Relocation Planning

Hannah Beecham Thursday, Jan 2010  1500

First Footing for UK Leavers

If you are footloose, fancy free and looking for an easy location for your sojourn overseas then foreign exchange company HiFX recommends Germany as being the country causing least likely to stress you out.

Alien judicial procedures, foreign tax regimes and unplanned-for currency fluctuations raise the British expatriate’s blood pressure far more than seemingly daunting obstacles such as learning a new language and adapting to a foreign culture. 

Preparation, preparation, preparation 

Careful planning is the key to stress-busting. But in order to give your new life the best possible start, where can you go for help? Wanna-be expats should start by logging on to the Foreign & Commonwealth Office’s website (www.fco.gov.uk) and downloading its booklet Going to Live Abroad. Here you’ll find advice on a variety of issues, most, if not all, of which will affect you whilst you’re away. You’ll find out what do to about your National Insurance contributions, how to organise your pension whilst you’re overseas, and you’ll see an explanation of your welfare rights, as well as an outline of your tax responsibilities, and a projection of your health costs. You will also find out about what sorts of social networks expatriates can join and you’ll get tips on what formalities you must expect to complete on arrival in your new country.  

Our own top tip for anyone on the brink of venturing abroad, is to set aside enough time to find out as much as possible about the community/neighbourhood/town/city you’ll be moving to. If you’re taking your family with you, undertake a reconnaissance trip and visit the local schools. Talk to teachers and parents. And whilst you’re there, visit the local health centres and ask about medical and dental services.

And to ensure a smooth border crossing for your money, visit a couple of local banks and garner as much information as you can about opening an account – what will it cost you, what services and products are being offered? Will these struggle to meet your minimum requirements or will they cover all your needs?

Expat Money Matters

Further research suggests expats could learn a lot from the mistakes of their predecessors. Historically, the level of financial planning undertaken by the Great British expatriate has been desultory – even downright neglectful. Until very recently, fewer than 20% of expatriates claimed to have spared a thought for the tax implications of their move, and an astonishing 81% owned up to never having considered how their monetary needs might alter on foreign soil in any way, shape or form whatsoever!

There’s no getting round the fact that if you are physically situated overseas, then you must know before you depart how you will access your money whilst abroad and how you will manage your financial affairs to your best possible advantage. Organising a new stream of money transmission facilities, attending to bills in different currencies, and learning the rudiments of a foreign taxation system, may not sound like a bundle of fun. But unless your money follows you, unhindered by expensive exchange rates or impaled on foreign tax liabilities, you won’t be having much fun anyway, wherever you may be.

Independent Financial Advice

Another advantage to taking independent financial advice prior to your departure is that you will find it more straightforward to arrange the raft of new financial services you may require from within the UK. This may involve matters such as pension plan contributions and other such regular saving commitments that will need attending to whilst you’re away. And, perhaps most importantly of all, an IFA based here will have to meet the UK's Financial Services Authority's (FSA) regulatory standards. There are many locations around the world without any such financial supervision or protection for the hapless foreigner.

Thankfully, there are an increasing number of FSA-regulated IFAs offering support services to British expatriates. To find one in your neck of the woods go to www.unbiased.co.uk and open up the British expatriates’ page. This site is run by IFA Promotion, an industry body responsible for promoting IFAs registered in the UK.

Special concerns

Other topics which need a thorough airing include currency exchange, pension arrangements, property, investments, drawing up a Will and National Insurance contributions.