Moving to Poland Tips and Tricks: Essential Financial Planning for Expats
Finances Poland
Are you considering a move to Poland? Whether you’re already living here or just thinking about it, it’s important to know the common financial planning mistakes that many expats make. Here are some tips and tricks to help you avoid them and make the most of your move to Poland.
1 – Plan ahead of time
Don’t wait until the last minute to start thinking about your finances. Planning ahead of time can help you take full advantage of the opportunities and tax savings that Poland has to offer. But even if you’ve already moved, it’s not too late to improve your long-term financial position. Don’t procrastinate – start planning today.
2 – Sync for the Polish system
The Polish financial system is different from that of the UK, and you could be exposing yourself to unpleasant surprises if you don’t review your assets and adapt your planning accordingly. It’s important to sync your planning with the Polish system to avoid unnecessary tax liabilities.
3 – Withdrawal strategies
Taking money from the wrong place, at the wrong time, or in the wrong way can create tax liabilities that could have been avoided. If possible, plan at least 12 months in advance and seek advice if you’re unsure of the best way forward.
4 – Pay attention to fees and charges
Fees and charges can have a significant impact on your returns, so it’s important to read the fine print, ask questions, and shop around to make sure you’re getting a good deal.
5 – Focus on risk, not just return
Don’t focus solely on headline performance – investment returns should always be considered in the context of risk. Balancing risk and return is especially important for cautious or balanced investors. Make sure you understand the level of risk you’re comfortable with and seek advice accordingly.
6 – Know your “number”
Do some cash flow planning to determine how much you can safely spend based on your current wealth, pension provision, and the need to plan for unforeseen expenses. This can help you avoid overspending and jeopardizing your future lifestyle, or underspending and missing out on the good things in life.
7 – Review regularly, but not too frequently
We suggest reviewing your finances at least once a year to stay on top of changes and take advantage of new opportunities. However, micro-managing and making frequent changes can be counterproductive and stressful. Find the right balance for your needs.
8 – Shop around for the best advice
Meeting a professional you like is great, but it’s important to shop around and stress-test the advice and proposition. Don’t assume that someone is the best person for the job just because they seem nice.
9 – Plan for UK Inheritance Tax
Even if you’re no longer living in the UK, UK Inheritance Tax will still apply if you’re UK domiciled. Additionally, you could face double taxation if you also have a Polish tax liability. Start planning your estate as early as possible to avoid complications later on.
At Financial Advice Poland, we specialize in helping expats navigate the financial landscape in Poland. Contact us today to learn more about how we can help you make the most of your move.
Read our article: How do I manage currency risk as an expat living in Poland?