In years gone by there were a number of destinations which proved popular for British expatriates’ retiring. These tend to fall into two camps – a return home to the UK after time overseas or the decision to move to a sunnier, warmer climate such as one of the Mediterranean hotspots, or perhaps to a Commonwealth country such as New Zealand or Canada. It’s important to note that there may be barriers to entry for your ideal location and a range of residency and citizenship schemes to take account of, as well as the tax and financial considerations of each jurisdiction. Citizenship-byInvestment or golden visa programs can be an attractive option, and by holding a second passport or residence permit you can enjoy greater travel mobility and settlement freedom. A range of opportunities are available with over 100 countries now offering some form of investment migration programme to encourage foreigners to choose them as a home, in exchange for a significant investment. A few of the most interesting, and up and coming, retirement destinations include:
Australia
The UK connection
Choosing to retire in Australia can offer a relaxed pace of life, English language, warm climate and plenty to explore. An investment of AUD 1.5 million in government bonds will secure a four-year provisional visa that provides a path to permanent residence after the four years is up — provided that you meet the residential requirements.
The tax you pay in your chosen retirement destination may differ greatly. It is worth noting that you may also have an ongoing liability to UK tax, particularly if you retain a UK property or make frequent visits back home which impact on your non-resident status. It’s also useful to check whether your retirement destination has a friendly tax agreement with the UK.
Malaysia Malaysia offers a true multi-ethnic, multicultural, and multi-lingual society and can be an attractive option for retirees. There is no age limit or residence requirement, as long as you have proof of bankable assets, offshore income, can deposit a minimum amount of MYR 300,000 (approximately USD 72,500) in the Malaysian bank account for 10 years (that amount is halved if you’re above 50 years old), undertake a medical test and purchase medical insurance. Portugal This Mediterranean favourite provides a pleasant climate and reasonably priced property, all within easy reach of the UK. The Portuguese government has launched a Golden Residence Permit Program, to encourage foreigners to the country when making a significant capital transfer or purchasing a property from as low as EUR 350,000. Thailand
A question of domicile Domicile is one area which very much matters if you choose to retire abroad. Your domicile is assigned to you at your time of birth, and stays with you throughout your life, regardless of whether you are resident or not in a particular country. Those with a British domicile will be liable to UK Inheritance Tax, no matter where they live, and pass away. It is possible to change your domicile, but it is a significant undertaking. As a result, considering your estate planning as part of your decision to retire away from the UK will be important. No matter where you choose to retire, it is important to plan ahead and take advice from international experts to ensure that your tax and financial affairs are properly structured. This will then leave you free to enjoy the exciting lifestyle on offer in your chosen new home.
The warm, tropical climate, focus on well-being with excellent medical facilities and low cost of living make Thailand an attractive option for retirees. Five, 10 or 20-year visas are available for a one-time fee of USD 16,000.
advice@thefrygroup.sg • www.thefrygroup.sg • Tel: +65 6225 0825 The information in this article aims to provide information. However, this is not intended to form professional advice nor should it be relied upon as such and before taking any particular action, specific and personal advice should be obtained. All levels and basis of, and relief from taxation illustrated here are subject to change. The Fry Group (Singapore) Pte Ltd is authorised to act as a financial adviser by the Monetary Authority of Singapore - licence number FA100057.
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APR 2020
