Whether the catalyst is a new job, retirement, or simply the desire for a different life, international relocation is often a complex undertaking involving significant adjustments to the everyday lives of individuals and families. Criteria such as economic and political stability, infrastructure, educational system, climate, and immigration requirements are all important factors. Perhaps less immediate, but also relevant are the tax regime of the country in question and the potential differences in the new legal environment.

More than just a question of tax
Being fully aware of your post-move financial position is just one of the many considerations that should influence your decision. Many countries offer attractive incentives, for example through the local taxation system. However, it is crucial not to place too much importance on this one factor because the promoted tax incentives may not be as attractive as first envisaged, especially when taking into account less publicised taxes that may arise. The lifestyle, culture, climate, and opportunities should therefore be at the forefront of a shopping list for a new home.

One often overlooked aspect of a relocation is the successful exit from your current country of residence. Retaining links to your former country of residence (for example real estate or even a passport) can have unwanted fiscal ramifications. In addition to this, leaving a country for good can itself be deemed a taxable event, which could give rise to an unexpected financial liability. You should ensure that these aspects are clear before you take your first steps towards your new life. Working with an expert can provide helpful guidance in taking this and many other important decisions.

Legal considerations
When moving to a new country, it is not just a change in the culture, climate, and currency; it is also a change in your legal environment. Your legal position will be subject to new laws and you should be mindful of how this will affect you and your family’s position. Assessing your matrimonial, family, and inheritance positions may highlight unfavourable changes that need to be addressed. For example, documents that may have been legally binding in your home country, such as a prenuptial agreement, may not be enforceable in your new country of residence.

Address is all upfront
Due to the complexities involved, in-depth planning and specialist advice are keys to ensuring that all of the important considerations leading up to relocation have been addressed. They will also help to make relocation as successful as possible, and reduce the stress of starting a life in a new country while giving individuals and families confidence that they are well-positioned for the future.