Run through the financial implications of retiring abroad with our simple guide.
Retiring abroad checklist.
- Inform your current tax authorities of your plans to retire abroad. Tax forms for UK residents leaving the country.
- If you are going to rent out your UK property while abroad, inform your insurance provider (and mortgage provider if applicable).
- Open an international bank account.
- Find out about the tax and social security system in the country you're going to.
- Find out your current pension entitlements.
- Get advice on the legal status of your will in the country you're going to.
- Find out if you need to take out medical, personal injury or other insurance in the country you're retiring to: in some countries you have to be resident for a certain period before being entitled to free national healthcare.
What countries can I retire to?
UK nationals can retire to any country in the European Economic Area (EEA). But if you intend to move outside the EEA, you should visit the British Embassy website for information on retiring in the chosen country.
How will I receive my pension?
Firstly, you need to get a State Pension forecast to check your entitlements while living abroad. Download Form BR19 from the department for work and pensions.
You should also inform HM Revenue & Customs National Insurance Contributions Office (International Services) and the Department for Work and Pensions of your contact details when you move.
Your state pension can then be paid direct into your International Account.
If you are receiving income from a private pension, check whether the scheme will pay into an overseas bank (and if you will have to pay charges for payments into overseas accounts).
What sort of bank account do I need when retiring abroad?
You have 2 main options:
Open an International Account before you go
International accounts offer easy access to your money while abroad. You can use your debit card in many outlets, just as you would in the UK, and can have your pension paid direct into your International account.
Get a local bank account once you've arrived
Opening a local bank account in a foreign country can be a long process. You will generally need a permanent address, social security number, identity documents and knowledge of the local language to deal with bank staff and fill in the necessary forms.
This information is based on our understanding of current law and tax authority practice and may be liable to change, which could be with retrospective effect. This information is for general information purposes only. No liability can be accepted for the effect of any subsequent legislation of change of official practice. If you require tax advice you should consult your own professional advisers, and not rely on the information contained within this website. The greatest care has been taken to ensure accuracy but the Bank cannot take responsibility for omissions or errors. Tax levels or relief are those currently applicable and may change. The value of any tax relief depends on the individual circumstances of the investor/customer.