XM -Blog

Financial Planning If You’re Moving Abroad

September 11th, 2017

Financial Planning If You're Moving Abroad

If you’re thinking about moving abroad, the chances are your finances are somewhere near the top of your list of priorities. So we thought we’d share a few tips to help you make as seamless a transition as possible.

Get your finances in order

In an ideal world, you’ll have plenty of notice before moving abroad. Try to give yourself at least six months, and use this time to get your finances in order. This gives you a chance to put some money away so you can cover the costs that come with emigrating- travel costs can build up if you’re bringing family members or belongings with you, while you might need funds to tide you over until you receive your first paycheque. You should also try to avoid leaving any debts in your native country, such as credit cards or bank loans, as they may be more expensive to pay off depending on whether the exchange rate works in your favour or not.

Research banking options

It also makes sense to figure out how to open a bank account in the country you’re moving to. After all, you need somewhere to store your money safely, and you can access other services including credit, bill payments and savings. Requirements vary from country to country, but as a rule most banks ask for one form of identification such as a passport and proof of your new address. If you’re moving to the United Kingdom, this blog post about opening a bank account should help. Some banks allow you to open an international account from your country of residence, so it’s worth checking if that’s an option before you move.

Check the tax regime

When budgeting, it helps to know how much you’ll get paid after tax. Again, tax regimes tend to differ but you usually have to pay some form of income tax, not to mention other contributions such as National Insurance in the UK and Social Security in the United States. Make sure to check if any bilateral agreements exist that mean you’re exempt from certain tax liabilities. And if you’re moving to Saudi Arabia, don’t forget the generous tax allowances for expats have changed- as of July, you have to pay a monthly family tax for each dependent living with you.

Learn about the local currency

You should also familiarise yourself with the local currency, particularly if you’re planning to send money home. As we mentioned above, the exchange rate affects how much the money you earn is worth in your native currency. If you’re looking for an affordable way to send remittances, make sure you check out Xpress Money. With a global average charge of just 2%, we’re among the most competitive services on the market.