In the video Green discusses the Brite Advisors scandal, deVere’s new extensive investment operation in Mauritius and hits back at critics as he steadfastly defends the company’s track record on best practice and international advice.

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Part one is premiered on II on Tuesday June 4 at 9am. Part two will be revealed the following day at the same time Wednesday June 5 at 9am, exclusively for II and IA readers.

The Novia Global Stocks and Shares Isa has been designed to help expats invested in Isas who can no longer add additional funds, and any gains derived from the Isa, as they could be subject to tax in their country of residence – a concept called ’suspended animation’.

The offering is intended to plug what Novia Global called “a significant gap in the market” by allowing Britons who have moved or work abroad to have their Isas managed alongside their other assets.

According to Novia, the new Isa is also suitable for expats who plan to – or who could – return to the UK and would subsequently benefit from a tax-efficient product.

See also: Fuel Ventures VCT launches £50m maiden raise

Novia was recently approved by the HMRC as a UK-registered Isa manager, meaning expats can transfer their existing Isas and incorporate them into broader Novia accounts.

“The problem of expats’ Isas entering what amounts to a state of suspended animation has been recognised for some time,” said Chris Skelhorn, sales director at Novia Global.

“We know from our conversations with advisers and clients that it has been a matter of frustration, particularly since so few meaningful efforts have been made to tackle the issue,” he added.

“It’s still the case that only UK residents can set up or contribute to an Isa. The starting point here is to transfer an existing Isa, not to open a brand new one.”

Historically, overseas Americans have encountered challenges in efficiently managing their US-based assets, primarily because of limited offerings and the complexities of adhering to US and local financial regulations.

The underserved market of Americans abroad is an opportunity in waiting, but for many international financial advisers, establishing the right US partnerships and gaining access to compliant products and services has been elusive.

Understanding the opportunity

The sheer size of the American diaspora abroad is staggering. Millions of US citizens live outside their homeland, from career-driven expatriates to retirees seeking sunnier shores. While their geographical locations may vary, their financial ties often remain deeply rooted in the US.

These individuals hold substantial assets like real estate, investment portfolios, and retirement accounts, all of which require expert management to ensure growth, tax efficiency, and regulatory compliance.

However, most international wealth managers have traditionally focused on assets within their borders or in familiar international markets, inadvertently sidelining the unique needs of Americans abroad.

The challenge: The missing link

The primary challenge in servicing Americans abroad is twofold:

1. Regulatory Hurdles: The US has stringent regulations governing the financial industry domestically and abroad. For IFAs, navigating the complexities of the US tax code, FATCA (Foreign Account Tax Compliance Act), and other regulations can be daunting.

2. Lack of Suitable Products: Even when IFAs are familiar with US regulations, they often find it challenging to source US-compliant financial products and services. This is especially true for investment vehicles that align with the diverse needs of Americans abroad.

Evolution in the US marketplace: The new wave

Realising the potential lying dormant in the form of US assets owned by Americans abroad has spurred a paradigm shift. Recognising the gap, several US-based financial institutions have begun extending their wings, forging partnerships with international wealth managers.

This evolution brings with it several advantages:

Tailored Financial Solutions: Collaborations between US financial institutions and IFAs have given birth to a suite of tailored products. These solutions, ranging from investment funds to estate planning services, are specifically designed with the American expatriate in mind.

Expertise Sharing: These partnerships are not just about product offerings. They are fostering a culture of knowledge sharing. IFAs now have access to extensive training and resources, allowing them to easily navigate the intricate US financial landscape.

Integrated Platforms: Modern technology has played a crucial role in bridging the geographical divide. Integrated digital platforms enable IFAs to seamlessly manage their clients’ US assets, offering real-time data and analytics, thus enhancing decision-making and client satisfaction.

The road ahead: Forging strategic partnerships for a global future

The US marketplace has made significant inroads in addressing the complex needs of Americans residing abroad. However, the sheer scale of the opportunity remains largely untapped, underscored by an increasing demand for tailored services suitable for this distinct group.

The call to action for discerning IFAs has never been clearer. Forming robust partnerships with reputable US-based firms emerges as the most impactful move.

Such alliances not only provide access to specialised financial products and deep insights into US regulatory frameworks but also usher in expansive revenue opportunities. By leaning into these collaborations, IFAs stand to diversify their service range and elevate their standing as true titans of global finance.

The significant market potential of Americans abroad and their vast US holdings heralds a bright prospect in our dynamic financial era.

The US marketplace’s continuous evolution promises a future where the world of finance is more cohesive and integrated. Success for IFAs hinges on recognising these shifts, establishing strong US affiliations, and scaling new professional summits.

This article was written for International Adviser by Janice Diaz, business development executive, North Bright Consulting

Recently, ex-Prime Minister António Costa announced the government had decided to end this ten-year tax break, stating it was now “a measure of fiscal injustice that is no longer justified”.

This regime is due to close to new arrivals from 31 December 2023. However, those already registered as NHR when the State Budget Law comes into effect will continue to benefit for however many years remain in their ten-year qualifying period.

In addition, those who satisfy the conditions for the regime on 31 December 2023, hold a valid residence visa, and register as NHR by 31 March 2024 will also qualify.

However following the resignation of Portugal’s PM it is unclear if the ending of NHR will go ahead but people are still being urged to apply as soon as possible amid the uncertainty of the future of the regime.

Starting the Portuguese visa application process now – a compulsory requirement since Brexit – is unlikely to produce a visa passport stamp before the end date, so for all of those who could be caught out by the speed of changes and those who plan on retiring there in the future, will Portugal retain its attraction?

Suffice to say, while NHR has been the overriding headline in attracting new arrivals, there remain many other factors – including other tax benefits – why UK retirees will continue to flock to Portugal in the future.

New tax regime

From 1 January 2024, a new limited preferential tax regime will begin, assuming Parliament approves it.  It is designed to attract professionals in certain scientific, teaching, and research areas, who will benefit from a reduced 20% tax rate on earnings from employment or self-employment.

Inheritance tax and gifts tax were abolished in January 2004, and while they were replaced with ‘Stamp Duty’ (a transfer charge of 10% on the value of assets received by the beneficiaries of the deceased), it is not payable where the beneficiary is the spouse, child or parent of the deceased. In effect, there will be no tax due in Portugal on the majority of transfers on death.

Wealth tax arises in various EU states. Portugal has no wealth tax, but does extend its version of council tax, to a charge on higher value property. No liability arises for a couple who own property worth less than €1.2m (£1.05m, $1.3m). Any value in excess of this amount is only liable at 0.7% a year.

Single life assurance policy

Perhaps most importantly for the retiree who will often rely on drawing down capital and investments to live off, Portugal provides significant tax benefits for those who use an investment vehicle known as a single premium life assurance policy, also known as a Portfolio Bond to hold their investments.

It is a form of life assurance contract, but where the life assurance is minimal (often only 1% more than the market value of the investments within the contract), but where the ‘life assurance wrapper’ enables the investor to obtain the significant tax benefits accorded to such investments in Portugal.

No tax liability arises if there is no withdrawal from the policy, but if there is, the tax due should be significantly less than if the investment portfolio was held personally.

As an example, and in very round numbers, if you invested €100,000, and in 12 months it was worth €110,000 by way of income and gains during the year, then you would normally pay tax on the €10,000. If the same investment was made via a portfolio bond, then no tax would be payable unless a withdrawal was made.

If you had living expenses of €11,000 and withdrew this amount, then tax is only payable on €1,000, as this represents the same percentage of profit as on the whole balance (roughly 10%).

Assuming the same figures, if the withdrawal is only taken after five years, only 80 per cent of the taxable element is liable to income tax, so €800 would be taxable. If it was after eight years, only 40 per cent is liable, so €400.

The rate of tax is either 28% or the scale rates, and you can decide annually which is the more beneficial, depending on other income in the year. Assuming 28%, a liability of €280, falling to €224 at five years and €112 at eight years, is a lot less than €2,800.

This investment vehicle should mean most retirees can continue to live very tax efficiently, without their overall wealth being reduced by wealth taxes, and managing to pass on the majority of their estate to their beneficiaries.

The weather, lifestyle and lower cost of living means Portugal will remain a desirable place to retire, and the ongoing benefits of its tax regime means UK nationals will continue to find they can minimise their tax exposure in several different ways.

This article was written for International Adviser by Jason Porter, director of specialist expat financial planning firm Blevins Franks

PM António Costa resigned earlier this week amid his involvement in a corruption case in which he is being investigated.

This has led the government’s legislative agenda to be put on the backburner which included getting rid of the NHR tax scheme.

Designed to attract wealthy investors to Portugal, it had been set to close to new applicants by the end of 2023.

However, following recent events this will no longer be happening which will come as a huge relief to many British expats residing in the country.

Those wishing to take advantage of the tax’s unexpected survival are still being urged not to delay in applying amid claims it could be short-lived due to pressure from both inside Portugal and the European Union, Portugal Pathways reported.

To read more on this topic, visit: Just 27% of NHR wealthy expats in Portugal prepared for financial future beyond 10 years

Aziz, NHR tax advisor in Lisbon who is part of Portugal Pathways, said: “Because the current government has resigned, its legislative programme which was due to be approved in parliament has to be declared null and void.

“Which means the proposals to end the NHR tax regime are dead in the water too. But probably not for too much longer.

“By the time things have settled, I think we’ll be well into 2024. However, I think it would be a surprise for the NHR tax scheme to survive under a new administration, so while it may be extended perhaps up to the middle or end of 2024 I would urge anyone looking to take advantage of the tax scheme to act fast.”

Steve Philp from Portugal Pathways, added: “We’ve gone from a mad dash to get NHR and, separately, visa applications in by the end of the year to a bit of breathing space. But we think it will probably be just that.

“We would advise anyone looking to take advantage of the NHR tax regime to act now. Get advice, but don’t think you can wait six months because the chances are the NHR tax benefits will still close to new applicants at some point in 2024.

“The sooner you can get the ball rolling the more confident you can be in terms of your financial and life planning.

“We have seen incredible pressure on the professional supply chain from law firms, tax advisors, NHR and visa specialists, wealth management and real estate companies. This is unlikely to change at least in the short term as more and more people see the opportunity that was thought lost with the old deadline.”