Tips for emigrating: why, where and how to do it

Fancy opening a patisserie in the south of France, being a scuba diving instructor in the Philippines or living out your later years in Tuscany?

Retirement is the most common reason for emigrating to another country, though you might choose to do so at any age, for any number of reasons.

Nor does it have to be a permanent move – if your work takes you around the world, for example, you may have to move with it fairly regularly.

If you’re thinking about putting down new roots overseas, here are the issues to consider first.

Why emigrate?

Think about your own reasons for wanting to move abroad. On the face of it these might be simple, e.g. retiring to a warm climate, or working somewhere with a lower cost of living.

However, you’ll also need to weigh up all the other factors involved.

For example, if you’re retiring, will the new location suit you in other respects as you get older, perhaps if you need more medical attention and long-term care?

And if you’re going abroad to work, will your employment prospects and living standards be as good?

Never let a single attractive factor sway your decision to move abroad. Look at the whole picture, not just the most obvious details.

Preparing for emigration

Emigrating is about finding new opportunities in your new home – but also about leaving things behind in your old one. In quitting the UK you may be leaving behind:

• Family and friends

• A well-known culture

• Your first language

• A familiar legal system

This is all in addition to the well-known stresses of moving home.

The loss of all these at the same time can be disorientating, so do your best to prepare for this and so reduce the initial shock. For example:

• Build a social network online before you move, so you have some local contacts

• Get acclimatised to the new culture through online research, reading, TV, music etc.

• Practise the language (if it’s not English)

• Read up on any significant differences in the country’s legal, political and healthcare systems

Where do Brits like to emigrate to?

You might go anywhere in the world that you choose (or somewhere chosen by your employer!).

But if the decision is down to you, you might begin by browsing some of the UK’s favourite emigration destinations.

• Australia: With largely sunny climes, high wages and a not-too-different culture, this country regularly tops the rankings for UK expats. Finding work there can, however, be a stumbling block, and soaring housing costs mean the cost of living isn’t as low as it used to be.

• Canada: Beautiful, peaceful and home to three of the world’s most liveable cities, Canada benefits from more lenient immigration laws than the US. But it does get cold!

• US: In addition to numerous job opportunities, the US provides an English-speaking environment that simplifies the transition to life there. This cultural familiarity makes adjusting to the US easier compared to relocating to non-English-speaking countries.

• New Zealand: It’s far away, but the relaxed culture, small and friendly population and stunning scenery make this English-speaking country an international favourite.

• Dubai: With sunshine and low taxes, this is an increasingly popular destination, especially for young professionals in their 20s and 30s. There is no income tax, and salaries are potentially high.

• Austria: Vienna, the capital, has frequently been voted the best city in the world for its safety, infrastructure, stable economy and government. However, Austria isn’t the easiest place for non-EU citizens to get residency.

• India: A surprising choice for some, but cheap living costs and the highest number of World Heritage sites give the subcontinent an undeniable appeal.

• Norway: Ranked the happiest European country and also high-ranking on the safety index, this Scandinavian beauty offers a tremendous way of life – if an expensive one.

• Costa Rica: An ambitious and radical move, perhaps, but Costa Rica is named the happiest country on the planet, closely followed by Mexico and Colombia.

What are the financial pros and cons of emigrating?

You might not be moving abroad just for financial reasons, but it’s still important to think about.

Here are some of the main financial pros and cons.

Pros

• Potentially lower taxes: You could end up with more take-home pay, depending on where you decide to move. Countries like the United Arab Emirates (UAE) and Singapore charge no income tax, for example. However, not all countries have lower taxes so you’ll need to do your research.

• Lower cost of living: Moving abroad can give you access to a cheaper property than the UK. On the flip side, some countries actually have a higher cost of living, particularly when it comes to food and healthcare.

• Higher salaries: Countries like the US and Australia offer higher salaries, but these can be eaten up by higher living costs. 

Cons

• Initial costs: Packing up and moving your whole life abroad comes with some initial costs. As well as paying to move your possessions, you may need to take legal and tax advice to make sure you understand the tax system. Also, you may decide to rent a house for a short period until you’re sure where you want to live.

• Medical care: The UK offers free healthcare, but that isn’t the case for many countries abroad - the exact system varies by country. You may need to get medical insurance, which can be expensive if you have existing medical conditions.

• Travel costs: If you still have family and friends in the UK, then you’ll need to factor in extra costs to travel back and forth to see them.

• State pension: If you’re planning to retire abroad, then make sure you check out the rules for the UK state pension. Living in certain countries means you won’t be entitled to any annual increases in the state pension once you live abroad.

How much does it cost to emigrate?

Moving home isn’t cheap, and naturally it costs even more to move overseas. f you own a home in the UK, you’ll need to weigh up whether it’s better to sell it to release the money, or keep it and rent it out (in case you change your mind and want to move back).

You’ll also need to save about six months’ living costs to help you get established when you move, unless you have a job ready to go to.

Here are some of the costs you’ll need to think about before emigrating:

• Travel: Both your initial move, and perhaps ongoing travel costs for trips back to visit the UK.

• Shipping costs: You’ll need funds to pack and transport your furniture and belongings, along with removals insurance to cover if anything goes wrong during the move.

• Storage space: You might be flying before your belongings are shipped or you may want to store some of them for when you return.

• Customs duty: There could be taxes to pay on what you’d like to take to the country, e.g. cars.

• Visa: You’ll have to pay for this, which could be anything from a few hundred pounds to over £2,000.

• Pets: You’ll have to pay for their transport, passport, vaccinations, microchipping, quarantine checks and a travel crate – it can cost as much as £4,000 to move some breeds of dog.

• Transferring money: It costs to transfer money into accounts abroad and you’ll have to factor in the exchange rate – be sure to get advice about this, as you may be able to save thousands of pounds.

How do I emigrate?

The practical business of moving abroad is a huge undertaking, but break it down into small steps and it becomes manageable.

There’s a lot to organise, so give yourself a long lead time. Your to-do list includes:

• Notifying HMRC and the Department for Work and Pensions (DWP) that you’re emigrating.

• Informing other relevant bodies, e.g. banks, insurers and your GP.

• Setting up health insurance (if there’s no free healthcare in your new country).

• Arrange transfer of your assets, e.g. savings and investments – a financial adviser can help here

• Ask your financial adviser about your pension arrangements when living abroad

• Try and contact other UK expats in your chosen country, as they may have useful tips

Then comes preparing for the move itself. You may need to:

• Find and buy a property abroad (you can find a mortgage broker who specialises in overseas purchases). Do your research first, though – you may want to live in the country for at least six months before buying

• Declutter – sell what you don’t need so you only have to ship the bare minimum to your new home

• Arrange school places for any school-age children you may have

• Be prepared for delays and have back-up plans in place if you have to postpone your plans

With a detailed but flexible emigration plan in place, you should be able to take this exciting step into your new life with minimal disruption.

Get expert financial advice

If you’re emigrating and need help sorting your finances, a qualified adviser can help.

Unbiased can quickly match you with a financial adviser who is regulated by the Financial Conduct Authority (FCA).