Brenda Vingiello, Sand Hill’s Chief Investment Officer, joined Squawk Box to discuss her thoughts on the latest market trends and market outlook for 2025. This
Top Things to Know Before Retiring Abroad
Published Date : July 13, 2022
July 13, 2022
When you consider your future retirement, you may have specific ideas and preferences in mind. Perhaps one such preference is retiring in another country. While doing so can be full of fascinating possibilities and great happiness, there are specific things to be keenly aware of when structuring your successful retirement plans.
• Buying or Renting Property
When buying real property in a foreign country, you have to consider a number of expenses beyond the initial purchase and closing costs (which can be as high as 10% in some countries). You must understand all associated carrying costs of any foreign property investment, and you want to do this before you make a purchase.
Renting could be a safer option—at least while you explore where you might like to settle. When searching for properties, double check whether they come with furnishings, such as kitchen appliances and bathroom vanities, as is often standard in America. You may need to set up a local bank account before paying a security deposit or your first month’s rent.
Exploring your options with the help of a lawyer who understands the local market will be helpful in understanding your options and the possible restrictions you’ll encounter.
• Professional Services
Leaving the United States does not exempt U.S. citizens from their U.S. tax obligations. While some retirees may not owe any U.S. income tax while living abroad, they generally must still annually file a tax return with the IRS. This would be the case even if all your assets were moved to a foreign country.
The bottom line is that you may still be taxed on income regardless of where it is earned. It’s best to line up an accountant with a deep understanding of international tax law so you’re not caught paying penalties.
• Estate Planning
If you are a U.S. citizen living abroad, you may wonder if the will or trust you executed in the United States will still work for you. Depending on your individual circumstances, your U.S. executed will may continue to work for your overseas assets. However, there is a good chance that you might need to update your estate plan. A review with an estate planning attorney well versed in international estate law will be helpful here in your preparation.
• Citizenship Requirements
Certain foreign nations will grant citizenship to American citizens—but not all will do so. Typically, the American wanting citizenship will have to make a “donation” to the country where they are relocating; others ask that the incoming citizen buy real estate (and some countries ask for a combination of both).
• Visa Requirements
If citizenship isn’t an option, it’s important to understand the visa requirements of your dream country. Visa types and requirements vary widely: A temporary residency permit might be limited or renewable and will come with application and renewal fees. You’ll often have to live in the country for a certain number of years before you are granted permanent residency. Some requirements may be necessary to qualify such as income level or a local real estate purchase.
There are other factors to consider when thinking about retiring abroad, but this general list here highlights some of the most important. You want your retirement to be as relaxing and carefree as possible, so proactively focusing on the above items will help you make the most informed decision about your future. You should also be cognizant of your cash flow needs when determining where, when, and how to retire. Reach out to your Sand Hill Wealth Manager with your questions about retiring abroad.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
Other Posts By This Author
- – The Flexibility of the California Uniform Directed Trust Act
- – The Advantages of Exit Planning: Secure Your Legacy and Maximize Your Wealth
- – Include Personal and Financial Planning in the Sale of Your Business
- – Help the First Responders Help You
Related Posts
- – The Flexibility of the California Uniform Directed Trust Act
- – An Optimal Approach to Beneficiary Designations and Your Children
- – The Indispensable Role of Professional Eldercare Management Services
- – Understanding Qualified Charitable Distributions: A Guide for Donors
- – Caring for Our Feline and Canine Companions
Recent Posts
