expats plan your move carefully
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Thailand Cambodia Indonesia Australia Laos wherever you go make a plan
Retiring Abroad
People think about retiring abroad for a variety of reasons. Research and good planning are essential. Look at the pros and cons before making a decision to move.
Can you afford to retire abroad? What would happen to any benefits you currently receive in the UK? united states our Europe What will your future income be?
Moving abroad is a big step. Apart from considerations concerning family and friends, there are issues around pensions, tax and healthcare costs, residential status, property purchase and rentals that you will need to be aware of.
As a UK national, you have the right to live in any European Union country. If you intend to move to any other country, you should first speak to your home country Consul in that country and its foreign consulate in the country of your present residence.
Arguably, for many people hoping to retire early, whatever they are saving it is probably not enough. There are many factors that need to be considered before deciding to retire and move outside of your home country
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Your income
•How much money will you need?
•What are your current and future income requirements?
•Will any income stop when you move abroad?
•Is the cost of living comparable, and are there any trends which may change this? How will inflation at home and your new country of residence affect your spending and savings?
•Long term financial planning is essential. High inflation and changes in exchange rates will affect your income. Offshore savings can help.
•You will need to open up a bank account in your new country to cover day to day transactions.
•An offshore savings account or offshore bank account may also be beneficial for your long term savings and for tax planning. Offshore savings can be in various worldwide currencies. Visit our offshore savings pages on the website for simple and easy ways to save offshore.
•Do you know about all the costs - property, service charges, insurance, taxes? If you are renting, what are your rights as a tenant?
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Pensions
Before you move, you can:
•get a State Pension forecast - You can get a forecast of your state pension entitlement from the HM Revenue & Customs (HMRC) or The Pension Service. You can download form BR19 online - entitlements can vary according to the country of residence the same process is probaley applicable in your home country
•if you are retiring abroad seek independent tax advice about the benefits of offshore banking, as this could reduce your tax liability depending on where you are living. Visit our offshore savings pages for simple and easy ways to save offshore.
UK residents retiring in any European Economic Area country or Switzerland will receive full state pension including annual increases.
at the moment UK pensions can be drawn in Thailand but without the yearly increase.s
which can soon cut into a already tight budget
Private pensions should be payable worldwide but check with individual companies to find out about arrangements for having this paid to you if you move abroad.
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Tax
•Tax laws vary from country to country and may apply to worldwide assets in addition to those assets in the country of residence.
•Each country's tax laws - and therefore how much tax you'll pay - vary widely so research before you leave: the HMRC lists the tax rules for many countries.
•Research the regulations governing income tax, inheritance tax, wealth or capital gains tax, etc, and if there are any extra taxes that you are liable for.
•Make sure you are classed as non-resident in the UK as this can have bearing on how much tax you'll pay. Generally, to establish this with the HMRC, you have to spend less than 91 days per year in the UK, averaged over a period of four years.
•Once you have non-resident status, you will be exempt from paying UK tax on income earned outside the UK but still liable on income generated in the UK e.g. from letting out a property.
•Tax tends to be very complex so it's best to seek professional advice.
The HMRC has an International Centre for non-residents of the UK, which can advise you about what they consider to be non-resident for tax purposes, and which kinds of income may be taxable in the UK.
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Residential status
Will I qualify for residential status in my new country?
Contact the embassy or consulate for information about residency requirements. You may be required to fulfil certain criteria, such as a minimum level of income, in order to qualify for residential status.
What if I want to return to the UK?
If you are planning to return to the UK at some point in the future, it is a good idea to establish what your entitlements are, and whether it will be necessary to complete any documentation to ensure your eligibility.
Property purchase
The main options for buying your overseas house are:
•Buying outright - if you can afford it, this is the simplest method. Would changes in the exchange rate of the pound reduce the amount you have to spend?
•Re-mortgaging your existing UK home - if you have enough equity in your UK home and don't mind holding on to the property, this is a good option. A mortgage from an offshore bank may be the option. Seek financial advice to get the best options.
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Health
•Find out about healthcare costs in the country you want to move to.
•Health insurance may be required to cover private medical and dental treatment, as well as medical repatriation to the UK if needed.
Home and family back in the UK
•If you decide to keep your property in the UK our elsewhere and it is going to be empty or rented out, you will need to let your mortgage lender and insurance providers know. You may also need to appoint a letting agent.
•Look at how the property can be kept safe and secure while you are away.
Cultural awareness
Understanding a country's laws and customs can help you adjust to a new home abroad. Daily life may be unsettling at first, so any preparation you do could help you adjust more quickly. Appreciating cultural and legal differences could also help.
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Living away from family and friends?
Making a will is essential if you want your wishes to be carried out, and if you own assets in different countries, you may need more than one will - get legal advice. If you haven't made a will before moving, dying intestate in another country could cause problems for your family - seek legal advice about this.
In regions where there are a high proportion of expatriates, voluntary associations may have been formed to assist new and existing non nationals to settle. These groups may be active in organising social events and often provide support services in response to local needs.
your local Consulate will normally have details of local activities.
A number of websites offer insight into different countries and general points about moving abroad. Local libraries may have books, magazines or articles that may be of interest about settling abroad.
Above all plan well ahead and research as much as you can.
