Tag: global relocation

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Domestic Relocation Tips Employee Development Global Relocation Tips

Pre-Hire Assessment is a Valuable Talent Recruiting Tool

Business meeting on the train

Global Mobility Solutions (GMS) is the original pioneer of the benefits of pre-decision services such as a pre-hire assessment for relocation. Our clients know that partnering with us at the start of the relocation process helps identify the markers of a successful relocation. It also greatly enhances transferee productivity.

Our team of global relocation experts also knows that assessments are valuable tools for our clients. Working with clients to review their relocation policies, we often find areas where we recommend improvements. If clients are not using assessments, we recommend adopting this valuable tool.

What is a Pre-Hire Assessment?

A pre-hire assessment is a recruiting tool that is used to help identify qualified candidates for open positions. Competency analysis is one of the most common features of a pre-hire assessment. Another feature is the tool’s ability to summarize and interpret results of the assessment. Most companies use assessments for positions that require a high level of skills, are professional in nature, or are executive positions.

What are the Benefits for the Client?

Clients receive a number of benefits by using pre-hire assessments, including:

  1. Pool of candidates that possess requisite skills
  2. Talent assessment notes skill gaps
  3. Results may indicate candidates’ viability for additional positions like management
  4. Help predict new employee’s future performance
  5. Reduction in administrative time devoted to the recruiting process

What are the Benefits for the Candidate?

Candidates also receive a number of benefits by participating in pre-hire assessments, including:

  1. Candidate can easily assess whether they have the skills for the position
  2. Assessment tool may give candidate an indication of corporate culture and expectations
  3. Ability to present additional skills and qualifications beyond resume and cover letter
  4. Objective data in specific areas may help candidate’s overall presentation
  5. Quicker determination for candidate’s ability to proceed in recruiting process

What Should Employers Expect When Using a Pre-Hire Assessment?

Employers should expect that assessments will help their organizations recruit qualified candidates more quickly and efficiently. The ability to select from a pool of qualified candidates that have completed the assessment will reduce administrative time and increase the speed of the talent recruitment process.

What Should Employers Do?

Employers should review their talent recruitment programs to determine if they need to add a pre-hire assessment. Employers with pre-hire assessments should review the tool to determine if they should add additional features or invest in new technology that will enhance the process.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients with their talent recruitment programs and pre-hire assessment needs. We can help your company understand how to identify good assessment tools and incorporate them into your talent recruitment process.

Learn how your company can benefit from pre-hire assessments and pre-decision services 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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Global Relocation Global Relocation Challenges Global Relocation Tips Visas and International Travel

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.

Request your complimentary Visa Program Assessment

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Global Relocation Tips Global Relocation Trends Talent Mobility

India’s Cloud Computing Job Growth Offers Relocation Opportunities

Great Learning, an educational technology platform company for executives, reports that up to 1 million new jobs in India may be created by the growth of the cloud computing market. Currently, India has a $2.2 billion market in this field. By 2020, this market will grow to $4 billion due to over 30% annual growth rates.

How is Cloud Computing Defined?

Cloud computing is distinctly different than traditional computing solutions found in many companies. Traditionally, companies manage IT resources, computers, database storage, security, and software applications. These would be housed on physical hardware located at or near their premises. Cloud solutions offer all of these IT resources through a cloud services platform, accessed through the internet.

Types of Cloud Computing

There are three main types of computing that can be done in the cloud:
  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)
With cloud computing, companies only pay for the services they need, within a flexible, low cost framework. As a result, companies can utilize their limited valuable resources to pursue corporate objectives. Rather than invest in IT hardware and software, companies are free to invest in value adding activities. They also benefit from the provider’s specialized skills and investments in technology.

What Jobs are in this field?

Cloud computing jobs typically entail specialized training and skills. Often, these jobs require higher education and degrees in the fields of computer science, computer engineering, and information systems. For example, candidates for a Specialist position should have skills in the following areas:
  • Systems Architecture
  • Virtualization Technology
  • Analytical Reasoning
  • Collaboration

What does this mean?

Within India, as well as across the world, the growth in cloud solutions will lead to increasing demand for employees with applicable education and skills. The worldwide cloud computing market is projected to reach $411 billion by 2020. Also, over $1.3 trillion in IT spending will be affected by companies shifting their spending to the cloud by 2022. In India, several thousand cloud computing  job postings advertise vacancies. By comparison, US job postings in this market show approximately twenty thousand positions. Several technology companies in China have aggressive plans to dominate this market.

What should employers expect with Cloud Computing?

Employers should expect that demand for employees with cloud computing skills and experience will increase dramatically over the next several years throughout the world. They should also expect that traditional recruiting efforts may not be successful in attracting candidates with the skills and experience they need to success with cloud computing efforts.

What should employers do?

Employers in India should review their company’s growth plans and requirements for jobs within this market. They should also determine how their company’s growth plans will impact the cloud computing jobs required to meet their business plans and goals. Employers should examine their relocation policies to determine if they would benefit from enhancements to attract new hires and transferees looking to take computer industry jobs in India. Also, they should look into helpful educational resources for employees, such as an online tutorial for AWS (Amazon Web Services). Employers may benefit from reviewing a Technology Industry Case Study that identifies successful tactics for attracting new hires and transferees. 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 plan for India’s cloud computing job growth and the many opportunities it presents. 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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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Talent Mobility Visas and International Travel

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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Buy a Home

8 Differences Between a Relocation Appraisal and a Mortgage Appraisal

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Appraisal for their home. This type of appraisal has a different purpose and use when compared to a Mortgage Appraisal. An understanding of these differences will help clients as they work with their Relocation Management Company to manage a successful relocation.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on the differences between a Relocation Appraisal and a Mortgage Appraisal.

What are the Differences Between a Relocation Appraisal and a Mortgage Appraisal?

According to Mark A. Gronke, Fidelity Residential Solutions points to 8 specific differences between a Relocation Appraisal and a Mortgage Appraisal. Clients should understand what these difference are, and how they relate to their company’s relocation program. These differences cover broad areas including purpose, use, marketing, and analysis of the appraisal:

Purpose of the Appraisal

  • A Relocation Appraisal will provide an estimate of the anticipated sales price. By comparison, a Mortgage Appraisal will provide an estimate of the home’s market value. Some homes may appraise for more than the contract sales price during a Mortgage Appraisal. This only looks at the anticipated sales price, not the value of the home.
  • The decision making timeframe for a Relocation Appraisal is short term. The timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process. A Mortgage Appraisal has a decision making timeframe that is long term. The timeframe may cover up to 30 years, the life of a 30 year mortgage. Mortgage lenders look into the future to ensure the home’s value will remain intact over the life of the mortgage.

Use of the Appraisal

  • The intention of a Relocation Appraisal is solely to facilitate corporate relocation. The client receives the report. The client may be looking at indicators that relate to how long the home may reside on the market. By comparison, the intention of a Mortgage Appraisal is to facilitate mortgage lending. A mortgage lender receives the Mortgage Appraisal. The lender may be looking at indicators that refer to the value of the home and its condition. They also may be looking at other factors when considering lending on the property.
  • A Relocation Appraisal would be completed using the Worldwide ERC® Summary Appraisal Form (updated 2010). This would be completed by a trained and licensed real estate appraisal professional following the ERC’s specific set of definitions and guidelines, who is working for the client. A Mortgage Appraisal would be completed using the Uniform Residential Appraisal Form (1004). This would be completed by a trained and licensed mortgage appraisal professional, who is commonly working for a licensed Appraisal Management Company.
  • A Mortgage Appraisal notes the design and appeal of a home. By comparison, a Relocation Appraisal emphasizes design and appeal as critical considerations. Since the Relocation Appraisal has such a short time frame of only up to 120 days, these factors may have a major impact on the corporate relocation process.

Marketing Time and Market Value

  • For a Relocation Appraisal, the marketing time is not to exceed 120 days. This timeframe only reflect the period covering the relocation process. A Mortgage Appraisal’s marketing time does not have a limit, as it does not correspond to a specific, time-defined process. While there may be specific dates related to mortgage terms, the ability to change those dates or accept a lower interest rate in return for paying additional points could extend the timing, if the mortgage lender is in agreement.
  • Marketing a home occurs after the date of a Relocation Appraisal. However, a Mortgage Appraisal is conducted after a home has already been on the market. By the time a Mortgage Appraisal is conducted, there could have been changes to the marketing program or a host of any number of other factors. This information may impact the market value of the home, and in turn the Mortgage Appraisal.

Retrospective Analysis 

  • A retrospective analysis for an appraisal is an overall review of factors that could impact the appraisal’s results, such as any risks that could affect the sale price of the home. The client will use the information for forecasting purposes. A Mortgage Appraisal does not provide for any forecasting in a retrospective analysis. A Relocation Appraisal, however, includes a forecasting component. This is important for clients so they can understand aspects of the Relocation Appraisal that may have future budgetary impact.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program may not understand the differences between a Relocation Appraisal and a Mortgage Appraisal. The employer should understand that they are the client for the Relocation Appraisal. As a result, the employer will receive the Appraisal from the professional. Employers should understand that the Relocation Appraisal is not a Mortgage Appraisal.

What Should Employers do?

Employers should communicate guidance for their transferees who may have questions regarding their home’s Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Relocation Appraisal and how it relates to their company’s relocation and home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Appraisals. We can help your company understand how a Relocation Appraisal relates to your company’s home sale program.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

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 or give us a call at 800.617.1904 or 480.922.0700 today.

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Business Services Global Relocation Talent Mobility

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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Global Relocation Global Relocation Challenges Global Relocation Trends Immigration Rules Visas and International Travel

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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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Visas and International Travel

China Residency Rules May Increase Taxes on Foreign National Employees

Attractive young man standing near the glass fence outdoors with cityscape in the background

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.

Request your complimentary Visa Program Assessment

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Buy a Home Global Relocation Global Relocation Challenges Home Purchase Relocation Challenges

Mortgage Loan for Foreign Nationals Relocating to the United States

Happy family is standing with keys from their new house in hand. Smiling and looking at camera.

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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Categories
Buy a Home Global Relocation Trends Relocation Challenges

Dublin Housing Market Remains Strong, Prices Begin to Stabilize

Walking through the beautiful streets of Dublin, Ireland

The Dublin housing market is beginning to stabilize after experiencing a period of rapidly rising prices. Residential property prices in Dublin rose in some places from 50% to 100% or more since the 2012 housing bust through 2015, but then moderated when changes were made to Central Bank rules. Over the past few years through 2018, Dublin housing market prices have been rising even higher. Through the second quarter of 2018, residential prices in Dublin rose year-on-year by 6.2%.

Overall, housing in Ireland continues to face strong demand and weak supply. New construction in Dublin generally focuses on new homes in the form of housing estates. Most demand is for apartments located in the city, indicating a mismatch between supply and demand. However, the new home construction in the Dublin housing market has helped prices stabilize.

According to Daft.ie’s Irish Price Report for Q3 2018:

Most Expensive Housing Markets in Ireland

  • South County Dublin
  • South Dublin City
  • North Dublin City
  • Wicklow (located south of Dublin on the east coast of Ireland)

Ireland’s Strong Economic Growth Drives Dublin Housing Market

As the Ireland economy continues expanding with growth forecasts in some cases doubled, the Dublin housing market will experience continually higher demand. New construction adding to the supply will help keep price increases from overheating too rapidly.

There are concerns that the Ireland economy is growing too fast. Growth estimates of over 9% in the first half of 2018 may be high due to multinational currency transfers. However, the underlying economic momentum appears to be two and a half times the European Union average.

What should employers expect?

Employers should expect that the Dublin housing market will continue to experience price increases. Both residential home prices and rents are expected to continue rising. Conversely, employers looking to relocate employees from the Dublin market may experience shorter timeframes for property sales.

What should employers do?

Employers should review their hiring plans and determine how to mitigate the impact of the Dublin housing market price increases. Employers should examine their relocation policies to determine if they would benefit from enhancements that assist transferees looking to relocate into Dublin.

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 Dublin housing market. Our experts can help your company understand the impact on transferees and their ability to accept relocations as housing prices continue to rise.

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.

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