Hoxton Wealth Uncovers Financial Planning Gaps Among Qatar’s Expats

Hoxton Wealth’s event in Doha highlighted that over 70% of expats are unsure about tax implications related to their assets when returning home. While wealth accumulation is the main focus for most expats, only 35% have a financial plan. Missteps include inadequate pension planning and insufficient awareness of tax liabilities, emphasizing the need for better financial education.

A recent educational event in Doha, conducted by Hoxton Wealth, revealed that a significant number of expats in Qatar are uncertain about how their financial assets will be taxed upon their return to their home countries. According to the gathered data, more than 70% of participants confessed a lack of clarity regarding their tax obligations based on future residency.

At the event, when attendees were asked about their financial priorities in Qatar, the results highlighted a focus on wealth accumulation (57%), retirement planning (28%), and income-generating investments (14%). However, strikingly, only 35% reported having any financial plan in place, indicating a possible disconnect between their goals and their financial preparedness.

Chris Ball, the CEO of Hoxton Wealth, remarked on Qatar’s appealing financial environment, stating, “The financial landscape for expats in Qatar is very attractive. There are no income tax obligations, no capital gains or dividends tax, access to global financial markets, and, typically, inflated salaries and bonus packages.” Ball also noted that while the opportunities are great, many expats make critical financial planning errors that could cost them in the long run.

Some common pitfalls include improperly structured asset holdings, neglecting to establish structured pension plans akin to those in their home countries, and a lack of awareness about inheritance tax liabilities. Others often overlook potential currency risks and keep too much capital tied up in local banks.

In terms of retirement plans, the survey indicated that 21% of expats anticipate returning to the UK, with a similar percentage considering Europe and 14% aiming for Asia. Notably, over two-thirds of respondents hold assets across multiple jurisdictions, complicating their financial planning further.

The seminar also tackled financial planning specifics for UK, US, and European expats, touching on areas such as UK inheritance tax exposure for Middle East residents and the FIG regime, which allows individuals returning to the UK after long absences to claim tax relief on foreign income for their initial four years back. Additionally, the session highlighted the significance of structures like Discounted Gift Trusts, which can play a vital role in financial strategy for regulated wealth management.

The seminar hosted by Hoxton Wealth underscored the financial complexities faced by expats in Qatar, revealing a knowledge gap in tax implications and financial planning. With most attendees prioritizing wealth accumulation yet lacking a formal financial plan, there remains a pressing need for better education in areas such as structured pension plans, inheritance tax, and asset management. Ultimately, as expats navigate the favorable financial landscape of Qatar, understanding these elements is crucial for optimizing their wealth accumulation strategies.

Original Source: www.zawya.com