There are many things that will cross your mind as you begin to plan your retirement abroad – from where you will live to what type of home you will be able to afford, from how much it will cost to move to how much you will enjoy your new life in the sunshine overseas. However, one of the aspects of your move that will be essential to get right to aid the smooth running of the relocation will, ironically, be one of the last things you probably think about!
Getting the bureaucracy, red tape and legalities of the move right will mean you have far less to contend with when retiring abroad, but because we know it can seem a bit daunting having to get your head around everything that needs to be done, we’ve produced this guide to knowing and managing your responsibilities.
Where possible we’ve provided links to other resources that you may need or find useful; and whilst this guide cannot be exhaustive as it can only take a generalised look at the bureaucracy involved rather than personal considerations on an individual basis, we hope it serves as a good basis from which you can plan and plot your relocation carefully and completely.
Before You Move Abroad – Paperwork and Planning
If you’re retiring abroad, we assume you don’t have children in school and you don’t have work to find or resign from…therefore it is this assumption that has helped us create the following list for you…
1) Get a state pension forecast if you’re not already in receipt of the state pension. You can do this by visiting Direct.Gov.UK
2) Write to each of your pension providers and ask them for an overview of your situation when it comes to your private pension arrangements
3) Make sure your passport is valid for at least 1 year
4) Make sure you have a new UK photo licence
5) Find out whether you will need to get an international driving licence – these can be obtained from main branch post offices
6) Find out if you need any inoculations
7) Find out about inoculations or quarantine for your pet. DEFRA is a useful website for information
8) Find out in advance what your visa and residency requirements are and will be on an ongoing basis. To do so and to get the most complete picture possible, contact the chosen country’s embassy or consulate in the UK – embassyworld.com is a useful resource
9) Get copies made of all your important identifying documentation such as your passport, driving licence, residency paperwork, proof of address in the UK and abroad
10) Get a handful of passport sized photographs of yourself too – they’re always required!
11) Contact the following people and advise them of your move date, change of circumstances and change of address as required: -
i) Bank
ii) Insurance companies (apply for any refunds due)
iii) Utilities providers
iv) Subscription suppliers
v) Doctor and dentist
vi) Private clubs or societies you’re a member of
12) Inform the Inland Revenue of your departure by completing their P85 form – see their useful section for those moving abroad
13) Get your house on the market, advise your landlord you’re moving out or think about how you will manage your home if you intend keeping it when you move abroad
14) Find out about healthcare abroad – if needs be get private medical care in place, or proof of your entitlement to free treatment
15) Find out if you’re entitled to any benefits when living abroad from Direct.Gov.UK
16) Set up financial advice about your position now and when you move abroad so that you can be in a position to bank internationally and take advantage of any expatriate offshore advantage that you will have
18) Take out travel insurance to cover you as you relocate
19) Get quotes in advance for international relocation to help you decide what to take and what to leave
20) Don’t leave it til the last minute to get your life’s affairs in order – a massive life changing decision like moving abroad should prompt you to update your will and your life insurance cover.
Now You’re Living Abroad – Battling Bureaucracy and Revelling in the Red Tape
Even if you move within the EU there will be certain obligations upon you to register and make yourself known once you move abroad.
1) Having determined in advance what your responsibilities will be for proving residency and establishing it, get your paperwork processed. You may have to visit the local town hall, police station or department of immigration – if in doubt even after you arrive, seek qualified advice from the department of immigration if you cannot get a consistent answer from anyone else
2) Make a note of those you have spoken to and steps you have taken to prove and establish residency, always keep visa slips, official and even unofficial pieces of paper and documents relating to your entry into and residence in a nation in case there is ever a query about your right to remain
3) Register yourself with the local tax office if required
4) Get a tax number
5) Get a social security number
6) Apply for a local driving licence if required
7) Sign up with a local doctor and dentist, taking recommendations before you choose – do this now whilst you’re in good health as the last thing you want to be doing if you’re ill is ringing round trying to find a practitioner to help you
8) Get utilities at your new property transferred into your name
9) Make contact again with any financial adviser you spoke with ahead of your move – chances are, now that you’re abroad and non-resident for tax purposes in the UK, you can take advantage of any suitable offshore options and alternatives
10) Know your rights when it comes to real estate matters – understand any contracts you’re asked to sign and always get independent legal representation when thinking of signing any significant contract
11) Ignorance is not an excuse to protect you in any country in the world. Your country’s embassy or consulate in your new nation may have a list of lawyers you can approach for help
12) Find out if you have to pay tax on income remitted or earned ‘in country’ – ensure you fulfil your obligations. Speak to the local tax office for advice
13) Consider getting a local bank account – to do so you will need proof of ID and ‘in country’ residence at the very least
14) Determine whether you need indemnity insurance in your new nation – it’s not something we consider in the UK but in countries such as Germany for example, it is required and necessary
15) Get a health card or health care number and find out about your entitlements if there is a free system in place
16) Get a local tax adviser to help you if you have to prepare a tax return
17) Get a local will made that is cross-border legal to cover your assets at home and abroad
18) Make an effort to learn overseas customs and observe respect when it comes to religious and cultural differences
19) Register your right to vote in elections back home from a distance - and/or find out if you have any voting rights in your new country
20) If you’re thinking about supplementing your income in retirement by taking on some part time work, find out if you are allowed to do so according to your terms of residency in the new country
We hope the above checklists will help guide you through a successful relocation abroad in retirement.
