How to futureproof your finances as an expat

Making the decision to move half away around the world to start a new life is not only incredibly exciting, but it can have a serious impact on your finances. Sure, you might be able to secure a higher-paying job in your new country, but what about your long-term financial picture? Below, we’ve put together some tips on futureproofing your expat finances.

Understand tax

It’s vital that you get to grips with local tax laws when you move to a new country, and consider whether you’ll still need to pay tax on your income when you live abroad. If you’re from the UK, you’ll only need to declare and pay tax on any income made in the UK, such as from investments or property, but you should check that you won’t be taxed again when you bring that money into your new country. Speaking to a financial adviser will help you, here.

Review your pension

The chances are that you’ll still be able to claim your State Pension when you move abroad, but depending on where in the world you move to, you might not benefit from the rise in State Pension based on the rising cost of living. For example, if you move to the United States, you’ll still get an annual raise, but if you move to New Zealand, you won’t benefit from an increase. Calculate whether you’d be able to live off this before you make the move.

Consider making local investments

It’s easy to assume that all of your investments have to be made in your home country, but the truth is that you can invest locally as an expat. We always recommend speaking to an accountant or financial advisor who can recommend the very best expat investments, but it could be something as simple as setting up a new expat pension or investing in a business. With on-the-ground investments, you’ll have a diverse portfolio and some peace of mind.

Invest in property back in the UK

One of the most common ways to protect your future is to invest in property, as it continues to rise in value and offer generous returns in the form of the monthly rent. Depending on where in the world you’re moving to, you could invest in property back in the UK and hand over the every day responsibilities to an agent that offers property management services. Do your research and weigh up the pros and cons in relation to other investment opportunities.

Seek professional advice

Finally, make sure that you find a trusted advisor who can assist you with your investments and financial planning. The sooner you’re able to sit down and discuss your options, the sooner you’ll rest easy and have peace of mind that you’ve got enough money to live off. And don’t put it off – whether you’re in your 30s or 60s, it’s never too late to start planning.

Do you have any tips? Let us know in the comments and check back soon for more.