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  Thursday 6 Nov, 2008

Dear Graham, I have bought a property here and am considering returning home. I looked into selling my apartment and was disappointed to find that its value is well short of what I was told to expect when I bought it, although I would still be making a reasonable profit.
As the rental yield is high in comparison to what I paid for it, I’m now thinking of renting the apartment out and keeping the rental income offshore. As I bought the apartment while I was overseas with offshore savings, is there anything I should be wary of?
Sales here have slowed and many people have to rent out their properties rather than sell them. Even estate agents are now getting involved in letting property rather than just selling.
You have not said where back home is but I don’t think that makes much difference.
If you are resident in a taxed jurisdiction, normally tax is paid on your worldwide earnings, which could include the rental income on your property. There are ways to keep this income off the tax offices’ radar but the implications are severe if you get caught.
Furthermore, if you eventually sell the property when tax resident in another country, you are going to find it difficult to move the money from the sale back home without alerting the tax authorities. You could also face a capital gains tax and/or an inheritance tax liability as well.
I recently saw an interview with the CEO of a well known department store chain who announced that the company’s profits were down by 40 per cent. They still made about half a billion dollar's profit so he was not complaining. Maybe you shouldn’t be? You need some specialist tax advice and we can recommend someone.
I am new to the region and am looking to buy a car. So far, I have found all insurance rates to be expensive. Is there anything that can be done to negotiate a decent deal?
Insurance firms keep records of all the claims they have paid out. One internationally recognised company has now determined that anyone driving here who got their licence in a country where driving standards are high - and has a transferable licence - is a lower risk.
As a consequence, they are the pioneers in offering preferential rates and the additional discount is about 20 per cent. We can email you the details on request.
As the US election is now over, is this going to affect my investments?
Elections at this level will always influence investments. Experts have been watching this particular election with keen interest, especially when you consider the current state of the global economy.
At least now we can all stop second-guessing who will be in charge of the world’s biggest economy for the next four years and plan accordingly. The new US president, however, is not best known for making decisions!
I have a UK pension and would like to use the tax-free lump sum. Can I do this without touching the remaining fund?
Yes, depending on your age. The new rules allow access to up to 25 per cent of the pension fund as a tax-free lump sum and the income that must be taken may be as little as £0.
There could be tax and death benefits implications by doing so, however. Always talk to a qualified and experienced financial adviser before taking any action with pensions.
Graham Wolverson is an Independent Financial Adviser with Joie de Vivre International Insurance Brokerage LLC. Email him at: graham@jdvinsurance.com


Graham Wolverson
 
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