Moving abroad to another country and becoming an ex-pat is an exhilarating time that opens the door to a range of exciting opportunities.
Despite being an overall positive experience, starting your life in a brand-new country doesn’t come without its costs. Staying organized and managing your finances effectively is essential for a smooth transition into life abroad.
Money management doesn’t stop when you settle into your new home, either. There are ongoing costs associated with being an ex-pat, as there would be in your home country.
Below, we’ve got a full guide to successfully managing your finances and reduce financial stress as you move abroad and live life as an ex-pat.
Transfer and Exchange Your Money to a New Bank
You’ll likely need to open a new bank account when you become an ex-pat, as each country has its own banking system.
Opening a bank account in your destination country enables you to withdraw money and pay for groceries, appliances, and life’s luxuries. If you plan on working as an ex-pat, your employer will require a national bank account to pay your monthly wages, too.
When you open your account, you’ll be asked to provide personal details, including your address, so it’s best to complete this task once you’ve found accommodation in your desired ex-pat country.
If the country you’re moving to uses a different currency from the country you’re moving from, you will need to exchange your cash. With international money transfer, you’ll want to find the best exchange rate so you can maximize the amount of money you’ll receive in the new currency.
Sign Up for Health and Travel Insurance
Health and travel insurance are often combined, although you can purchase them separately.
Health insurance protects you when you move abroad by enabling you to access healthcare services in your local area. However, note that your existing health insurance policy may not be valid abroad unless it covers international services.
Valid health insurance allows you to access therapies, treatments, and medications. It will also reduce your medical expenses if you require one-off emergency or ongoing treatment in hospitals or primary healthcare facilities.
Travel insurance provides protection during your flight in case something goes wrong. You will receive compensation if your luggage gets lost or stolen, your flight gets canceled, or there’s a national emergency in your destination country that prevents you from being able to travel there.
Since there are so many health and travel insurance providers, you’ll need to research a few different companies to find the best deals. Note that the more coverage you get, the more expensive your policy will likely be.
If you currently have specialist medical treatments in your home country and will need to continue these treatments abroad, make sure your chosen health insurance policy covers them. Speak to your chosen provider, who will be able to recommend the best policy for your needs if you’re unsure of the details.
Find Work in Your Ex-Pat Country (Or Set Up Your Pension)
This next finance tip varies depending on whether you’re working or retiring abroad. Let’s start with the former.
If you plan on working when you become an ex-pat, it’s best to find work before you move. This way, you can ensure a steady income stream when you arrive in your destination country.
Those of you who work at a global company might be able to ask for a transfer to a branch in the area you’re moving to, so you won’t need to find a new employer. If you’re self-employed, working in a foreign country might be a little simpler, as you can continue doing the same job and earning a similar wage when you relocate.
Of course, you’ll need to organize your taxes appropriately if you’re working away from your home country. This deserves a whole article in and of itself, but make sure to do plenty of in-depth research to stay informed of your tax obligations and benefits as a working ex-pat.
If you’re retiring abroad, you must organize your pension accordingly. Speak to your previous employer to identify your pension payouts so you can plan your finances before the big move.
You’ll need to inform your local government that organizes pensions and benefits that you’re relocating to a foreign country. If required, they will calculate your State Pension payments based on your tax contributions.
Note that if you’re receiving a pension from your home country while living abroad, you may be taxed on your income based on the national tax rates back home.