Ten things your expat clients need to know

Do you have clients moving abroad for a new job or a retirement in the sun? Gavin Pluck, European director at Guardian Wealth Management, points out the top ten things to tell them before they go.

1. Do not underestimating the cost of living

People tend to budget for food, utilities and other essentials on a like-for-like basis with their home domicile. Countries such as Switzerland, for example, can be horrendously more expensive than the UK.

2. Do not underestimating moving costs

Between budgeting and moving there may be external changes, such as in foreign exchange rates and local cost of living increases. People are often caught out by one-off and fixed costs for legal services and expenses around property purchase or rental.

3. Live within your means

For the first three to six months expats want to absorb the new culture and they spend like they are on holiday. Hand in hand with this is ensuring sufficient emergency funds are put by that will not be touched.

4. Factor in exchange rates

People often come unstuck when they have regular withdrawals for fixed payments in their home domicile such as mortgage payments. Look for a fixed exchange rate for a six to 12 month period.

5. Watch out for local taxes

Some countries have harsher tax systems than the UK. Income in the Netherlands is subject to payroll and personal income tax, while Spain has lower income tax but far higher capital gains tax.

6. Make a new will

Many expats will have written a will in the UK, but this may not be recognised in their new country. For example, if a married man dies in a country ruled by Shariah Law, all his assets will normally be transferred to his nearest living male relative.

7. Open overseas bank accounts

Expats need bank accounts in the new country to make domestic payments, such as for utilities, to avoid excessive bank charges.

8. Inform HMRC

Forgetting to inform HMRC of non-UK status can lead to an individual being sought after for tax in both the UK and their new country. Expats must fill out HMRC Form P85.

9. Check the life insurance

Most UK written life insurance policies may provide limited or no cover at all outside of the UK.

10. Put pensions in order

Expats must either ensure they maintain contributions to their UK pension or set up an alternative scheme. If they intend to return to the UK later in life and wish to draw a state pension maintaining national insurance contributions is essential.