What to consider before moving abroad
What to Consider Before Moving Abroad: a Guide for Americans Thinking of Going Global.
If you are reading this you are already more prepared than I was when I decided to make my first (read: any) international move. What I lacked in research I made up for in youthful enthusiasm but research would have done me good, and could have led to vastly different financial decisions.
A lot of general information can highlight the weather or the food, the lifestyle, which while all important, might gloss over some of the financial implications of living in a place. Often times because the financial reality of a place differs drastically from person to person.
Before moving abroad, start with understanding your specific scenario and needs. For instance, will you be working as an employee of a company wherever you go, be handling gigs remotely as a freelancer, or starting a business where you settle? What are you expectations for services like health care or education. Are there services available to help with the bureaucracy or are you confident in doing it yourself?
This self-reflection might be the most beneficial tool to really understand where in the world might suit you best. One of the lessons I’ve learned from living abroad, is that everywhere isn’t meant for everyone. We all have our own temperaments and expectations, and you might have a friend who loves living there but that doesn’t mean it will suit your desires or requirements.
Here are a few basics to make yourself aware of when considering to move abroad.
Tax calculators are your friend
In fact I wrote an entire article on them: but another important question is to understand how they might change over time. Perhaps if you are an American thinking that a couple years in Europe will be romantic but don’t plan to live there forever you don’t consider it, however life happens and the years go by quickly so it may be worth considering if the tax structure changes for you after a certain amount of time. Especially if you were lured to a place that had been a ‘good deal’ for expats - those are not always a lifetime exemption.
Wherever you are thinking of going, search country tax calculator and do some napkin math to understand what you might be taking home each month for your working situation.
Healthcare Costs
It is really easy to read some articles on how quality of life in X is amazing or its a great place to expatriate to, but what might seem like generally a good deal might not be best suited for you. Try and look into specifics for your scenario as much as possible.
I know one of the things that surprised me when I moved to Germany was how health insurance worked - prior to moving people told me it was really good health care and general articles online ranked it well internationally, but none of this explained that it was actually very similar to the US insurance model, and as someone working for a company I was having a portion of my costs covered by my employer versus a freelancer who would be required to cover the full amount directly.
Again in my no research state, I was just like ‘it’s Europe, health care is free’ - that isn’t the defacto rule so look for health care costs for your employment type or how that changes from being a student or to a family.
Requirements for Settlement aka How Much Bureaucracy
This topic is probably what I glossed over the most in any potential research, and after having now lived in a few places, I can say it varies wildly from country to country.
It is also something that locals usually aren’t helpful with and is usually why keeping ties with a local expat group can be a useful alliance. The reason locals aren’t always helpful when it comes to the initial setup is that they were born into it so never had to come into life as an adult in this place missing critical documents or id numbers or even bank accounts. They gradually amassed these things over a lifetime and therefore might not even remember all the steps it took to have everything in place.
Look for expat settlement services in your city to get an idea of what they offer but also what may be required of you. Even joining facebook groups for ‘expats of …’ can provide useful insights into the types of bureaucratic problems people face.
How to send money abroad
I often recommend Wise. This is a currency exchange platform that allows for accounts in multiple currencies and can also provide a debit card. It can be a big help to bring money over when you are first starting out and is cheaper than going to your bank in the US and getting foreign currency in bills. Whether you need an initial transfer for a deposit on an apartment or an emergency arises before your first pay check abroad hits your account, it is always helpful to have access to money.
Was there anything you experienced when moving abroad that you weren’t prepared for financially?