Retiring abroad: money matters

Run through the financial implications of retiring abroad with our simple guide…

Retiring abroad checklist — before you leave:

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• 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.

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Working abroad: common questions

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.

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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).

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You have 2 main options:

1. 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.

2. 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.

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This depends on your particular circumstances. For your overseas earnings, generally you won't have to pay tax in your home country if you're not considered resident in that country for tax purposes.

It can be difficult to determine your residence for tax purposes, so make sure you speak to your tax advisor about this.

If you receive income from your home country — for instance pensions or rental income from a property — this will normally be liable for tax in that country.

UK nationals can find guidance on their tax position abroad from HMRC.

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Usually you'll need to pay tax on any income from work or other sources within that country. If you end up paying tax on the same income in two different countries, you may be able to claim for tax relief — this depends on whether the countries have a tax treaty.

The tax position will vary greatly according to the country you choose to retire in — if you're a Lloyds TSB International Account customer, you can get personal tax advice through our partners. For more details, call 0800 876 6555.

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It is important to check out your social security rights abroad as this will also vary according to the country. Some UK benefits will not be payable outside the UK, while others will apply only in EEA countries or those with special agreements with the UK.

For most benefits provided by other countries in these instances, you will need to have paid National Insurance (NI) contributions in the UK.

As a Lloyds TSB International Account customer, you can get discounted health insurance. For more information, call 0800 876 6555.

Find guidance on retiring abroad from Directgov.

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If you're a Lloyds TSB International Account customer you can get personal tax advice through our partners. For more details, call 0800 876 6555.

If you're a UK national, read information on retiring abroad from Her Majesty's Revenue and Customs.

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If you want easy access to your savings abroad, you could use the Lloyds TSB Offshore money transfer service to receive payments overseas.

Find out more about International Accounts.

You can keep your savings in an International Savings Account — these offer good rates of interest and security for UK expatriates.

Find out more about International Savings Accounts.

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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 booklet. 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.