Finances are the most important part of international relocation plans, and money woes can be devastating for people as they settle into new countries. Without proper fiscal planning, expatriates are left without any means to resolve their issues.
Your finances should be your primary concern before your international moving company arrives to ship all of your belongings. Read the following tips to help you get your money in order so you do not have any problems when you move abroad.
Have two bank accounts
Expat Women writes that you should have two bank accounts – one in your old country and one in your new home. The news source points out that some financial issues can take months or years to resolve, so you should have an account for the correct currency. If you plan on returning to your nation of origin, the secondary account is a necessity so that you can cover expenses like taxes and loan payments.
Additionally, a new account should be opened in your home country. Expat Women recommends having enough savings to live off of for three to six months. A substantial safety net is very important when moving abroad. If you do not have a job or a work visa, it could be months before you find steady employment. Find a bank with reliable currency conversion services to avoid any potential headaches.
Seek professional assistance
Tax laws are difficult to understand without the proper training. Many people are not aware of how their incomes are affected by government regulations, and expats suffer from even greater confusion. Every country has different tax rates, and the policies are not always clear.
Hire a financial advisor who can explain the different taxes of your new home country. An accountant or a consultant can clarify any confusing points so you know how much you owe in taxes. Additionally, you should not try to handle your taxes on your own – use professional services when tax season arrives.
Decide what to do about credit
Of course, you will need a credit card in your new country, but you need to decide if you will keep an active account in your native land. Expat Women recommends keeping one in case you decide to return home. However, you are at risk of identity theft and other fraudulent activities if you do no actively watch the account. Weigh the options and decide if you truly need a credit card for a country you might not return to.