private pension overseas

ISAmad

Would like to invest into funds in order to save for retirement.

I live overseas. I don't get the tax relief that UK residents get.

Is there at least a way that I can save for retirement in a tax-free way?

Thanks.

dunstonh

Is there at least a way that I can save for retirement in a tax-free way?

You will need to ask in your country of residence.

ISAmad

TY.

I don't want my pension in my local currency.

atush

There may be off shore pensions you could invest in, but I invest in the currency of the country I will retire in. I will spend half in the UK, and half in he USA.

ISAmad

I appreciate that, but I like to know the language of the pension provider and currency I'm dealing with.

shaun_from_Africa

If you are non resident for tax purposes in the UK then there is no way to get tax relief on any UK savings or investments as you can't get relief on something that you are not paying.

If you want to save in a Sterling account then you can do so in a Channel islands or IOM account and provided that you can prove to them that you are non resident in the UK, they will pay interest free of tax deductions.
You could possibly open an account with a stockbroker or investment company and also get interest paid gross.

You will of course have to take any tax liability in your current country of residence into account when doing this.

dunstonh

I don't want my pension in my local currency.

You cant have one in the UK either. Plus, UK tax wrappers may be totally inappropriate as your country of residence may not recognise UK tax wrappers.

Getting it wrong could potentially lead to double taxation depending on where you are.

ISAmad

I see...

So my options are to a) stay local and risk language/legal/cultural misunderstandings, b) stay in the UK but pay tax on gains, or c) put my pension in an offshore provider's hands (which I'm guessing doesn't have any government guarantee of protection?).

What about all the Brits working in poorer and more unstable countries? Are they limited to these options?

Thanks for everyone's replies, really helpful.

atush

ISAmad wrote: »

I appreciate that, but I like to know the language of the pension provider and currency I'm dealing with.

Does this mean you are going to live and then retire in a country where you don't speak the language? Not something I can recommend. You really need to speak and read the language IMHO.

Ark_Welder

ISAmad wrote: »

I see...

So my options are to a) stay local and risk language/legal/cultural misunderstandings, b) stay in the UK but pay tax on gains, or c) put my pension in an offshore provider's hands (which I'm guessing doesn't have any government guarantee of protection?).

What about all the Brits working in poorer and more unstable countries? Are they limited to these options?

Thanks for everyone's replies, really helpful.

Depends on their domicile and residence for tax purposes. So no, Brits working abroad are not necessarily restricted to these options. However, if they choose to not pay tax in the UK then they should hardly expect either UK tax relief or UK government guarantees of any kind. And just as I expect those that choose to live in the UK should have at least a basic grasp of the language, I would expect anyone that chooses to live abroad to have an understanding of the relevant local language too.

Cook_County

According to your post in October 2010 you were going to move to Japan last Xmas. Are you in full time employment? How long will you be there? Does Japan give tax relief on pensuions using the "EET model" that the UK uses?