When moving abroad, one challenging aspect to manage is your finances. There are far-reaching consequences if you make wrong decisions. Also, even if you’re temporarily away from your home country, you need to make a conscious effort to protect your money. As such, you need to plan extensively and have a clear understanding of anything that could affect your finances.
Banking for ex-pats
Efficient banking is one of the first things you need to arrange when you move abroad. If you can’t access your money, you’ll have trouble with daily transactions and expenses. And when it comes to banking, ex-pats have the following options:
- Keep and use your account located in your home country. You may want to consider this as a last resort because exchange rates can be expensive. Transfer fees and processing time may also delay your access.
- Opening a local account. For ex-pats, it’s more affordable if you have a local bank account. This is also best so that you can diversify your finances.
- Cross-border bank account. International banks have specific products designed for ex-pats. This option is excellent for those who are expecting to work in different countries.
One of the latest options available today is to use a financial tech company to help you with your finances. Your transactions will be processed online or by using a mobile app.
Ex-pat pensions and investments
A foreign work assignment may affect your pension. Experts like www.pensionsforexpats.co.uk suggest knowing the implication of working in a different country to your pension fund. Also, you might want to check if there’s an option to transfer, in case you don’t plan to return to your home country. For private pension plans, you could seek the help of an advisor to know your options.
If you have a savings account as well as an investment, there are ways to diversify your funds so that you can get the maximum benefit over time. If you diversify in international investments, you can take advantage of an emerging foreign economy. Another option would be to buy shares in a different currency. This option is popular because you can benefit from growing companies while living abroad.
Taxes for ex-pats
Another critical consideration for ex-pats is tax obligations. It can be quite complicated because there are many factors at play. Depending on where you’re from and where you currently work, tax treaties between these countries will determine how much taxes you need to pay. The best thing to do is to consult a tax expert before you move to a new country so that you have a clear expectation when it comes to paying taxes.
Insurance for ex-pats
Living and working abroad will expose you to different risks. Having insurance is essential if you want to protect yourself and your family. As much as possible, have comprehensive health insurance that will provide you with ample coverage while abroad. Life insurance with added benefits for accidents and critical illnesses should provide coverage for emergency circumstances. Insurance can also be an addition to your savings account and investment.