US Citizens Seek Expat Status
The Harris Poll Study, which was released early in March and which canvassed over 6,000 US citizens, suggests that 1 in 4 Americans, pre-dominantly younger people, have considered relocating to another country. This intention is fuelled primarily by financial and economic concerns. 68% of respondents believed economic stability was out of reach at home, and that owning a home was no longer attainable under current conditions.
Libby Rodney, Chief Strategy Officer at The Harris Poll, told the financial press:
“The American Dream is evolving into the Expat Dream. As social media fills with stories of Americans building high-quality lives abroad, more people are getting curious. They’re not just imagining greener pastures – they’re actively exploring new countries, researching locations, and planning strategic relocations. These Americans are prioritizing quality of life and safety, looking beyond U.S. borders to find it.”
The poll demonstrated that 49% of those surveyed wanted a lower cost of living, with dissatisfaction with the current US regime running at 48%. 43% wanted a better quality of life. BIPOC and LGBTQ respondents, and those from other minorities, reported concerns that their rights might be eroded. Respondents said that their top 10 choices for relocation were as follows:
- Canada
- United Kingdom
- Australia
- France
- Italy
- Japan
- Mexico
- Spain
- Germany
- New Zealand
Expat Focus spoke with several American readers who confirmed that Canada is their top choice—some have already begun making plans to relocate.
Rathbones Plans Office in Dublin
Rathbones wealth management is planning to open its first EU office in Dublin to cope with demand from British expats resident in the EU, the FTSE 250 company announced recently. Following its merger with Investec Wealth & Investment, the company says that it is intending to reach out to the 1.3 million British citizens resident in the EU. CEO Paul Stockton told the press that:
“What that does is effectively gives us an EU license to work with advisers in the European Union to access clients that have an affinity with Rathbones.”
It seems that UK-based wealth managers are stepping up their efforts to reach British expats in the EU.
Dubai’s Job Market ‘Feels the Strain’ – But the Economy Is Booming
Bloomberg reported in early March that a post-pandemic increase in the population is placing strain on Dubai’s employment market. Sectors such as finance and tech are becoming highly competitive, following an increase to the population of 3.825 million by the end of 2024. The population is anticipated to reach 4 million by 2026.
In addition, an estimated 1 million people commute into Dubai from neighbouring emirates during working hours. Job creation is benefiting from heavy investment. According to investment/residence advisers, Henley and Partners, Dubai, Abu Dhabi and Sharjah are expected to experience a 150% increase in the migration of centi-millionaires between 2024 and 2040, and the Dubai Economic Agenda is aiming to double the size of the economy over the next 10 years.
Is Spain a ‘Tax Trap’ for Brits?
The UK press has been featuring articles recently relating to ‘arbitrary’ tax probes on Brits resident in Spain. A ‘Spanish tax pickpockets’ campaign has been launched by Robert Amsterdam, an international lawyer. He says that he has clients who have been faced with ‘relentless’ tax probes after coming to the country under ‘Beckham’s Law’ – the informal name for the tax legislation that allows expats to be taxed at 24% on an initial €600K. He also relates that clients have been told that they’re not allowed to appeal until they have paid what they allegedly owe. Amsterdam told the Daily Express:
“We have heard from many victims in Spain who say that they have had their Beckham Law status withdrawn without explanation and then have been retroactively charged with back taxes to said periods, which is completely outside the semblance of rule of law. These same victims say that in order to prove their standing, they are buried in arbitrary, contradictory paperwork and drawn in long and expensive legal cases to challenge the tax authority.
“By the time they get to the end of it, for some, it is already too late – they’ve lost everything. The solution is not to crack down on those who accepted Spain’s invitation but to address the underlying corruption and greed within the tax administration itself. Spain’s profit-driven enforcement mechanism must be dismantled, and its pay-to-appeal policy reformed.”
What does Amsterdam mean when he speaks of ‘corruption and greed?’ In an article for Sears, he explains that the issue revolves around an incentive system. In Spain, tax auditors are granted a percentage of the money that they recover, either through court judgments or settlements. This incentive, Amsterdam claims, leads to “aggressive audits and inflated assessments of the wealth of high-profile individuals.” The result is that investors are becoming wary of relocating to Spain, given the nature of its taxation policies.
British Expats Counselled to Claim Backdated Voluntary National Insurance Contributions
Financial experts are warning British expats that their window of opportunity for claiming backdated voluntary National Insurance contributions is closing, with a deadline of April 5th 2025. You can now backdate missing pension contributions to 2006, thus potentially boosting your future pension. Fiona Peake at loan company Ocean Finance explained to the UK press that:
“Expats can buy back missing years at the current voluntary Class 2 or Class 3 NI rates – £3.45 or £17.45 per week, respectively. That means one full year of Class 3 contributions costs £907.40, but it adds £328 per year to their pension. In just under three years of retirement, they’d already be in profit. For someone with six missing years, they’d pay £5,444 to fill the gap. But this would add around £1,968 a year to their pension. After just three years of claiming, they’d have more than made their money back, and over a 20-year retirement, they’d get an extra £39,360.”
Missing contributions are a common issue for expats, as they may not have paid into HMRC during the years they lived abroad.