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Expat Investor : September 2008
EXPAT EXPATEXPAT Investor Serving expats for more than 19 years Serving expats for more than 16 yearswww.expatinvestor.com e than 17 years £4.95/ €7.50/US$7.50 £4.95/€7.50/US$7.50 Sept 2008 firstname.lastname@example.org June 2005 “There are those that you know you should read, and then there’s the magazine you will read.” In this issue 4 6 9 Who’s got your identity? ID fraud is a subject which isn’t going away, and we explain why. Isle of Man The best Manx money tools on offer to expatriates. Get on the money road ID fraud is a subject which isn’t going away, and we explain why. 14 24 Portfolio management An A-Z of portfolio management that’s both practical and profitable. Credit crunch What the credit crunch means to expatriate financial management. Regulars 10 Offshore funds 11 Investment news 12 Offshore savings 21 Property investment 22 Offshore mortgage market Bringing advisers and investors together Investor Serving expats for more than 17 years £4.95/ €7.50/US$7.50 www.expatinvestor.com A radical new law introduced by Valencia, the provincial government of the popular Spanish resort Costa Blanca, sees half a million British expatriates lose their rights to free healthcare services. The local authorities have introduced the law saying that the council’s coffers can no longer stretch to providing so many with free healthcare. Of the total number of 500,000 Brits now living in this area, most of them are aged over 50, and their healthcare needs place an unmanageable burden on the country’s health provision. This new law is a particular blow to Brits who’ve settled on the Costa Blanca. Just six years ago, Valencia’s government announced it was making free healthcare services available to all expats, not just UK pensioners or Brits working (and therefore paying local taxes). This announcement enticed many British retirees to pack up and move to Spain. At that time, the local government offered the free healthcare service as part of an inducement to Brits to invest in the region’s growing property market. But with the recent, and somewhat unrecoverable, crash in house prices, the healthcare concession has been taken away. Not all British expatriates are affected. The new rule only applies to those Brits who have taken early me&my easy option Enjoy a great rate and easy access. Licensed by the Isle of Man Financial Supervision Commission to conduct Banking Business. For more information from our advertisers or about products featured in Expat Investor enter the Fast Facts number onto the Reader Reply Service coupon on page 20 or go to: expatinvestor.com Fast Facts 77000 retirement and moved to this region. Older retirees, as well as those on long-term incapacity benefit, are not affected. Brits in these categories remain covered under a reciprocal healthcare agreement the UK has with Spain. If you are a British pensioner retired in Spain, you are entitled to free healthcare under an agreement whereby the UK will pay the Spanish government a predetermined sum per pensioner per annum. To ensure your NHS rights travel with you to Spain obtain an E121 formfrom the UK’s Department for Work and Pensions (DWP). Those of you who are living in Spain and under the retirement age can obtain formE106 from the DWP. This is the right document enabling you to UK-funded healthcare services whilst in Spain for a period of 30 months, provided you are up-to-date with your NI and tax contributions. It wasn’t so long ago when British expatriates living in France received a similar shock on the healthcare front. France, which is home to tens of thousands of retired Brits, introduced state healthcare legislation stipulating that non-working/retired expatriates under the age of 65 are no longer eligible for the Couverture Maladie Universelle (CMU). Ageing populations place a strain Brits lose free healthcare on Costa Blanca Half a million expats who’ve settled in Spain’s Valencia region are told that that the fall in the housing market has had a knock- on effect on their rights to healthcare services. on a country’s social security systems through pension and healthcare costs. A number of countries around the world are now limiting rights of access to their healthcare systems. Foreign residents deemed not to have made adequate financial contributions to the social security coffers are increasingly excluded. Middle Eastern governments seldom use taxes to fund their healthcare systems. Some countries in this region have made it compulsory for their growing expatriate populations to purchase private health insurance.Key expat working locations such as Saudi Arabia and Abu Dhabi have made private health insurance a prerequisite to obtaining employment visas. Abu Dhabi stipulates certain minimum levels of medical cover which must meet standards set by their health authority, the ADHA. Dubai has begun a consultation process along similar lines. By and large, working expatriates can expect their employers to provide some sort of medical and health insurance cover during time spent overseas.However, the cover offered is sometimes inadequate. Check what you’re being offered and pay attention to the benefits listed. For example, suppose you discover the company scheme includes cover for your spouse but does not offer 6.50% eAccess2 Offshore internet banking for expatriates The interest rate quoted is variable, gross and effective from 3 July 2008. Monthly interest available at 6.30% gross p.a. (AER 6.49%). This account is only available online to individuals aged 18 or over and is not available to UK residents. Bradford & Bingley International Limited, International eSavings Unit, PO Box 263, Douglas, Isle of Man IM99 2JJ British Isles. Registered in the Isle of Man No. 052221C. Registered Office: 30 Ridgeway Street, Douglas, Isle of Man, IM1 1TA. Copies of our most recently audited accounts are available on request. Bradford & Bingley plc undertakes to discharge the liabilities of Bradford & Bingley International Limited in so far as the latter is unable to discharge them and remains a subsidiary of Bradford & Bingley plc. Under Isle of Man legislation, eligible deposits made with an Isle of Man office of Bradford & Bingley International Limited are covered by the Depositors Compensation Scheme contained in the Banking Business (Compensation of Depositors) Regulations 1991 (as amended). AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid to the account once a year.This advertisement does not constitute an invitation to make deposits in any jurisdiction to any person to whom it is unlawful to make such an invitation or offer in such jurisdiction. Interest rates are variable. Your tax position will depend on your personal circumstances and you may wish to seek guidance from your tax adviser. It is the responsibility of the depositor to declare any interest received to their relevant tax authority. EU residents who are subject to retention tax by way of the EU Savings Tax Directive will need to consider the effect of the retention tax that will be applied to their accounts. .. Internet Savings Account Gross/p.a. maternity care. And suppose you are hoping to start a family.Maternity cover will be an essential benefit. You will have to top up your existing cover. One way of doing this is by buying maternity care as a stand- alone benefit.However, some insurers will baulk at these so-called ‘stand-alones’ because of the additional costs incurred in their administration. You may have to acquire the sought-after benefit by taking out a whole new policy. A more economical approach would be to negotiate top-up cover with your employer and have the extra benefit you require added to the company scheme. Expats would be wise to brief themselves on those precautionary measures they can take to stay fit and healthy. The UK’s Department of Health provides a free booklet, Health Advice for Travellers. It can be downloaded from the Department’s website at www.dh.gov.uk, which also provides information and updates about disease outbreaks worldwide. The London School of Hygiene and Tropical Medicine runs the Medical Advisory Service for Travellers Abroad (MASTA), which offers advice on a host of health issues, including immunisations and anti-malarial drugs. The service can be accessed online at www.masta.org. .. Minimum balance only £1,000 . Deferred interest for tax planning Great for regular savings Apply online now at www.bbi.co.im Interest available Annually, Monthly or Deferred www.expatinvestor.com To register for Expat Investor digital edition, visit the website at
July August 2008