Move Abroad Successfully

Hannah Beecham Wednesday, Feb 3 2010 12.12

Make A Success of Moving Abroad

Recent research has scotched the myth that Brits only dip their toes in foreign waters to get a quick income fix so they can scurry home and flash the cash.

Indeed, the latest surveys suggest that 20 years is the average time British expatriates spend living and working abroad. If you’re determined to make your next move overseas a long and successful one, read on.

Research from the UK’s Institute for Public Policy Research (IPPR) indicates that 5.5 million Brits are currently living overseas. This figure rises to six million if those who live or work part of the year abroad are included. IPPR confirms that taken together this number represents nearly 10% of British citizens.

As for the future, migration patterns are difficult to predict. But IPPR’s research suggests that an additional 500,000 to 1 million Brits will move abroad over the next three years. We have listed our top suggestions for making sure your move is a successful one.

1) Do your research on salaries

If you have a choice of the country in which you wish to live and work then it could pay you to check out what level of salary you should aim for. NatWest International’s survey of expatriate reflections on life overseas, tells us that the average wage for Brits working abroad is currently £67,000, compared to the UK average of £47,000. Of the countries surveyed, the United Arab Emirates (UAE) topped the expat wealth ranking table with professionals earning a whopping average of £79,000 a year. Even Portugal, at the lower end, comes in with a respectable average expatriate wage of £58,000.

2) Alleviate the stress

There is no getting away from the fact that moving home is a stressful experience and moving abroad makes it a whole lot more complicated. In fact the stress factor can be so severe it induces some expatriates to pack up and return home. To avoid this scenario find out what the stress points of your move are likely to be and do your homework before you leave the UK. HiFX, the foreign exchange company, says the three main stress factors are:

• currency fluctuations
• local tax complications
• different legal frameworks

Some Brits also find learning a new language stressful, too. So if that is you then get up to speed on basic language before you go and book some lessons locally when you arrive and make a few friends in the process! According to HFIX, the three countries topping the stress league are South Africa, the US, and Australia. Southern Cyprus and Canada take up the fourth and fifth spots.

3) Think before you retire in the sun

Retiring expats often choose a country whose climate they can enjoy and whose culture they identify with. Many buy a property before reaching retirement age and, having stayed in the country over many holidays, already feel quite at home there.NatWest International’s survey showed that British retirees feel healthiest and happiest in Portugal. We also seem to thrive in New Zealand, Norway and Spain.

However, if you are planning to retire abroad you need to think carefully about your income. Retiring Brits honing in on the perfect retirement location should double check the cost of living in their chosen destination. Not all countries are cheaper than the UK. Indeed, with the pound falling through the rafters, the cost of living in many parts of the world is rocketing. Islands, where most goods have to be imported, can be particularly expensive.

At the present time, index-linked increases to the UK basic state pension are not paid universally. Many retirement locations disappoint British retirees who are shocked to find their pensions have been frozen at the amount first drawn in their new country of residence. See below.

4) Don't overlook essential paperwork

While many Brits will retain financial connections of some sort to the UK, it is important that you make sure everything is in order before you leave as it's much harder to organise when you are abroad. Below is the list of essentials which, in our opinion, you should think about before departure:

• Before leaving the UK, working Brits must obtain form P85 from Her Majesty’s Revenue and Customs (HMRC). Contact your local tax office, or go to www.hmrc.gov.uk/cnr to download online. You may qualify for a tax rebate prior to your departure.
• Take advantage of HMRC’s Non-Resident Landlord's Scheme and receive your rental income gross of tax. Download form NRL1 from www.hmrc.gov.uk/cnr.
• Talk to your GP, dentist and optician. Discuss what medical notes, records and prescriptions you should travel with. Book any vaccinations necessary. Consider carefully whether you need to take out healthcare insurance.
• The UK's Foreign and Commonwealth Office (FCO) advises Brits going overseas to make a Will beforehand. You'll need to ascertain whether this Will is valid in your host country and to take appropriate professional advice if it is not.
• Consult with an independent financial adviser and arrange to tidy up your existing financial arrangements. Find out about future investments and tax planning necessities.
• Book a reliable international removals company at least three months before your departure date. The British Association of Removers (BAR) is the trade association in the UK. It has a list of member companies at www.bar.co.uk.