Good Advice When Moving Abroad

Summary: Ten top tips for anyone thinking about moving abroad to save would-be expatriates time, money, hassle and above all heartache

Around five million Britons have already made the decision to move abroad and according to research undertaken by the Office of National Statistics, the rate at which levels of emigration have increased is around a third over the last ten years; so with more and more Brits thinking about moving abroad it’s important that publications such as ShelterOffshore offer good advice to anyone considering their options.

This article is all about good advice when moving abroad – it details the ten most important things to consider and get right to save yourself stress, money, heartache and hassle.

1) Location Research

It’s all very well having a dream location in mind that seemingly fulfils all your requirements for an idyllic lifestyle abroad – but have you actually considered and indeed looked in detail at the practicalities of a given location in terms of you being able to have the standard of living there that you both expect and require?

For example – if you’re considering moving to a remote part of the world with your entire family in tow how will you get your children the education they require?  And if you’re moving to a country where there is no social system what will happen if after a number of years working you suddenly require income support, unemployment pay or even free healthcare?

Looking at a country from the surface and deciding that because the sun shines there a lot you could be happy living there is not really sufficient location research.  Get on the internet, get on forums, get guidebooks and ideally get on a plane and spend some time in your preferred country ensuring it has all you require before you commit to moving abroad.

2) Language Barrier

Not everyone in the world speaks English!  This often comes as a surprise to some people (usually dads!) who are certain that English, if spoken loudly enough, will be understood by all! 

Think about the reality of living in a country where the principal language is something other than English – are you going to be able to learn the language?  If not how will you deal with the minutiae of every day life when you need to buy stamps, ask directions, order a takeaway or even call for emergency assistance?  Be realistic about living abroad – you may need to work at it to get it right.

3) Property Abroad Considerations

If you’re moving abroad you’re going to need somewhere to live.  But before you rush in and buy off plan, site unseen think about renting for a while and getting to know the different areas around your preferred location and get to know local people who may actually help you find a suitable place to live for far less.  When buying abroad in a given location there is an old adage that the first property you buy is always the most expensive and the least well located because you don’t really know what you’re doing.  If you buy twice the second property is likely to be better built, cheaper and in a better location!  By renting initially you can avoid this pitfall.

When it comes to buying consider taking local advice, ensure any estate agents you use are fully regulated according to local laws, look at your international mortgage options and always, always get independent legal advice before signing anything!

4) Primary Residence Considerations

If you own a home in the UK already what are you going to do with it when you move abroad?  You could keep it as a place to come back to for holidays in the UK or as a bolt hole if you decide moving abroad was a bad idea.  You could let it out but then you have the hassle of needing a management company to oversee the rental and upkeep of the property.  The benefit of this approach though is that you keep on the UK housing ladder and generate an income so these benefits could outweigh the negatives.  Or you can consider selling up and cutting all ties with the UK.

All decisions carry different taxation considerations.  For example if you generate an income from your home you could be liable to income tax, if you sell it you could be liable to capital gains tax if it is no longer your primary residence and if you leave it as it is in case you want to come back to it you will still have to pay council tax. 

Think carefully – after all, it’s hard to get on the UK housing ladder in the first place!  If in doubt take some tax and legal advice before making your final decision.

5) Employment

If you’re at an age where you will be seeking work abroad how likely is it that with your personal skill set and level of experience you will be able to get the job you want abroad.  In addition to this consideration you have to know whether you will actually be allowed to work abroad and if you are, will you require a special visa or permission and will this cost money?

Look at the practical realities of getting a job and being allowed to work abroad.  There is a wealth of information supplied on the internet on a nation by nation basis by the embassies of a given country – alternatively contact recruitment agencies which deal with overseas placements and ask for their advice.

6) Taxation

Has the country you’re moving to got a double taxation agreement in place with the UK to avoid you the hassle of having to pay tax twice and trying to claim one lot back?  There’s a lot to be said for double taxation agreements, they certainly save the expatriate a lot of time, hassle and money!  Furthermore, while UK is quite a high tax country there are countries in the world where the rate of tax is even higher!  Look at income tax, VAT equivalent tax rates, tax on property and also think about inheritance tax.  Make sure you’re not moving to a country where you’ll actually be worse off.

7) General Legalities

Even Brits who are moving to live abroad in another EU member state need to register with the authorities – and those who move further afield often need permission in the form of a residency visa before even moving abroad.  Know what your legal obligations are before moving abroad – if you get them wrong you risk fines, imprisonment or deportation depending on the country.  Again, all this information can be gleaned from the websites of the consulate or embassy of the country you’re moving to.

8) Healthcare and Welfare

The standard and availability of healthcare abroad varies massively from country to country – in addition social welfare options not only differ greatly but may be inaccessible to expatriates…therefore it is essential that these issues are at least given some consideration by a would-be expat.  The best solution for those moving to a country where healthcare services are poor or where getting medical assistance is expensive is getting expatriate health insurance in place – consider American Express and Good Health’s insurance product.  Also consider getting some form of income protection scheme in place or at least having a small amount of money set aside for a rainy day.

9) The British Consulate

The British Consulate is there to assist British expatriates in an emergency and they also offer passport renewal services for example - and they always say it’s a good idea to register your presence in a given country with the local British Consulate.  Look on the internet to find out where the consulate or embassy is in the country that you’re thinking of moving to and at least make yourself familiar with where it is in case you ever need to call on the services offered therein.

10) Money Management

And finally – one of the most frequently cited reasons why British expatriates repatriate is for financial reasons.  Moving to live abroad isn’t actually a cheap alternative to dealing with day to day living expenses.  The initial relocation will cost you a lot of money in terms of travel and transportation, there are high initial costs getting visas, finding accommodation, buying additional furniture, paying for the connection of services - often there are private international school fees to find, insurance costs to meet and in a bid to quickly meet new social groups people often go out and socialize a great deal when they first move abroad which also costs money!

Therefore before you even think about moving abroad you need to ensure that you are in as sound a financial position as possible – it’s no good putting all of your money eggs in one basked and funding your move abroad and then saying, ‘right I have enough to last me a week or a month before I have to have found paying work’ – what if you can’t get a job that quickly, what if your UK pension isn’t sufficient to meet your day to day living costs, what if there is no one around who can bail you out.

Take responsibility for yourself and your family – don’t hope it’ll all work out, don’t rely on others to come to your rescue, don’t assume there will be a system in place to support you.  If you really want the benefits that a new life abroad can definitely bring, you need to actively prepare for your new life abroad in a responsible manner.  Sorry to end on a boring note, but if you want to succeed you have to prepare to succeed!

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