If you’re a U.S. citizen you’ll never be able to walk away from the dollar completely—even if you move overseas. Likewise if you’re a Canadian or citizen of another country—it’s hard to totally divorce yourself from your national currency. Here are two reasons why…
1. You can’t divorce the tax man…no matter how irreconcilable your differences. If you’re a U.S. citizen you are obligated to file your annual tax returns, no matter where in the world you choose to live or work. If this means you’ll owe money to the IRS, then you’ll need to pay that nut in good old greenbacks. If you’re lucky enough to get money back, it will be sent to you in dollars, too. (You can’t have it directly deposited to a foreign account—only to bank accounts located in the U.S.)
2. It may be difficult to get a credit card in a foreign country unless you have an established credit history there. So when you move overseas you’ll want to hang on to your U.S.- or Canadian-issued credit cards. And, of course, you’ll need to pay those credit card bills with your national currency.
Most expats I know maintain a bank account at home for just these reasons. They may not leave a lot of money in it, but enough to pay debts like credit cards, taxes, life or health insurance policies. For emergency purposes, you may want to have a debit card attached to this account.
When you’re preparing to move overseas it’s a good time to assess your personal financial situation. Decide if your current bank and credit cards are the best for an expat.
Here’s what to consider: many banks issue debit cards that come with a hefty fees for foreign transactions or foreign currency exchanges. Same with credit cards. These fees can add up. Withdraw 4,000 pesos in Mexico or 150,000 colones in Costa Rica, for instance—about $300—and you may end up paying $15 or more in fees.
The solution is obvious: look for banks and credit card companies that don’t charge these fees and move your accounts there before you leave home. There are just a couple we know of that don’t. And remember to choose financial providers with easy-to-use online banking interfaces.
If you’re planning to move to a foreign country, managing your personal finances is a critical issue. And, of course, there are other issues you’ll need to address—like taking your pets or household goods with you…the best residency visa for your personal situation…how to find a job, or open a bank account.
But don’t worry. There’s one place to get all the information you need to make your overseas move as enjoyable and pain-free as possible.
We’ve put together a comprehensive new Kit that addresses all the issues, and answers all the questions you might have about moving to a foreign country. It’s called the Blueprint to Your New Life Overseas and that’s exactly what it is…a detailed guide to successfully moving overseas.
Some of the details covered in the Kit may seem like common sense, but they’re issues you may not think of right off the bat… like managing your money from afar… and taking the right steps to limit your tax obligations in both your country of citizenship and your country of residency.
I could go on and on. There’s a lot to consider—but it shouldn’t be overwhelming. And it won’t be when you have the Blueprint to Your New Life Overseas to guide you along the way. You can read and refer back to all the details at your leisure, and we’ve included 12 easy-to-follow videos. We take you step-by-step through every process and consideration.
Use the tips we offer in the “Blueprint to Your New Life Overseas” Kit and you could be living the good life in some exotic and exciting beachfront bungalow or mountain hideaway sooner than you think.