Where in the World ? Tax Wealth Estates Where do - - PowerPoint PPT Presentation

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Where in the World ? Tax Wealth Estates Where do - - PowerPoint PPT Presentation

Mar 25, 2023 170 likes •908 views

Where in the World ? Tax Wealth Estates Where do we start? Tax Wealth Estates About us Wilfred T Fry - Founder Tax Wealth Estates Where in the World ? Tax Wealth

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Tax Wealth Estates

Where in the World …?

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Tax Wealth Estates

Where do we start?

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Tax Wealth Estates

About us

Wilfred T Fry - Founder

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Tax Wealth Estates

Where in the World …?

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Tax Wealth Estates

Running Order

Ed Read-Cutting Director, The Fry Group (Belgium) Marc Quaghebeur Lawyer and Partner, De Broeck Van Laere & Partners Jeremy Woodley UK Board Director, The Fry Group (UK) David Denton Head of International Technical Sales, Old Mutual International

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Tax Wealth Estates

And now …

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Marc Quaghebeur

The Tax Questions

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Retirement planning in a nutshell

  • Income Tax
  • Capital Gains Tax
  • Wealth Tax
  • Inheritance laws and Inheritance Tax
  • Estate Planning
  • Gift tax
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Every country is a tax paradise … if you know how

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Put your affairs in order

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Retirement income

State pension Occupational pension Private pension saving Savings :

  • Investments : bonds and stocks
  • Real property
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Double taxation

Generally taxed in country of residence e.g. France, Italy, Portugal, Spain except Germany Luxembourg UK (country of source)

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Double taxation

Generally taxed in country of residence e.g. France, Italy, Portugal, Spain in country of source Germany Luxembourg UK

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Double taxation

Generally taxed in country of residence except UK (country of source)

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Double taxation

Generally taxed in country of residence

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Double taxation

Savings are generally taxed twice: Withholding tax at source and in country of residence

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Double taxation

Real property is taxed in country of source generally not in country of residence exemption with progression Italy, Spain, UK : foreign tax credit

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Personal allowance : €7,270 Standard rates : 25-50% (€38,830) + BE standard rates BE standard rates 8% deducted @60

interest : 30% dividends : 30% BE standard rates

  • n cadastral revenue

Pension capital @65 : 5.55% + 10% = 15.5%

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Personal allowance : €7,270 Standard rates : 25-50% (€38,830) + BE standard rates BE standard rates 8% deducted @60

interest : 30% dividends : 30% BE standard rates

  • n cadastral revenue

Pension capital @65 : 5.55% + 10% = 15.5% No Capital Gains Tax except SICAVS (bonds): 30%

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€9,710 26.8-57.8% (€152,260) 12.8% FR standard rates

> 8 y : 15.5% + 7.5% : 23%

FR standard rates FR standard rates interest: 15.5%+21% = 36.5% dividends:15.5%+24% =39.5% FR standard rates

  • n actual rent [exempt*]
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€9,710 26.8-57.8% (€152,260) 12.8% FR standard rates

> 8 y : 15.5% + 7.5% : 23%

FR standard rates FR standard rates interest: 15.5%+21% = 36.5% dividends:15.5%+24% =39.5% FR standard rates

  • n actual rent [exempt*]

Capital Gains Tax:

15.5%+19%= 34.5%

0% movables : 12 years real property : 30 years

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Wealth Tax

If private wealth > €1,300,000

€0 - 800,000 : 0% €800,000 - 1,300,000 : 0.5% €1,300,000 - 2,570,000 : 0.7% €2,570,000 - 5,000,000 : 1% €5,000,000 - 10,000,000 : 1.25% >€10,000,000: 1.5%

New residents : five years exemption non FR assets

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ES standard rates €6,500 (@65) 19-45% (€60,000)

some planning is possible

ES standard rates ES standard rates interest: 19-23% dividends: 19-23% ES standard rates

  • n actual rent [tax credit]
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€6,500 (@65) 19-45% (€60,000) ES standard rates

some planning is possible

ES standard rates ES standard rates interest: 19-23% dividends: 19-23% ES standard rates

  • n actual rent [tax credit]

Capital Gains Tax: 19-23%

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€6,500 (@65) 14.5-48% (€80,640) (+ 0 - 3.5%) PT standard rates PT standard rates PT standard rates PT standard rates interest: 28% dividends: 28% PT standard rates

  • n actual rent [exempt*]

Habitual Non-Resident Tax Regime 10 years

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€6,500 (@65) 14.5-48% (€80,640) (+ 0 - 3.5%) PT standard rates PT standard rates PT standard rates PT standard rates interest: 28% dividends: 28% PT standard rates

  • n actual rent [exempt*]

Capital Gains Tax: 28%

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  • 23-43% (€75,000) (+ 1.23-3.41%)

IT standard rates IT standard rates IT standard rates IT standard rates interest: 26% dividends: 26% IT standard rates

  • n cadastral revenue[tax credit]
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  • 23-43% (€75,000) (+ 1.23-3.41%)

IT standard rates IT standard rates IT standard rates IT standard rates interest: 26% dividends: 26% IT standard rates

  • n cadastral revenue[tax credit]

Capital Gains Tax: Movables : 26% Real estate : standard rates > 5 years : 0%

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Inheritance law

Civil law countries

  • Inheritance rules : who inherits
  • Inheritance rules can be varied by will
  • Forced Heirship Rules : clawback
  • EU Succession Regulation : opt for national law
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Inheritance Tax

3 Regions = 3 Inheritance Tax Codes

Spouse/civil partner 3 - 30% Descendants 3 - 30% Brothers/sisters 20 - 65% Nieces/nephews 25 - 75% Others 30 - 80%

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Inheritance Tax

3 Regions = 3 Inheritance Tax Codes Spouse/registered partner does not pay inheritance tax on the family home

Flanders & Brussels Wallonia (€160,000)

Ends when you give up Belgian domicile

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Inheritance Tax

Spouse / civil partner Descendants (over 100,000) 5 - 40% Brothers/sisters 35 - 45% Nieces/nephews 55% Others 60%

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Inheritance Tax

Only on property in Spain

  • r on what is inherited by a Spanish resident

Rates vary per Autonomous Region according to value/kinship

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Inheritance Tax

Portugal has no inheritance / gift tax But 10% Stamp Duty on transfer not spouses/partners descendants

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Inheritance Tax

Spouse

(over €1,000,000)

4% Descendants (over €1,000,000) 4% Brothers/sisters (over €100,000) 6% Others 8%

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Estate Planning

  • Plan before you move
  • Use Belgian favourable tax rules
  • Invest wisely in view of the tax rules there
  • Make a Will
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Estate Planning – Family Home

  • Sell Belgian home without capital gains tax
  • Buy new family home with the children

children bare ownership parents usufruit

  • Donate bare ownership to children
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Estate Planning – Pensions and Savings

  • Realise capital gains … tax free
  • If possible, redeem your pension
  • Invest tax efficiently

whole life insurance tax exempt if > 8 years insurance wrapper tax exempt in Belgium

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Estate Planning – Pensions and Savings

  • Joint life second death delays inheritance tax

between husband and wife

  • In Belgium
  • Check inheritance tax treatment there
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Tax Wealth Estates

Jeremy Woodley UK Board Director The Fry Group (UK)

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Tax Wealth Estates

Try to avoid surprises

Tax Arbitrage www.statutoryresidencetest.co.uk

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Tax Wealth Estates

CGT Income

Property Investments State Pensions Pensions Rental Savings Employment

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Tax Wealth Estates

20 17

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Tax Wealth Estates

www.savinginheritancetax.co.uk www.statutoryresidencetest.co.uk

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EXPATRIATE WEALTH PLANNING

DAVID DENTON FPFS TEP

Chartered Financial Planner Head of Technical Sales Old Mutual International

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This presentation does not form a personal recommendation and any products mentioned or shown may not be suitable for all investors Independent financial advice should always be sought to identify the most appropriate solution for an individual’s specific needs for contracts or products that might be appropriate.

DISCLAIMER

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01 02 03 04

WHO WE ARE? WHAT WE DO? WHERE WE DO IT A SELECTION OF OUTCOMES

AGENDA

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Source: Old Mutual as at 30 June 2017

19.4m

Customers

OLD MUTUAL FOUNDED 1845

£393.3b

Funds under management

33

Countries in which we operate

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VOTED BEST INTERNATIONAL LIFE GROUP IN SIX OUT THE LAST EIGHT YEARS

International Adviser – International Life Awards 2017 - Europe International Investment – International Fund and Product Awards 2016

  • Best single premium investment product
  • Best trust/estate planning product
  • Best online proposition
  • Best advice/customer support service
  • Best overall product range
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The only difference between death and taxes is that death doesn't get worse every time Congress meets.

WILL ROGERS

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WEALTH PLANNING

Substantial tax codes Numerous tax traps Fast changing rules

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WEALTH PLANNING

WEALTH PLANNING ASSET PROTECTION

(taxation / family / business / governments)

WRAPPER SELECTION

(taxation / flexibility / simplicity)

INVESTMENT STRATEGY

(selection / monitoring / adjustment)

+ + =

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OLD MUTUAL INTERNATIONAL IRELAND’S (OMII) PROPOSITION IN EUROPE

OMI Ireland market solutions in to the following jurisdictions:

  • Spain
  • Sweden
  • UK
  • Belgium
  • Cyprus
  • Luxembourg
  • Malta & Gibraltar (Trustee pension bus. only)
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INVESTMENT OPTIONS EUROPEAN COLLECTIVE INVESTMENT BOND

Cash Unit Trusts Investment Trusts Structured deposits Open ended investments companies Exchange Traded Funds

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BENEFITS IN BELGIUM EUROPEAN COLLECTIVE INVESTMENT BOND

  • Administratively simple
  • Online
  • Low trading costs
  • Multiple hard currencies
  • Nomination of death

benefits

  • Confidential
  • ‘Branche 23’
  • No policyholder liability to

Irish tax

  • Tax deferral of income and

gains

  • No tax on profits when

realized

  • Note: Insurance premium

tax of 2%

Non-tax benefits Tax benefits

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WHERE TO NEXT?

  • 51 independent states within

Europe

  • As many different outcomes

(probably!)

  • Hence the need for advice
  • For example …
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Tax complexity is itself a kind of tax

MAX BAUCUS

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  • Start early
  • Save more
  • Don’t rely on the state

ANDY HALDANE Chief Economist, Bank of England 2016

AND PENSIONS?

I consider myself moderately financially literate, yet I confess to not being able to make the remotest sense of pensions.

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QUESTIONS

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COMPANY DETAILS

This presentation is based on Old Mutual International’s interpretation of the law and tax practice as at September 2017. While this interpretation is believed to be correct, Old Mutual International can give no guarantee in this respect or that tax reliefs and the tax treatment of investment funds will remain the same in the future. The value of any tax reliefs will depend on individual financial circumstances. The value of investments can go down as well as up and investors may get back less than they invested. www.oldmutualinternational.com Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual International Ireland dac is regulated by the Central Bank of Ireland. Registered No 309649. Administration Centre for correspondence: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU Tel: +353(0)1 479 3900 Fax: +353(0)1 475 1020. Registered and Head Office address: Hambleden House, 19-26 Lower Pembroke Street, Dublin 2, Ireland. VAT number for Old Mutual International Ireland dac is 6329649S. Old Mutual International is registered in Ireland as a business name of Old Mutual International Ireland dac. INT17-0987/September 2017

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Tax Wealth Estates

How The Fry Group can help?

Co-ordinate your retirement strategy

  • Review of existing pensions
  • Advice on pension lump sum versus pension income
  • Advice on investment of pension lump sum to achieve an optimal and

tax efficient income in retirement based on your intended country of retirement

  • Structuring of other investment assets for tax efficient income and /or

capital growth

  • Coordinate with other professionals such as Notaries, Accountants

and Tax Lawyers to provide a 360 degree service

  • Ongoing servicing…. Wherever in the World….you decide to retire.
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Tax Wealth Estates

Where in the World …?

Questions

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Tax Wealth Estates

Compliance

▪ Please note that this presentation is for information only and does not constitute advice. ▪ Individuals should seek professional advice based on their circumstances. ▪ The information contained in this presentation is based on our understanding of current pensions and taxation legislation both of which are subject to change.

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Tax Wealth Estates The Fry Group of companies comprises of Wilfred T. Fry Ltd – Taxation Consultants, Wilfred T. Fry (Executor and Trustee) Ltd, The Fry Group (H.K.) Ltd, The Fry Group (Singapore) Pte Ltd, The Fry Group (Belgium) SA, and Wilfred T. Fry (Personal Financial Planning) Ltd. The last company is authorised and regulated in the UK by the Financial Conduct Authority (FCA number 114402) and is also passported under EU regulations. The Fry Group (H.K.) Ltd is licensed to conduct investment advisory business in Hong Kong by the Securities & Futures Commission (SFC; CE Number: ATY965) and is a member of the Hong Kong Confederation of Insurance Brokers (HKCIB; Membership Number: 0444). The Fry Group (Singapore) Pte Ltd is authorised to act as a financial adviser by the Monetary Authority of Singapore - licence number FA100057-1. The Fry Group (Belgium) SA is regulated in Belgium by the FSMA (Reg.

  • No. 23345 A-B) and is also passported under IMD EU regulations.

Tax treatment depends on the individual circumstances of each client. All levels and basis of, and relief from taxation illustrated here are subject to change without notice.