British Expats favour British banks

November 25, 2010 – 2:12 pm

British expats favour British banks

British expats believe that British banks are best and many prefer to keep their savings in Sterling, a survey has found.

Their confidence in the British financial system is maintained even after living abroad for many years with 55% of those who have been overseas for over five years still having a UK current account and 80% still holding money in Sterling, the survey from Lloyds TSB International shows.

The survey of British expats, living in France, Hong Kong, Spain, South Africa, the United Arab Emirates and the US, also shows that confidence in sterling is high in comparison with other currencies, with four times (44% versus 11%) as many respondents believing that sterling is stronger than the euro for their savings. Only 3% of those now living abroad cite weakness in sterling as a factor most likely to contribute to having to return home early.

‘It is reassuring to see that so many British expats are confident in the future of sterling which, after depreciating over the past few years, has stabilised as the economic recovery has taken hold and measures to improve the public finances have been laid out. In part their behaviour has been a reflection on what has occurred in the wider financial markets with the flight from more indebted economies,’ said Jakob Pfaudler, managing director of Lloyds TSB International.

Gordon Maddock, who has lived in Almeria, Spain since 1995, agrees with the findings of the survey. He decided to move abroad on his retirement and take the opportunity to establish himself as an author, artist and composer. He has since published three books and exhibited art in Germany, Spain, America and the UK.

He holds his savings in sterling and has confidence in its increase over the next six months, whilst believing that sterling remains a strong currency in the Western economy. Maddock also has a current account with BBVA in Spain and has found that bank charges are higher in Spain for all accounts and he would only consider moving his money when conditions demand, rather than for better investment.

For Maddock sterling is also convenient as he has a government pension and has to declare taxation matters in the UK.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do | Tagged , , , , , , , , , , , , , , | Comments (0)

British expats who live and work abroad are less likely to return to the UK

September 12, 2010 – 11:56 am

British expats enjoy Tenerife property when at work or play

British born expats who have worked and retired abroad are less likely to return to the UK with 71% believing that they made the right decision in retiring abroad, new research shows.

The experiences of over half or 58% of expat retirees have been better than expected and the vast majority, some 92% of them do not live in an established expat community, the third annual Nat West International Personal Banking Quality of Life report also shows. Despite a belief that a significant number of British retired expats are regretting their decision to retire abroad and are planning to return to the UK, retiring abroad is very much still a popular decision, says the report that was carried out in conjunction with the Centre for Future Studies. It incorporates expats’ real life perceptions and experiences and gauges their personal assessment, including satisfaction or dissatisfaction, with their circumstances abroad.

The study also shows that a quarter of all retired expats rate their quality of life as excellent and the majority, 67%, are happier now than they would have been in the UK. It also reveals that there are two types of British expats: those who have spent their working lives in the UK and have chosen to retire abroad, the so-called silver expats; and those who left the UK to work abroad and subsequently retired in the country in which they had been living. The latter are often referred to as ‘lifer expats’. Those expats who worked abroad before they retired seem happier with their decision to continue living abroad yet those who have had no work experience in their chosen retirement country are having doubts about their decision to remain abroad.

Overall, silver expats retire in Western Europe, principally in Spain, the Canary Islands, France and Portugal. The lifer expats are spread throughout the world, principally in Australia, New Zealand, Canada, South Africa and the US.

When it came to choosing locations, surprisingly, 92% do not live in an  established expat community. Of those that do, the majority, 56%, did not consider this to be a determining factor in their decision to locate where they did. This is interesting, particularly when taking into account that silver expats have had no experience of living in the country and are happy to throw themselves into the deep end of foreign life, the report says.  Perhaps that is why so many opt for the prime property available in Tenerife.

By Angela | Posted in Economy, Property, Tenerife | Tagged , , , , , , , , , , , | Comments (0)

Knocking down British expats houses hurting Spain’s economy

May 22, 2010 – 5:36 pm

Knocking down expats homes is damaging the Spanish economy

Knocking down expats homes is damaging the Spanish economy

A Foreign Office minister warned Spain on Sunday that knocking down British expatriates’ houses was hurting its economy.

Chris Bryant, Minister for Europe, said that the country was undermining efforts to create a recovery in its beleaguered housing market. He was speaking yesterday during a visit to south-eastern Spain to meet British expatriates who have been told that their homes will be bulldozed after Spanish authorities declared their construction illegal. The authorities there have been waging a campaign against former officials accused of allowing overdevelopment of coastal regions. Local governments issued building licences for the properties, but these were later nullified following court action instigated by a higher regional government.

Mr Bryant cautioned: “The housing market in Spain is not going to recover quickly if pictures of bulldozers knocking down expats’ homes are appearing in British newspapers. Everyone I’ve spoken to in Spain says they want to find a solution but wanting a solution and getting one are two different things.”

He said: “Obviously it’s not for the British Government to tell the Spanish what to do. But I’m pushing the message hard at all government levels that I meet here that they have got to put political willpower into these problems, whether it’s an amnesty, whether it’s a change in the law, whatever the solution is that is needed. That is the point I am pushing. I have to say also that there is an enormous difference between the Britons who just make a cursory legal deal – that is always ill advised – and those who have done everything they should or could have done but still find themselves in deep trouble.”

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , | Comments (0)

Clock ticking on Expats’ tax refunds

May 21, 2010 – 4:35 pm
Owners in Tenerife need to hurry to reclaim tax

Owners in Tenerife need to hurry to reclaim tax

Expats who paid out too much tax on their Spanish property sale may be entitled to a rebate amounting to thousands of euros.

The potential capital gains windfall for British expats who sold property in Spain before 2007 comes after the scrapping of a discriminatory Spanish tax law.

The  pound   is now  weak against the euro, and the clock ticking on  refunds, all claims must be filed by 21st November this year. With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible. When yearly interest is taken into consideration on property sold as long ago as 1997,  considerable sums of money can be returned and saved.

It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.

Capital gains tax paid by British expats who sold Spanish property before 31st December 2006 was charged at a ‘non-residents’ rate of 35 per cent, compared to just 15 per cent for Spanish residents.

The Spanish government changed the law in 2007, after the EU declared it discriminatory, but an estimated ten thousand British expats had already overpaid. Now they are entitled to a refund.

The claims deadline for those who sold property between 1st Jan 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation.

Dimas Cuesta from Lexland, a law firm that has already secured rebates for British expats, added: “The legal process requires expert advice, which is fundamentally important to the chances of a successful claim. British expats looking to be reimbursed should act now, before the claims deadline.” Expats who think they have paid too much tax on their Spanish property sale should  see how much they may be owed as soon as possible.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , | Comments (0)

No place like home?

December 21, 2009 – 4:30 pm
The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

It seems there really is no place like home. New research has discovered that UK expats are returning home in their droves as the weak pound has sent the cost of living in the Eurozone soaring.Over the last year, there has been a huge rise in the number of expats living in Europe looking to return home to the UK.

Research  for home-movers, has seen an uplift in demand for removal quotes from those expats wanting to relocate back to the UK – a big turnaround from the exodus of Brits in recent years to enjoy warmer climes and cheaper property prices elsewhere. The number of people requesting quotes to move to the UK has increased by 37 per cent, while there has been an 18 per cent decline in the number of people moving from the UK to the continent in the space of a year

Spain has  seen an exodus in the past year, with a 39 per cent increase in the number of quotes to move to the UK. Traditionally the most popular haven for British expats seeking to retire in the sun, Spain has suffered from a devastating property crash, leaving many owners with depleted equity and high living costs due to UK pensions being paid in pounds not euros.

Many expats have had their dreams shattered by the current economic crisis and are finally realising that they can no longer afford to live in Europe with the weak pound. For those who kept their options open by retaining a property in the UK the situation is not so desperate but for many who sold up completely and are now unable to sell their European home, their only option is to rent back in the UK.

We have seen a sharp decline in the number of people moving out to the continent in the past twelve months as a result of the weakening pound and stretched finances in the UK. This has resulted in many would-be expats putting their aspirations of retirement in the sun on hold until the markets recover.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , | Comments (0)

Expats and problem tenants in Spain

November 3, 2009 – 5:14 pm
Problems with tenants in Spain and Tenerife may be reduced by using an agent

Problems with tenants in Spain and Tenerife may be reduced by using an agent

According to Paragon España , part of the Paragon Advance group of companies offering tenant referencing and rent warranty in Spain, reluctant landlords in Spain are increasingly experiencing problems with bad tenants hit by the economic downturn.

It is claimed that the number of defaulting tenants and evictions have tripled in the past two years and many of the landlords who are experiencing problems are expats who moved to Spain for a better lifestyle and then became reluctant landlords. They have been forced into letting out their homes in order to be able to pay the mortgage and, for those investors who jumped on the Spanish property market, buying off plan, only to see it go into freefall before they could offload their investment, they have had their fingers burned and are having to let long term and ride it out.

Many expat landlords are unaware of the different mechanisms in place to secure rental income and often fail to implement them in their rental agreements which can leave them unprotected if the tenant does not, or cannot, pay the rent, according to Paragon España. This is where the use of a rental agent pays dividends and Tenerife is no exception to this rule.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , | Comments (0)

British Expats gain better quality of life and are financially better off

July 26, 2009 – 1:09 pm
British Expats enjoy a better quality of life in Tenerife

British Expats enjoy a better quality of life in Tenerife

British expats who have moved abroad are gaining a better quality of life and becoming financially better off.

That’s the view found by the latest NatWest International Personal Banking Quality of Life Index, carried out in conjunction with the Centre for Future Studies.

They surveyed British expatriates from across the world and discovered that, despite the global economic downturn, 98 per cent said they had made a good decision when they chose to move abroad.

For 62 per cent of people, the move abroad was triggered by a feeling of dissatisfaction at home. Life abroad is better than expected for 86 per cent, and 92 per cent claim to be happier living abroad than they were back home in the UK. Encouraging news for anyone thinking about doing the same.

It’s good news on the financial front too, as 87 per cent of expats said they believed they were better off now, despite the recession. Sixty three per cent of people had left the UK with less than £5,000 in savings, but working abroad doesn’t seem to have posed too much of a problem – seven out of 10 people now earn between £50,000 and £85,000 per year.

The research also looked at the countries offering the best quality of life. The number one spot was taken by New Zealand, which was rated top-notch for its low cost of living, low property prices and favourable tax regime.

Spain and Tenerife in particular are still very popular because of the great climate, particularly Tenerife and the quantity, price  and ease of flights from and to the UK

By Angela | Posted in General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , | Comments (1)