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Long-term expat living relies on much more personal and family management than you might be used to. Moving is a stressful thing, and moving to another country comes with a lot more challenges. From opening new bank accounts to investments, here are some tips to get started.
Nail Your Tax Obligations
One of the hardest things to navigate when living and working abroad is tax. Tax is a tricky thing anyway, and double taxation is like a minefield. Now, your financial life is split between two countries, and that means double the work. There are services that can help with US taxes for Americans abroad that can also advise you of your obligations as a resident of both countries. They can also help you understand tax treaties and how you can claim relief for double taxation.
Open New Bank Accounts
Everyone knows how banks like to take your money. Today, they charge for everything, and the fees can be excessive if you rely solely on your home bank for funding. It is vital that you have all the necessary paperwork for opening an account at your local bank to avoid these fees. You can also open an offshore account for lower-cost transfers and better exchange rates if you are paid in your home country’s currency and need to convert it to the money you use locally.
Budget for Long-Term Expat Living
While there are many variables, the cost of moving can be pretty high. For example, if you move from the US to the UK, the initial costs can be as high as $6,850. Of course, there are many things to consider when moving to a new country, including down payments, utilities, and travel costs. Therefore, you must take budgeting seriously at least until you are settled in. This can make it easier, especially if there is a currency disparity from being paid in US dollars.
Think About Investments
Long-term financial planning is the key to removing the stress of money management. However, you need a plan that works across borders and not just in your home country. Check your home savings accounts as tax rules can change when you live abroad, sometimes in your favor. You can also secure long-term income with ETFs and mutual funds. However, don’t forget about your pension, as you may not even be able to contribute if you live in another country.
Plan Your Estate and Insurance
You and your family need protection when moving abroad. Not all countries’ healthcare systems work to the standard you might be used to. This means you may not have access to free or low-cost healthcare or things like dental plans. Ensure you take out policies that can be used locally and will cover you for healthcare. Of course, it also helps to update your will and review your life and income protection to ensure your family is taken care of should the worst happen.
Summary
Understanding your tax obligations will save a lot of stress through long-term expat living. It also helps to plan a budget for local costs based on income, as this can change dramatically. You will also benefit from health insurance and estate planning, as you never know what will happen.
