Global tax advisory and audit group BDO launches report on where to relocate for the wealthy
BDO LLP has launched the Global Opportunities for Relocation report, their bi-annual study of tax regimes around the world to help high networth individuals make informed decisions when looking to relocate. The report has been compiled through the contributions of BDO’s private client tax specialists worldwide and includes insights in the trends and factors influencing global relocation, providing an overview of tax regimes across 40 different jurisdictions.
Richard Montague, Head of International Private Wealth in the UK and Chair of BDO’s Global Private Client Strategy Group said unlike the corporate tax world, where they are seeing greater international cooperation and convergence and countries applying a more unified global approach to taxation, governments are still using personal tax treatments to attract wealthy individuals and investment to their countries.
“We live in an increasingly globally mobile world and it’s important high networth individuals consider tax implications to avoid unexpected and unwanted surprises, therefore wealthy individuals will often have a footprint in more than one country, either as dual residents or with intentional business or family interests, and complexities can easily arise,” he said highlighting that these individuals need to focus on ensuring long-term asset preservation while complying with their global tax obligations. In this regard, an understanding of the tax regime in their 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,” emphasised Montague.
The BDO report states that despite the many different tax regimes across the globe, most countries have attractive qualities and are considered favourable for differing circumstances. The report explains that countries with higher tax rates such as the USA and Canada may still attract investment due to economic opportunities, while those with lower tax rates, such as Singapore are more attractive from a tax perspective.