Current Account Banking

Whether or not an expat should keep your bank account in your home country will depend on the bank you are using, how long you have banked with them, if you are retaining an address in your home country and the type of account you have.

Keeping a local bank account in your home country can be convenient if you plan to return eventually in the near future, and also if your bank offers multi-currency accounts or offshore accounts. If you have mortgages or loans to pay in your home country, keeping a local bank account can also be an advantage. It would really depend on your situation and the terms that your bank can offer.

Some expats will keep buy-to-let or properties back home, the regular payment of utilities or other costs, will require a local bank account. Receiving a rental revenue from a buy-to-let or leasing of your primary residence can be subject to taxes, please make sure to highlight all of this to your tax consultant when doing your annual tax return in your home country and host country.

In any case, it will be a good idea to go to your bank before you leave the country and discuss your plans to live abroad to see if there are any arrangements that can be made to keep your account.

What will be your banking needs?

Before you start signing up for accounts, find out your needs. What kind of banking needs do you have? First you have to ask your employers on what currency you will be paid with upon your assignment or when you move abroad, that way, you can see if it would be convenient for you to have a multicurrency account, a local account or an offshore account to set up your payments. Don’t forget to negotiate your contract, although relocation policies are usually set up as a framework for all employees, there is always room for negotiation on these financial matters: currency the salary will be paid in, account to receive payment, currency allowance etc.

Next, you need to check your other financial situations. Do you have a mortgage or other loans in your home country that still require payments? If that’s the case, then maybe keeping a local account is necessary. If you intend to open investments, stocks and bonds abroad, then maybe an offshore current account would be best. Bottom line is, know your options and know your needs before you start any kind of financial account especially when you’re moving abroad.