Setting up permanent residency in a new country

I was chatting to an elderly lady at the bus stop a few days ago: “I have lived in Fulham all my life” she told me, “and so did my mother.” It’s not every day you hear that anymore. How many people these days remain in the area where they are born, with their family living close by, I wonder? Not many would be my guess.

Moving, especially moving abroad, presents many challenges and raises many obstacles. How does one set about deciding to move abroad, and if you do move, how do you set about making sure you can stay there permanently if you so desire?

Most countries apply formal controls on the movement of people across their borders, both for political and economic reasons. Some countries actively encourage controlled migration on the basis that an influx of skilled people is of benefit to the country. Others – such as the USA – find that they are inundated with people wanting to pour across their borders. So…will YOU be welcomed? Countries generally encourage migrants who fall into the following categories and arrange the visa process around these requirements:

• Family: people reuniting with family members
• Professional skills: people who are given permission to enter the country on the basis that they have qualifications and experience which are in demand
• Business: Entrepreneurs, experienced executives or self employed people who are able to set up a business or make a financial investment in their new country

The first decision that needs to be made is whether to apply for a temporary or a permanent visa. For some, the security that a permanent visa offers is massively important and they will have no trouble in deciding that this is the choice for them. But for others, breaking their ties with the UK is a really scary concept and they would prefer to ‘test the water’ so to speak – for these people the temporary visa may seem a better option. We are talking about the lucky few here of course, those who actually have choices.

Most people will be forced to choose the visa that fits in with their particular set of circumstances. This being the case, it’s always helpful to know what your options may be.

Temporary Visa Class

If you are applying for a temporary visa to a country that requires your personal set of skills then you are likely to be doing so either via a business or an investor visa. Bear in mind incidentally that there is a chance that the temporary visa can be changed to a permanent one at a later date – if this is your intention you need to make sure of this upfront.

The time limit on a temporary visa varies from country to country, but can be as short as 2 years. During this time, as a temporary resident, you’ll usually have many of the same benefits as a permanent resident, but of course you will need to renew your visa before it expires.

As a former resident of the UK, you will be entitled to emergency medical care in your new home only if the new country has a reciprocal health care agreement with the UK. In EU countries this is relatively easy with your EHIC but you need to be aware that in many countries – South Africa springs to mind - you will need to be covered by private medical insurance of some sort.

Generally you won’t be entitled to social welfare and won’t be able to vote in your new country. You will be taxed on any income earned there however and, if you’re still being taxed in the UK, you will need to go into the tax situation in some detail. Some countries have an agreement with the UK whereby any money taxed there is not taxed in the UK – the assistance of a tax expert would be advisable in this respect.

The OGC Resource Centre team have a number of highly recommended tax experts that they could put you in touch with – just give them a call on 0207 898 0549.

Permanent Visa Class

To obtain a permanent visa for most countries you generally require either specific and very desirable skills or sponsorship, either from an employer or from family who already reside in your country of choice.

Permanent skill visas are usually points assessed and if you have the correct number of points, you have a good case for a visa. If you’re applying through the family sponsored scheme, there are normally certain criteria that will need to be met.

Arriving as a permanent resident has huge advantages, not the least of which is that you’ll be starting a period of time in the country that will count towards your citizenship. It also means that you’ll be able to access almost all of the services and rights that are available to citizens, with the exception of the right to vote. One of the most important advantage is medical care, providing that your new country has good medical care for its citizens of course. It may also make a difference if you are going to be looking for a job once you arrive: no one gives the best jobs to someone they regard as a temporary staff member.

Choosing the Correct Visa Class

How do you know which visa is right for you or indeed which visa you have an option of applying for?

I would suggest that the first port of call should be the embassy of your new home in the UK, either in person or on the Internet. Or you could speak to a migration agent – there are many of these and if you could possibly get a personal recommendation to one this would be helpful. They cost a bit but it may well be money well spent as they know the ropes and can steer you in the right direction.

If temporary residency is the only choice you have, and you want eventually to change this to a more permanent status, you will find that in most countries this can be arranged. Having said that, there are a few visas in the USA for instance that, although they can be continually renewed, offer no chance of permanent residence. You need to be aware of these restrictions in your country of choice before spending vast sums of money on what you hope will be a permanent move.

And remember, don’t be afraid to obtain a permanent visa if you can. It doesn’t mean you can never come back to the UK: it just gives you the option of staying in your new country for as long as you wish and could lead to dual citizenship, which also has a number of benefits.

Kim Brown
http://www.EmigrationGuide.com

Reasons to Emigrate

In a survey recently carried out it was found that 31 percent of those questioned cited the poor state of the British economy as the reason that they were thinking of emigrating, with 23 percent blaming the lack of job prospects and a further 19 percent saying that they had concerns as to whether the new government coalition could effectively manage to run the country.

Over the years we at the OGC must have spoken to thousands of people who were, or are, planning a move abroad. In the course of the conversation I am always very interested in finding out exactly why it is that people want to quit these shores. What I have found is that there are a number of reasons that most people seem to have in common:

Climate
The endless grey, chilly winters and the unpredictable summers that fly by almost unnoticed come top of most people’s reasons for wanting to leave the UK.

Community spirit
Many people have told me that they long for a time when neighbours were friends and doors could be left unlocked with no problem. People really miss the community spirit that somehow seems to be lacking in parts of the UK yet still seems to exist in many other countries abroad.

Outdoor Activities
When my kids were younger, all that excess energy was worked off at the end of the school day with mandatory sports at schools throughout the country. The climate makes this impractical here, but not only are outdoor activities good for you but they are such fun and a wonderful way for families to do things together – it’s just so much easier in sunnier climates.

Children's welfare
Many people have complained to me that the UK is a very sophisticated, materially driven society and that they worry about the opportunities and choices their children will face (or the lack thereof!) as they get older

Property costs
Even with the recent drop in property prices in the UK, you get far more for your money abroad.

Work opportunities
The perception seems to be that people with skills are welcomed abroad and jobs are more readily available.

Transport
The recent tube strikes plus the threatened BA strikes each holiday season have really highlighted the drawbacks in the transport system in the UK, a system that many claim to be the worst – and most expensive - in Europe. This makes commuting really tiresome and adds hours to an already long working day.

Public behaviour
A complaint I hear often is that people are fed up with the increasingly rude, aggressive and loutish behaviour in the UK. This seems to be a growing concern.

I suppose the grass is always greener on the other side but I do know of a number of people who have relocated and couldn’t be happier. My colleague and her husband now live in France and are a case in point - they moved fairly recently and absolutely adore everything about it.

Other friends of mine were not so fortunate…I think that you need to do your homework really thoroughly and not rush into anything. Many people have made happy and successful lives for themselves abroad and there is no reason why you should not be one of them. Planning and ample forethought will guarantee you a successful move, and please remember that the OGC is ready to help where they can.

Happy planning and warm wishes from me,

Kim Brown
http://www.emigrationguide.com

The Key to Emigration is Planning

It’s been quoted that forty percent of people who move overseas move back within 12 months. The return to the UK occurs for reasons such as health matters and being homesick, however the largest cause comes down to poor planning!

Over 11 years ago I emigrated and more recently I watched my in-laws experience an overseas move that was fraught with financial, legal and health difficulties. If they only knew what they didn’t know!

With my experiences and the inherent lack of proper planning associated to migrants, I recently set out to create a comprehensive guide and tick list to assist people through the emigration start-to-finish journey. Creating the list has been no small feat – my inventory of to-do’s is in the hundreds and still growing! At first, I felt overwhelmed by all the information and steps involved. I also found myself frustrated by the fact that one small step, if missed, could cause stress, substantial financial losses or even unnecessary failure.

Throughout my research several often overlooked steps, or options, caught my attention - especially the multitude of financial elements to consider. There are many things that should be researched before moving abroad, but to highlight a few, it’s important to consider overseas banking issues, the best way to move money internationally and pension considerations.

Opening an Overseas Bank Account. As soon as possible, visit your current bank to find out if they have offices located in your overseas destination. If they do, getting a bank account abroad may be as simple as setting things up from your current UK bank. Failing that, some international banks with offices in the UK offer migration accounts. These accounts allow customers to se tup an account in the UK for use in the overseas destination. Additionally, in city centres throughout the UK, there are various overseas banks with local UK branches – for example, there are Bank of Cyprus offices in London and Birmingham. Taking the small step of opening a bank account can help to establish a bank/credit history and ultimately provide peace of mind that there is physical cash available for you at your overseas destination.

Moving Money Internationally. There are international payment specialists that specifically help people to save larges sums of money throughout the UK bank to overseas bank money transfer process. Charles Purdy of Smart Currency Exchange Limited explains that his organisation ‘saves clients up to £4,000 on every £100,000 moved over using the High Street bank.’

Mr Purdy, however, outlined that ‘the largest saving comes from creating a strategy to mitigate the inherent risks involved when changing Sterling to another currency.’ It’s important to realise that the value of any amount of money transferred into Euros, US$, AUS$, CAN$ or any other currency will change every few seconds. The key step is to make sure that the change isn’t a drastic decrease in value. It’s advised that you contact a payment specialists 3 – 6 months before moving money overseas.

Pension Options that Pay. British pensions – when paying out - are now deeply unattractive. The income generated by a pension is restricted by the fund. Only 25% of the fund value is available as a tax-free lump sum. The annual/monthly paid is taxed at source. And sadly, a major proportion of the final proceeds on death often disappear back to the insurance company rather than going to loved ones.

In 2006 new EU legislation opened up opportunities for UK pension holders to move their pension(s) overseas enabling greater control to the pension holder. The mechanism is called a Qualifying Recognised Overseas Pension Scheme (QROPS). There are a wide range of benefits, but to list the key points, a QROPS may allow a pension holder to:

- reduce or eliminate certain taxes including income and death taxes
- move funds into higher interest bearing accounts
- take out lump sums over the UK’s 25% threshold and finally
- receive pension payouts in the local currency so to avoid currency fluctuations
- leave the full pension to heirs – not the government or an insurance company
- avoid being forced to take out an annuity

The emigration journey can be fun, exciting and very rewarding. Taking the time to plan and understand all the options will, however, increase the chances of a success.

Kim Brown
http://www.emigrationguide.com

My Top 10 Reasons to Emigrate

Trawling through the Internet, I picked up on an article on the top reasons that people emigrate. Reading through their list, there were some that coincided with the reasons I had for moving abroad, but many that didn’t. And my guess is that everyone’s list would differ slightly…Here is mine - tell me what you think. Are these much the same as you would give for planning such a dramatic move?

1. Move to be near family: Actually, without wanting to appear overly sentimental, this would probably cover at least one through five for me! As far as I am concerned, there is nothing more important than family. I decided to move back to the land of my birth in a heartbeat because my children had moved here

2. Move to a family-orientated area: Strange as it may seem, I find my London district far more family orientated than South Africa, where I had to padlock the door behind me when I got home. Here we have an annual street party and people greet one another at our local corner shop or as they walk their dogs – or cats! Italy, Greece, Spain – people have given the same reason to move to these countries…

3. Safety: This is a difficult one to explain to those who have not actually felt threatened on a regular basis. I am blown away daily by the fact that I can stroll along the Thames, here in London, without having to cower when I hear running footsteps behind me – it took me a while to adjust!

4. Public transport: Coming from a country with absolutely no public transport, you will seldom hear me complain about tubes and buses here. I had a nasty car accident a while back that left me very reluctant ever to drive again. This meant that, before I moved, I was a virtual prisoner in my own home. Now, with my beloved Freedom Pass, I am as free as a bird!

5. Health care: You won’t hear a word of complaint about the much-maligned National Health Service from me. I am sure that there are many justifiable complaints, but I have not experienced anything but wonderful service and massive help and support. As one gets older this is an absolute must…

6. A caring society: I personally find it strange that people in the UK are not grateful for the many opportunities they have available. By this I mean help with getting jobs, job-seekers allowances, dole, NHS, help to get qualified for a job, council houses and so on. Where I come from there is absolutely no help AT ALL – you could starve in the street and no one would notice

Do my reasons to move have any similarities with yours? Why don’t you do what I have done: put a list together and see what is REALLY important to you? Will the country of your dreams fulfil your expectations? It may be a good idea if you can to go to your dream country and stay a while before committing yourself to a permanent move. Perhaps go on to an ex-pat website and ask what those who have moved feel – will it be as you think it will?

I had friends who moved from South Africa to Canada – the wife wanted to be nearer her sister. To do so they had to leave an older married child behind, he had to close his legal practice and they had to find schools for two kids in Canada. They returned to SA a year later, financially far worse off than when they left and with one child having chosen to remain behind in Canada. Not what you might call a success story…My move however has been utterly successful, and so can yours be – you just need to give the matter sufficient thought.

I’d love to have your thoughts on this – take care and I’ll be back soon!

Kim
http://emigrationguide.com/

Find a Good and Trustworthy Developer

Chatting to people about buying property abroad, I find that one of the main concerns is how to chose a good and trustworthy developer if you are buying off-plan.

This problem has been made worse by the current economic climate – many developers are going under, and sometimes taking unwary buyers and their dreams with them. It is therefore absolutely crucial that you have a really god look at the credentials of your developer before signing on the dotted line..

An email that I received recently bears this out. It tells of the endless problems encountered by one of the OGC readers who had failed to do his homework – and he really paid a heavy price, both in financial terms and in the stress that such things bring with them.

The property he bought was about one third completed at the time he paid his deposit to the developer. All went well until the house was ready for the final finish and, at this point, the developer sacked the builders and employed his own low paid and unskilled labour. The result was that the finish was very poor and, although the complex was completed, only 7 or 8 properties have been sold to date.

Financial penalties for late completion were not paid although there was a six month delay. The unhappy owner only discovered when it came time to address this problem that his solicitor also represents the developer!

All this could so easily have been avoided. I am going to outline a few essential and non-negotiable points for you to think about:

- If possible, move into rented accommodation nearby BEFORE you plan to buy and chat to locals about the developer/s you are thinking of buying through

- Search the Internet for expat forums on your town or city of choice. Some highlight poor practices and name and shame shoddy developers

- Google in the name of the developer you are thinking of using and see what comes up

- Get a developer that is a member of a regulatory body if at all possible

- Consider using a reputable estate agent instead of going to the developer direct – to protect themselves they will have done the checks

- Insist on visiting a couple of the developers’ previous projects and on talking to previous buyers

- Retain a solicitor independent of the developer so that there can be no conflict of interest

- Make sure your solicitor draws up a contract that protects YOU

- Make absolutely sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of build stages and not simply by date

- Buy a bond or take out insurance to protect yourself if the developer goes bust or there are any major issues with the build

- Take your time and refused to be rushed

If you follow the above to the letter the chances of anything going wrong will be dramatically reduced.

Chatting to someone in the property business abroad, she told me that she was stunned by how many people simply abandoned all the normal checks and balances that they would apply if they were buying property in the UK – don’t be one of them!

Speak to you soon – and I’d love to hear from you.


Kim
http://www.emigrationguide.com/

A Few Thoughts on Retiring Abroad

This may or may not apply to you, but if it does, it’s worth thinking about it carefully. Retiring is a whole new ball game as our friends across the pond would say, but to up sticks and retire abroad – well, that takes courage.

There is a whole rather comforting discipline to working – love it or hate it, it does fill the day and give an order and a structure to one’s life. Moving abroad is a huge psychological ask at any time but add to that the utterly new dimension of retirement after perhaps a lifetime of work and it means enormous changes to both your lifestyle and your mindset. There is no reason at all that you should not be utterly happy abroad – provided you have done your homework and planned well in advance.

One tends to become a little more cautious as one gets older and, although making a big life change can be exciting and refreshing, making prior arrangements for pretty much everything will stand you in really good stead and give you a feeling of control. So what are the most important considerations for a successful retirement abroad? Here are a few thoughts:

Finance

- Before you go, make sure all your arrangements for your pension, investments and any income are properly in place. I strongly advise seeking guidance from an Independent Financial Advisor (IFA). Expert help in formulating the plan that takes into account your own personal set of circumstances is essential and you may well save yourself on tax/transfer costs etc.

- Set up an account with a currency company if you need to transfer funds abroad – it will save you a great deal of money over your high street bank. Go to:
http://www.smartcurrencyexchange.com/
for more on this

- Sometimes bureaucracy abroad can be a little intimidating so make use of a translator with things like setting up direct debits/ understanding bills etc.

Family

If you are close to family you need to know that frequent visits are possible. Think carefully about the location of your new home; you are likely to have far more contact if the journey is relatively easy and not too time-consuming. Being close to an airport for instance will make more frequent visits possible.

Another tip is to make sure you are set up for email and/or a webcam so you can not only talk to your loved ones but see them at the same time.

Structuring your new life abroad

Think ahead a little and aim to have some sort of project or plan perhaps medium to long term. Most of us need to have some sort of structure to our days and retirement is no different.

Active retirees generally have a far happier and more fulfilling life; working in the garden, perhaps tackling a crossword each day, learning the language or taking the dog for a walk will all stand you in good stead for a peaceful and healthy retirement. And dogs make new friends for you too!

You might want to give yourself a geography or history lesson: perhaps to visit a new town each month and find out all about it. Hopefully you will feel enriched by what you see, may well meet new people and will also be keeping fit!

Your new community

As soon as you arrive, make an effort to chat to your neighbours and keep an eye open for any clubs/associations/groups. Most villages abroad have thriving communities and you are more than likely to find a few fellow Brits too! So take some time out at the beginning to meet and greet, get out and about and take advantage of any advice your new neighbours may be willing to give you. Even if it is not something you find useful, you will have made a new friend!

The future

Your house needs to be easily maintained and the smaller the garden the less lawn that needs mowing! You might want to consider somewhere with few stairs for example or somewhere with the possibility of converting one of the downstairs rooms into a bedroom at some stage. And again, think about the location of your new home: that rural retreat may be beautiful but a little bit of village life with reasonably close transport may well be a Godsend. Also consider medical requirements: is there a doctor/hospital nearby, just in case?

Hope this has given you food for thought! The weather has been great all week so let’s hope that the weekend stays good for a change!

Bye for now and best wishes until next time,

Kim
http://www.emigrationguide.com/

Finding your Dream Home Abroad

Are you off to have a look for your dream home? And have you decided where to buy? Someone I was chatting to a few days ago was telling me that her dream had always been to live on Lake Como but that George Clooney et al had put paid to that!

And I suppose that price-wise Lake Como is a trifle out of most ordinary people’s price range now. The presence of Clooney plus folk like Sting caused a boom in the market that caused a 25% rise in prices in little over two years. Forget the global housing crash, prices here aren’t going to drop any time soon, with demand from wealthy Milanese and financiers and bankers based across the Swiss border still buying in the area, plus Hollywood’s elite baying at the gates!

But, as I said to my friend, don’t give up hope if the area you love is beyond your price range. Many people have found that you don’t necessarily need a movie star’s bank balance to pick up a property on or near the Lake. And the same thing applies worldwide. If you find that the area you love is too expensive, have a look nearby. For instance in Spain, prices are at a premium near the sea, especially around the Costas – Costa Brava etc.. Just a few kilometres inland there is a dramatic drop in property prices – the same applies to Portugal and the Algarve area. A few miles back from the water or in the lesser known western area of the Algarve prices are considerably lower.

What I am trying to point out is that sometimes you need to move only a short distance away from the really expensive areas to find places that are still within your price range. And sometimes circumstances change.

In Greece for instance I know of a new coastal development in Messinia in the southwest Peloponnese, one of the most enchanting coastal landscapes in the Mediterranean. On completion, Costa Navarino will have 5-star resorts, luxury high-end residences, state-of-the-art conference facilities, world-class spa centres and golf courses. Now, the point is that I feel sure this will raise the property prices in the area and getting in early may just be a good idea. So do your homework and take advice from locals. But don’t necessarily buy from them – this then becomes a conflict of interest that many people have been tricked by…!
So…as I have indicated before, it’s all down to good planning and research. Plus of course a really good estate agent can prove invaluable. Good luck!

Until next week.

Kim