Pre-/Post‑Immigration Tax Planning Lawyers

What is pre-immigration tax planning?

It is the strategic process of structuring your global assets & trusts before you change tax residency. The primary goal is to legally shield your existing wealth from the tax system of your new home country. This proactive planning is critical to preserving your capital.

Why is planning before I move so important?

Once you become a tax resident, it is often too late. Pre-immigration planning occurs during a critical window where you can legally reorganise your affairs to maximise tax efficiency. Post-arrival planning is often limited to compliance, not strategic protection.

What is an “exit tax”?

An exit tax, or “deemed disposal” tax, is a tax levied by some countries on the unrealised capital gains of your assets when you cease to be a tax resident. Expert planning is required to legally manage & mitigate this significant cost.

How do I legally cease my old tax residency?

Ceasing tax residency requires more than just leaving the country. It involves severing key ties & often making a formal declaration to the tax authority. A flawed exit can result in you being taxed as a resident in both your old & new countries.

Can my existing family trust cause tax problems?

Yes. A trust that was tax-efficient in your old country can be treated very differently in a new one, potentially creating significant, unforeseen tax liabilities for you as the controller or for the beneficiaries. Your structures must be reviewed before you move.

What is the “transitional year” of a move?

This is the tax year in which you move, during which you are often considered a part-year resident in both countries. It is a period of maximum complexity where errors can easily lead to the double taxation of income.

How do tax treaties help with an international move?

Tax treaties are critical. They provide “tie-breaker” rules to ensure you are not treated as a resident of two countries simultaneously & contain mechanisms to prevent the same income from being taxed twice.

Will my new country tax my entire global wealth?

Many countries, including Australia, the US & the UK, tax their residents on their worldwide income & assets. This is why pre-immigration planning to legally segregate your non-local wealth is so essential.

How does moving affect my inheritance or estate plan?

Your estate may become subject to the inheritance or estate tax laws of your new country. Your Will & trust structures must be reviewed & updated to align with these new laws to protect your legacy.

What are the main risks for inbound HNW migrants?

The primary risk is unknowingly subjecting your entire pre-existing foreign wealth & income streams to the new country’s tax system. A secondary risk is having your foreign trusts become subject to local tax.

What are the main risks for outbound expats?

The main risks are failing to properly sever tax residency, which creates trailing tax liabilities, & triggering a large, unexpected exit tax on your assets upon your departure.

What happens to my company’s tax status if I move?

Your personal relocation can have a major impact on your company. It can trigger Controlled Foreign Company (CFC) rules or create Permanent Establishment (PE) risks, requiring a corporate restructure before you move.

Does the timing of selling an asset matter?

Yes. The timing of a sale relative to your change in tax residency can determine which country has taxing rights over the gain. Selling before or after a move can have vastly different tax outcomes.