Brussels, 7 January 2019 - BDO launches a new edition of its biennial study of tax regimes around the world to help high net worth individuals make informed decisions when looking to relocate.
BDO’s Global Opportunities for Relocation report provides an overview of tax regimes around the world. Focused on some 40 jurisdictions, including the most popular locations where people choose to live, the report is an interactive pdf that enables the sharing of new features, including an interactive global map.
Compiled through the contributions of BDO’s private client tax specialists worldwide, the report includes insights into the trends and factors influencing global relocation and distinguishes different tax regimes across the globe, most of which offer some attractions and are favourable in different circumstances.
South Africa insights can be found on page 34 of the report.
Richard Montague, BDO’s Head of International Private Wealth in the UK and Chair of BDO’s Global Private Client Strategy Group, comments:
“Unlike the corporate tax world – where we’re seeing greater international cooperation and convergence, and countries applying a more unified, global approach to taxation (such as BEPS, digital services tax) - governments are still using personal tax treatments to attract wealthy individuals and investment to their countries.”
The BDO report states that, despite the many different tax regimes across the globe, most countries have attractive qualities and are favourable for differing circumstances.
Countries with higher tax rates such as US and Canada, for example, may still attract investment due to economic opportunities, while those with lower tax rates, such as Singapore, are perhaps more attractive from a tax perspective.
The climate, education, family and business opportunities are also big considerations for individuals looking to relocate.
Richard Montague adds: “When emigrating from your home country, personal circumstances and preferences will determine your destination of choice. However, globally we have seen legislative and regulatory changes increasing the cross-border flow of foreigners and investment – in part through tax.
“We live in an increasingly globally-mobile world and it’s important high net worth individuals consider the tax implications to avoid unexpected and unwanted surprises. Wealthy individuals will often have a footprint in more than one country, either as dual residents or with international business or family interests – and complexities can easily arise. These individuals need to focus on ensuring long-term asset preservation while complying with their global tax obligations – and an understanding of the tax regime in the country of choice continues to be key.
“There are many pitfalls for the unwary and the consequences can be hugely damaging if wealthy individuals are not advised properly.”
About BDO’s Global Private Client Services
BDO’s Global Private Client Services team are private client specialists who have a multijurisdictional understanding of leading issues and a commitment to exceptional client service. Wealthy individuals, their families, and their businesses’ ﬁnancial interests often cross international borders. BDO’s Global Private Client Services team works with high net worth and ultra-high net worth individuals and their families, entrepreneurs, and family ofﬁces. We work with our clients to structure their domestic and international affairs in an efﬁcient and compliant manner.
Download the interactive report here
Listen to the regional chairs of BDO’s Global Private Client Services group provide an overview of the trends and factors influencing international mobility within each of the Americas, Asia Pacific and European regions and share key findings from the study.
There are many different tax regimes across the globe. The study distinguishes five broad types of tax regime low / no tax, remittance basis, favourable for new residents, lump sum and other regimes.
Many countries have attractive qualities and are favourable in different circumstances, however wealthy individuals will often have a footprint in more than one country, either as dual residents or with international business or family interests and complexities can easily arise. Professional advice is essential.
More information for countries where BDO has a presence but the country is not currently covered in this study, is available. Use the contact details provided to get in touch with a locally based adviser in the BDO member firm.
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