Europe Calling: What should HNWI’s consider when making the post-Brexit move across the Channel?

By London & Capital | 11 Apr, 2023

The United Kingdom’s reputation as a favoured destination for the wealthy has lost some of its shine in recent years. The Brexit vote back in 2016 sent shockwaves around the globe and the political and economic consequences are still being felt today. One of these consequences is that some high-net-worth individuals (HNWIs) are voting with their feet and waving goodbye to British shores for good.

The European Union is a favoured destination for those with the post-Brexit blues and provides a multitude of options for relocation. Some HNWIs will simply be returning to their countries of origin. Paris, Madrid, Rome, Berlin and others will have benefitted from the repatriation of some of their most affluent citizens. But the outflow will also include those from further afield who prefer to base themselves in the heart of Europe rather than take their chances in Brexit Britain.

HNWIs swapping the UK for Europe will need to consider a variety of factors to ensure their wealth is protected. Moving from one country to another requires an assessment of issues such as investments, tax liability, property ownership and financial planning. While modern wealth management should be as seamless as possible for the globally mobile, taking advice on the requirements of any big change is a necessity.

Investing from anywhere

A typical, well-balanced investment portfolio should be managed with the same principles no matter where an individual is based. An appropriate level of diversification and a thoughtful long-term strategy should underpin a portfolio whether you are based in London, Amsterdam or Lisbon. Our directly invested portfolios are suited to multiple jurisdictions and already adhere to all necessary regulations throughout European, UK and US markets. But if your priorities have changed and you think a reassessment of your portfolio should accompany your European move, sitting down with your adviser and discussing this can help you achieve your aims.

An awareness of tax liabilities as you move around the globe is something that any mobile HNWI should possess. Those that have been based in the UK may well have been taking advantage of its non-dom tax regime and moving to the continent permanently could affect your right to claim that status. Some other European countries also have non-dom regimes, or some kind of equivalent, so it could be possible to transfer to one of those. This may also be a good time to assess your use of offshore trusts. Looking at inheritance tax and gifting regimes in your new destination is also a sensible move. Investigating all of these factors with your adviser will ensure there are no surprises and your move goes as planned.

Property is another consideration when switching countries. Most HNWIs will have assets in the prime property market and moving abroad could mean adjusting your property portfolio to suit your new situation. This could involve costs such as capital gains tax or navigating regulations on owning multiple homes. Property prices have been particularly volatile following the economic turbulence brought about by Covid-19 and even prime buyers are now sensitive to market movements. Getting connected to the right adviser in both the country you are leaving and the one you are arriving in is crucial to navigating the market and London & Capital can assist with this.

Taking stock of you finances

Financial planning is a key tool for HNWIs and should be regularly revisited, particularly when life circumstances change. Cashflow modelling and consolidated reporting can be used to give you a clearer understanding of your assets and how they should be deployed. Moving to a new country could involve unexpected expenses and having a clear view of what those are and how they affect your overall wealth is very important. Just presuming you know your situation could lead to problems down the line.

Modern wealth management should provide a seamless experience for globally mobile HNWIs and at London & Capital our international network of advisers is well-equipped to achieve that. Satisfying the demand for borderless wealth solutions is what we pride ourselves on and protecting your future is our priority.

To get in contact with London & Capital, please give us a call on +44 (0) 207 396 3388 or click here.

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