There are many reasons people choose to live overseas, many work abroad for the financial benefits that expat life can bring. Others choose to live overseas for a greater quality of life. But whatever the reasons, there are many important financial implications that life away from your home country can have.
Expat life can bring a whole new level of financial prosperity to those fortunate enough to work in well paid jobs, however the costs of living and working overseas can sometimes quickly stack up. Raising a family abroad can become expensive with the costs of private education. But there are many other areas of expense that may well be covered in your home country, for example the costs of healthcare can also vary widely depending on where you live.
Whether you indent to be an expat indefinitely or simply live overseas for 6 months, there are many things to take care both during your time there, and before you go. For many expats setting up an offshore bank account is a great tool in their financial toolkit. Holding bank accounts offshore gives you the ability to manage your finances in one place regardless of your country of residence, this is especially important if you often move countries. Banking offshore also allows you to store an emergency fund in a readily accessible place should the worst happen.
In addition to setting up bank accounts it can also be important to set in place provisions for moving money between multiple currencies in a cost efficient way, this is all the more true if you earn a salary overseas in one currency but have financial obligations in your home country, such as a mortgage or student loans, that are in another currency.
Wherever you choose to live you will also have to get to grips with local taxation laws and how they apply to your situation. Many popular expat destinations have low rates of tax, such as life in Hong Kong or Singapore, or even zero percent rates of personal income tax such as expat life in Dubai. Being aware of your personal taxation will allow you to make the most tax efficient investments and use of your money.
There are often many different expat investment opportunities available when living overseas, but there are also a host of unscrupulous businesses that seek to prey on expats with bad “investment opportunities” so it pays to be wised up to all of the available options.
Regardless of where you choose to live abroad, there are many smart tips you can use to make the most of your finances and set yourself up for financial prosperity.