A global economy, digital age and quality of life concerns have many folks looking overseas for fresh starts.
Bloggers can build their revenue streams without much overhead cost in Buenos Aires or Costa Rica. Meanwhile, Australia, New Zealand and Japan are wooing computer engineers for skilled labor shortages.Cultural connections along with high tech booms are drawing expats back to India and China.
There are common concerns for different motives and destinations. Your money, security and convenience should all be considered.
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Here are tips that can help you with a smoother international move.
In all likelihood, a federal tax return will have to be filed by you,despite earning money overseas. Thankfully, most countries haveprovisions to avoid ‘double taxation’. An accountant’s advice and online tax estimators can give you cleared understanding in terms ofthe tax perspective.
Money and Banking:
The fees for money transfer and currency conversion can be quite high.You may consider having bank accounts in both countries.
Currency conversion and money transfers are invariably on the expensive side. It might be a smart move to have bank accounts in both the countries.
You can retain your home country bank accounts for payment on:
- Student Loans
- All other recurring payments you plan to retain.
Many industries use cross-border banking for payment to global employees and suppliers. This past summer, Executive Producer Elliott Broidy financed production of two films in Los Angeles while travelling overseas.
- Remember to inform your bank about the overseas move before leaving. Why? Credit cards and accounts used overseas may be flagged as suspicious activity which could lead to their cancellation.
- Select a money transfer service ahead of time and fully understand all fees. Your bank may offer this service.
In what currency will you be paid? An American web developer paid in dollars must consider how a weak greenback affects living in Europe or Japan. Consider the strength or weakness of your home currency when negotiating salary in such cases.
What are the implications of this big scary name for you: The Foreign Account Tax Compliance Act (FATCA) was implemented as a measure against tax evasion. (Make it a point to file a tax return when overseas)FATCA requires all foreign banks to report accounts held by expats.
As it may turn out, opening accounts in small banks might prove to be tough as these banks don’t have ample resources to ensure compliance with FATCA.
Solutions to minimize banking headaches:
- Turn to international bankswith branches in your new country.
- Open international bank accounts (IBAs) with a global bankbefore leaving.
- Use IBAs totransfer money between domestic and foreign accounts.
- Separate business and personal accounts.
Internet Security – Virtual Private Network (VPN):
Staying connected while overseas is essential, especially if your income depends on it. You can blog with more confidence by using a VPN at cafes, airports, etc. A VPN encrypts your web traffic for enhanced password and internet security.
VPNs also allow remote employees to more securely access company resources. Mobile VPNs are available for smartphones, as well.
International Driver’s Permit (IDP):
An IDP provides assurance on several levels. A location change or emergency may require you to drive. Your IDP is also another form of identification for accounts, customs or other functions.
How to get an IDP: Google search results show organizations that issue IDPs in your home country. For instance, Americans would turn to the National Automobile Club or American Auto Association.
Tip:Turnaround may take a few weeks, so be sure to plan accordingly.
Package Consolidation Service:
Stores will often not ship overseas or the costs make it impractical. Thankfully, your favorite products on the internet are available with a package consolidation service (PCS). A PCS sets up a home country address that receives packages, which are then shipped overseas. Why trouble friends and family? Simply set up a PCS!
High quality of life is a common goal across the globe. Proper planning helps you be more productive and happy wherever travels may lead.