Hi All. I currently live in the UK and am employed by a UK company. The company I work for has offered me a position in Taichung on a Taiwanese contract and I have got the option to move to Taiwan or fly to the UK and work extended times periods over there meaning I will be there for more that 186 days a year. I have been searching high and low for answers about taxation and what the best options will be not to loose income.
Is there anyone out there who would be so kind to give me some advice please?
I do have a family and may need to consider an international school if I move there. I have done some work in Taiwan the last 6 months but that is just traveling to and from. I do love Taiwan and would not mind living there but need to make wise decisions. Are the any expats with does work in Taiwan but travel back to the UK when they are off. I would like more info on taxation…
Are they offering you a expat package that increases your pay?
Some things worth negotiating about.
Subsidized travel back to the UK once a year for the family.
Housing benefits
Subsidized education for the kids.
I’m self employed in the UK and want to switch my tax residency to Taiwan because the tax burden is less for me for my specific situation paying myself in dividends.
My advice is to not come if you’re not getting a salary bump and or some good benefits that I mentioned above. Do you know how expensive flights are from Taiwan to the UK for a family? It’s not cheap and I assume you all would like to visit home at least once a year.
If you were single, you might find value in coming for an adventure for yourself. But with a family, you should make a financial one that’s good for the family in my opinion. There is value is coming for the cultural aspect and language learning for the kids. But I would make sure you get enough of a salary to actually get the most out of it.
Taiwans cost of living is so much cheaper than the UK if you adapt and live like a local. That 20% VAT is really burdensome to me as a business owner and consumer. Things in Taiwan costs less for the most part. But your kids will probably need a private education for example which is not cheap. There are costs to maintaining a certain lifestyle as an expat in Taiwan.
Cost are secondary thing. Groceries are 2x uk prices by my feeling, rest of things are cheaper. . Hotels and traveling around island is amazing. Expect big upgrade from low UK standards. In Taiwan you can afford to take family on weekend trip all the time. Eat outside, sleep in decent hotel. Taiwan is well known to be convenient
Taiwan has zero capital gain tax and zero taxes on dividend of Taiwanese stocks. Do you have significant capital which you can move overseas? Are you interested into investing? You can also buy investing apartment in Taiwan. Over all real estate is a bit over heated like all around the world, but like always opportunities are there for those who create them.
Most important question is will your wife like it? Or at least not hate it. Taiwan is hard for typical lady from West. What is the point to put kids in foreign school? Let them learn mandarin and explore culture.
Not quite. Groceries are not too expensive in the UK unless you’re in London. But eating out and everything else is. He might even find groceries costing more in Taiwan if he wants to have more of a western diet.
But eating out and just generally cost of living is low. Utilities is so cheap in Taiwan and incredibly high in the UK.
And when it comes to taxation Taiwan has weird income tax discounts, creative accounting. I know some people are taxed less than 20% on their 3 millions twd yearly income as employed by company. But like always taxes depends on your family situation.
Some great advice there. Thank you very much for both of your inputs. Yes, as I mentioned I am employed in the UK and have just returned from a 3 month work trip to Taiwan. Absolutely love the place and culture but do not have a clue of how the real life is out there by living there and paying my own way.
im in a simiar situation (working for foreign company on local contract ).
Tax wise : you will pay taxes in Taiwan, which is most probably less tham what you would pay in the UK.
Salary: make sure you are not being low balled, key expenses are education (international schools ) , rent and home visits. if your kids are kindy age, they can go to local private kindy, cheaper than international school , but school age kids will cost a lot. check fees of the private schools in Taichung before you commit to anything.
for a family of 4 in Taipei, with kids in international school plan for an annual budget of 2.5 to 3 million ntd a year.
pension and social security in UK: make sure you keep contributions, you will return to the UK eventually, and stopping these might harm your future retirement.
