Expats could face unexpected tax complications as a result of the lockdown restrictions, deVere Group has warned.
As a number of expats find themselves stranded in other countries where they don’t normally reside due to the closure of national borders, they could find that their residency status has changed, the firm said.
Nigel Green, chief executive, deVere Group, explained: “Being stuck somewhere you hadn’t planned to be for an extended period of time could mean that you inadvertently become a tax resident there. This could impact your tax planning strategies which, in turn, could affect other personal finance matters including retirement planning, estate planning and trusts.
“The potential for unexpected tax complications is high, especially as each jurisdiction has its own individual regimes and regulations when it comes to cross-border tax planning. Also because it is widely predicted that taxes are expected to rise.”
Green said there was potential for a significant number of people to be affected, not just the very wealthy.
He added: “Typically there will be a series of legitimate solutions to reduce being hit with tax complications. But to avoid burdensome, complex and costly issues arising, the sooner those who could be impacted seek advice, the better.”
