The saying ‘death and taxes’ is a reality that we cannot escape from. Fortunately, when it comes to taxes, there are ways to mitigate taxation. Tax is inevitable, even at retirement, but there are ways to reduce taxation of our assets at retirement and during.

Taxation examples
•    Depending on the country, some pensions allow up to 25% of the pension pot to be taken as a lump sum with no tax up to a certain amount (this applies to the UK but could be relevant in other countries depending on their taxation laws). It makes sense to take advantage of this opportunity, even if it is to reinvest it again in other wealth building opportunities.
•    Taxation could take place on all pensions received depending on where you reside – meaning your home country will deduct tax and your residence country may want their cut as well - This depends on any double taxation treaties between countries that could prevent you being double taxed.
•    If you receive multiple sources of income at retirement e.g. state pension, private pension, workplace pension, rental income, dividends etc., your tax may be higher. You may be taxed individually, but together, could be placed in a higher tax bracket, and owe more tax - Combining all your pension into a new tax efficient vehicle could reduce your taxation obligations. Your tax consultant will be able to advise on the best options for your circumstances.
•    There is usually tax owing on inheritance. 
•    There are often tax allowances for married couples.
•    Portfolios in trust have different taxation requirements.

Your financial advisor will help you set up your portfolio in the correct jurisdictions to help mitigate taxation. This depends on your individual financial circumstances and needs when you retire. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.