Changes in U.S. Immigration and Tax Policies May Impact Relocation Strategies

With the 2024 U.S. Presidential election decided, key policy changes around tax and immigration may have economic consequences for employers. A recent article by Jack Karp on Law360 summarizes some of the key political effects on immigration and mobility.

The former President’s reelection signals a return to stricter immigration policies, which will likely increase challenges for employers reliant on international talent. The President-Elect has pledged to reintroduce immigration policies such as stricter visa processes and enhanced enforcement of existing immigration regulations. This intensification will mean more scrutiny, additional requirements for labor market testing, and potentially longer and costlier processes for companies sponsoring foreign talent.

Conversely, Trump has proposed extending incentives like the Qualified Opportunity Fund program—currently set to expire in 2026—which allows tax deferrals for investments in economically distressed areas. Expansions to this program could stimulate corporate investments but may involve additional regulatory requirements.

The Impact: According to Bo Cooper of Fragomen, Del Rey, Bernsen & Loewy LLP, the process for securing work visas will not only become more difficult but also costlier under the next administration. Employers should also brace for sudden policy changes, like travel bans, which could unexpectedly impact international employees’ ability to travel for work. Relocation Management Companies and Visa and Immigration services providers are expected to play a crucial role in helping employers navigate these complexities to retain and recruit foreign talent.

These anticipated tax and immigration policies will require employers to collaborate closely with legal counsel and service providers to adapt to potential regulatory shifts and ensure compliance amid evolving administrative priorities.

UK Budget 2024: What the Changes Mean for Expats and International Assignments

The UK’s Autumn Budget, highlighted in Relocate Magazine, has drawn both praise and criticism. The International Monetary Fund called the budget’s tax increases “sustainable” and welcomed the public investment focus. However, UK businesses are concerned about the National Insurance rise for employers, which impacts hiring costs. Capital Gains Tax will increase for individuals, and the non-domicile tax exemption will end and be replaced by a new residency tax. Government spending will boost the National Health Service, education, housing, and scientific research, with plans to strengthen infrastructure and designate new customs sites in freeports. Marco Forgione, Director-General of the Chartered Institute of Export & International Trade, views the budget as “a mixed bag.” He applauds growth-focused policies and regional investment initiatives but noted that small and medium enterprises (SMEs) worry about National Insurance cost increases and wage affordability.

The Impact: Global mobility leaders should pay attention to the UK’s Autumn Budget changes, especially removing the non-domicile tax regime and increasing National Insurance contributions. These adjustments could affect expatriates’ tax liabilities and drive up costs for businesses managing relocations. Additionally, the end of Valued-Added Tax exemptions on private school fees might impact families moving to the UK. Leaders should review and potentially adjust relocation packages and tax strategies for global assignments to remain competitive and compliant with these new financial shifts.

Navigating the Shifting U.S. Immigration Landscape: Key Takeaways for Global Mobility Leaders

Envoy Global’s recent report on U.S Immigration Trends in 2024 sheds light on the shifts already affecting employers dealing with immigration processes in the United States, such as increased fees, adjustments to the H-1B visa program, and shifts in the job market landscape. Though these changes pose challenges, U.S. employers remain steadfast in their commitment to hiring talent and enhancing their immigration approaches. The report anticipates companies will adapt their mobility programs, opt for expertise, and tackle economic and policy issues by exploring dependable immigration solutions and broadening their hiring strategies globally.

The Impact: The trends report on U.S. immigration brings attention to issues faced by leaders in global mobility fields, including increased immigration costs and modifications to visa programs like the H-1B visa program. Leaders must review their recruitment strategies to adapt to these changes effectively, stay competitive in hiring practices, and explore talents from international sources. Furthermore, it will be crucial to adjust relocation budgets and refine policies related to mobility. Working closely with immigration service providers that can offer support in navigating these shifts and simplifying the management of a dynamic global workforce.

Buyer Broker Litigation Update

The Sitzer-Burnett / National Association of Realtors (NAR) class action lawsuit settlement is scheduled for final court review and approval on November 26, 2024. The industry expects that the settlement will be approved during this hearing, but all eyes will be watching for unexpected developments from the DOJ. The settlement would have HomeServices paying $250 million and the NAR paying $418 million.

Global mobility leaders continue to watch this evolving space, awaiting any potential market shifts in seller behavior.

Global Mobility Radar

• Singapore reclaims the top position for the most powerful passport, granting its citizens visa-free access to 195 destinations, surpassing other leading nations according to the Henley & Partners 2024 Passport Index Q2. The Index also reveals rising visa disparities, with African applicants facing disproportionate Schengen rejections, highlighting global inequalities in travel freedom and economic opportunity.
• Canada’s Federal government stopped port lockouts in British Columbia and Montreal during the first week of November, with Canada’s labor minister pushing both disputes into binding arbitration. Business groups supported this action, but it will face legal challenges from unions and labor experts who say it undermines workers’ rights and their ability to collectively bargain. Opponents fear a precedent that could encourage employers to wait on government intervention rather than negotiate directly.
• Weifang Port recently became China’s first fully carbon-neutral port, thanks to its switch to wind power and hydrogen-powered vehicles, with carbon credit purchases to offset any remaining emissions. Other ports, like Tianjin and Huangshi, are also advancing toward zero-carbon operations. However, the sector faces obstacles like increasing energy demand, limited space for renewable energy sources, and the need for better regulations and infrastructure improvements. Experts see centralized port management as an advantage for emissions reductions but mention challenges in integrating cleaner transport options and improving carbon reduction standards and monitoring systems.