Home and away…and then home again
For many, moving away from the GCC is a bridge many will have to cross at some stage in the future. This can be a stressful time for you and your family with possible changes to education planning for your children, logistical considerations surrounding moving the contents of your home overseas and saying goodbye to a place you have come to love and consider as home.
Some of the stress and emotion associated with leaving the region is impossible to fully mitigate. However, a weight that can be lifted by thorough prior planning is the changes to your finances. Transitioning from the GCC overseas involves careful financial planning that we will all have to consider at some point. Below are the top 7 considerations to be aware of before making the move:
1. Currency Exchange
Understand the exchange rate between the GCC and your home countries’ currencies. Assess the impact of currency fluctuations on your savings, income, and expenses during and after repatriation.
2. Tax Implications
Familiarise yourself with the tax laws in both the GCC and your home nation to ensure compliance. Determine if you will be subject to any exit taxes in the GCC and be aware of your tax obligations at the other end upon repatriation.
3. Financial Accounts
Review your existing bank accounts, investment portfolios, and retirement savings in the GCC. Determine whether bringing these assets back or maintaining them in the GCC is beneficial. Consider the tax implications, foreign exchange fees, and any account closure procedures. There are almost always alternative options that you may not be aware of, which can help to protect your assets.
4. Pension Rights
If you have accrued pension benefits in the GCC, examine your options regarding transferring or leaving them behind. Seek professional advice on how to manage your pension rights effectively. There have been multiple changes surrounding pension provisions in the region, and you must understand these.
5. Insurance Coverage
Assess your insurance policies, such as health, life, and car insurance, and evaluate whether they need to be updated, transferred, or cancelled upon repatriation. Ensure you have suitable coverage once you arrive on the other side.
6. Cost of Living
Research and evaluate the cost of living in the UK compared to the GCC. Consider factors such as housing, education, healthcare, and daily expenses. This will help you create a realistic budget and understand the financial adjustments necessary. Try not to overlook incidentals and the need to maintain an emergency reserve.
7. Financial Adviser
Consult with a qualified financial adviser with experience in international financial planning. They can provide personalised guidance on tax optimisation, investment strategies, and other financial aspects specific to your situation. “Good financial advice is always cheaper than no financial advice”.
Remember, each individual’s circumstances are unique, so seeking professional advice tailored to your specific financial situation is advisable before making any major decisions.
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Disclaimer
The information on this page is directed only at persons outside the United Kingdom and must not be acted upon by persons in the United Kingdom.
