring to firms that may require hours, or even days, to provide a targeted response. Furthermore, the ubiquitous presence of on-site professionals will provide your international asset management plan with a proactive edge.
Wealth without borders
While owning lucrative international assets is one of the best ways to develop a balanced portfolio, there are numerous challenges that should never be taken lightly. Appreciating your obligations, and leveraging the expertise of trained professionals will provide you with a level of transparency that might otherwise remain elusive with traditional methods.
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