Is your New Year’s resolution to move abroad?
With the grey January weather, we can often escape by dreaming of living abroad, possibly in warmer climes. Perhaps, this year you have decided to bite the bullet and go live that dream. Is your New Year’s resolution to move abroad?
Before you go rushing off and buy that villa in the Tuscan hills, here are a few things you need to be aware of to ensure you remain financially secure:
Are you planning on retiring to a different country? Currently, you can still claim your State Pension abroad if you’ve paid enough UK National Insurance contributions to qualify.
However, if you have a private or company pension, you will need to check the scheme rules to see how a move to another country might affect your pension. Often UK providers will not pay your pension into an overseas bank account, or they may charge you a fee to do so.
You may also be able to move your pension abroad. If you intend to do this, then ensure that you transfer the money into a qualifying recognised overseas pensions scheme or you could incur tax charges.
Also, consider what tax you could incur on your pension. You might have to pay UK tax plus a tax in the country where you are resident. If you plan to retire, then you need to inform HM Revenue and Customs so that you pay the correct tax on your pension.
Be aware that if you move abroad before you start taking your pension, overseas tax laws may prevent you from taking anything tax-free.
Find more information about the impact of moving to another country on your pension here.
If you are moving abroad on a permanent basis, then you will no longer automatically be entitled to medical treatment under standard NHS rules. This is because the NHS is a residence-based healthcare system. You may also no longer be able to use your UK-issued European Health Insurance Card (EHIC) to access healthcare in Europe.
You will need to find out what health care services are available in the country you are planning to move to and how you can access them. Health care systems vary, you can find more information here.
If you have private healthcare, then you need to check whether this will still be valid in your new location. You may need to change the type of private health insurance you have.
Inheritance laws vary between countries, and if you are not aware of the complexities, you could potentially end up with years of legal wrangling to sort it out. Get professional advice so that your affairs are set up in the best way to facilitate passing on your assets. Speak to one of our inheritance tax specialists today.
Managing your finances
Make sure you know how to set up a bank account in another country, it may not be straightforward and ensure that you have a plan of how you will access funds until you have an account set up.
You may have investments in the UK or other financial ties, and you might still need to pay UK tax. Consider working with a finance professional to help manage your affairs and ensure you remain compliant with tax regulations in either country.
How we can help
MRA specialise in all the areas of support needed for a move abroad. From tax regulations to pensions, we can help you make your dream a reality without the financial stress.
We can support you from the very beginning of your journey with creating a financial plan to provide the necessary funds. Through to helping you to find the right property, getting all your finances in order and moving full time to another country.
Our Life Centered Financial Planners are passionate about working with people like you to make the most of your resources to achieve the dreams and lifestyle you desire. Get started today and call us for a no obligation chat with one of our advisers.