Over the last 12 months there has been a sudden fall in the numbers of Britons stating that they are non-resident for tax purposes in the UK – so this may suggest that there has been a fall in the number of Britons expatriating and moving to live abroad.
In our opinion this is indicative of the fact that employment opportunities abroad have become harder to source, and that the actual cost of living overseas for those Britons who would still be reliant on their sterling based income, such as retirees for example, remains expensive as the pound has failed to rally significantly.
However, as many recent surveys have served to prove, there is still very strong desire among Britons of all ages to move abroad and start a new life – to follow their dream and establish a better life overseas. As a result, and following on from our recent report all about buying a property abroad safely, we wanted to produce a guide covering the 4 essential research tips for those planning on living abroad. It’s important to us that would-be expatriates or foreign home-owners are given the advice and tools they need to make their decisions based on all the facts.
1) How Will You Financially Survive Abroad?
It is critically important that any would-be expatriate has the financial ground covered when it comes to their relocation. No matter what stage of life you are at, you will need money to live on no matter where in the world you choose to set up home.
So, for retirees it is critical to ensure that your pension income is secured and will afford you the lifestyle you would like overseas for example. It may be possible for you to extend your buying power by exploring your offshore options when it comes to reinvesting your pension income for example. What’s more, you need to look at currency exchange issues as well as what the cost of living in your new nation will be, (more about that in point 4 below).
For those planning on working abroad or starting a new business overseas, there are additional concerns…
If you’re moving abroad to work, and you plan on starting a new life overseas permanently, how likely is it that your job is secure for the long-term? Look at the realistic chances of you being able to find additional or alternative employment in your chosen destination just in case. Also, if you’re going to be accompanied by your spouse will it be possible for them to find work overseas?
They may need to or want to work – so factor in their visa requirements perhaps, and the likelihood of them finding work when you do your research.
If you’re starting a business abroad, have you researched market demand for your product or service, have you looked into the rules and regulations for establishing your business and have you assessed the competition and how aggressive or otherwise it could prove to be in the face of your presence? What’s more, have you factored in essential insurances, and the fact that if you’re offering advice or physical care of some sort you may need additional qualifications to practice locally?
We cannot emphasise enough how critically important it is to get your money matters in hand before you go – and you have to have back up plans and alternatives in case your initial decisions and dreams don’t quite work out.
2) What Kind of a Lifestyle Can You Expect?
When you holiday in a nation you generally have a wonderful time, and live a sort of suspended-reality/fantasy lifestyle for a couple of weeks where you eat out all the time, don’t have to worry about bills and you can completely manage every minute of your day to suit yourself.
Naturally this gives any foreign location you visit, and where you enjoy a good holiday, a bit of a rosy tint and shine! This tint and shine is soon diminished when you move to said location and attempt to start a new life there.
The mundane realities of life such as bill paying, queues and traffic soon kick in and bring many an expatriate down to earth with a bump. To avoid this unpleasant sensation it is really essential that you do a lot more than take a short break in your new nation before committing to it and calling it home.
We recommend that you spend the minimum of a month to six weeks in your chosen nation – and that you do it out of season. We also recommend that if you can, you spend 3 – 6 months living abroad in your chosen country to really get to known it…warts and all.
Stay out of season, move away from the tourism traps and haunts, explore the inner workings of the country and try and determine what actually living there will be like.
What are the supermarkets like, where will you bank and how do you pay bills, what are the schools and hospitals like, where do the locals eat, what entertainment opportunities are there? Explore the country from a more realistic point of view and ensure it can still offer you the lifestyle you dream of.
3) What Are the Medical Facilities Like?
Another critical aspect of researching a move abroad is exploring the healthcare offerings in your new nation of choice. The thing is, most people don’t get up close and personal with the realities of the medical profession until they are in real need of care and support – which is far from ideal.
You need to know what’s available, how much it costs, what your options and alternatives are if healthcare is not up to scratch or not of sufficient scope to assist in the event of emergency, long-term care needs or any specialist issues that could arise.
You need to work out whether you need to buy insurance or pay as you go – and also think about the long-term reality of having to afford to pay for medical services. Don’t put off this exploration and consideration of aspects relating to your health and that of your family because before you know it, it will be too late and you’ll be needing to find out where there’s a GP or A and E and you’ll be uninsured and up against it.
Do the research and planning in advance, that way you can relax safe in the knowledge that you and your family will be well looked after and cared for in the event that care is needed…
4) How Much Will Your Lifestyle Really Cost You?
As mentioned in point 1 above, knowing what your cost of living will be once you have moved to live abroad is essential. And whilst it is unrealistic to be able to pin it down to the very last penny, you really do need to cover the basics and essentials to ensure you can afford a decent lifestyle abroad.
To enable you to ‘price up’ your new life you need to spend time in your new country. You need to have a checklist of essential items and services to hand, and you need to go and find out how much they will cost!
If you’re lucky enough to be moving to a place well populated with fellow expats, or you find a thriving online community of those who already live in your chosen nation, you can also ask for information and facts about what it costs these people to live abroad in your nation of choice.
Finding out how much a car costs to buy or lease and run, discovering what it can cost for accommodation or to buy a property, learning the price of electricity, gas and water and then running through a typical weekly shopping basket of goods will give you a good grounding in the cost of living.
You may need to add in commuting costs, clothing costs, the cost of buying furniture, internet and phone costs, the cost of education and finally and critically the cost of healthcare too.
Get a good idea of what your lifestyle will cost, and then you can ensure you do everything in your power to afford your new life!
In Conclusion…
You can never really do too much research, as the more you know the more you can plan for and prepare for. The better prepared you, are the better the lifestyle you can enjoy! However, there comes a point where you have to stop planning and actually put your plans into action and make the move! This is far easier to do, and a more comfortable transition to make, when you are confident that you are making the right decision.
Therefore, get the balance right with your research – and then commit and make the move, your life may very well be a lot better for it!