Everything Expats Need To Consider When Retiring Abroad

Posted on May 3 2017 - 8:29am by Editorial Staff

The idea of disappearing to another country is one that excites most pensioners. After all, it’s a fantastic way to see the world and experience different cultures. Plus, it’s a lot warmer than staying at home! Yep, retiring abroad is something that retirees should consider. However, it isn’t a decision you should make without thinking it through first. Although the thought of the beach and drinking cocktails by the pool is intoxicating, it isn’t always that easy.

To make sure the transition goes smoothly here are the things you have to take care of in advance.

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Your Money

Because you don’t work anymore, you have to take enough to survive off for the duration of your stay. There are plenty of ways to do it, but searching for lost accounts is one that’s getting more popular. In simple terms, you use resources like the Camori Investments and Superannuation team to help you find any money that you might have lost. If the cash is plentiful, it should last you a long time, which means there is no need to work. You can go old school and save, but why waste time when it is not necessary? Working is also an option as long as you have the relevant paperwork. Don’t forget you’ll get your pension as long as you qualify and notify the authorities before you leave.

The Location

Geography isn’t only important for the weather. Of course, the weather plays a big part in your decision making, but it’s not important right now. What is necessary is that you choose somewhere that suits your needs. For example, if you don’t have the money to last the duration of your stay, you will need to find alternative revenue streams. That’s fine as long as the country allows foreigners to work or buy property. Thailand is a major retirement resort, yet you can’t buy land or own property. So, if you’re thinking about snapping up a cheap and profitable business, you can think again. The EU, for now, is a much easier place to move to because it has favourable links.

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Managing Property

Just because you move abroad doesn’t mean you still don’t have ties to the country of your birth. Many people do as they still have family and friends that live in the same areas. They also have business projects that they believe they can manage from the other side of the world. Okay, so it is possible to continue with your business portfolio even if you are retiring. For instance, selling the property wouldn’t be the wisest thing to do if it churns out money. However, certain administrative tasks can make it hard work, such as taking care of repairs. The only solution is to have someone who can act as your representative. That way, they can deal with any problems that occur without the need for you to travel back home on a constant basis.

Cutting Ties

The other option is to cut all ties and dive in head first to your new life. Let’s face it – the idea of being attached to your former life isn’t very appealing. Plus, it stops you from doing what you wanted to do in the first place – get away. Keeping things like property is a tempting option because you think you can have your cake and eat it too. But, it often makes life a lot more difficult because it provides more questions than it does answers. If nothing is keeping you in the country, don’t stay in your head either. Once you make the decision to go, you should commit to it wholeheartedly. It might seem drastic, but it can be the best way to make a successful transition.

Tax

Regardless of where you retire, there is no way you can avoid paying tax. Sure, some places have smaller tax contributions like Switzerland. But, taxation still exists and can cause problems. The reason is that it is often complicated and hard to understand. As a result, expats don’t know what they have to contribute to pay their way. Although it might be a simple mistake, the consequences can be dire. The best thing to do is to check what you are liable to pay before you move. Hopefully, that will stop the taxman from showing up at your door unannounced. Also, don’t forget to tell the taxman in your country that you’re moving to avoid additional payments.

In fact, if you’re lucky, they might give you a refund. Wouldn’t that be something?!

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.