While buying a business overseas can have a multitude of benefits for expats wanting a change of lifestyle and more opportunities, it’s important to do the ground work before jumping in head on. To help ensure you cover all your bases before investing in a business overseas, here are some of the things you need to consider:
Check out the local infrastructure and social climate
Make sure you do the research and have a good understanding on the infrastructure and social climate in the emerging market where you’re planning to relocate. It’s important to investigate everything from utilities and weather patterns to transportation and internet speed. Also spend the time assessing how stable the political and economic environment is within the country, as changes to the social climate can critically affect your business.
Socialise with the locals
Don’t just limit yourself to socialising with other expats when you’re considering moving to another country and buying a business, always get to know the locals too. Understanding the backgrounds and culture of the people you will be doing business with on a daily basis is essential to running a successful business overseas.
Submerge yourself in the business culture
Identifying and embracing the local business customs can often be the difference between business success or failure. Customers generally want to work with someone who offers them a personalised experience.
Receive counsel on global tax and legalities
Don’t make the mistake of assuming the tax and legal systems in other companies are generally the same as your own. Always seek advice on global taxation and laws before you consider relocating and buying a business. While it may cost you a small sum initially to find out all the information that’s relevant to your business, it’s often far more expensive outlaying money in the long run because you’ve overlooked an important legal or tax issue.
These are just some of the many things you need to consider as an expat buying a business overseas. For counsel or assistance with expat taxes, contact our team at Expat Taxes today. We specialise in the provision of expatriate tax advice and the preparation of Australian tax returns for Australian expats all over the globe.