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Financial advice for the money earned in ME.

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Middle East Many expats still flying in Knoteetingham. Regional issues can be discussed here.

Financial advice for the money earned in ME.

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Old 28th Feb 2014, 15:12
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Lightbulb Financial advice for the money earned in ME.

Hi all, I'm an expat flying for QR and need advice on where to send and invest the money earned here, I do not want to send it to my home country due to taxes. I also don't feel safe leaving my savings on my bank account in Qatar due to obvious reasons, if you know what I mean.
Not sure how long I'm staying around, but my plan is to retire and move to a country like the US, Canada or Australia. Based on this, could anyone give me advice or tell me what my options would be?(I'm south american) I understand most of the expats send the money back to their home countries, but I definitely do not plan to live there anymore. So maybe someone here in the same situation as mine?
Thanks!
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Old 28th Feb 2014, 16:20
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Phoenix,

Its a simple concept, but it requires time effort and most of all a good degree of research.
First of all, yes get your money out of the ME, as a "guest" if anything goes wrong it will go wrong quickly with part of it being your accounts will very likely get frozen. I keep a limited local bank balance where I am for day to day expenses but the rest goes 20 minutes after my pay goes in.
Secondly make sure you have access to funds from outside the region that give you access whilst you are inside the region…a ccard that works is good with a decent limit is a must.
Thirdly you need to understand your tax position in your home country with respect to funds earned overseas..and then you need to work out the best way to avoid as much tax as you can.
From there the rest starts to fall into place
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Old 28th Feb 2014, 16:21
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You have come to the right place. Wizofoz has an opinion on everything so this will not escape his purview. Expect him to post any minute now.
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Old 28th Feb 2014, 17:32
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Stay away from US banks, with implementation of new IRS rules you have to very careful of your tax implications on money earned in the US, especially if you are considering moving there one day. They are getting more and more aggressive with pursuing taxes of expats with even remote ties to US citizenship.

Move the money offshore to a typical tax haven that has no income tax such as the previously mentioned Isle of Mann or the Cayman Islands. Either place has several financial institutions that would be glad to have your business and are used to dealing with similar situations such as yours.
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Old 1st Mar 2014, 20:25
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Dear Phoenix, send your money direct to me. I can invest it for you in a company I started called Expat Pilot Investments. I am a pilot so you can trust me. Just send me your cash and sit back. We are getting returns you wouldn't believe and it probably won't ever end.


Send me your cash......
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Old 2nd Mar 2014, 02:01
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Sure JAARule, just post your account details along with your PIN!lol

Thanks so far for the help, I guess everyone agree that savings should not be kept in Qatar, but I wish we could get more practical here and name institutions (besides JAARule) that it's safe and easy to send the money to. My bank in Doha is HSBC, as far as I know they can open me an account on another branch around the globe where they operate. But of course they will charge me the transfers and who knows what else. So as I said, maybe some more practical advice.
Thank you!
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Old 2nd Mar 2014, 11:50
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Phoenix, without knowing more about your nationality, tax liability/position, aspirations etc etc etc it's difficult to provide anything more than generic information.
There is a plethora of information available online, and I'd suggest you start there! there are companies that provide all manner of financial services including transfers done at a fraction of what a bank does it at.
If you are looking at being spoon fed, forget about it as you aren't looking at what will work for you, merely it's what worked for someone else.
Like I said previously, figure out what it is you want to do, and then go from there.
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Old 2nd Mar 2014, 14:02
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I believe there is a new law in 2014 that all banks everywhere, must give up info to IRS if they have US citizen as client.....probably harder than before.
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Old 4th Mar 2014, 03:43
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Phoenix, I've used HSBC and Citibank globally and both been great... good rates and transfers to your accounts elsewhere are instantaneous. None of this being held to ransom for 4-5 business days while "funds clear" (they finish night-trading with your $$!).
Alternative is the Tax free zones as mentioned above but be aware of the "IBAN"-International Bank Account Number which is an internationally agreed means of identifying bank accounts across national borders, including the M.E. shortly (if not already).
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Old 5th Mar 2014, 10:04
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Phoenix_Rev

When you fly to Australia, open a Citi Bank Account. You have to go to your nearest Citi Branch and open it.

See below link containing details of the account. I opened the account as a tourist and i still use it up to today. The account will work very well with you.

All the best!

https://www.citibank.com.au/aus/bank...ibank_plus.htm
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Old 5th Mar 2014, 11:26
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any advice on taking personal loan from banks in ME to pay some of your debt and training bond in your home country?
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Old 5th Mar 2014, 12:40
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Money Transfers

Gear Up - check your PM's!
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Old 5th Mar 2014, 13:51
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Lloyds International Bank in the Channel Islands. Very good consumer protection laws, better than mainline UK. They are cheaper (last time I looked) than HSBC.
TD International in Luxembourg, they provide share dealing and a derivitives platform via Saxo Bank.

Do your own research, there are loads of options, the above are purely examples and not recommendations. I agree with the general sentiment of getting cash out of the ME.
The only person you should ultimately listen to regarding what to do with your money is yourself and if you can find one, a trustworthy financial adviser, one that is regulated properly in a country with half decent laws, (Channel Islands for instance) just be aware there are sharks out there.
Something people struggle with is taking advice on a fee basis rather than a commission basis. Something to consider, not going to go into the pros and cons, as you will find, managing your own money takes (should) a fair amount of time and effort.
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Old 5th Mar 2014, 14:02
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"any advice on taking personal loan from banks in ME to pay some of your debt and training bond in your home country?"

I suspect you are not being serious, but just on the off chance that it is something you are considering and you are living in the ME, don't.

Consider what would happen if you lost your job and could not repay the loan. Set up a bank account abroad, take a loan and repay that way. Better yet just pay off the loan as quickly as possible from your paycheck.

Up to you of course but I for one don't even have a credit card here.
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Old 8th Mar 2014, 09:21
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As a Brit: If living/working in the Middle East, would my investments outside an ISA wrapper in the UK stock market be free of Capital Gains Tax?

I.e If I sold some shares, would I have to remain out of the UK for a number of years before returning to avoid the tax man taking his slice?

Thanks
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Old 8th Mar 2014, 09:32
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fixed deposit in india.

you'll earn 9.25% intrest per annum... highest in the world.
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Old 8th Mar 2014, 10:19
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That kind of interest is often related to banks deperate for money. Like the Islandic banks just before they folded.
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Old 8th Mar 2014, 11:22
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As an expat you are not liable for Capital Gains realised in the UK, shares, property, art etc.
As an expat you are not allowed to hold an ISA.
If you sold something (shares) and made a Capital Gain prior to returning to the UK you should not pay CGT. However the advice I have had is that if you did this in the tax year you returned to UK, HMCR could construe this as an attempt to avoid tax and tax you anyway. Again the advice I have received is to take the Capital Gain in the tax year prior to returning in this way you would be absolutely not liable.
Generally speaking being out of the UK for a full tax year gets you clear of any tax liability the taxman may decide you owe with the caveat above.
So leave on or just before the 5th of April and come back sometime a few years hence on or just after the 6th April would be the unlikely ideal scenario.
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Old 8th Mar 2014, 14:05
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Thanks for that Enecosse.

So do you mean I simply cannot add to my existing isa? Cannot access until I return to the UK? Or that I have to close it down and withdraw funds before leaving?

Thanks
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Old 8th Mar 2014, 14:40
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I am not an expert and I would suggest you ask whom ever is providing your ISA wrapper.
I believe you can maintain an ISA while abroad, you could max out your limit in the year you leave the UK, but once abroad you can't start or add to it. Perhaps 'hold' was not the correct word to use earlier. Again ask someone who really knows, different providers may have different rules.
There are exemptions but I know they do not apply to me, I.e. In the military.
I would suggest there are some other considerations like, when and if you are planning on going back to the UK, how big a pot you have in your ISA etc.
An ISA is of the most benefit to a higher rate taxpayer living in the UK, so ask yourself is it worth continuing to pay the charges to maintain it.
DYOR and try and get some good advice, take the above as fag packet generalisations.
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