Expat question

First Time Investing 🎓
,
1

I would like to open an account and start investing but within a few month I’m going to move and change my tax residency. Is it safe to assume that if I choose a broker that operates in both countries (my original and destination), then I will have no problem with my account? Thx

2

I have similar problem, I’m planning to move abroad and move my investments there.

Yes, I found this as a reliable solution: choose a broker that is available in both countries. Also, I could transfer my assets to another broker, but the costs and process seemed scary.

3

Which brokerage are you with?

I’m in a somewhat similar position. Left the U.K. 2.5 years ago.

Despite living abroad the address on my broker account is the same as the address on my UK bank account - my sister’s.

Only tell your broker what they need to know.

I believe it only becomes an issue when you want to draw down from your portfolio?

4

I’m in an almost identical position to yourself. I left the U.K. 3.5 years ago and moved abroad. Both my U.K. bank account and brokerage account have my sister’s U.K. address.

Come April I am having to switch brokers to IBKR before I begin to drawdown to ensure I am tax optimised, which involves having to sell my investments and re-buy into Irish domiciled UCITS ETF’s with the new broker - Interactive Brokers (IBKR) which is a bit of a daunting prospect despite me having sought specialist advice. I am concerned with possible delays and potential for several weeks out of the market whilst the whole process is completed. I am assured because I am no longer U.K. resident I am not liable to trigger a CGT event.

I also have a Wise account which I’m hoping to use to transfer the cash to the new broker, but envisaging I will have to change the address twice (initially to receive the cash from the U.K. broker so it matches and then to change to my new address abroad for the new broker to accept the incoming cash) before I then buy the aforementioned funds.

I’m trying to foresee any potential issues and plan ahead in advance so the transition is as smooth as possible.

5

Hey there,

Thanks for your message. Transitioning brokers and restructuring your portfolio can feel daunting, but with proper planning, you can minimize delays and market exposure risks.

Here are some points to address your concerns:

  1. Before selling your investments, check with your current broker whether a portfolio transfer is possible. Many brokers support in-specie transfers, allowing you to transfer your holdings directly without liquidating them. This could help you avoid being out of the market during the transition period. However, this is often limited to specific markets or securities, so verify if your current holdings are eligible.

  2. Potential Issues to Foresee:

  • Verification Delays: Address changes and cash transfers often require additional verification steps. Start the process early to avoid bottlenecks.
  • Currency Conversion Fees: If your current investments or cash are in a different currency than your new IBKR account, be mindful of conversion costs. Fortunately, IBKR offers competitive currency exchange rates.
  • Market Conditions: While you may need to liquidate and rebuy investments, consider potential market fluctuations during the transition.

If you have any further questions, feel free to reach out.

Best,
Andris