First Person

Moving abroad - a back-to-basics look at the issues

When you move abroad you need to take into account that every single jurisdiction is different and that each will have its own set of issues.

In the first article in this series, I highlighted the importance of seeking professional advice from a range of practitioners who can advise not only on the financial aspects, but also the legal and taxation issues that will arise. We looked at savings and investment, your pension and property and how to deal with the different currencies, together with some of the potential pitfalls if you fail to address each of these aspects carefully.

In this article, we will touch on some of the other issues that will be important when you move abroad for the first time, whether you are embarking on an overseas contract for a fixed period or planning to retire in the sun.

At Ashburton, we have been investing the assets of expatriates for many years, frequently visiting them where they live to discuss and advise on investment decisions. I, personally, have been based for a number of years of my working life in the Gulf, most recently in Dubai, so have become accustomed to the issues and considerations that arise time and again.

We mentioned last time that it is wise to seek independent financial advice to help you manage your finances. However, this may prove to be trickier than it sounds. Once you have selected the person you wish to advise you, its necessary to confirm that they are qualified to do so. You need to check how they are regulated and what type of regulation is prevalent in the country in which you are residing. What tends to happen in some countries is that non-qualified staff move into areas where there is no requirement to be qualified and set up advisory companies and there have been a number of frauds perpetrated as a result. So, beware, is the message and double check the qualifications of the person advising you and ensure they are relevant to the location where you are.

The issue that really hits people is the tax implications of an overseas move.

At Ashburton, we are not tax experts and advice should be sought from tax professionals. However, there are some general points to take into account. If leaving the UK, for example, you may find that your worldwide income is still covered by the UK tax net up to a certain period of time. In some cases this can be a considerable number of years.

You need to check on double taxation agreements, for example and whether they apply where you are living. Reciprocity may also be a factor. By that I mean, do the two locations, the one you are leaving and the one you are moving to, co-operate over tax matters? You also have to make sure you are eligible to go back to your home country for a limited period without incurring a tax charge. In the UK, for example, if you are one day over your limit, it would be enough to trigger a tax bill. Travel between home and host country, therefore, is an important consideration.

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