It’s official, at least according to the press. For the third consecutive year, Singapore has been classed as the best expat destination in the world. The reasons for this should not come as a surprise. Everyone knows that the standard of living here is very high, and this is, of course, something that appeals to the typical expat. It was also found, rather significantly, that people moving to Singapore earn a lot more money. Whether it’s Singapore or a completely different destination, there are a whole host of factors to take into account before you take the plunge to pack your bags and move away. Through the course of today’s post, we will analyze these factors in detail.
If you are moving from the UK, it could be said that you have been somewhat spoilt up until now. After all, this is a country where your healthcare is built into the tax system, and while it does have its critics it’s a system that certainly performs better than others around the world.
When you move abroad, such privileges might not exist. At the moment, a European Health Insurance Card might save you in some places, but in other parts of the world, you may have to obtain health insurance just for your visa to be granted. If we take a turn to even more serious matters, don’t forget about funeral care either. Planning this in the UK is a breeze, and will save you money, but doing this in another location might not be quite as plain sailing.
Capital gains tax
If you are “fortunate” enough to qualify for capital gains tax, this next one is for you. The problem with this is that when you sell your home in the UK, there’s every chance that you will be taxed on that and then taxed again in the country you are moving to.
There are of course plenty of exceptions. For example, in the case of Canada, they have an agreement with the UK which means that just one bout of tax is paid.
Foreign exchange rates
Unfortunately, despite what a quick currency conversion on Google might suggest, you never get quite the deal that you are looking for. Instead, the rates always tend to be lower, while you also have to take into account the fees. In other words, the money you have in your new country isn’t going to be like-for-like.
Again, this is something that is going to vary depending on the country you are moving from (and the one that you have ultimately built up your pension in).
If we turn to the example of the UK, your state pension is only going to increase if you are moving to a country in the European Economic Area, or one who happens to have an agreement with the UK. This has caused those moving elsewhere a lot of problems and some have even had to move back to the UK, just so their pension continues to inflate.