Your financial planning for your move to Portugal does not end once you have planned the finances for you property. You will also need to assess your complete financial situation in the UK – such as your taxes and personal finances, your retirement plans and how you should get the most out of your pension.
It’s a good idea to ensure that everything to do with banking and taxation in the UK is organised before you leave – after all, this is much easier to do when you are still based in the UK. It’s always a good idea to keep your UK bank accounts open when you move abroad, in case you move back at a later date – this includes some savings account and credit cards, although you will not be able to add funds to any UK ISAs once you are fiscally resident elsewhere. Your UK bank will usually be happy to chance your address to a Portuguese one.
There are a number of tax areas you will need to look at in addition to this, and we would recommend speaking to a financial advisor about the best way to tie up all your loose ends and make the right decisions for your personal circumstances. Tax can be a complicated issue, and will generally need to be very precise – so everything needs to be correct. The most important areas for you to discuss will include:
- The release of equity from your UK home to contribute to your Portuguese home
- The payment of any debts before your move
- Researching the right Portuguese bank
- Your residency options, and what each one could mean for your personal situation
- The effect of currency fluctuations on any money you will be paying into Portugal
- Whether you should continue to keep savings and investments in the UK, or move them to Portugal
- Capital Gains tax and other property-related taxes and costs
- Inheritance tax