Building wealth as an expat

Building wealth as an expat

You’ve made a choice to work overseas, but no one said that you had to forgo your right to strive for great wealth. In fact, living the expat life can be made more extraordinary with a good income stream. Let’s take a look at some of the ways of building wealth as an expat and maximise your wealth while travelling/working overseas.

1. Property investment

Whether you are a resident for tax purposes will determine your ability to claim deductions for a rental property. In certain areas and under particular conditions, your rental income can cover the costs of your mortgage. Making an investment in Australian property can have some great benefits – be sure to discuss this as an option with your expert Australian tax return accountant.

2. Tax exempt investing

Certain investments are particularly lucrative for non-residents and expats, depending on your situation. For example, if you buy shares that distribute a fully franked dividend, it’s likely you don’t have to pay any tax on that income. Unfranked dividends are not assessable for tax purposes for non-residents, although they do draw a withholding tax.

3. Superannuation

If you’re looking at the long time, Australian superannuation is still a rich environment for investment. Superannuation contributions may be tax deductible, especially if you have sufficient Australian income.

4. Capital Gains Tax

If you’re an expat investing in Australian listed shares (non-property baed shares), you may not need to pay any Capital Gains Tax.

5. Get your local affairs in order

Open a local bank account, use local online banking (if it’s safe), and make sure you file your local taxes. If you have your local affairs in order, working in your host country can deliver greater cash flows. You can then reinvest those cash flows in either your host country, home country, or anywhere in the world.

6. Find a friendly expat accountant with expertise in Australian expatriate taxation

Expat accountants with the expertise you require may be hard to find, but they are out there. Even if they’re not easily visible, many great Australian tax specialists will be able to help you from remote locations. For example, we work remotely with over 90% of our clients! Wherever you are, and no matter how simple you think your circumstances are, be sure to seek out an expert with vast experience in Australian tax issues for Australian expatriates to ensure that you’re getting the right advice.

Photo: Poster Money by mikecogh licensed under Creative commons 2
Shane Macfarlane
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Shane Macfarlane

CEO & Founder at Expat Tax Services
Shane's an Australian Chartered Accountant and Australian expat tax specialist who's also an expat himself (based in Asia).Shane's passionate about tax and legitimate tax minimisation, particularly as it relates to Australian expats who are often subject to high rates of tax back home in Australia.Beyond tax and accounting, Shane's an entrepreneur, having devised, created and founded a successful accounting startup, Fifo Workpapers (acquired by accounting software giant, Intuit inc. in 2013)

In short Shane's a tax and software techno-geek, who recognised that Australian expats were unable to obtain the specialist advice and quality service, that they needed from their accountants. Accordingly, Shane founded Expat Tax Services to provide Australian expats with access to specialist, quality advice at fair and reasonable prices (no hourly rates, fees quoted upfront with unlimited support included) . . . receive the support and advice you need without having to take second-mortgage to pay your accountant's bill! Speak to Shane & the team today.
Shane Macfarlane
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