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Yogi Zone

Useful articles for your finance management by our team of experts

financial tips when moving abroad

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It’s a dream come true for many to move overseas be it for higher education, an after-retirement life or a job project. But it takes a little more than just a flight ticket and a valid visa. Moving overseas has greater financial implications and proper financial planning is essential to lead a comfortable life in a foreign land. In this article, some of the important financial issues to be addressed are highlighted.

(1)Strategic Planning

First things first, set up a plan. Evaluate the affordability of moving abroad in terms of income, expenses and additional costs that you might have to incur. If you have sufficient time before moving, a careful planning can help you to cut down your current expenses in order to cover larger expenses abroad.

(2)Streamline your Debt

Consider paying off your short term debts and credit card dues before moving abroad. While moving to a foreign land, it’s wise to settle short-term financial obligations so that your family is free from undue reminders of payment.

(3)Get a Bank A/c opened

It is imperative to have a Bank A/c opened in the new country at the earliest. Keep yourself aware of the documentation part of the new land so that you can fulfil the requisite early.

(4)Currency

Moving abroad results in change of currency from that of your homeland. Expats can either benefit or lose from currency fluctuations and therefore it will make sense to consult an advisor to mitigate these risks. For instance, the recent rupee fall has attracted a huge inflow from NRIs. The interest rates in India are attractive compared with those in developed countries. Besides this, the gain from a weak rupee, even after factoring in foreign exchange risk, also influenced the flows.

Apart from the currency fluctuation risk, it is also important to keep handy easily convertible currencies like dollar, pound or sterling along with the local currency with you to address short term money needs in a foreign land.

(5)Taxes

Be vigilant that you have paid all your taxes in your home country and do not default on paying taxes. After moving, you have to take care of the tax structure of the new country and therefore it is prudent to seek an expert advice so as to avoid double taxation.

(6)Insurance check

Ensure that you and your family are adequately covered as per the insurance laws of the new country. At the same time, if your family resides in the native country than they should have an adequate health and life cover.

(7)Manage financial transactions

Before you move to a new country, ensure that you have updated email address and correspondence address in KYC as well as in your financial and investment accounts. This will secure your financial transactions and will help you to track all your existing investments in the new place.

(8)New Investment avenues

A little homework on the investment avenues in the new country can help you to invest judiciously and reap benefits of a new economy. There are more investment opportunities available internationally than in the resident country and this is the reason why people living abroad accumulate wealth at a faster rate. But, your investment portfolio at the new place should be well-diversified and in line with your risk-appetite.

Finally, moving abroad can happen if you are well prepared and confident. Settling down in the financial aspect will lighten up your burden to a great extent and make your transition smooth.

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