8 Items to Financially Plan for When Moving Overseas

Moving overseas comes with great excitement and opportunities, but also many financial considerations to strategically plan for. From taxes and bank accounts to housing and healthcare, managing your money wisely is key to a smooth transition. Here are the top eight financial tasks and research to complete when preparing for your upcoming overseas move.

Understand Tax Implications

Moving to another country can significantly impact your tax situation. Make sure to thoroughly research what taxes you may need to pay in your new country of residence, such as income tax, capital gains tax, and VAT. 

Also, look into any ongoing tax obligations you may have in your home country even after moving overseas, like filing returns or paying tax on income earned abroad. Consult with a tax professional with expertise in expat taxes to understand your full obligations and the most strategic approaches to minimize your tax burden.

Get International Health Insurance

Obtaining comprehensive expat health insurance should be a top priority. This will provide invaluable coverage for medical care overseas in case of emergencies or unexpected illness or injury. Be sure to understand exactly what the plan covers and any exclusions or limitations. If you’re going to be abroad for more than a few months, it’s recommended to get international insurance over travel insurance. 

Look closely at the deductible, copays, maximum benefit amounts, emergency evacuation coverage, and pre-existing condition stipulations. Having solid international insurance will protect you from the high costs of paying for care overseas out-of-pocket.

Open a Bank Account

One essential financial task is opening a local bank account in your new country. This will make it much easier to complete everyday tasks like paying bills, receiving payments from employers, accessing cash, and more. 

Research the bank account options available and make sure you understand the requirements to open an account as a foreigner. This may include providing documents to verify your identity and immigration status. Look for accounts with low or no monthly fees, online banking capabilities, account security, and ATM access.

Transfer/Access Money

You will need a way to transfer or access money from your bank accounts back home to your overseas accounts. Look into the most cost-effective option, whether it’s wire transfers, services like TransferWise, or using credit cards for purchases. 

Understand what foreign transaction fees your bank and credit card companies charge. Also, consider the convenience of withdrawing cash from ATMs versus currency exchange booths which typically have higher fees. Setting up your money transfer system ahead of time will prevent headaches later.

Review Investments

Take time to thoroughly evaluate how moving overseas could impact your investment accounts and overall investment strategy. Research how local investment options, regulations, and tax implications may differ in your new country of residence. 

You may need to shift your asset allocation or withdraw funds from certain accounts with restrictions on international residents. Consult with your investment advisor and tax professional to develop the most strategic approach. Don’t neglect this step which could significantly impact your investment returns!

Understand the Cost of Living

Gaining an accurate understanding of the true cost of living in your new overseas home is crucial for budgeting wisely. Do in-depth research on costs for housing, transportation, utilities, healthcare, groceries, and dining out across different neighborhoods. Look at numerous listings to gauge rental or purchase prices for accommodations that meet your needs. 

Compare costs for public transportation passes, taxis, ride shares, parking, and auto purchases. Talk to locals and expats to better understand day-to-day costs. Developing a clear picture will allow you to create a realistic budget.

Arrange Housing

Whether you decide to rent an apartment or purchase property overseas, be sure to research options thoroughly before making this major financial decision. If renting, look at multiple listings to understand the market and only use reputable rental agents. If buying, consult professionals to navigate regulations and restrictions on foreign buyers. 

Carefully weigh costs like security deposits, agent and notary fees, moving costs, furnishings, utilities, and repairs. Give yourself plenty of time to visit potential neighborhoods and accommodations in person before securing a long-term lease or purchase.

Handle Logistics

Don’t underestimate the time required for handling essential logistics when moving abroad. This includes tasks like:

• Obtaining proper visas for yourself and family members
• Making arrangements to ship your household belongings
• Transferring prescriptions to a pharmacy in your new location
• Setting up mail forwarding
• Canceling home services
• Finding new providers overseas
• Offloading vehicles

Build plenty of buffer room into your timeline and start early on time-consuming administrative tasks and processes. Stay organized and diligent to ensure a smooth transition on your moving day.

Overall, living and traveling internationally can be very exciting. While it’s important to have the items above in order, remember to also leave room in your budget for unexpected expenses.

*This is a collaborative post.