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Millions of people around the world dream of a new, more fulfilling life by moving abroad. Unfortunately, only a small percentage ever makes it happen.

So what is stopping the rest?

For most, I imagine, it is money. After all, if you are rich enough to live where you want, and can come and go at will, then the world is your oyster.

Most of us are not in that liberating position. Instead, we have to find a way to fund this dream life overseas.

Which is where the challenges start. Questions crop up like …

  • Am I eligible for a working visa?
  • Will my qualifications be recognised?
  • What job can I get?
  • How much will it pay?
  • Can I get my business idea off the ground?
  • What hoops will I have to jump through?
  • Is there local demand?

 

There can be so much uncertainty about making your relocation financially viable that I think many people just give up on the idea.

Seems a shame, doesn’t it?

If any of this has happened to you then Megan Fitzgerald, an expat career and personal branding coach, would love to hear from you. She is conducting a poll of current and aspiring expats to find the answer to an intriguing question: what is the biggest obstacle to building a successful career abroad?

The poll’s findings will reveal the most common problems people face, and hopefully offer some useful insights into how to overcome them.

 

To take part in the poll go to http://linkd.in/i9pnWY.

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Zürich has long-featured at the top of the list of cities offering the best quality of life in the world. Having finally visited for the first time last week, I can now see why.

Mind you, I wasn’t so enthused when I looked out the plane’s window as we came in to land. The pilot informed us (a little too cheerily, I thought) that it was -3°C, and the sky was an ominous grey.

Still, the city soon made up for it.

I had a few hours to kill before a business meeting, so I took the opportunity to amble around the Old Town, before finding my way through the winding streets to the Kunsthaus art museum.

The museum lacks the grandeur and wealth of treasures that the Louvre, National Gallery or the Prado can boast. But with a collection of works spanning six centuries – including some beautiful pieces by Canaletto, Monet and Van Gogh – it is well worth a trip.

And Zürich has a lot more to offer. The cafes, restaurants, shops, and its beautiful lake make Zürich an enviable place to live. Easy access to Switzerland’s world class ski resorts has a certain attraction too!

The Swiss advantage

And Switzerland’s appeal is not limited to its culture or sporting activities.

In its most recent annual survey, the World Economic Forum crowned Switzerland as the most competitive nation in the world for the second year running.

Switzerland was followed by Sweden, with Singapore third in the rankings. The United States slipped to fourth. The United Kingdom was 12th.

Running like clockwork

Such rankings were underscored on my way home.

The Swiss, of course, are famed for their timekeeping and efficiency. When the trains say they will arrive at a certain time they do, and to the second. They are smooth, clean and comfortable. Getting around Zürich is a cinch.

By contrast, getting back to my home in the UK was anything but smooth and comfortable. London’s Underground system was ground-breaking (literally) when it opened 150 years ago. Now though it is showing its age. There are constant repairs, and too many people jostling to get on.

The subsequent overland leg of my train journey was even worse. Broken signals, delays, overcrowded carriages. Suffice to say, it eventually took me twice as long to get from London’s City airport to home as it had taken me to fly from Switzerland to the UK.

Having lived abroad for many years, I know that nowhere is perfect.

Britain has its faults, for sure – the climate, the overstretched transport infrastructure, the lack of space, its cost of living. Yet coming back to live in the UK has helped me see it with new, more sympathetic eyes, better able to appreciate the wonderful things it does have to offer, and not just the bad bits.

Still, I can see why there is so much interest – especially among those well-paid financial types – in relocating to Switzerland.

Much of the reason may be to do with the favourable tax regimes they can expect to find in the country’s various cantons.

But I’m sure Switzerland’s long-trumpeted quality of life advantages must be as much of a draw.

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So you’ve decided to take the plunge and emigrate. Congratulations! Your next question should be how are you going to make your move a success?

Many people decide to emigrate in order to provide a better quality of life for themselves and their family – the thought of year-round sunshine, more time with loved ones, different leisure opportunities. But whatever your motivations, it is crucial you put yourself in the best financial position possible if you are to get off to a good start in your new country. And to do that, you need to give serious thought and planning to the issue of currency exchange.

OK, so it may not seem as fun as researching all about the sun, sea and sand you can look forward to enjoying. But getting a good currency exchange rate can make a huge difference to the success of your move. And if it helps maximise the budget you have to spend on your dream home abroad that has to be time well spent.

Getting the biggest bang for your buck

For some people, currency exchange may be a key factor in their choice of destination. For instance, countries in Asia, Africa and Eastern Europe with relatively weak currencies can offer great opportunities to make your savings go further.

Alternatively, among those soon-to-be-expats who have already picked their dream location, the issue will be more a matter of how to get the most from your money.

Take buying property abroad. For many expats it means exchanging your savings into the local currency of the country to where you are moving. Exchanging large amounts can be an expensive exercise though, and isn’t to be taken lightly. Therefore, many expats employ a foreign exchange broker to guide them through the process. Others simply bide their time, research the currency market, and exchange when the rate is particularly favourable.

Money matters

Foreign exchange rates are a huge factor when moving abroad – so make sure you address it as soon as possible in the decision making process.

The best advice is to do your research thoroughly. If you want help, consider using a foreign exchange broker. And if not, ensure you shop around to get the best exchange rate possible.

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As ever, money talks. The UK government may be trying to curb overall levels of immigration into the country, but for those with the cash the doors are opening wider.

At the tail end of 2010 the government’s Home Secretary announced new limits on various components of its points-based immigration system, making it harder for non-EU citizens to enter the country. The changes will take effect from April 2011.

However, it also emerged the Tier 1 Investor and Entrepreneur categories would be made more attractive to applicants. In addition, a new Tier 1 category, Persons of Exceptional Talent, will be introduced for internationally recognised people.  

No details of the changes to the Investor category were released at the time of the announcement. However, it appears one aspect will be to reduce the time it takes for a qualifying person to be granted residency.

Investor criteria

The Investors category is designed for those who intend to make a substantial investment in the UK[1]. To be eligible, applicants need:

a)      A minimum of £1 million of your own money in a regulated financial institution that you can dispose of in the United Kingdom, or

b)      Personal assets of more than £2 million, and a £1 million loan from a financial institution regulated by the Financial Services Authority.

Successful applicants receive a three year visa initially, which can be extended for a further two years. Partners and dependent children are also covered by the visa, and are free to work/attend school. After five years visa holders can then apply for permanent residency.

Residency fast-track

Under the upcoming changes, though, it appears there will be a new fast track to residency for the wealthiest. The qualifying periods look like being:

  • 5 years for those investing £1m-£5m
  • 3 years when investing £5m-£10m
  • 2 years when the investment is £10+m

 

When you’re rich, the world really is your oyster.


[1] See the UK Border Agency website for more details, http://www.ukba.homeoffice.gov.uk/workingintheuk/tier1/investor/

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A new report published by the City of London Corporation[1] suggests the lack of tax predictability in the UK is now “out of control,” and is threatening the country’s position as a leading global financial centre.

The report polled members of the banking, insurance, asset management, hedge fund and private equity communities on six factors: predictability, overall tax burden, attitude of tax authorities, network of tax treaties, complexity and cost of compliance.

Every respondent gave the UK a poor rating on predictability. It is the area where the UK fared worst compared to other countries, but which the report says is the most important factor in judging competitiveness.

The authors said surprise changes such as the introduction of the bank payroll tax and bank levy, and the increase to 50% in the top rate of income tax were creating uncertainty and changing the financial services industry’s perception of the UK. In addition, the new rates and measures meant “the UK is now seen as a high tax jurisdiction not dissimilar to continental countries.”

However, despite fears that changes to the UK’s regime would lead to an exodus of financial institutions and people to more favourable tax jurisdictions, such as Switzerland, Singapore and Hong Kong, that has not materialised in practice, at least thus far. Instead, for the time being London remains a key financial hub, attracting international investment, as well as expatriate and domestic workers.

Holding on to its position in the world as an attractive place to live and do business is the UK’s challenge going forwards. Relying on its weather as a source of appeal certainly won’t do the job!


[1] Taxation of the Financial Services Sector in the UK: Predictability and Competitiveness, prepared by Charles River Associates for the City of London Corporation, October 2010, http://217.154.230.218/NR/rdonlyres/E3CEF4F7-479B-46B4-AB93-29DF5F673B53/0/TaxationofFinancialServices.pdf

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Alan Howard, founder of leading hedge fund Brevan Howard Asset Management, has joined the expat ranks.

Recent reports say Howard, who is swapping London for Geneva, is among a number of financial luminaries to have left the UK. And there are fears many more will follow, driven by concerns about rising tax rates, a less attractive business environment, and quality of life issues.

Certainly Geneva has its attractions. Low tax is an obvious one, especially for those wealthy City types. For example, alternative investment managers (i.e. those at hedge and private equity funds) can obtain a special tax status that enables them to discount chunks of their taxable income. Indeed, Switzerland as a whole offers many tax advantages.

Then there are the lifestyle benefits – the proximity of world-class ski resorts, sailing on the country’s many lakes, the beautiful scenery, its excellent environmental record, high quality health and education systems, etc, etc.

And that is backed up by Mercer’s 2010 Quality of Living survey, which put Geneva third in its global rankings, one place behind Zurich[1].

The flipside is that Geneva also ranks as one of the most expensive cities in the world, coming in fifth in Mercer’s recently released Cost of Living survey[2].

With a reported fortune of £875 million that won’t faze Alan Howard. Still, it might give the rest of us pause for thought.


[1] Mercer 2010 Quality of Living survey, 26 May 2010 http://www.mercer.com/qualityofliving

[2] Mercer Worldwide Cost of Living survey 2010 – City rankings, 29 June 2010, http://www.mercer.com/costoflivingpr#City_rankings

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Priorities are powerful forces … assuming you’ve got them in the right order. And keeping them there requires continual monitoring.

So what are your priorities?

Most of us – myself included – get batted around like a pinball from one activity to the next. Our days are spent finishing up that urgent project at work for which the boss is breathing down our necks … seeing to the needs of our kids … phoning parents to check how they are … dashing to the shops to pick up a last-minute birthday present.

We go to bed exhausted, only to get up tomorrow and do it all over again. Lives spent scuttling from one weekend to the next, firefighting whatever today’s most pressing need happens to be.

But what about that life you’d really like to be leading? The one you keep nestled somewhere close to your heart?

We all have one, don’t we? That ‘if I won the Lottery …’ vision of how things would be in a perfect world. Where you’d like to live. How you’d like to spend your time. And with whom. The long-term dream.

Making that vision reality though takes consistent action, and time. Progressive, daily steps. And to do anything on a daily basis means prioritising.

It’s something with which I still struggle. But by persevering it’s starting to pay off. In fact I’m feeling pretty good, for I’ve finally finished revising and proofing the print version of my book on the pros and cons of moving abroad. It is now with the printer, the last step before public release next week!

It’s not been easy mind.

As with so many other people around the world, it’s been a tough 18 months.

The financial crisis has forced me to scramble for work like never before. And outside of the long work hours are my commitments as a husband and father.

As a result, it’s not always easy to find time to do the ‘non-urgent’ writing I really want, the books and screenplays that one day I hope will be my full-time occupation.

I realised though that unless I made the time, prioritised the writing in my day, it would never get done. And my dreams of being an author would go the same way.

It’s the same in all aspects of life. We all have to find time to pursue our dreams, whatever they are.

If you want to learn the piano it’s never going to happen unless you sit at the keyboard on a regular basis – preferably every day – and hammer out the notes.

How are you ever going to get your golf handicap down if you don’t go to the driving range, or get out on the course?

Ditto moving abroad. There may never be a great time to up-sticks. There are always other financial pressures, kids about to change schools, new job promotions in the offing. Valid obstacles that keep you from taking action, from grabbing that life you want.

But that’s the choice you must make. You have to seize the moment – take the requisite steps, however small, and make progress. Without it, your life will never become what you want it to be.

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It’s been a while since I’ve done any blogging for Expat Living 101. In truth, like so many other expatriates I’ve been hit hard by the financial crisis over the last year – a double whammy of soaring interest payments on our mortgage, and plummeting currency rates when converting my foreign earnings into euros. As a result I’ve had to work twice as hard just to standstill. Not what you want at the best of times, but especially when the sun is beckoning outside!

But now I’m starting up again with a new zeal … for I have just signed a contract with Lean Marketing Press to publish a print version of my book on the pros and cons of living overseas: “Should I Stay Or Should I Go? The Truth About Moving Abroad And Whether It’s Right For You.”

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