ISA Abroad — What Happens?

Good news: you can keep your ISA when you leave the UK. But the rules change significantly. No new money in, your new country may tax ISA income, and some providers have restrictions on non-residents.

The core rules

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You can keep your existing ISA

You do not have to close your ISA when you become non-UK resident. The ISA remains open and your existing investments continue to grow tax-free in the UK.

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You cannot pay new money in

From the tax year after you become non-resident, you lose the annual ISA allowance (£20,000). No new subscriptions until you return to the UK and are resident again.

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Your new country may tax ISA income

The ISA tax-free status is a UK benefit. Most countries do not recognise UK ISA wrappers — they will tax dividends, interest and capital gains as normal income. Check the DTA.

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Some providers restrict non-resident accounts

A few ISA managers have terms that restrict or close accounts for non-residents. Check with your provider. Hargreaves Lansdown, AJ Bell and Vanguard are generally expat-friendly.

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Full ISA rights restored when you return

When you become UK resident again, your ISA rights fully restore. You can start making new subscriptions from the start of the next tax year.

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Inherited ISA allowance (APS)

If your spouse/civil partner dies, you inherit an Additional Permitted Subscription (APS) equal to their ISA value — even if they were non-resident. This can be claimed within 3 years.

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Flexible ISA rules still apply

If your ISA is a flexible ISA, you can still withdraw and replace money in the same tax year — but you cannot make net new contributions above your existing balance at departure.

ISA treatment by country

How your destination country typically treats UK ISA income

🇵🇹 Portugal NHR/IFICI regime: foreign dividends/interest may qualify for flat 10% tax. ISA gains taxable. Check DTA Article 10/11. ⚠️ Partial

🇪🇸 Spain No ISA recognition. Dividends taxed at 19–28%. Capital gains taxed at 19–28%. Must declare on Modelo 720 (foreign assets >€50k). ❌ Taxable

🇫🇷 France ISA income fully taxable in France. Flat tax (PFU) at 30% on dividends and gains. Wealth tax (IFI) may apply to property in ISA. ❌ Taxable

🇦🇪 UAE No income tax in UAE. ISA income not taxable there. Remains UK-tax-free. Best case for expats — double tax-free. ✅ Tax-free

🇦🇺 Australia ISA not recognised. Dividends taxed as income. CGT applies at 50% discount rate for assets held >1 year. Must declare on ATO return. ❌ Taxable

🇨🇦 Canada ISA not recognised by CRA. All income and gains taxable. Consider whether to sell holdings at departure to reset CGT base. ❌ Taxable

🇸🇬 Singapore No capital gains tax in Singapore. Dividends generally not taxed. ISA income likely tax-free in Singapore too. ✅ Low tax

🇹🇭 Thailand Foreign income only taxable if remitted to Thailand in the same year earned (remittance basis). ISA income manageable with careful planning. ⚠️ Remittance basis

🇮🇹 Italy Flat tax regime (€100k): all foreign income under flat tax. Otherwise, capital gains taxed at 26%, dividends at 26%. ⚠️ Depends on regime

🇿🇦 S. Africa South Africa uses residence-based taxation. ISA income from UK taxable. DTA Article 10 may limit dividend withholding. ❌ Taxable

Planning tip: Consider whether to realise ISA gains before leaving the UK — when you're still UK resident and CGT-free inside the ISA. Once you're non-resident, it's too late to take UK-tax-free gains on assets you then sell.

ISA action checklist before you leave

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${task}

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