Until recently, Britain had always been a part of the European Union, and you never really noticed any difference while moving around the continent for pleasure or business.
But now that Brexit has taken effect, that has all but changed. However, if you’re like most people in the country, you still like to traverse Europe or even beyond while maintaining access to fundamental work tools such as your trading account.
But now that you’re technically abroad, whenever you leave the country, what’s the deal with your trading account? Well, the answer is more complicated than you might think. Technically, you can still trade with your account, but it’s not that simple. It can depend on the brokerage you’re using, the country you’re going to, and even how long you will stay. You also face many trading restrictions and tax implications that might make it easier not to trade.
This article will look at whether you can use your trading account while abroad and what you should watch out for. So keep reading to learn more.
Can you Trade While Abroad?
Moving to a foreign country, which now is like every other country if you’re British, for vacation or temporary residence can be complicated if you’re a trader. And the problem is only exacerbated if you’d like to keep your British trading credentials and trade on your account. You not only have to deal with the technicalities of moving to another country and the culture shock. But you also need to learn how to navigate the tax implications of your country and the country you’re moving to.
However, most British brokerages will keep on managing your investment portfolio, and most will have a provision for you to trade while abroad. But almost none will let you invest new money into your fund while still abroad. You can read more about this using the link.
Furthermore, you need to inform your brokerage of your intent to move or travel to another country if you would still like to trade on your account. The country you’re traveling to also needs to be on the pre-approved list of countries you’re allowed to trade from if you’re British.
Honestly, there is a lot of red tape to deal with when moving abroad, especially if you still intend to trade on your British trading account. Our advice to you if you’re moving for a long stint is to avoid all the tax headaches by looking for a good brokerage in the country you’re moving to or, and this is the best option. Get an offshore brokerage in a tax-neutral jurisdiction.
Tax issues to Watch Out for
- Double taxation– if you’re not careful with how you report your income and investments while living or working in another country. You might be liable to tax charges in your residency and home country, which can wipe out all your gains.
- Tax evasion- if you don’t correctly self-report your earnings and new assets while abroad, you will break the rules in your home and country of residency. As such, it’s best to be honest or have excellent advice from a good accountant.
What Other Trading Options Do you Have While Abroad?
Maintain a British Address
We understand that not everyone can manage to keep their home address, especially when moving to another country for an extended period. However, if you can, you would still have residency in the country, or at least on paper. This way, your brokerage company can still send your mail to your address, and it be like you never moved to them.
Look for an Expat-friendly Brokerage
Even though expat-friendly brokerages are getting harder to come by nowadays, they can help you navigate international waters. They will also make your move to your new country of residence and eventually back home much more bearable.
Moving to a new country and maintaining your British trading account can be easier said than done. However, it is possible, even if it comes with caveats, that might make it more convenient to look for different options. But if you’re set on maintaining your account, you will also need the strength to push through and make it work.
If you feel that the restrictions are too much like we do, you also don’t have to worry because there is more than one way to skin a cat.