Photo by American Green Travel on Unsplash
Splitting your life between two countries can be challenging for several reasons. Not only will you need to consider your tax obligations in both territories, but you will also need to maintain different residences as well as keep your family safe and happy.
Juggling these complex responsibilities requires organisation and a deep understanding of your obligations. Here are some things to consider to make your life easier.
Navigating tax obligations across borders
Paying taxes is a legal obligation in all countries, so it is important to understand what you need to pay and where, so you don’t fall foul of local laws. This is especially true in light of the recent changes in non-dom rules in the UK. To ensure you comply with regulations in both countries, consult cross-border tax and planning lawyers. They will have the expertise to ensure you are compliant whilst still getting your best interests at heart.
Establishing and maintaining residences
Managing properties in different countries requires a great deal of legal, financial and logistical considerations. Issues such as ownership laws and tax implications should be thoroughly researched and understood before you purchase any additional properties.
Many families opt to hire staff to maintain properties when they are away. This prevents it from falling into disrepair as well as being a deterrent for opportunistic thieves if they see the property is empty.
Financial planning and investment strategies
Being careful with your money is one of the best business lessons you can learn, and this extends to cross-border wealth. Currency exchanges can be tricky markets to navigate. Make sure your banking accounts are set up to allow conversion of different currencies without fees as they can add up. You may want to speak to your financial team about having bank accounts in each territory with ample funds for your business dealings at all times.
Just because you choose to live elsewhere doesn’t mean you can’t take advantage of investment strategies. Expatriates should consider high-interest savings accounts for expenses that may not occur in the UK. This could be for education, retirement or simply saving for the future.
Ensuring family well-being and happiness
Your family make up a large part of your support network, so keeping them onside and happy is crucial to making life work.
It is often unfeasible that your family will be able to split their lives between two or more countries the way you do for business, so maintaining strong bonds is key. Make time daily to video call home and catch up with everyone. This will help everyone, especially young children feel close to you and loved.
If you do decide to travel as a unit, make sure to check in emotionally with everyone. Transitioning between countries can be hard, especially as you are all leaving loved ones behind for a period.
Educational needs can be met by hiring tutors or nannies, but socialisation is an important aspect that should not be overlooked.
