The Benefits of Working Overseas

Why Nearly Six Million Brits Work Abroad

Have you ever dreamed of working in one of the world’s most exotic locations? The allure of year-round sunshine, lower costs of living and a more laid-back approach to life are enough to persuade around 75,000 Brits to make the move every year. Home Office estimates suggest that between 5 and 6 million British expats are enjoying life overseas, and they are taking advantage of benefits that could improve their knowledge, attitude and future employment prospects. Leaving the UK is a huge decision, but here are just a few reasons why it could turn out to be the adventure of a lifetime.

Develop an Understanding of Different Cultures

Britain is a multicultural society, so empathy and understanding of different cultures and traditions is essential. By living abroad and within a different set of values, you could be better placed to work more effectively with people of different backgrounds if you return to the UK

Broaden Your Horizons

The world is a big place, and life is too short to let it just pass you by. Exploring different cultures will give you ideas and skills you never thought possible. Working abroad should be a voyage of discovery, and you might just discover a little more about yourself.

Learn New Languages

Learning a new language is very difficult if you are not surrounded by it on a daily basis. Living and working among a secondary language will teach you dialects and accents that a classroom simply can’t. The world is becoming truly globalized, and proficiency in two or more languages is increasingly being viewed as a highly desirable skill in the workplace.

Higher Standards of Living

The costs of living in the UK are rising at an incredible rate, and wage levels are simply not keeping pace. However, a move to Florida, for instance, will allow you to take advantage of much cheaper real estate prices. Your money will stretch further, so you can stop dreaming about that pool and Jacuzzi in your garden and make them a reality.

The Potential Problems

Leaving the UK should always be planned carefully, as you will be leaving the protection of the UK’s welfare state. You could be expected to pay for health insurance, and you will need to have a clear contingency plan to deal with the possible loss of employment. However, an issue that is often forgotten by British expats is that of pensions. Retiring overseas can be a very rewarding experience, but it can soon become a nightmare if you haven’t organised a pension transfer. Most countries will allow a UK-based pension to provide an income abroad, but that comes with some significant risks.

Unless a double taxation treaty is in place with the UK, you could find that the income from your pension is liable to tax from both HMRC and the country of residence. You will be restricted on how much of your pension you can take as a lump sum, and you will be forced to take out an annuity in line with British law. However, transferring your retirement fund to an overseas pension provider recognised by HMRC will deliver a number of benefits.

The Benefits of a QROPS Pension

A Qualifying Recognised Overseas Pension Scheme can be hosted by the country of residence, but it is usually administered in a third-party jurisdiction such as Guernsey or the Isle of Man. Such a pension transfer will remove your liability to HMRC for income, capital gains and inheritance tax. You will be able to manage your funds in the local currency, and you will have the flexibility of managing your investment portfolio in its entirety. Although the income from a QROPS will still be eligible for offshore tax, a financial advisor with knowledge of a specific country’s tax arrangements will help you to minimise your liabilities.

Working abroad is usually the opportunity of a lifetime, and it should be embraced as a life-changing experience. However, by putting your financial affairs in order, you will be able to enjoy a long and lucrative retirement in the foreign land of your choosing.

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