Financial planning is a priority no matter what you are doing and where you are living – but when moving to another country this is doubly important. You worldwide estate is likely to be affected, and you need to make sure that all your assets are protected and continue to earn you the maximum amount of income or interest, even when you no longer live in the UK.
We recommend seeking careful professional advice on these matters before you leave the UK, to ensure that are aware of everything that you need to know; this will usually include:
- How and when to notify HMRC about you departure from the UK; this is not only a formality, but may well result in a tax rebate.
- Any tax implications from moving to Spain and leaving a let property behind in the UK
- The UK state pension benefits to continuing National Insurance Contributions when you move abroad.
- Whether your UK life assurance or savings policies are relevant to your new life in Spain.
- Whether you will be able to continue contributing to any ISAs.
- Whether you can continue to pay into your UK pension and still receive tax relief - and any accumulated pension rights.
- What you should do with any large cash balances you hold in the UK – moving them offshore could be an option.
- Your residence status – particularly if you wish to split your time equally between Spain and the UK – and the implications of the Statutory Residence Test.
- Tax returns – and what you need to do even after you leave the UK. Please note: there are now significant penalties for late submission.
- Inheritance laws and taxation – these are different in Spain than they are in the UK, so it’s important to make sure your assets are protected.
If you will be relying on income from investments to fund your life in Spain, it’s important to consider the fluctuating currency market and the effect that this can have on your transfers. As the market rates go up and down, so will your income; a currency specialist like Smart Currency Exchange can offer you tools to set the rate on all regular transfers from the UK to Spain for up to one year.