Category: Global Relocation

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Top 3 European Countries for Global Expansion

Many companies want to know what 3 European countries rank highest for global expansion. Knowing where to focus their efforts helps a company develop actionable strategies. Several European countries are taking significant steps to encourage business investment. As a result, opportunities are increasing for significant and successful global expansion in Europe.

The top 3 European countries for global expansion are France, Germany, and the Netherlands. These countries all recognize the role of investment in creating job opportunities and adding to their social security programs.

France

France has taken an activist approach to promoting investment and global expansion. Several reasons to invest in France include grants and support mechanisms for innovative entrepreneurs, research tax credits, and high-level infrastructure. President Emmanuel Macron has been working to invigorate the economy in France. Elected on a centrist platform, Macron has pledged to:

  1. Reduce taxes for businesses and investors
  2. Ease the country’s rigid labor regulations
  3. Raise the minimum wage

Some protests and unrest arose in 2018 due to concerns over environmental tax policies. Although this led to declining consumer sentiment, economists are forecasting full-year Gross Domestic Product (GDP) growth of 1.4% for 2019. Analysts have confidence that continuing investment as well as President Macron’s new fiscal measures will promote global expansion.

Germany

German Chancellor Angela Merkel will resign her position in 2021 after her fourth term in office. Although partly due to the Christian Democratic Union (CDU) election losses, Chancellor Merkel remains in office for several more years to continue policies that propel Germany’s economy forward. Central to these policies are the German government’s focus on:

  1. Low unemployment
  2. Increasing wages
  3. Tax cuts for businesses and households
  4. Infrastructure and other investments in East Germany

While Germany does have low unemployment, there are regions such as East Germany where unemployment is a significant issue and business investment is welcome. Inequality in incomes and opportunities are challenges for the German government, and the nation is keen to promote global expansion and trade with a “Powerhouse Eastern Germany” message. Political uncertainty and exterior issues such as Brexit may affect the nation’s economy. Economists are forecasting full-year GDP growth of 1.4% for 2019.

The Netherlands

The Dutch government’s 2019 budget and plans significantly promote the economy while protecting public finances. The Third Rutte cabinet is a coalition government of four separate political parties. Prime Minister Mark Rutte presides over the cabinet, and is instrumental in formulating the coalition’s governing agreement with the appropriate name of “Confidence in the Future.” The Netherlands economic expansion overseen by the coalition is driven by several policies that promote:

  1. Low unemployment
  2. High level of consumer confidence driving household consumption
  3. Tax cuts and increased tax credits for households
  4. Tax cuts for businesses leading to increasing business investment
  5. Infrastructure investment spending measures by the government coalition
  6. Expanding exports

The coalition government recognizes risks including healthcare spending, Brexit, and geopolitical issues may impact the Netherlands economy. However, economists are forecasting full-year Gross Domestic Product (GDP) growth of 1.9% for 2019. This bodes exceptionally well for companies pursuing global expansion.

What Should Employers Expect for Global Expansion?

Employers should expect that France, Germany, and the Netherlands will continue to be the countries of preference for global expansion. All three countries are actively pursuing business investment and taking action to increase the attractiveness of their respective economies. Companies seeking to increase their strategic business investments should examine these three countries for global expansion.

What Should Employers Seeking Global Expansion do?

Employers should examine France, Germany, and the Netherlands to understand how each of these countries offers their company the best solution for investment. All three countries have a number of helpful resources available for companies seeking global expansion. Companies looking for future growth opportunities should look at each of these countries as offering the greatest return on their business investment. Relocation Management Companies (RMCs) can provide expert assistance to employers looking to enhance their company’s global recruitment and relocation.

Conclusion

The Global Mobility Solutions (GMS) team of global relocation experts has helped thousands of our clients determine how to proceed with their global expansion plans. Our team can help your company by using industry best practices to design your relocation program to enhance its business investment in France, Germany, or the Netherlands. This will increase your company’s ability to attract and retain new hires and relocating employees in these countries.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Contact our experts online to discuss your company’s global expansion plans, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Germany Welcomes Foreign Job Seekers

Germany is welcoming foreign job seekers to ease a shortage of workers the nation is facing. The country is easing immigration rules in a bid to attract many more foreign workers seeking employment in Germany. The shortage of workers threatens Germany’s economic growth as companies are unable to hire and expand operations.

How many immigrants does Germany need?

The Institute for Employment Research (IAB) and the Coburg University of Applied Sciences forecast that Germany will need immigration from non-EU countries just to keep its labor force at a constant level. Depending on the scenario, Germany may need from 276,000 to 491,000 foreign job seekers from non-EU countries every year, or up to nearly 15 million non-EU immigrants by 2050.

What drives Germany’s need for foreign job seekers?

There are several factors driving Germany’s need for foreign job seekers. The study’s authors indicate the actual labor force demand is difficult to forecast. However, they cite factors including:

  • Aging and Shrinking German Population
  • Decline of EU Immigrants to Germany
  • Need to Secure the State Budget
  • Support of the Social Security System

Germany is in a difficult demographic situation. It has the oldest population in Europe, and a low fertility rate. By 2019, Germany is forecast to have fewer people under the age of 30 than people over the age of 60. This situation will certainly lead the nation to negative population growth. The forecast is for German population to decline by over 10 million people by the end of the 21st century.

However, the ability of Germany to absorb foreign job seekers can be questionable. Many migrants seeking asylum in Germany are unable to obtain jobs, even though the government has employment programs in place to provide assistance.

What is the new German skilled labor immigration law?

The German government’s new skilled labor immigration law is known as “Fachkräftezuwanderungsgesetz.” The goal of the law is to facilitate the immigration of foreign job seekers  from countries outside of the European Union (EU). This is the first immigration law of its kind in Germany. Adopted in December 2018, the new law uniformly defines the concept of professional workers, for both academics and those with vocational training. Aspects of the law allow for foreign job seekers to enter Germany if they meet certain requirements.

Requirements for foreign job seekers to enter Germany

  • Must have sufficient qualifications and an employment contract.

Or

  • Are professionals with vocational training who are looking for a job without an employment contract, who:
    • Are eligible for admission for up to six months.
    • During the six months, can participate in the program’s trial period of up to 10 hours per week.
    • Must have sufficient language skills for the desired activity.
    • Must be able to earn a living during their search.

What does this mean for asylum seekers?

When Germany rejects asylum seekers, they cannot switch into the immigration process for labor with skills. However, anyone who has worked for at least 35 hours per week, for at least 18 months, and has been allowed to stay in Germany for at least one year, is offered a two-year employment toleration.

German businesses generally support this measure. However, German employers state that the most important factors in hiring are knowledge of the German language and secure residency status. Integration into German society is an important factor for asylum seekers to be successful as foreign job seekers. Many successful job holders complete an integration and language course.

What should employers expect regarding foreign job seekers?

Employers in Germany should expect to see an increase in the number of foreign job seekers from non-EU countries. They should also expect to see a rise in the need for integration and language courses. Employers should offer assistance programs to help new hires assimilate into the company and German society.

What should employers do?

Employers in Germany should review their company’s growth plans and requirements for jobs across all levels of skill sets. They should also determine how their company’s growth plans will impact the jobs required to meet business plans and goals. Employers should consider developing apprentice programs and structuring jobs to appeal to foreign job seekers.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees across the world. Our team can help your company determine how to benefit from Germany’s new skilled labor immigration law and attract highly skilled foreign job seekers.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

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Upcoming Skills Gap in United Arab Emirates Requires Workforce Planning and Education Reforms

Effective workforce planning and education reforms in the United Arab Emirates (UAE) will help the seven emirates address an upcoming skills gap in their labor market. The Knowledge and Human Development Authority (KHDA) expects 40% of current jobs to disappear from the market over the next decade.

The decline of current jobs will impact the labor market across the range of all seven states within the UAE:

  1. Abu Dhabi (the capital of the UAE)
  2. Ajman
  3. Dubai
  4. Fujairah
  5. Ras Al Khaimah
  6. Sharjah
  7. Umm Al Qalwain

Fourth Industrial Revolution Helps Create Upcoming Skills Gap

All of the emirates are experiencing the effects of the “Fourth Industrial Revolution.” This revolution reflects the velocity, scope, and systems impact of a digital transformation that is changing economies, jobs, and work as it is currently known. Characteristics of the revolution include a fusion of technologies across the physical, digital, and biological spheres. As a result, the revolution impacts many areas, including:

As a result, many current jobs will disappear in the future, and employees are facing an upcoming skills gap. New jobs will appear that require skills applicable to the digital revolution’s needs.

How is UAE Planning for the Upcoming Skills Gap?

KHDA recognizes that new jobs will emerge in the labor markets, and these jobs will require technical skills. As a result, KHDA notes that a 10-year visionary planning effort must be undertaken to find solutions. KHDA believes these solutions will be found in several areas, including increasing family involvement, understanding the growing economy’s job requirements, and identifying future opportunities.

A strategy shift to address the upcoming skills gap will also require changing the education system. This change will equip residents with the appropriate technical skills that will enable them to successfully obtain new jobs in the future. As the KHDA recognizes what needs to be done, the organization and other UAE entities note the need to focus on education as well as practical, working-knowledge skills. Ideas in the planning stage include using the final year of education for internships and assignments at companies.

What does this mean?

The UAE recognizes that the digital revolution will create new job requirements. They also recognize at the same time that current jobs will disappear. This creates a need for appropriate planning to address the upcoming skills gap. Additionally, emirates growing at exceptional rates such as Dubai may have a surplus of jobs that require new technical skills. This surplus of jobs may require transferees from outside the emirates to relocate to the region in order to sustain economic growth.

What should employers expect?

Employers in the UAE should expect that current jobs may decline and employees may face an upcoming skills gap. Employers should also expect a rise in the need for new jobs that require new and extensive technical skills to meet the needs of the digital revolution.

What should employers do?

Employers in the UAE should review their company’s growth plans and requirements for jobs across all levels of skill sets. They should also determine how their company’s growth plans will impact the jobs required to meet business plans and goals. Employers should consider how they can address current employees who may face the upcoming skills gap. They should focus on training, education, and retaining employees who have valuable company experience and talent. Also, employers should review their relocation programs to determine how to present their company’s opportunities in the best light to attract highly skilled new hires and transferees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees across the world. Our team can help your company determine how to plan for the UAE’s upcoming skills gap and its impact on employees, new hires, and transferees.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Skills Gap in the United States can be Mitigated with Relocation, International PEO

Many sources recognize a skills gap in the United States. A growing economy generates job opportunities and needs candidates to fill those jobs. When job opportunities expand beyond the local population’s ability to fill those jobs, employers must examine other options. A skills gap affects several industries and locations in the United States.

What can a company do when it is unable to find candidates with the requisite skills? There are several avenues a company can explore when seeking to fill job opportunities. Many companies are able to continue growing by expanding their talent recruitment program’s capabilities. Creative solutions to hiring challenges can help a company achieve success.

What is the Skills Gap in the United States?

Examining the skills gap in the United States shows that technology is driving a need for workers to have knowledge of computers in order to perform what used to be basic job functions. Basic job functions such as following a written set of instructions to mix materials now require computer knowledge to perform the same task. As a result, automation may increase speed and accuracy. However, it also requires a higher degree of knowledge to operate computers and machinery. This is one aspect of the skills gap. Politicians, educators, and employers increasingly focus on STEM programs to address this part of the skills gap. STEM curriculum educates students in science, technology, engineering, and mathematics in a cohesive approach based on actual applications.

Another aspect of the skills gap relates to human interaction and social skills. While much of society increasingly focuses on STEM programs, technology such as powerful Artificial Intelligence (AI) is more likely to automate at least some of these areas. Employers increasingly want written communication, oral communication, team-building, and leadership skills. These soft skills are unlikely to be easily overtaken by AI. As a result, they offer the promise of job stability for employees over a longer period of time.

How Can Employers Mitigate the United States Skills Gap?

There are several ways employers can recruit top talent in a tight job market, and mitigate the impact of a skills gap in the United States:

  1. Leverage social media to expose job opportunities to prospects on these platforms. Passively posting positions or actively presenting via digital ads when seekers enter specific terms into a search engine are all shown to have a positive effect.
  2. Global relocation can be used to fill open positions. The healthcare industry has been facing a critical talent shortage for several years. As a result, healthcare employers focus on several unique solutions such as providing exceptional candidate experiences and creating a superior employer brand. Employers can highlight their company’s relocation program benefits in their recruiting materials to attract talent for global relocation.
  3. International Professional Employer Organization (PEO) lets employers grow their business quickly in international markets. Through this employer of record solution, the International PEO acts as an extension of a company’s Human Resources Department, with a focus on immediate international employment solutions. This lets a company meet demanding business objectives quickly and efficiently.

What Should Employers do?

Employers facing a skills gap impacting their hiring plans should review their talent recruitment programs to ensure creative solutions are in place. A knowledgeable Relocation Management Company can provide valuable assistance to employers looking for robust and effective solutions to hiring challenges.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to mitigate the impact of a skills gap. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees and mitigate the effects of a skills gap.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Job Openings in the United Kingdom Rise as European Union Workers Depart

The United Kingdom (UK) has seen UK job openings rise over the past 12 months. This is due in part to European Union (EU) nationals who are leaving the UK and choosing to return to their native country. Some EU nationals note the BREXIT issue as a significant concern relating to their decision.

With over 132,000 EU nationals departing the UK, many companies and organizations face significant challenges as they work to find new hires. This trend adds to the large number of job vacancies in the UK, the highest since 2001 and a new record, according to the UK’s Office for National Statistics.

Where are the UK job openings?

UK job openings can be found throughout the country, but some regions have openings at far higher rates than other regions. Job seekers looking for opportunities in the UK should consider which region might offer the greatest number of vacancies.

UK job openings by region that are above the national average:

  • London
  • North West UK
  • Wales

UK job openings by region that are below the national average:

  • Scotland
  • Northern Ireland

What are the jobs with the highest demand in the UK?

Demand may vary by region and by job type. For financial sector jobs, London and the South West have the highest number of UK job openings. By comparison, social workers and nurses are more in demand in the North West.

What are the Best Cities to find UK Job Openings?

The UK has several cities with thriving economies. Those looking for UK job openings should review cities where their particular skills and education may be in higher demand. This may help them find viable opportunities more quickly than if they target cities with less demand. Several online resources are available to help job seekers research UK job openings.

What does this mean?

Changing dynamics in the UK economy due to BREXIT, economic growth, financial markets, inflation in UK consumer prices, severe weather patterns, and many other factors continually create new UK job openings. Companies in the UK often must manage several openings, searching for new hires and transferees with skills and education. These employees will help them meet growth targets and corporate objectives. As a result, job seekers often have many opportunities with the UK to find employment.

What should employers expect?

Employers should expect that UK job openings will continue to increase as EU nationals leave the country. They should also expect continuing impacts from changing dynamics in the UK economy, including UK consumer confidence changes and UK housing market issues.

What should employers do?

Employers in the UK should review their company’s growth plans and requirements for jobs across all levels. They should determine how their company’s growth plans will impact the jobs required to meet business plans and goals. They must also consider how their plans should adapt to the changing dynamics of the UK economy.

Employers in the UK should also examine their relocation policies to determine if they would benefit from enhancements to attract new hires and transferees looking to take jobs in the UK. They may also benefit by learning how other markets, such as healthcare, have been leveraging relocation benefits to attract and retain talent.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees across the world. Our team can help your company determine how to fill UK job openings with new hires and transferees who possess superior skills and experience.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Brexit Impacts Job Seekers from the European Union

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The United Kingdom’s (UK) upcoming Brexit impacts the labor market in many ways. As a result, job seekers from the European Union (EU) may be responding to the uncertainty and the upcoming departure from the EU by reducing their search for positions in the UK. Net long-term migration to the UK from the EU fell in July of 2018 to its lowest level in over four years.

Brexit impacts other areas as well, and may be related to persistent weakness in the British pound relative to other European currencies since 2015. Consequently, a weaker UK currency reduces migrant’s purchasing power back in their home countries.

UK Net Migration Target

The UK government had set a target in 2010 to reduce net migration, however that target has never been met. Part of the failure was due to migration into the UK from countries located outside the EU, including (in alphabetical order):

  • Australia
  • Bangladesh
  • Canada
  • India
  • Jamaica
  • Kenya
  • Pakistan
  • South Africa
  • United States

How Brexit impacts job seekers may actually help the UK government reduce net migration into the country. The reduction, however, could have negative impacts in other areas.

Impact of Net Migration Reduction on Industry

The various ways that Brexit impacts job seekers may disproportionately affect certain industries in the UK. As a result, construction and health care are most at risk as job seekers reduce their willingness to migrate to the UK. These two industries rely heavily on migrants to fill open positions. The UK’s strong economy as well as its changing demographics had been driving up demand for workers in these two industries. Additionally, changing economic conditions in migrant’s home countries such as Romania, Poland, and Ireland may allow them greater opportunities to remain in their country of origin. These changing economies may allow them to find jobs that offer sufficient pay and benefits for their needs.

What Should Employers Expect?

Employers seeking to fill positions in the UK should expect that Brexit impacts job seekers from the EU. They should also expect that they may need to review their talent recruitment program to attract job seekers from other regions as the global economy dynamically changes where migrants seek new jobs.

What Should Employers do?

Employers in the UK finding difficulties in hiring and recruiting for positions in specific industries should consider highlighting their relocation program’s benefits in their recruiting materials. Talent shortages can be mitigated with global relocation. Helpful tips for employers facing talent shortages include:

  1. Provide an Exceptional Candidate Experience
  2. Use Data to Enhance Recruiting Efforts
  3. Recruit for Cultural Fit to Your Organization
  4. Create a Superior Employer Brand
  5. Speed the Process to Keep Candidates Engaged

Relocation Management Companies (RMCs) can provide expert assistance to employers in the UK looking to enhance their company’s global candidate recruitment and relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their talent recruitment programs. As a result, we can help your company understand how Brexit impacts your company’s talent recruitment processes. We can also help your company leverage its relocation program to attract and retain highly skilled and talented job seekers.

Learn how your company can benefit from highlighting your relocation program to job seekers from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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China Residency Rules May Increase Taxes on Foreign National Employees

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China residency rules are changing with the implementation of a new law. The People’s Republic of China Individual Income Tax law has abolished the 5-year tax exemption period during which a foreign national employee does not have to pay income tax on their worldwide earnings. As a result, foreign national employees working in China may face higher taxes on their earnings.

What are the Current China Residency Rules?

Currently, foreign national employees have an exemption for five years before they must pay income tax on their worldwide earnings. Until the five year requirement is met, they only owe income tax on their earnings in China. Also, the current China residency rules require five full years before tax on worldwide earnings takes effect. Foreign national employees with absences are able to avoid the tax requirement if they break residency with one of the following scenarios:

  1. Have an absence of 30 or more days continuously on a single trip during the year.
  2. Have an absence of 90 or more days over multiple trips during the year.

What are the New China Residency Rules?

The new China residency rules eliminate the full year requirement for residency starting January 1, 2019. Instead, foreign national employees who are a resident in a People’s Republic of China-treaty country, and who work in China more than 183 days in a given year, will owe taxes on worldwide earnings. Foreign national employees receive an exemption for China income tax if they do not exceed 183 days residing in China.

Foreign national employees from a non-treaty country have a much shorter China tax exemption of only 90 days. After 90 days, these employees would owe tax to China on their worldwide earnings.

What Should Employers Expect?

Employers in China should expect that the new China residency rules may require employees to pay taxes on their worldwide earnings to China if they exceed 183 days residing in China during a year. Also, there is no mention of any five year period to determine residency, so employees may face immediate tax obligations.

What Should Employers do?

Employers should review their current employment situations in China to determine how the new China residency rules will impact their company and their employees residing in China. They should also provide information to their employees residing in China so the employees can prepare for possible tax obligations accordingly.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to new China residency rules.

Learn how your company can mitigate the impact of China residency rules and resulting tax impacts on employees from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

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Mortgage Loan for Foreign Nationals Relocating to the United States

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Many of Global Mobility Solutions’ clients have transferees relocating to the United States from outside the country. Often, they will need a mortgage loan to buy a home. These transferees may not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Michael Farner, an expert at Quicken Loans who agreed to share his advice and guidance on this topic.

How Can a Foreign National Obtain a Mortgage to Buy a Home in the US?

According to Michael Farner, if a foreign national has established credit in the US over a period of time long enough to have all three credit bureaus reporting, Quicken Loans would also be able to lend at that time.

Quicken Loans and other mortgage companies have a program to support foreign nationals who are relocating to the US and want to obtain a mortgage, but who have not established credit in the US. The program entails work on the part of Quicken Loans to create a credit profile for the foreign national.

Important Points to Note for Program Eligibility Include:

  1. There must be 0 credit established in the US to qualify for this program. In other words, the foreign national must not have obtained any other credit instrument. Examples may include a loan to buy a car or a credit card in the US.
  2. The foreign national must provide a social security number.

If the foreign national is eligible for the Quicken Loans program, the lender will then build a credit profile for the customer. To do this, the lender may examine the foreign national’s debt in their departure country. This examination will include:

  1. Information on payments for housing, including rent payments, showing 24 months of history for each credit reference.
  2. Information for three other “non-housing” debts that can establish payment histories. Examples may include insurance, utilities, or automobile loans. These debts must also show 24 months of history for each credit reference.

The foreign national may need to assist the lender in obtaining information. The lender may ask the foreign national to participate in a conference call with their departure country’s financial institution.

Once Quicken Loans gathers sufficient information, they will build a credit profile for the foreign national. The credit profile will determine how much they can borrow on a mortgage loan, and the terms of the mortgage.

What are the Features of a Mortgage for a Foreign National?

A mortgage for a transferee who will be relocating to the US is similar to a mortgage for any US-based customer who is seeking to buy a home.

For a foreign national, a mortgage will generally feature the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15 or 30 years.
  3. Interest rate may be fixed or variable.
  4. Foreign national borrower makes principle and interest payments for the life of the mortgage.
  5. Mortgage is often sold to investors in the bond market.

Do Foreign National Transferees Need to Sell Their Current Home Before Applying for a New Mortgage?

Foreign national transferees who are relocating and who currently own a home in their departure country may want to keep their current home. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home in the departure country?
  2. If yes, what is the amount of the current home mortgage?
  3. What are the amount and terms of the mortgage loan for the home in the US?
  4. Can the transferee obtain approval for the total debt load? This would include their current mortgage and the new mortgage loan in the US.

What does this mean?

Foreign national transferees who want to obtain a mortgage in the US to buy a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home in their departure country may be able to obtain mortgage for a home in the US. However, this depends on their financial circumstances. Importantly, transferees should understand that they must obtain approval for the total amount of current mortgage debt and the new mortgage loan in the US.

What should employers do?

Employers with foreign national transferees looking to buy a home in the US should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from foreign national transferees who want to obtain a mortgage in the US.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining mortgages to purchase a home in the US. Therefore, our team can help your company understand how best to proceed by providing guidance to foreign national transferees on obtaining information from qualified lenders and financial advisors.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand mortgage loans for foreign national relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

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United Kingdom Housing Market Sees Rate of Annual Price Growth Decline

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The United Kingdom housing market is experiencing a period with annual price growth in decline. Annual price growth through August 2018 declined to 2% from July’s rate of 2.5%. Additionally, house values on a month to month basis declined by 0.5%, the largest monthly decline on record since July 2012.

What is causing the annual price growth to decline?

The annual price growth is declining due to a number of factors:

  • The UK housing market is coming off an extended thirty-year expansion as economic growth begins to slow.
  • Uncertainty fueled by Brexit has further dampened both the economy and home buyer enthusiasm.
  • In the UK, an increase in stamp duty on second homes to 3% has also hurt demand. Stamp Duty Land Tax (SDLT) is a tax on land transactions in the UK arising from the Finance Act of 2003. SDLT is not a stamp duty, but a form of self-assessed transfer tax charged on “land transactions.”
  • The market typically experiences a period of slow activity during the summer months as well, with many people on holiday.
  • The UK housing market currently has too much stock on the market, dampening prices. The market has the highest amount of stock since September 2015. Up to one third of houses have had at least one price reduction, the highest percentage in summer since 2011.

These factors combined are creating a faster rate of annual price growth declines. The declining rate of annual price growth is further hampered by falling UK home prices.

Where are prices declining the most?

London is currently experiencing an economic slowdown. Home prices in London are falling at their fastest rate since the city experienced the pain of the worldwide financial crisis earlier in this decade. London home prices fell 0.7% on an annual basis through June, the lowest rate since September 2009, and fell 0.2% in May. June was the fifth month London house prices have fallen in 2018. The rate of annual price growth has been slowing in the UK since 2016, and has remained below 5% throughout most of 2017 and 2018.

What should employers expect?

Employers should expect that the UK housing market may present favorable conditions for relocations to the UK market, as buyers may be able to obtain good quality properties at better prices. Conversely, employers looking to relocate employees from the UK market may experience longer delays for property sales. They may also experience some transferees not desiring to relocate in the short term due to lower home selling prices.

What should employers do?

Employers should review their hiring plans and determine if there are opportunities to relocate transferees to the UK while the housing market is presenting favorable buying opportunities. Employers should examine their relocation policies to determine if they should be amended to assist transferees looking to relocate out of the UK as the housing market experiences annual price growth declines and home prices decline overall.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to understand and respond effectively to the UK housing market’s impact on transferees and their willingness to accept relocations as annual price growth declines.

Learn how housing markets impact relocations from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

The U.S. Citizenship and Immigration Service (USCIS) will increase premium processing fees for some forms starting on October 1, 2018. The fees will increase by 14.92%, reflecting the percentage increase in inflation since implementation of the last fee increase in 2010. The increase is being done in accordance with the Immigration and Nationality Act. The Act permits USCIS to raise such fees in order to provide services.

What is the issue?

Costs for staff, technology, and supplies have increased since 2010. Using the Consumer Price Index for all Urban Consumers as a benchmark, the increase on average is 14.92% over this time frame. At the same time, the demand for immigration services that USCIS provides has significantly increased. Without an increase in the premium processing fees, USCIS will be increasingly unable to continue providing services.

What are the forms subject to increases in premium processing fees?

Premium processing fees are additional fees that petitioners can pay for the option of requesting a 15-day processing time for specific requests. Petitioners must also pay the basic form filing fee as well as any other required fees.

Forms subject to increases in premium processing fees include:

Form I-129, Petition for a Nonimmigrant Worker – this form is for petitioners filing on behalf of a nonimmigrant worker to come to the United States temporarily to perform services or labor, or to receive training, as an H-1B, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-1S, P-2, P-2S, P-3, P-3S, Q-1 or R-1 nonimmigrant worker. Petitioners may also use this form to request an extension of stay in or change of status to E-1, E-2, E-3, H-1B1 or TN, or one of the above classifications for a foreign national.

Form I-140, Immigrant Petition for Alien Workers – this form is used to petition for an alien worker to become a permanent resident of the United States.

What does increasing premium processing fees mean for the USCIS?

USCIS will be able to hire additional staff, as well as make significant investments in technology. As a result, this will allow the agency to provide adjudications and premium processing services quickly and more efficiently than is currently possible.

What should employers expect?

Employers should expect that premium processing fees for Form I-129 and I-140 will increase by 14.92%. Currently, the fee is $1,225. Starting on October 1, the fee will increase to $1,410.

What should employers do?

Employers should review their hiring plans and determine any current budgetary impact related to increases in premium processing fees for Form I-129 and Form I-140. Employers should also review future budgets to ensure they reflect the increased fees.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to the USCIS’s increase in premium processing fees. Learn how your company can mitigate the impact of increases in premium processing fees from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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