8 hot financial tips if you are moving overseas
The key to being comfortable living abroad is getting clued up on emigration finance.
There’s something very exciting about being an expat in a new country. There’s always so much to learn about your new home, but the key to being comfortable is getting clued up on emigration.
Whether you’re an Aussie who’s emigrating abroad, or an expat looking to settle in Australia, our list of key considerations can help you prepare you for your journey or improve on your current stay.
- Have you thought about opening a bank account before you arrive? Some global banks let you open an account before you arrive at your destination, which can make for a much smoother transition.
- Once you have your new account setup you can send your money ahead of time so that when you step off of the plane and into arrivals, your money is already waiting for you. Check out our Currency Converter and compare our exchange rate with the banks’ to realise the savings you could make.
- In many countries, you may need to get a tax ID if you will be earning income and paying tax. If you don’t have one, you could be taxed highly. Depending on where you go, the local tax ID will have a different name:
a. Tax File Number (Australia) |
b. Social Security Number (US)
c. Inland Revenue Department Number (New Zealand)
d. National Insurance Number (UK)
e. Social Insurance Number (Canada)
- If you’re receiving rental or work-related income from back home, look into Australia’s Social Security Agreements on the Federal Government’s Department for Human Services website. There are 30 different countries that have agreements with Australia and it could prevent you from being taxed at a much higher rate.
- If you’re living in Australia and considering applying for a more permanent status, be aware that according to Human Services you must live in Australia for more than 10 years to qualify for a means-tested Age Pension.
- Like Stan, our entrepreneurial expat, you might want to take advantage of a property opportunity during your time in another country. Consider all the options available and be sure to check out online Currency Converter to see how you could save versus the banks’ rates.
- Recruitment consultancy website MichaelPage help people weigh up the benefits of moving and working abroad. Some of their topics include:
a. Finding work overseas: Many expats may assume that once they have been granted a visa for their country of choice, getting a job will be easy. There are a number of issues expats may encounter with a working visa, including unrecognised qualifications and CVs not meeting the local standards.
b. Conversely, there are some big benefits to working overseas that could give you the competitive edge if and when you decide to return home.
c. Regardless where you’re coming from as a working expatriate, you’ll benefit from knowing how to improve your chances of finding a job in another country. There are some key areas in which you can make yourself a more appealing candidate.
- A good way to better your luck in the first 12 months is by managing your money with a foreign exchange specialist. At OFX, as well as saving you money versus your bank, we offer forward contracts that let you lock in a rate for settlement in up to one year, which can help protect against depreciation of the currency you’re holding. Register for OFX money transfer options here. Make sure you understand the risks and benefits by reading our Product Disclosure Statement.