Treasury ‘To Reconsider’ Non-Dom Status
Reports started appearing in the UK press towards the end of September suggesting that the Treasury may be reconsidering the government’s non-dom reforms, on the basis that the proposed changes might bring in less money than anticipated. Wealthy foreigners could just leave the UK instead, despite the inclusion of incentives by then-Chancellor Jeremy Hunt. Labour seemed likely to remove some of those concessions in order to raise a proposed £1bn for the NHS and education, sparking reports that there could be an exodus of high earners from the UK. A Treasury spokesperson told the BBC, however, that:
“These reports are speculation, not government policy. The independent Office for Budget Responsibility (OBR) will certify the costings of all measures announced at the Budget in the usual way.”
The OBR itself, meanwhile, says that it is difficult to predict future trends when it comes to non-doms, because individuals tend to opt in and out on a yearly basis.
Wero Payments Challenge Visa and Mastercard
Sixteen major European banks and payment processors are backing a new scheme called Wero, which could allow customers to say goodbye to Visa and Mastercard and pay directly via their bank accounts. Banks such as BNP Paribas SA, Deutsche Bank AG and Worldline SA have been supporting the scheme, initiated by European Payments Initiative (EPI) to give customers a European choice of payments, rather than relying on the US-based giants, and also give the European Central Bank more control over payment systems. Wero describes itself modestly as a ‘start up’ rather than a serious competitor to the big American systems, but it already has millions of potential customers due to other schemes being folded into it.
Deutsche Bank’s Ole Matthiessen told the press:
“It is the right step forward for Europe, apart from everything else that we bring to the European level, to also consider payments more holistically through a European lens.”
In the meantime, the USA is also diversifying its payments systems, with new schemes such as Zelle.
Mortgage News for Expats
In a round of rate cutting by the big lenders such as Halifax, Santander and Barclays, Suffolk Building Society is also reducing its rates for expat buy-to-let and holiday homes. If you’re currently overseas but looking to invest in property in the UK, it might also be worth speaking to the bigger banks mentioned above, as they’re currently slashing the cost of fixed rate mortgage deals. Not all products will be suitable for or available to expats, but lenders overall are looking to extend their product ranges to UK nationals overseas.
Stafford Building Society are offering products to Brits in Europe and the Antipodes, and you won’t need a British property in order to secure a deal. If you’re in Hong Kong or the UAE, you may be eligible for a deal with SBS via individual referral.
‘Near Record’ Levels of Property Purchases in Spain
The Spanish property press reported ‘near record’ levels of property purchases by foreign buyers in 2024, rising by 1.2% year-on-year and constituting 64,735 sales, according to new statistics from the Housing Ministry. This is only beaten by the post-pandemic housing boom, generally considered to be a consequence of pent-up demand over lockdown.
Most of these figures were driven by expats who are already resident in Spain, but there has also been a slight increase in purchases from overseas buyers, too. These most recent statistics demonstrate the continuing popularity of Spain as a destination for expat buyers.
Currencies Direct Survey
A new survey report from currency exchange company Currencies Direct suggests that a staggering 23% of adult Brits are contemplating a move abroad, with 35% of those canvassed in Manchester reporting an intention to relocate. Quality of life and the cost of living crisis are the primary movers. The top sectors of workers wanting to relocate are in the IT industry (48%), healthcare (30%) and education (22%).
Spain, Canada and Australia are the top choices of destination, with South Africa coming in bottom as the least popular (probably due to its crime rate). For quality of life, the top choices are:
- Switzerland
- Iceland
- The Netherlands
- Denmark
- Japan
- USA
- Norway
- Germany
- Canada
- Portugal
North America is preferred by expats under the age of 45, whereas for retirees, Spain still holds pride of place.
However, South Africa has top spot when it comes to purchasing power:
- South Africa
- Spain
- Cyprus
- Portugal
- Greece
- Italy
- Japan
- Poland
- Sweden
- USA
The report concludes that of the people surveyed, 49% of expats said that their mental health had improved after their relocation abroad. VP Nigel Fox told the press that:
“Our report has uncovered just how many Brits are considering moving overseas and underscores the potential benefits of relocating. With many countries offering attractive options for both quality of life and property investment, and almost half of expats (49%) reporting improved mental health within the first six months, moving overseas can be a rewarding decision.”
Pensioners in Majorca May Benefit From Pension Rules
The Majorcan press reported this month on the possibility that UK expat retirees on the island (and elsewhere) could benefit from a change to the pension rules made eight years ago. Depending on the year of your birth, you could qualify for a pension boost of over £2K annually, even if you’ve been living and working abroad. Experts suggest contacting the Department of Work and Pensions to check your status, but also getting in touch with the foreign pensions department here: gov.uk/international-pension-centre.
Note that this government office is warning of longer response times to online queries, but if you have a question about your existing pension or are claiming a new pension, it’s worth taking the time to contact them.
Dubai May Experience Limits on Attracting New Expats
Dubai’s population is predicted to rise from 3.8 million to 5.8 million by 2040, imposing a strain upon its infrastructure according to recent reports. Its economy is doing well, but as the numbers of traders and bankers grow (with a 70% increase in employees in the Dubai International Financial Center), there is pressure on infrastructure, such as schools and roads, as well as rising house prices.
Dubai house prices are now passing Singapore and London. The Dubai Media Office says that the city aims to be one of the top three globally for standard of living by 2040, and that significant investment is being put into projects such as the metro and the drainage system. However, many expats are now moving to nearby Sharjah as property prices force them out of Dubai itself, but this causes further issues on the roads. Whether Dubai will be able to cope with its own rates of growth by 2040 remains to be seen.