Friday 27th August 2010

Working Overseas: Financial Checklist

There are a number of financial matters that you should consider when working overseas. Use our moving abroad finance checklist to ensure that you have everything covered.

Tax & Social Security System When Working Overseas

  • Make sure that you inform the authorities in your home country of the fact that you will be working overseas. In some countries you will be expected to continue to pay tax so ensure that you fully understand what your liabilities are and how you are expected to fulfill them before you leave the country.
  • Pay any outstanding tax bills that you have in full before leaving the country.
  • Establish the tax rate and how it should be paid in your host country. Ensure that you fully understand the process for paying tax in that country. In some countries you will be charged tax on a monthly basis while in others you will be expected to pay an annual bill. In the case of the latter, ensure that you are aware of how much you will have to pay and that you have made appropriate arrangements for saving this money in advance. See our relocation guide for the city you are moving to. It contains all the information you will need about taxation levels, processes and obligations.
  • If you’re self employed make sure you fully understand the taxation you will be subject to and how you will be expected to account for your earnings.
  • Ensure that you understand the social security system in the country you’re going to.
  • Understand the implications of ceasing social security payments in your home country while you are away. If necessary you may wish to consider continuing payments in order to ensure that you don’t miss out on any benefits that you may need at a later date.

Mortgage/Home Loan

  • Inform your mortgage provider that you will be out of the country. If you plan to rent out your home while you're away, inform them of this.

Banking When Working Overseas

  • Open an international, multi-currency bank account, preferably one with international online banking. This will allow you to transfer your money easily across your home and host countries.
  • Check whether you are able to keep a bank account open in your home country when working overseas. In some countries you are not permitted an account unless you have a permanent address within the country itself. If you are going to be forced to close your account make sure you have alternative arrangements in place and that you have informed any people to whom you may be expected to pay bills at a later date.
  • For more comprehensive insights into banking when working overseas see our guide to expat money.

Will

  • Seek legal advice on the status of your will in your host country. Ensure that adequate provisions are in place in the event of something going wrong.

Pensions

  • If you contribute to any type of state pension fund you should seek professional advice on the implications of moving overseas. You may need to make additional arrangements in order to ensure that you have an adequate pension.

Insurance

  • Find out if you need to take out medical, personal injury or other insurance in the country you’re moving to. Ensure that you have adequate coverage if you intend to travel in the region in which you’ll be living.
  • If you’re renting out a property in your home country, check whether this impacts your house insurance premiums and ensure that you have coverage to address any shortfalls.
  • For more comprehensive information about insurance requirements when working overseas see our expat insurance guide.

For a full moving abroad checklist, which covers everything you need to do to plan for a move overseas, please see our moving checklist template.

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