The essential guide to moving abroad and living overseas

Transcription

1 The essential guide to moving abroad and living overseas

2 2 3 The essential guide to moving abroad and living overseas The forward planning we have done to minimise taxes will ensure our children and grandchildren benefit from our assets in the future. Bergerac, France Contents Introduction 2 Contents 3 Relocating overseas and living abroad 4-5 Banking 6-7 Pensions 8-9 Property Healthcare 12 Education 13 Finance Working abroad 16 Useful resources and references 17 We now have significantly better returns and growth, and a regular income that we previously had not thought possible. Brussels, Belgium Many people choose to move abroad simply to improve their quality of life. There s a lot to be said for living overseas, whether it be the pace, the food, the climate or any of the other many improvements you can gain in your day to day living. Whatever your reasons for moving abroad, it doesn t matter. Being happier is the outcome for many from living overseas.. 7 in 10 people moving abroad earn higher salaries than equivalent roles in the UK*. There are normally a range of tax advantages too. Raising children overseas can provide a better environment as well as wider choices when they reach maturity and working age.

3 4 5 Relocating overseas and living abroad The move itself Moving overseas is a little more complicated than moving domestically. It s not quite as simple as just pack up and go. The arrangements you make will very much be subject to where you are moving to. You would be well advised to speak with a specialist removal company that will help you to understand what s worth moving with you, what s not, what type of freight will be used and how long things will take, not just to travel but also any customs or internal relocation delays you could experience. Moving to a new country was a huge step - thanks to PWI we were able to obtain a mortgage, structure our finances and have a regular income. Valbonne, France As Brits moving to France your help was invaluable. Our very limited French language skills didn t present a problem thanks to the help we received from your excellent multilingual team. Villefranche-sur-Mer, France Destination Before you make the decision to move abroad it s important you do enough research, planning and organising. The only way you can normally get everything done is by having enough time to play with. Six months is a good amount of time from the decision to move to actually taking flight or boarding the ship. The kinds of things you will want to evaluate include your destination, if you are lucky enough to have the choice, the cost of living in the country or area you ve selected, what debts in the UK will need settling before you leave and also what kind of tax benefits you might take advantage of as a result of your location change. Living happily overseas No matter how prepared you may feel for your move overseas you should be aware that unconsciously your mind is dealing with a great deal more than the things you see on the surface. The simplest of tasks can be new and unfamiliar, this puts additional strain on your mind. This is perfectly normal and most people moving abroad find many challenges that over time become easier. A couple of simple tips are don t expect to achieve too much in the first few months as you acclimatise, give yourself time and expect to feel challenged even if you don t understand why. The other thing you should do is reach out. Whether it be speaking to other people who have done what you are doing, reading up on the internet or simply joining the local communities who are likely to ever so welcoming. The most important tip in our opinion is to have all your documentation and financial foundations resolved well in advance. This fundamental step is unliely to show its true benefit until you really need it but should that situation arise where access to your funds is essential, you really don t want the issue compounded by delays, increased charges or distressed borrowing. Another really important tip is to learn a little of the local language. You ll find your efforts will be gratefully received and are likely to open up wider opportunities.

4 6 7 Banking Accessing funds With different time zones around the globe, offshore banks are usually designed to serve their customers 24/7. Offshore banks are useful for regular travellers who can take advantage of add-ons such as free travel insurance, meeting rooms and airport concierge at no cost. Offshore bank accounts can provide International credit cards. If you want to shield yourself from the risks associated with currency fluctuation, you can have a bank account open in multiple currencies, evening out your spread. Tokyo, Japan We are able to view our investment performances online. Pryce Warner International has provided us with a very effective and professional service. Buenos Aires, Argentina Bank accounts It s well worth setting up a bank account with a local bank in your chosen new country as soon as possible and certainly before you arrive to start your new life. Employers, landlords and utility providers are just some of the organisations who may need you to have a local bank account before you can do business with them. It may also be worth taking advantage of private banking services, also called overseas or offshore banking services. Offshore banking tprovides a range of facilities that are particularly useful to expatriates, or individuals resident in their own countries who travel extensively. Transferring funds and assets If you re relocating abroad, or have investments in several countries, it s possible you may wish to transfer large sums of money from one country to another and convert money into the local currency. In this situation, you may be better off using a Foreign Currency Exchange Specialist instead of your bank. Whenever you need to exchange or transfer into another currency you should use a Foreign Currency Exchange Specialist when the rates will be more favourable. This may be because you are buying a property or other asset abroad and need local currency, or are emigrating abroad and want to move your capital to a foreign bank in the most efficient way possible. You can be certain that one of the worst places to buy or sell currency is at the airport or ferry terminal. Always try and pay in the local currency. You can guarantee that the retailer or service provider will give you one of the worst exchange rates and may add on their commission or service charge. Shop around for the best credit card when spending abroad. Most cards will add around 3% to the bank s exchange rate, which can mount up to a substantial sum when large or regular purchases are made.

5 8 9 Pensions Pension options Due to the nature of their work and lifestyle, expats often need tailor made international pensions that are fully portable from country to country. Our principal international pension plans come in three forms: International Pension Plan QROPS QNUPS These types of pension plans have distinct differences but are not mutually exclusive. Moving your pension to a QROPS scheme will give you greater flexibility.** Find a financial adviser who understands the challenges of expat living in a particular location, and can regularly offer you and your family advice, giving you the peace of mind that your loved ones are well cared for.** About pensions In order to ensure that your retirement years are properly provided for, it is vital that you bear in mind the following: Are your health and care needs in retirement provided for? How well are your pension assets being managed? Is your pension pot on track to meet your nteeds? Bearing in mind the above, have you properly calculated your income requirements for your retirement years? It is never too early to start a pension plan! Your options Due to the nature of their work and lifestyle, expats often need tailor made international pensions that are fully portable from country to country. Many expats find that for one reason or another the building up of their pension is their personal responsibility and is not something that is provided by their employer. Our principal international pension plans come in three forms: International Pension Plan - a contributory plan and specifically designed for expats who need a portable pension that can move with them from country to country. QROPS - Qualified Recognised Overseas Pension Schemes QNUPS - Qualifying Non-UK Pension Schemes Both QROPS and QNUPS are HMRC approved pension products. Depending on your circumstances, you can invest in one, two or a mixture of all three options. Pryce Warner expat pensions offer you the following benefits: Portability - the ability to move your investments from country to country Diversification - spread your investments across different countries and currencies Your choice of currency Your personally assigned pension plan advisor

6 10 11 Property Buying property overseas Owning a property abroad can be a dream come true but the buying process may be very different from the UK and many pitfalls can sour an otherwise enjoyable experience. Always take independent advice to make sure property remains an attractive and rewarding investment opportunity. Similarly, when selling your property you should be mindful of the costs, competency and exclusivity of local agents. Pryce Warner s international team can help you through the whole process easily. We needed to construct a portfolio to protect us from the type of losses that have caused anxiety in the past. Pryce Warner have done this extremely professionally. Johannesburg, South Africa The passing on of our assets to our children and grandchildren is very important for us and PWI has helped us plan intelligently both for today and for the future. Mougins, France First steps abroad Even if your long-term intention is to buy a property in your new country of residence, in the short-term it may be advisable to rent until you become accustomed to life in your new country. Renting will also give you the opportunity to explore your new surroundings and places to live before committing yourself to buying. Keeping your property in the UK When relocating abroad, you may have to consider whether to sell or rent-out your property in the UK. In some circumstances, the choice may be clear. If you re relocating abroad for a fixed-term international assignment, then you may choose to rent out your house until you return home. Even if you consider your relocation more permanent, you may still wish to keep your UK property as an investment, providing of course, you don t need the capital to fund your new home overseas. If you re renting out your property, there are a number of points to bear in mind: Inform your mortgage provider and insurer if you plan to rent out your UK property. If it s going to remain empty make sure you arrange to have it checked regularly. Inform your local council tax officer and electoral registration unit and provide a forwarding address. Notify utility companies, banks, building societies and any financial institutions of your move. Repairs & maintenance Every property, no matter how old, requires ongoing repairs and maintenance and whether you re the tenant or the landlord, it s vital to establish who is responsible for carrying out the work.

7 12 13 Healthcare and education Education and opportunities Probably the most emotive issue if you re planning to move abroad is how your children will be educated - and how that will be funded. There s a wide range of options available and much will depend on the stage your children s education is at. The opportunities that may come from a different type of schooling in a new country need to be weighed carefully against the effects of any disruption to their education. It s worth remembering though, if you re planning to return to the UK at any point, in many countries the school curriculum may be ahead or behind the UK and qualifications will be different and not necessarily recognised overseas. International schools Funding education What to expect overseas Many countries offer healthcare provision that is equal to and sometimes surpasses what you d expect to find in the UK. Unlike the UK however, this often comes at a price and a pretty hefty one at that. Even schemes such as the European Health Insurance Card (EHIC) may only entitle you to basic care. That s why a health insurance plan, tailored to your specific needs and the country you re in is a vital component of any move abroad. If a member of your family has a long term medical condition that requires ongoing treatment, you ll need to ensure that appropriate care is available in your new country. In other parts of the world, hospital facilities are quite basic and there may not be the same levels of cleanliness or equipment you d expect in your own country. Make sure your insurance plan covers treatment in a clean, modern and well-equipped facility - even if that means in a different country. You might be happy learning the language as you go along at other times but access to English-speaking healthcare professionals could be vital if you need urgent treatment. If you re lucky enough to be in excellent health, a move to a new country can still spring a few health surprises. Pryce Warner have many years of experience helping expats plan their move abroad and can talk to you about a wide range of healthcare packages suitable for your needs. There are a number widely admired international schools throughout the world, aimed specifically at the children of expats, offering a range of curriculums and qualifications. International schools offer students the opportunity to work and mix with different cultures which is increasingly important in a globalised and competitive world. Nevertheless, British international schools can be remarkably similar which offers a certain degree of continuity if parents are moving from country to country. Boarding school in the UK or elsewhere This may be appropriate if you want your children to undertake or continue with a UK education. Clearly, they will be living away from home for extended periods and you ll need to consider how and when they will see their family. Educating your children abroad can be a costly experience and it s not just school fees that you ll need to consider. Extra curricular activities, university and postgraduate study all come at a price and few parents want to skimp on their children s education. Having an education funding plan in place is a wise move and Pryce Warner have many years of extensive experience advising expats on how to fund their children s education. Expats rate New Zealand and Germany in the top 3 countries to raise children.**

8 14 15 Finance Country of residence Establishing your country of residence is a vital part of tax planning. Ultimately, where you live, or are perceived to live, determines how much tax you pay and where. Every country has different criteria for establishing residency. In addition, there are various exemptions and other, more minute criteria that are too numerous to list here. Expert advice is essential and Pryce Warner would be happy to advise you. A multi-currency bank account has helped protect me from all the currency fluctuations of the past few years** Have a detailed financial plan [and remain vigilant to remaining true to the plan] Far too many expats spend what they earn without a good financial plan for the future.** Taxation As an expat, tax planning can be much more complex than for those resident in their home country and it can be easy for some to find themselves paying too much tax. With so many international rules regarding tax that become doubly complicated when you may live in one country and hold assets in another it s important to take advantage of tax saving opportunities available to you. In today s environment it is vitally important to use legitimate tax planning solutions to ensure you are paying the lowest amount of tax possible. Both individuals and companies have many options available to them to reduce their tax burden. Investments and insurance Expats may benefit from setting up offshore savings and investments well before leaving their home country. Investment funds held in favourable countries/ jurisdictions are now commonly accepted solutions to reducing tax burdens, and are available to small and large scale investors. Some countries attract business investments by offering very low rates of tax. Investors can benefit from these low tax rates by holding their investment funds in these jurisdictions. Risks can be reduced by managing a wider range of investments than might otherwise be available in onshore investments. Investment funds are inherently private, and some jurisdictions allow inheritance to be passed on to anyone, Offshore jurisdictions can offer a broader range of investment options, and can have lower levels of regulation. This can offer an environment in which particular investments such as hedge funds can thrive. Probably the most important insurance you ll need when moving overseas is health insurance. Even in countries where there is state provision of healthcare, or schemes such as the European Health Insurance Card (EHIC), the level of cover may not be the same as you might expect from the NHS in the UK.

9 16 17 Working abroad 7 of 10 UK citizens moving abroad to work report earning more than their equivalent UK postion.* That in it s self is quite an incentive for many people to move overseas. The critical factors for working abroad include making sure you have the correct visas and that you are paying the correct rates of tax. What you should always bear in mind is that there may be greater tax efficiencies to residing andworking abroad. Pryce Warner can definitely help you to find the most financially advantageous ways to work abroad. A life change we wish we d made years ago.** Useful resources HMRC Foreign consulate offices Useful websites References * Lloyds TSB International ** HSBC Expat Survey 2014 Make sure your visas cover your needs Will you need a local banking service? Is your driving licence current? Do you need any additional qualifications or licences? How simple will your commute be? Will you have adequate internet access? Would you need a local mobile phone? Are there any safety or security concerns? What local customs should you be aware of? Are you going to need to learn any of the local language? How will you occupy your leisure time? Have you considered how you will cope with homesickness? Are you familiar with emergency service protocols? Is the local cuisine agreeable with you? How does the dress code differ socially and at your place of work? What is the ettiquete for meetings and social situations? Can you earn your salary in a more tax efficient way?

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