The prospect of moving to another country and bringing your work with you is an exciting idea. You may want to relocate because of the better weather conditions, affordable health care, an economical standard of living, or just being closer to family and friends. Having made the decision, you’re probably putting together a checklist for the things you need to take care of as part of the move.
Aside from preparing for unfamiliar cultural, language, and food issues, you would also want to explore potential financial problems and prepare to deal with them. Here are some of the common financial issues that professionals don’t anticipate when planning a move overseas.
Get your personal and business finances in order before the move so that you can look forward to a comfortable life in your new home country.
1. Moving Your Business Can be a Complex Task
If you’re running a successful company, you’ll probably consider liquidating the investment. That involves figuring out the optimum price and matching with a buyer who is knowledgeable about the industry. If you choose this path, hire a reputable brokerage firm that provides specialized services.
Alternately, if your business is primarily remote or online, you may be taking your career with you as you move. Business owners often discover that adding a new country and currency into the mix make their finances more complicated. Find good small business payment processing options before you travel to your new home.
2. Getting the Right Price for Your Home and Other Properties Needs Preparation
Unless you intend to maintain a home in the US, you would want to sell off the property and any other real estate you own. Like your Indianapolis roofing contractors advise, getting the buildings inspected carefully and making essential repairs and renovations will likely fetch you a higher price.
Buyers assessing a house for investing typically look for signs of a leaking roof and damage from moisture. Their objective is to factor in the costs of the repairs they’ll undertake before moving in. Often, sellers are unaware of the exact condition of the foundation, flooring, siding, doors, and windows. These factors can influence the offers they receive for the house.
3. Transferring Funds Overseas May Incur Taxes and Fees
When you’re ready to transfer funds overseas, you’ll comply with the taxation laws in the US and the new country. Keep in mind that you might also incur taxes on fund transfers in some countries. Expect to pay currency conversion fees and capital gains taxes if you’ve liquidated stock investments back home. Preparing for these costs when calculating financial obligations that go with a move overseas is always advisable, so you’re not stuck with unexpected expenses.
Using strategies like opening an account with an overseas branch of the same bank back home can help you avoid some of the transfer charges. You could also use money transfer services that offer you facilities to make moving funds a seamless process.
4. Filing Taxes is Mandatory in Both the US and Your Host Country
American citizens and Green Card holders must inform the bank and IRS about their intentions to move. Since you’ll continue to file returns with the IRS even after relocating, make inquiries into the regulations that apply to foreign nationals in your new home. For instance, if you’re moving to Germany, work with an expert consultant to learn about filing taxes as a US expat in Germany. Getting information about the deductibles and exclusions can help you save on the taxes and avail of facilities available to expats.
5. Your Lifestyle Changes Along With Finances
Moving, setting up a new office and home, learning about a different culture–all of these exciting tasks are time-consuming and draining. While you’re sorting out your professional life, don’t let your personal care become a low priority. You’ll find these daunting tasks much easier if you’re treating your body with kindness.
This doesn’t have to be a huge commitment for time or finances. Set up reminders for your bedtime, take workout app breaks throughout the day, and explore the novel fruit and vegetable options available around you.
When you’re moving to a foreign country, work out the financial issues carefully to transfer your money and maintain the lifestyle you’re used to back home.