In the first part of this three part series about moving abroad in retirement, we focused on getting your finances straight to help you determined where you can afford to live overseas. That report also covered making a final country selection – now, armed with this knowledge, i.e., how much you’ll have to live on and where you’re going to live, it’s time to get the practicalities of your retirement abroad in order.
There is a great deal to get organised and it can feel almost overwhelming when looked at as a whole – however, the easiest way to make the move a reality is to break it down into manageable chunks and steadily work towards your relocation date.
In this report we’re going to lay out your ‘how to retire abroad practical checklist’ that will cover every essential angle of your relocation. Naturally there will be some elements of a relocation that are specific to you as an individual – however, we aim to cover the most common themes that you need to consider in your planning so that you will find it easier to ensure you have all your bases covered!
Applying for Essential Visas
If you’ve chosen to retire to a country where it’s a requirement to have a residency visa granted to you allowing your relocation there, you need to apply for said visa well in advance of your move. Some nations such as Canada and Australia have a relatively long processing time on visas, and you have to prove your eligibility for one formally through an application to immigration. Other nations such as Belize or Malaysia, where there are economic benefits to obtaining a retirement visa, require an individual to pay up as well as complete an application form.
You are therefore required to determine what your eligibility is for relocation, and do everything required of you to get the necessary visas and permissions in place before you put the plans for your move into action.
If you’re a Briton moving with the European Community you’re theoretically allowed the free right to live wherever you want, however in practice, even in such circumstances you will be required to at least register your presence locally when you arrive – so the onus is on you to find out what you will need to do once you have moved abroad. Additionally, in certain popular overseas retirement hotspots such as Cyprus and Northern Cyprus for example, there are specific residency processes you will need to follow upon your arrival. In the latter’s case you will also need to prove yourself financially strong in order to remain in that nation. Which brings us to our final point for this theme – determine whether you have the right to permanent relocation to your chosen nation or whether that right can be taken from you if you become a burden on the state through ill health or waning fiscal means, or if for example a change in government or government policy could see your visa taken away. Forewarned in such circumstances is forearmed.
Finding a Home Abroad
For some people, retirement abroad is all about finding that perfect villa in the sunshine. For others, it’s all about moving to a home they already own overseas. For others, retirement abroad is about the country move rather than anything property specific – and for such people finding a home abroad will need to be a feature on their checklist!
We always, always suggest you rent a property overseas before you commit to purchasing. This is for a whole host of reasons, the most common being you can take your time to find the right property in the right location; only with getting to know a country can you find the places you like best where you would really like to live. Property markets in many nations differ greatly to that in the UK for example; by this we mean that there is less liquidity and higher taxes in many countries. If you therefore buy a house on a whim and find it is less than ideal you may lose money if you sell it in the short term thanks to high property sales taxes and capital gains taxes, and/or you may find it incredibly difficult to sell full stop.
Other reasons for renting include the fact that once you’re a bit more of a local and a bit less of a tourist you’re highly likely to find and be given better deals on everything – and when it comes to getting a good deal on a property, that can be a huge money saving advantage.
However, there are plenty out there who choose to ignore our advice!! So, whether you do decide to rent or buy, you need to ensure you have somewhere to move in to abroad before you actually relocate. Don’t leave finding a house to the last minute in the hope you’ll save money on rent for example; property deals have a habit of falling through when under stress for some reason, so be well organised with regard to your home abroad.
Sorting Out Your Current Property
Having thought about where you’re going to live when you retire overseas, you now need to think about what to do with the house you’re already in. If you rent then the obvious point here is to give due notice to your landlord – but if you own your home or it’s mortgaged, you have a range of options and alternatives. Now, just as we always advise you rent abroad first, we also advise you think about renting your own old home out for at least a while as well. This is so that you have somewhere to come back to in the event that living overseas is not for you after all.
Another reason to think about renting at the moment is because the housing market is less than buoyant and prices are less than spectacular – so by renting for a while you may be able to get more out of your property in the long-term. If you do decide to let it out you need to seek advice from local letting agents about anything that should be done to the property to make it more appealing. For example, any unfinished DIY jobs should be completed, and you may need to think about employing your own gardener to look after a complex, fussy or large garden as tenants seldom want to put the effort in!
There will be landlord obligations on you relating to the servicing of gas and electrical appliances too – and remember, if your property is still mortgaged you’ll need to let your lender know about the change in circumstances. You will also have to change your insurance policy covering your home. Alternatively – you can just put your house on the market!
If you’re buying a new home overseas you may well need the equity in the property ‘back home’ to fund your purchase…in which case you may need to get the property on the market as soon as possible as selling a home can take time! If/when you do sell and you decide you want to transfer funds abroad, remember that you need to beat the exchange rate blues by thinking about using a currency transfer specialist to help you get the best deal on your money movements. Don’t leave it to your bank to send the money overseas – they charge too much and give you a rubbish rate of exchange usually.
Considering Health Matters
Before you relocate abroad you need to get to grips with whether you will need local or international medical insurance, whether you’ll be entitled to free state care abroad and/or what the state of the healthcare system is like in your new nation. Even in countries where there is a reciprocal agreement between your old home nation and your new one about you having access to free treatment, you need to look at what’s available and see whether you need supplementary insurance to cover you. You can begin by visiting the likes of the DirectGov website which has help on healthcare matters for people moving abroad from Britain.
Then, if you do determine that you need health insurance, you need to shop around – for a start, the big names have recently begun a bit of a war in terms of the product offering they have, so look to them and see if you can get a good and appropriate deal. But don’t rule out the smaller players or local insurers in your new nation. Again, it’s a good idea to speak to other expats on forums who are living in your nation of choice to determine who they prefer for their health insurance needs.
Arranging Personal Transportation
One thing that often gets left to the last minute – with expensive consequences – is your personal travel abroad to your new country! Don’t leave booking your plane or ferry ticket until it’s too late to get a good deal. This is especially the case for those who are travelling far further afield – begin shopping around for good deals well in advance of your chosen move day. Having said that, don’t necessarily commit to inflexible ticket types as you never know, a last minute hitch may see you needing to alter your ticket time and day.
Arranging Pet Transportation!
If you’re taking your beloved pets abroad with you, you need to look into the practicalities of relocating them. Some nations will require them to have been vaccinated and then tested against rabies, and you have to have this done well ahead of your move date. You will need to find out what obligations are on you ahead of their shipping, then you need to find a carrier who will take your precious cargo. What’s more, you may need someone at the other end who will receive your animal/s and take charge for you – so look into the realities of all of this ahead of your move date.
There are companies who specialise in the shipment of animals internationally – you could look into how they will help you and what they will do for you for the fee they charge. Because the export and then importation of animals is complex, sometimes the services of these companies really are very worthwhile! And now for a final word of warning – if you move abroad, can you bring your pet back to the UK without it having to go into quarantine if you suddenly decide living abroad is not for you? Some countries are in the PETS scheme just like the UK so that as long as your animal is up to date particularly with its rabies vaccination it can travel in and out of the country without quarantine – other countries such as Northern Cyprus, Belize and South Africa are not. So, be careful – you need to know you’re committed to living abroad before you commit your cat or dog to the one-way journey!
What to Take, What to Leave
Trying to determine what clothes, furniture and personal effects you’ll want and need when you live overseas can be tricky. Should you ship the fridge? Do you need to take your winter coat? What about all the books you have amassed over the years? The more you ship the more it costs – it’s that simple. So, if you’re happy to pay a small fortune to send everything, then send everything! On the other hand, if you want to save a bit of cash or you’re just aware that your new home won’t accommodate everything you have and/or you want to off-load some of what you have accrued over the years, then it’s time for a concerted clear out!
Think about what you will need to take – i.e., what you can’t or won’t live without as well as what you can’t get in your new country. These items are essential. Other than these, what would you like to keep? Whatever is left, can you sell it on eBay, at local auction, have a garage sale or perhaps gift to charity? Maybe there are specific items that friends and family want or could benefit from? It turns into a big project, trying to clear your home, so don’t leave it until the last minute.
Packing and Shipping
As stated, the more you ship the more you pay – so, once you’ve whittled down your personal effects to what you want to move you need to get quotes in from international removal companies. Consider using a company that’s a member of an international/European federation which will insure your interests – and make sure you look into the insurance you will need to protect your goods in transit. Factor this in to the base cost quoted, haggle and negotiation and finally commit to a company that will help you move with as little stress as possible!
It may well be that your removal company will pack your goods as they need to complete the export/import documentation and there is a liability on them about that which they ship. If not, it may be that you have to leave all boxes unsealed so that they can check them before they ship them. Find out in advance. If you are doing the packing bear in mind that the items may be loaded and unloaded various times, be put on a ship, sent across high seas or bumpy roads. In other words, protect everything very well indeed. Having had professionals pack my house for international removals several times I can tell you with my hand on my heart that they do a better job that you ever could! So, if you have precious cargo, it may be worth paying any extra to have a professional service – but never forget that accidents can and do happen, so insure yourself anyway!
Family and Friends
Family and friends can almost be forgotten about in the excitement, stress and hard work involved in a relocation – however, these are the people who matter most, who will miss you and whom you will miss terribly. So, you need to make some time in all your hectic plans for your family and friends.
Talk about how you will keep in touch, help those who don’t perhaps have the technology in place such as Skype to get what they need to communicate with you when you’re many miles away. Make plans for visits back and forth and perhaps think about writing letters or cards to your important people telling them how much they mean to you. It can’t do any harm, and at the end of the day, when you’re abroad and having a fab and fun time and they are back home missing you, they can be reassured of how much you love and miss them!
Money Matters – Bank Accounts etc
I have already mentioned transferring money abroad and calling on the services of a foreign exchange specialist company – but there’s far more to money matters than just that! For a start you may need to open a bank account abroad – although that is far easier to do once you’re resident overseas, and/or you may want an offshore bank account for the flexibility and ease of the management of international monetary matters.
You may need to speak to your pension provider about paying your income free of tax into your UK bank account when you become non-resident for tax purposes in the UK. Alternatively you may want the money transferred abroad – again, think about the services of an FX specialist and whether you can fix your rate of exchange for regular payments in advance for a specific term.
Other monetary matters include determining whether any benefits you now receive are payable abroad – again, start with the DirectGov website…and don’t forget your potential eligibility to winter fuel allowance when you’re overseas.
Utilities and Liabilities
You will need to make sure your new home abroad will be connected up to water, electric and gas when you arrive, you’ll need to inform your suppliers of your utilities back home of your departure date too. What’s more, you might want to think about getting a SKY TV package for when you move overseas and think about any other ‘home comforts’ you will need to arrange to take with you, have connected or get in place to make your new home a home from home!
Other considerations need to be given to any ongoing liabilities you have such as the payment of a mortgage back home, the payment of any loans or debts, or the payment of maintenance for example. Make sure you’re aware of all liabilities in all nations ahead of a relocation because it’s easier to sort everything from your settled position in the UK (or wherever) before you move overseas.
Packing for the Journey
Make sure you have all the items you need for immigration to hand in your carry on luggage. This may be proof of residency, passport, any visas or permits required. You may also want to keep handy the details of where you’ll be living in case you need a taxi or get lost! If you know anyone in-country then have their details on hand in case you need help if your arrival goes awry. Consider carrying essential documents with you rather than shipping them – driver’s licences, bank books, insurance documents, birth certificates etc. Also, have 3 photocopies of all essential items – one that was shipped abroad with your goods, one left behind with a trusted friend or family member and one to be carried by your spouse or partner in case you’re separated for some reason.
It doesn’t hurt to be so well organised! Also pack a small number of essential items – a bit of cash for a hotel room if your flight’s delayed, a credit card can also get you out of all sorts of trouble! Toothpaste, change of underwear, reading matter, any essential medication etc. And on that point – remember that there are some restrictions on what we think of as over the counter medicine in some nations – and so, even if you’re just travelling through such countries on your way to your destination, make sure you can ‘get away’ with the drugs you want/need to carry!
Saying Farewell!
Don’t forget to say your goodbyes properly – after all, ‘there’s nowt so queer as folk’ and if someone perceives you’re off having the time of your life in retirement abroad but you ‘forgot’ to say goodbye to them, they could be upset forever! Maybe have a leaving party, maybe write letters to those you can’t get to see in person – but whatever you do, say farewell to anyone in your personal, professional and day-to-day life because you will need friends and family even when living abroad, and if, for some reason you decide to come back home one day, the last thing you want is enemies in the place of what were once friendly faces!
Other Articles in the Series: -
I Want to Retire Abroad – Where do I Start?
How to Make Your Retirement Abroad Work
Barry E. Says:
Mon, August 01, 2011 at 06:02 PM
The checklist is very well-said. Those people that are very forgetful totally need this. They got to read it over and over again. Family and friends. The very main thing for me. Once you get the chance to leave, you can never avoid sadness. After all, they became part of your life. And going abroad, you need to have a lot of adjustments too. So good luck.