Creating a plan
When moving internationally from Christchurch, Southbourne, Highcliffe or Bransgore, there are more important aspects to consider, than simply booking a flight and ensuring you have accommodation. Considerations should range from covering property sales, tax implications, residency requirements and International removals (Sea, road and flight). Further considerations should be planned around healthcare and insurance.
Selling or Renting Your UK Property
Renting can provide a steady income, whilst providing a fall-back should all not work out in your new destination. However, there can be complications from taxes, legal compliances and an overall property management perspective. Selling is usually the preferred option, although considerations should be made for the current market conditions alongside an effective marketing campaign.
Timescales
If selling, consider the time between an exchange and completion. Your purchaser’s expectations will need to be managed at an early stage, by your Estate Agent, should you wish to ‘tie in’ your sale with an International purchase. However, our recommendation if selling, is to have temporary accommodation either set up, or as a fall back plan, to ensure your purchaser can still exchange and complete. Within the current market, ensuring you don’t lose a purchaser is critical.
Tax Implications
Important factors to consider include Capital Gains Tax on property sales, Inheritance Tax, and ongoing Income Tax responsibilities if you retain income sources in the UK. Early planning with a qualified financial advisor not only ensures compliance but can also help you optimise your overall tax situation. It’s essential to understand the rules around tax residency and domicile, as failing to plan properly could result in being classified as a tax resident in both the UK and your new country. Don’t forget to seek financial advice regards a will across borders. English wills may not always protect family members abroad.
Currency Exchange
Navigating the ever-changing currency markets can be a challenge, especially with more expensive homes. Both economic and political factors influence the exchange rate and so considerations should be made for upcoming elections or budgets, inflation and interest rates and general political stability. Nobody has a crystal ball, but we would advise employing a currency specialist when exchanging larger sums.
Residency, Immigration and Citizenship Requirements
Depending on your chosen destination, you may need to meet certain investment criteria, fulfil minimum residency requirements, or provide specific documentation for accompanying family members. Preparing in advance can help avoid unnecessary delays or complications during the relocation process.