4 Essential Financial Things to Consider if You Are Planning to Retire Abroad
What would be your main motivations for retiring abroad? For some warmer weather? To experiencing exciting new things? A lower cost of living perhaps.
There are many advantages and things to look forward to when moving abroad, but like everything, there are some disadvantages too, be it cultural differences, missing your family and different taxation laws.
In this article, we focus our attention on some of the financial things you need to consider if you are looking to retire abroad.
Consider renting a retirement property abroad rather than buying one
No matter how certain you are that you will call your new country your home forever, it is never a good idea to jump into buying a property there. Should you happen to decide to move back home, the cost to buy and sell could leave you largely out of pocket.
In many countries, even if you are sure that you are going to stay for the long-term, renting is a much cheaper option, plus it leaves you with the flexibility to move home, or to a new area, or even a new country altogether!
How does banking work abroad?
It is vital to understand how banking works in the country you are looking to move it as it will probably be different from home. Will you need to open a local bank account? If so, learn about what you will need to do to so, what documents you will need and so on.
Many banks now offer a refund on foreign transaction fees. This is worth looking into as it allows you to use your current bank abroad with no extra cost, saving you the time of opening a new account.
Tax as an international retiree
Sorting out your tax affairs between your home and new international home can get very complicated. We recommend you contact an expert to give you some advice, especially if you have investments or property back home.
Did you know that US residents living abroad still must file a US tax return each year, even if they are not living or earning an income in the country? Tax must be paid to the US on earnings abroad, as well as other withdrawals such as pensions.
Another thing to be aware of is double taxation, paying tax in your new country and your home country.
Check the tax arrangements between your new host country and your home country and understand the laws and differences between them.
International Retirement Healthcare Cover
Having international medical cover is important when living away from home. For many countries, it is even a requirement of your visa.
An expatriate tailored medical insurance policy gives you peace of mind that should you need any medical treatment, you will be looked after both medically and financially.
At Healthcare International, we have been providing expatriate private medical insurance for over 25 years. As well as providing our customers with access to our team 24/7, 365 days per year, our international network is built up of over 300,000 doctors in over 7,000 medical centres. We cover virtually every country and will even get you back home should you need. We also have no age limit and no medical is required.
To learn more about our international insurance policies and to get a tailored quote, please contact one of our specialists today on +44(0)207 590 8800 or visit www.healthcareinternational.com
If you would like to switch your expat medical healthcare from another provider, you can do so over the phone and do not need to be in your home country.