Preparing Your Finances for a Move Abroad

Preparing Your Finances for a Move Abroad

Whatever the reason for moving abroad; be it for a work opportunity, to be close to family members or even just to satisfy a long-held wish; this exciting life-event is fraught with things to be done before the departure date. One of the most important of these is ensuring that your finances are in order.

A Permanent Move

If you are leaving, never to return, it is best if possible to settle all financial issues before the move. Pay off loans and mortgages; settle credit agreements with companies and give notice to mobile phone, internet and television service providers. Tell water and electricity suppliers when you would like to be disconnected from their service and make arrangements for the final payment to be settled.

Tax Status on Permanent Move

If you are moving to the UK from another country it is important that you have the correct paperwork for taxation in both your new country of employment and the country of which you are leaving. This is likely to make life much simpler for you in the future and will almost certainly save you time when it comes to registering for employment with the UK’s HMRC.

Bank Accounts for Permanent Move

Whether you should keep a bank account open in your country of origin or not depends on several factors. If you want to claim nationality in the country to which you are moving closing your bank account can be an excellent signal of your intentions to cut ties and settle permanently in that country. However if you have financial commitments in your home country this may not be possible; overdrafts, loans and mortgages may still need to be paid, and investment returns will need to be paid into or linked to an account of some kind. A bank account will need to be set up in the new country; enquire at your current bank about a letter of reference which will smooth the way for the application in the new country.

A Temporary Move

A short term move of up to five years needs careful thought and planning. Mortgages and loans will still need to be serviced and local commitments met to keep your home-town life on ice, ready for you to reassume it upon your return to the country, all this without negating whatever financial incentive it was that tempted you abroad in the first place! Make a list of all commitments, cancel those that can be cancelled and make arrangements for suspending those that cannot, while ensuring that payments that do need to be made will be made on time.

Bank Accounts for Temporary Moves

Many of the big banks have services to enable the swift and efficient transition when moving abroad to work. Ask your current bank if they can help you, they have checklists, helpful information and experienced personnel who can talk you through the move, maybe even reminding you about things you might not have considered.

Tax and Pension on a Temporary Move

This may be taken care of by your employer in the event of you moving abroad for work. Do get in touch with pension and tax offices and ask what steps you should take for a trouble-free move away, and back in the future.

General Advice

Whatever the reason for moving, try to establish a base in the new country before you make the move, enquire about and monitor political stability, the exchange rate of the country and the general economic climate. Try to keep a stash of savings to one side to help you get set up in the new country as there may be unexpected expenses, or even to help you leave in the event of something going wrong and your wanting to return to your original country. Make enquiries about health provision and check out insurances that might be relevant to your situation.

Above all it is recommended that you begin to prepare for the move well in advance, try not to leave anything to the last minute.