For many British expatriates living in Spain, France, Portugal, Cyprus or Malta, continuing to work with a long-standing UK financial adviser can feel like the natural choice. After all,
They may have advised you for many years, know your circumstances and understand your goals.
However, once you become resident overseas, your financial planning needs change significantly. Tax rules, succession laws, reporting requirements and regulatory frameworks can all be very different from those in the UK. What worked perfectly in the UK may no longer be appropriate, tax-efficient or even compliant in your new country of residence.
This does not mean that every UK-based adviser is unable to help, but it does mean expatriates should carefully consider whether your adviser has the regulatory permissions, local expertise and practical knowledge needed to support them effectively abroad.
The regulatory challenge
The most obvious issue relates to regulation.
Before Brexit, many UK financial firms relied on “passporting” arrangements that enabled them to provide services throughout the European Economic Area (EEA). Following the UK’s departure from the EU single market, those passporting rights ended and UK advisers generally lost the automatic ability to advise clients residing in EU countries.
Financial advice is a heavily regulated activity, which is important for your peace of mind. In most circumstances, advisers need the appropriate permissions and authorisation within the jurisdiction where the client resides. Simply conducting meetings by telephone, email or video call does not avoid these requirements.
For expatriates, this raises important questions:
- Is your adviser authorised to advise residents in your country of residence?
- Does their professional indemnity insurance cover overseas advice?
- Can they continue to arrange new investments, pension transactions or policy changes?
- What consumer protections apply if something goes wrong?
These are not merely technical considerations. They can affect your ability to implement financial decisions and access appropriate recourse if problems arise.
10 questions to ask your UK-based adviser
If you currently work with a UK-based adviser, consider asking the following questions. The replies will help you assess whether your existing advice arrangements remain appropriate.
- What authorisation and regulatory permissions do you have to advise residents in my country?
- How will your advice be delivered now I live overseas?
- Are my existing investments and financial products compliant and suitable for residents in my new country, and are they portable within the EEA?
- Does your professional indemnity insurance cover overseas clients?
- Can you provide details of your compliance officer and regulatory status?
- Will product providers continue to accept your instructions?
- What planning should I complete before moving abroad?
- What additional costs could arise if overseas planning is required?
- What complaint protections and ombudsman access do I have?
- What expertise do you have regarding local tax and succession rules?
The bigger issue: local expertise
Regulation is only part of the story.
It is also important to consider the investments and financial products themselves. A product designed for a UK resident may not necessarily meet the requirements of your new country of residence or be appropriate for someone living there. Before moving, check whether your existing products are portable to your new country and whether your adviser can continue to service them once you become resident there.
Perhaps the greater challenge is that financial planning abroad is rarely just about investments. Once you become tax resident in a new country, you enter a very different planning environment.
Issues that may need consideration include:
- Tax residence rules
- Income and capital gains tax treatment
- Cross-border inheritance taxes
- Wealth taxes (where applicable)
- Double taxation treaty provisions
- Pension taxation
- The options for your UK pension as an expatriate
- Estate planning and wills
- Forced heirship rules
- Reporting requirements for overseas assets
A UK adviser may be highly knowledgeable about UK regulations but have limited or outdated understanding of how these issues interact within your country of residence.
For example, ISAs lose their UK tax advantages once you become tax resident abroad. Trusts are not recognised or treated in the same way as they are in the UK. Pension withdrawals can attract very different tax rates depending on where you live and how they are structured.
Without specialist local and cross-border knowledge, well-intentioned advice can sometimes produce unexpected tax consequences.
Why locally based advisers can add value
A locally based adviser typically understands both the UK and local financial landscape. Because they live and work in the country, they are generally familiar with:
- Local tax systems
- Changes to domestic legislation
- Cross-border planning opportunities
- Common issues faced by British expatriates here
- Local professional networks (lawyers, accountants, insurance, healthcare etc.)
- Practical aspects of residency and relocation
This will ensure your financial planning reflects the reality of life in your chosen country rather than relying on UK assumptions.
Timing can also be crucial. Tax years, reporting deadlines and opportunities may not align with UK rules. In many cases, action taken before becoming resident can produce very different outcomes from identical action taken afterwards.
The practical benefits of being on the ground
There is also a more personal dimension. Because local advisers are part of the community, their support often extends beyond purely financial matters. They may be able to provide guidance on practical aspects of settling into life abroad, recommend reputable local professionals and share insights that only come from day-to-day experience of living in the area. Many expatriates find this local knowledge invaluable during their first years abroad.
How Blevins Franks can help
Blevins Franks is fully authorised to work in both the EU and UK and provide regulated advice on savings, investments and pensions.
For more than 50 years, we have specialised in advising British expatriates and those planning to move abroad. With highly qualified advisers based locally across Spain, France, Portugal, Cyprus and Malta, we combine UK and cross-border expertise with in-country knowledge and support.
We have in-depth knowledge and expertise on taxation, residence, double tax treaties and the practical local aspects that are needed when advising UK expatriates in our countries. Our specialist in-house tax, pensions and investment teams monitor relevant changes in Europe, the UK and elsewhere, providing expert back-up to our advisers
If you would like to review whether your current arrangements remain suitable for life in Spain, France, Portugal or Cyprus, speak to your local Blevins Franks adviser or request a complimentary consultation through our contact form. A conversation today will help ensure your financial planning remains aligned with your life abroad.
