Do You Have a Plan?
Having a long term financial plan is essential. High inflation and changes in exchange rates will undoubtedly affect your income and this is precisely why you should take a long term view of things…your income, possible increase in income and expenditure in the future as well as retirement needs.
Consider Offshore Savings
Apart from opening a bank account in your new country, you should consider opening an offshore savings account or offshore bank account for your long term savings and for tax planning. Offshore savings can be in various worldwide currencies.
Many expatriates open offshore bank accounts to avoid income tax in their own countries. You may find opening an offshore bank account to be advantageous if you want to earn interest while keeping funds reasonably fluid in the short to mid-term. You may use your offshore account as a central source from which to send funds to other locations, including an account in your home country.
Tax Nitty Gritty
Taxation laws vary from country to country and may apply to worldwide assets in addition to those assets in the country of residence.
Depending on each country's tax laws, how much tax you will pay varies widely, which is why there is no substitute for research before you leave. The tax ministry or department of your country would most likely list the tax rules for many countries. See that you procure one if it is available or carry out some online research.
Look in to the regulations governing income tax, inheritance tax, wealth or capital gains tax, etc, and also consider whether there are any extra taxes for which you may be liable.
Ensure you are classed as non-resident in your home country as this can have a bearing on how much tax you will pay. Generally, to establish this you have to a certain number of specified days; for example, in the UK if you want to be classified as non-resident then you are required to spend a time period of less than 91 days per year in the UK, averaged over a period of four years.
Once you have acquired non-resident status, you will be exempt from paying tax on income earned outside your home country but still liable on income generated within your home country e.g. from letting out a property.
Seek Professional Advice
Since tax regulations tend to be very complex it is best to seek professional advice from an international tax consultant. An online search or looking up the Yellow Pages should help you find some tax consultants. Ask for references, do a background check and try and visit the tax consultant in person before you decide to go with him or her.
More Expat Resources
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
PGRpdiBjbGFzcz0iaXRlbSBibG9jX2ltYWdlIiBzdHlsZT0iYmFja2dyb3VuZDp1cmwoaHR0cDovL2hvbWUuZXhwYXRmaW5kZXIuY29tL2RhdGEvaW1ncy9jbXMvcnViOV8xMzIyMjEzNjc2MjE0NTk3MDAuZ2lmKSBuby1yZXBlYXQgI0YyRjJGMjtiYWNrZ3JvdW5kLXBvc2l0aW9uOjMwcHggMjBweDsiPg0KCTxoMz5Eb3dubG9hZCBvdXIgRlJFRSBHdWlkZXMgbm93ITwvaDM+DQoJPGRpdiBjbGFzcz0iZGVzY3JpcHRpb24iPkRvd25sb2FkIHlvdXIgY291bnRyeSBndWlkZSBmcmVlIG9mIGNoYXJnZSEgQ29zdCBvZiBsaXZpbmcgZ3VpZGVzIGFuZCBtb3JlLi4uIFRoZSBQREYgY29uc2lzdHMgb2YgMTAtMTUgcGFnZXMgZnVsbHkgcGFja2VkIHdpdGggdXNlZnVsIGluZm9ybWF0aW9uIGFib3V0IHlvdXIgbmV3IGNvdW50cnkuPC9kaXY+DQoJPGRpdiBjbGFzcz0iY2xpY2tib3V0b24iPg0KCQk8YSBjbGFzcz0iYnV0dG9uIGJjc19iMTQwXzQ1IGYxNCIgIGhyZWY9Imh0dHA6Ly93d3cuZXhwYXRmaW5kZXIuY29tL2ZyZWUtZG93bmxvYWQiPjxzcGFuPkRvd25sb2FkIG5vdyE8L3NwYW4+PC9hPg0KCTwvZGl2Pg0KCTxkaXYgY2xhc3M9InNlcGFyYXRpb24iPiZuYnNwOzwvZGl2Pg0KPC9kaXY+DQoNCg==
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
