The three stages of being a UK expat | When you first arrive abroad

Connected financial thinking for moving and living abroad

When it comes to moving abroad and living life as an expat, there are several stages to the process that necessitate unique planning points.

This article will highlight key points for an expat to consider when they first arrive abroad, including financial planning touch points, setting up insurances, protecting your family, currency, investing and everything in between.

When you first arrive abroad

Planning ahead and taking control of your financial position is essential when becoming an expat. Now that you are officially overseas, what next steps should you take to ensure you can enjoy your new expat lifestyle?

Banking and financial planning

One of the first things to arrange is a bank account to help you with day-to-day payments and ongoing financial requirements. You may need to set this up ahead of time to pay for things such as a deposit on a rental property or a car lease. It’s useful to leave your bank accounts in the UK open. These can then take care of any future UK transactions and can be helpful if and when you return to the UK.

Investing as an expat and currency exchange

As an expat, it is best to invest in the currency you plan to use in the future. For example, if you move to Singapore for a period of time for work but intend to return to the UK, it would generally be beneficial to invest in Sterling to minimise any exchange rate risk when moving money back at the end of your time abroad. There are a number of Foreign Exchange (FX) companies that are highly competitive and provide great options for expats, but it’s important to do your research when selecting a company to help you. Be mindful not to accept poor exchange rates often applied by a lot of banks.

Renting or buying a property and home insurance

Choosing where to live is an important decision. You may want to consider a short-term rental so that you can find your feet and then decide where the best location is for you, your family and your lifestyle. Other expats or colleagues might be able to offer their experienced advice or recommendations for estate agents whether you are renting or buying.

Take some time to review what insurance cover you’ll need in your new country of residence. If you’re renting it may be less complicated, but make sure you are protected adequately.

Other insurance

Medical: Researching medical insurance and healthcare options is important to understand what cover you’re entitled to as a local resident. Healthcare can vary enormously between countries, so thoroughly check what to expect. In some countries, companies offer medical cover for employees and direct family members but if not, you’ll need to make alternative arrangements to ensure you and your family have appropriate health cover.

Travel and Life: Don’t forget to reassess your travel and life insurances, especially given your changed circumstances. Look into an annual travel policy if you’ll frequently be returning to the UK for work or personal visits.

Tax

Unless you have moved to a tax-free jurisdiction, you should consider how tax will be operated against your employment income and what other items of income that jurisdiction may wish to tax. You may need to register with that country and state the date you became resident their for tax purposes, and you may need the assistance of a local advisor to do this.

If moving overseas and becoming non-UK resident removes UK taxable income from taxation, because of a Double Taxation Treaty you may need to a provide a certificate to HMRC to prove your residence in that other country.

Protecting your family

Estate planning: You may have already researched the laws and customs surrounding inheritance and guardianship in your new country prior to relocation.  Following your move, it’s important that you seek legal advice and look to put a plan in place to protect your family and assets in your new home should you find yourself in a crisis or emergency situation. This is likely to involve putting a Will or similar document in place to ensure that your intentions are documented. Don’t assume that your estate planning documents in your home country will suffice in your overseas location. Ensure that you’re familiar with how your bank accounts will be dealt with should something happen to you or your spouse, and the way in which the local laws will be applied to the distribution of your assets, with or without a Will.  

Guardianship: More importantly, if you have minor children, you will need to consider what arrangements you are able to put in place under the local laws for their care should you ever find yourself in a position where one or both parents are not able to care for the children. It is important that you think about the immediate and longer-term guardianship of your children given that you may now be living away from family and close friends.

Clubs and social

It’s important to find new connections and people to talk to in your new environment as this will help you settle in and feel part of the community. Many cities have expat-specific clubs or international meetup groups that organise regular activities, making it easier to integrate and make friends. Joining such clubs not only helps combat the isolation that can come with relocating but also offers a fun way to explore your new surroundings and stay active both physically and socially.

Some examples are The Singapore Cricket Club and The British Association of Singapore who offer a variety of sports and social activities in that region. Hong Kong Football club, dragon boat racing and hiking groups are popular in Hong Kong.

International groups such as Internations are also great globally and across Europe. Make sure to investigate the local expat Facebook groups which signpost regular meet-ups and activities happening near you.

Connecting with expat-specific clubs in your new community may also help educate you on the local laws and those suitably qualified to assist with your estate planning and guardianship matters. Groups often organise expert speakers to support in this area. Additionally, your employer may offer similar support networks and may also be able to recommend professionals to connect with to obtain advice.

OUR TEAM OF GLOBAL EXPERTS

Our teams have helped many British expatriates relocate abroad. Getting the right financial planning and tax guidance in place will make your move overseas a much smoother process. With connected teams across the UK and overseas we can help support you as you navigate your first years as an expat. If you are thinking of moving abroad and need some guidance, please contact us here.

This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale.

This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product.

If you are unsure about the suitability of otherwise of any product or service, we recommend that you seek professional advice.

Past performance is no guarantee of future performance.

The value of an investment and the income from it can fall as well as rise and investors may get back less than they invested. Your capital is therefore always at risk. It should be noted that stock market investing is intended for the longer term.

Author James Sutton is based in Hong Kong: Progeny (Hong Kong) Limited (company no: 51255393) is registered in Hong Kong. Licensed to conduct investment advisory and asset management in Hong Kong by the Securities & Futures Commission (SFC) under CE no. ATY965, and as an insurance broker by the Insurance Authority (IA) under licence no. FB1207. Registered office: Suite 3601, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. Telephone No: + (852) 2526 9488, Email: [email protected] Website: https://theprogenygroup.com/en-hk/