INTRODUCTION METHODOLOGY

Many private individuals approach Knight Frank To create this guide we first approached the global for advice on relocating their business and family accountancy firm BDO who provided us with a list overseas. Their wealth managers or taxation advisers of the top locations that their clients consider when can inform them of the most tax-efficient locations, looking for a more tax-efficient jurisdiction. We in but they rarely take into account the lifestyle factors turn took this list and were able to obtain the local that will make the move a successful one for more insight from our global network of offices. Further than simply fiscal reasons. thanks must also go to Mercer (www.uk.mercer.com) for their excellent Quality of life, Political Risk and That is where Knight Frank - which has a network Personal Safety surveys that are often used by clients of 417 offices with more than 12,000 staff in 58 as an initial reference point. countries – can help you and your family to make informed decisions. By working closely with our In this edition of the Global Lifestyle Review we have experienced agents worldwide and alongside the also added the incredibly important health care cost accountancy firm BDO, we have prepared an in depth considerations that play a major part in the suitability insight into the various locations that our clients are of a location. We were lucky enough to receive likely to be considering and provide a knowledge of the information from Aviva (www.aviva.co.uk/ the elements that will be important to them, such as international-health-insurance) for an estimated education, healthcare, culture and cost of living. annual policy based on a family of two adults and two children under the age of 16. We appreciate that everyone’s lifestyle needs are different, whether it’s proximity to an airport and When selecting the main subjects to review, we fine dining that matters most or being near good considered the most important lifestyle elements that international schools and part of a likeminded a client might consider. The level of entertainment community. Tax and investment may be the first is demonstrated in the number of Michelin starred part of the relocation jigsaw, but Knight Frank restaurants and the cost of a bottle of premium helps its clients to complete the whole picture. champagne. Whereas if its culture and sporting activities that a client desires then this section looks at the overall options available. Ease of access is another key area of consideration, with the distance to a major airport and especially one that allows for direct flights to the principal cities around the world.

We trust you find this report useful but if you should ever wish to speak to an expert from any of these ALEX KOCH DE GOOREYND locations then our extensive global network Partner, International Residential remains at your service.

Words by Zoe Dare Hall CATEGORY WINNERS ICON SUITE

We felt that it might also be interesting to consider the various lifestyle factors that may motivate clients at different HOURS OF SUNSHINE PER YEAR stages of life. For example, while a young entrepreneur will be more focused on political risk, client entertainment, ease of access and cost of living, a family or retired couple will have very different needs. COST OF A PREMIUM BOTTLE OF CHAMPAGNE In a 5* hotel

We therefore decided to demonstrate this by selecting these three example genres and their typical category considerations and weighted them accordingly. COST OF A CAPPUCCINO

NUMBER OF MICHELIN STARRED RESTAURANTS

COST OF A WEEKLY TRAVELCARD

NUMBER OF INTERNATIONAL SCHOOLS Within a 10km radius

DISTANCE TO THE AIRPORT Is there a major international airport within 20km and a direct flight from three of the following: London, Paris, New York, Singapore and Moscow?

AVAILABLE LEISURE PURSUITS

AVERAGE COST OF A LITRE OF PETROL

COST OF ANNUAL HEALTH CARE

PROPERTY MARKET PERFORMANCE Prime residential market performance, Annual percentage change to Dec 2015 (unless otherwise specified)

MPR MERCER’S POLITICAL RISK RANKING

MPS MERCER’S PERSONAL SAFETY RANKING

MQL MERCER’S QUALITY OF LIFE RANKING GLOBAL TAXATION MAP

EXPLANATION OF INTERNATIONAL TAXATION SYSTEMS When considering the tax implications of moving to another country particular attention should be paid to the different types of taxes. Many countries around the world offer favourable tax regimes for foreigners living in their country. These vary from a low DENMARK headline rate of tax, exemption for tax on foreign income, tax breaks on local employment income and lump sum tax regimes (a brief introduction is provided below). AUSTRIA RUSSIA

LUXEMBOURG

SWITZERLAND

UK

IRELAND THE CHANNEL ISLANDS CANADA MONACO

PORTUGAL

MIAMI GIBRALTAR

THE BAHAMAS

BRITISH HONG KONG VIRGIN ISLANDS UNITED MALTA ARAB EMIRATES CAYMAN ISLANDS

CYPRUS SINGAPORE

BRAZIL AUSTRALIA

LOW TAX / NO TAX (SUB 20%) Countries who offer a headline rate of tax on income and capital gains of 20% or less. NEW ZEALAND

• British Virgin Islands FAVOURABLE TAX REGIME FOR NEW RESIDENTS • Cayman Islands REMITTANCE BASIS Countries who offer tax breaks for new residents to • Hong Kong Countries who offer a regime whereby foreigners LUMP SUM their country on passive income and capital gains, • Luxembourg can pay tax on their foreign income or capital Countries who offer a lump sum tax regime where an or on pensions and/or income from employment. • Monaco gains in accordance with the amount remitted agreed amount of tax can be paid on an annual basis The above information has been provided to us by BDO • Russia to that country. regardless of actual income earned and • Australia (www.bdo.co.uk). In parallel with this report, BDO have also • Singapore capital gains released. • Austria • Denmark prepared The Global Opportunities Report which provides • The Bahamas • Ireland • Brazil • Miami advice on the various tax elements of each location. • The Channel Islands • Malta • Gibraltar • Canada • New Zealand Further information can be found at: • United Arab Emirates • UK • • Cyprus • Portugal www.bdo.co.uk/services/tax/private-clients. NASSAU, BAHAMAS GEORGETOWN, GRAND CAYMAN KEY: MALTA MOSCOW, RUSSIA

DATA NOT AVERAGE 4.9% $2.16 $23.3 $0.58 $6.57 AVAILABLE $0.90 2878 $7.50 $175 $2.75 $150 ASKING 3000 $3.28 3098 QUALITY OF LIFE LUXEMBOURG 1731 $4.83 5% $1.53 $5.36 PRICE $1.5 2.3%

GOOD QUALITY OF LIFE

0 2 0 0 3 10 KM 1 10.5KM $17,531.77 2.4KM 3 4 $17,520.27 12 KM OUTSTANDING $166 DATA NOT $8,765.92 AVAILABLE $165 QUALITY OF LIFE

MIAMI

All prices shown in US$

VANCOUVER, CANADA RIO DE JANEIRO, BRAZIL MONACO GIBRALTAR LIMASSOL, CYPRUS DUBAI, UAE

$0.86 $189 $8.49 $5.36 $3.02 $17.38 2598 $1.58 $11.05 $200 2583 € $4.16 DATA NOT N/A 3900 N/A $0.46 $30.00 1938 $1.04 $1.31 2778 $1.33 3481 24.5% -1.4%* 10% $1.70 AVAILABLE -1.2%* $4.40 -5.5% $5.00

0 0 14.6KM 40+ KM 4 1 0 16 40+ KM 0 0 $10,508.55 9 DATA NOT $9,197.93 30.5KM 0 7 10 KM 16 40+ KM $444 $13,584.62 $228 AVAILABLE $195 $9,203.96 $158 $6,856.21

MIAMI, USA TORTOLA, BVI ST. PETER PORT, GUERNSEY LONDON, UK COPENHAGEN, DENMARK FARO, ALGARVE SINGAPORE HONG KONG

$100 DATA NOT 1% $0.53 $0.85 N/A $211 $1.33 $4.25 $12.88 $515 3072 $30.00 $150 2920 $3.18 AVAILABLE $3.64 $46 $16.32 WESTERN 3036 $7.00 $138 $6.00 $1.43 $1.62 1410 $4.53 ALGARVE $3.90 $10.86 6.4% -5% $4.00 -8.3%* 1864 1% 10.8%* $1.62 1650 $1.60 -2.1% $1.44 2022 -3.6% $1.90 1936

0 0 100+ KM 0 2 0 24KM 1 19.2KM 5 $17,512.74 40+ KM 0 8KM 4 5.2KM 27.6 KM 0 36.2KM $17,524.82 $9,205.49 65 12 16 $14,467.72 DATA NOT $14,469.48 $554 $10,511.19 $10,521.13 61 150 AVAILABLE $101 $113 11

LUXEMBOURG VIENNA, AUSTRIA DUBLIN, IRELAND , SWITZERLAND ZUG, SWITZERLAND , SWITZERLAND AUCKLAND, NEW ZEALAND SYDNEY, AUSTRALIA

$7.03

$2.84 $17.70 $2.95 $18.00 525 $18.20 $180 2050 $76.56 $0.80 $2.68 $128 $1.27 $200 $1.29 $20.50 $1.35 $19.50 $1.16 $3.36 2592 $60.00 5.1%* $1.33 $4.20 $1.57 1872 $4.00 1800 $5.26 -3.7% $1.55 1828 $6.50 $335 1550 -1.1% 1930 0.6% -2% -10% 10.2% 14.8%

0 40+ KM 18.6KM 40+ KM 3 5 40+ KM 4 20KM 13 8 10KM 4 7 4KM 10 5 0 3 $6,854.28 18 10 DATA NOT 13 $14,472.46 $14,469.08 $14,467.72 13 $14,309.66 7.8KM $9,196.54 AVAILABLE $8,758.85 $118 $100 $120 $138

*PRICE DATA RELATES TO MAINSTREAM MARKET CASE STUDY: SWITZERLAND A MICRO VIEW

By Zoe Dare Hall

A London-based client once told us that her tax which has a distinct spirit and lifestyle depending advisor had recommended she move to Zug because on whether it is Francophone, Germanic or like it has the lowest tax rate in Switzerland. Beyond that, a little outpost of Italy. Of southern and western neither she nor her advisor knew anything about the Switzerland’s French-speaking areas, Geneva and German-speaking lakeside town. its lakefront towns such as Montreux or Lausanne This was a lady who loved having theatres and offer the greatest lifestyle attractions – or for those restaurants on her doorstep in Knightsbridge. Zug, who want to escape it all, the western part of the while beautiful, is a quiet, small provincial town. In Valais canton, which includes resorts such as summer it’s immensely picturesque but in winter Crans Montana and Four Valleys ski towns such can feel isolated among the mountains. Should that as Nendaz and Verbier. client wish to visit museums or Michelin-starred For those who want a minimal journey between restaurants, she would need to go to Zurich, an their front door and the runway, a cosmopolitan, hour’s drive away. Tax may be the primary driver international community and a social life that takes in for many of those who decide to move to Switzerland, culture and fine dining, Geneva is the obvious choice. but there is then a careful choice to be made over At weekends you can be on the slopes in Chamonix which Swiss location to make their new home. For in an hour and Verbier in two hours. a small country, the cultural and lifestyle differences Families will be drawn to ’s prestigious between its regions are vast. To assume life in and proliferating international schools, including German-speaking Zug is comparable to a The International School of Geneva, where the French-speaking town on Lake Geneva would be International Baccalaureate (IB) began and the akin to expecting to find a similar lifestyle in Lisbon globally renowned Institut Le Rosey. The sense of and the Algarve. security, cultural environment and range of outdoor pursuits from mountain hiking to boating also makes the Lake Geneva region a popular choice for families. Whatever stage you are at Older buyers who like the idea of an airport - whether an entrepreneur accessible enough for family to visit, but are in no hurry to get there, may gravitate to Lausanne, a who wants airport access and lakeside town famous for its wine and culture entertainment on tap, a family (a 45-minute drive from Geneva). Further away, with average property prices around half those whose priorities are good of Geneva, is the elegant watch-making town of schools and outdoor activity, Neuchâtel. Or perhaps Crans-Montana, which offers or a retiree for whom security, winter , summer golf and the health benefits of being in the mountains. healthcare and a likeminded Zurich – German-speaking, like two thirds of community top the list – it’s Switzerland - is the country’s banking capital, perceived as a serious city in which to do business. crucial to understand the day to Its property market is typically stable and strong, day life of a destination. avoiding the price rises and falls seen in Geneva in recent years, and the city has a youthful energy. But Zurich does not offer the lump sum taxation Knowing where it’s possible to live on the lakefront, scheme that draws most international buyers. find a restaurant that’s still open at 11pm or enrol Instead, they will need to look an hour or so out of the three children in a good international school could be city in small towns such as Zug or Lucerne, whose the keys to making the move work or not. large houses near the lake cost a fraction of those in In Switzerland, there is an immediate choice to make other Swiss regions but whose locations lack Zurich’s between its three main languages – French, German buzz. Bern, the Swiss capital, is an alternative, and Italian. Not only do clients tend to feel a natural offering the benefits of city life within easy reach pull towards one over the others, language is, of of Lake Neuchâtel and the resorts in the Bernese course, key to the culture of a region, each of Oberland, such as . For an Italian lifestyle with Swiss efficiency there’s the canton, part of Switzerland since the 1500s but resolutely Italian in its culture and temperament. The region’s micro-climate, café culture and festivals may appeal to retirees and properties in its key resorts of Locarno and Lugano often have wonderful lake views. But the lack of an international airport – Milan, an hour away, is the nearest - and just one over-subscribed international school may deter those whose priorities are business or family. The point is, if you are planning to move to Switzerland, tax is merely the starting point. Each canton, town and village will appeal to a different kind of buyer. But what is certain is that in this compact country, there is a home to suit everyone. Just don’t make the leap before you have learnt CONTACTS: which one is right for you.

ALEX KOCH DE GOOREYND Partner, International Residential +44 20 7861 1109 [email protected]

ASTRID ETCHELLS Important Notice 1. No reliance on contents: This is only a general review of lifestyle elements relating to some locations which may have been suggested or recommended to you by your external advisors. It is not definitive and is not intended to give advice. It must not be relied upon in International PR any way. So far as applicable laws allow, no responsibility or liability whatsoever will be accepted for any errors or for any loss or damage resulting from any use of or reference to the contents. As a general review prepared using information from various people, including several Members of the Knight Frank Global Network and external sources, this review does not necessarily represent the view of Knight Frank in any respect. 2. Independent advice: You must take specific independent advice from your professional advisors in all cases. +44 20 7861 1182 In preparing this review, we do not imply or establish any advisory or professional relationship. We do not have any relevant authorisation from the Financial Services Authority to undertake regulated activities. 3. Intellectual property: © Knight Frank LLP 2016. All rights reserved. Copying, modification or reproduction of this review in whole or in part is not permitted without the prior written approval of Knight Frank LLP. 4. General: Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. [email protected] Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. 5. Members of the Knight Frank Global Network: References to Knight Frank may be to, or include, any Member of the Knight Frank Global Network. Those Members are Knight Frank LLP and its direct subsidiaries which provide services in the UK and an international network of separate, distinct and independent entities or practices which provide services internationally. No Member has any authority to bind or represent any other Member. No Member operating under the name of Knight Frank (including Knight Frank LLP) is liable for the acts or omissions of any other Member.