Moving Abroad: Money Across Borders

Moving to another country to study or work brings new opportunities and new financial questions. Planning ahead can save money and avoid problems with banks and taxes.

Before you go

• Budget for setup costs: flights, visas, deposits, initial rent and living costs before your first paycheck.
• Check your home bank accounts: some accounts must change status when you move abroad. In India, for example, residents who become non-resident Indians are expected to convert their savings accounts to NRO accounts, and can open NRE accounts for income earned abroad.
• Tell your bank and card providers you are travelling to avoid blocked cards.

Moving money

Sending money between countries involves exchange rates and fees. Banks often charge a margin on the exchange rate as well as a visible fee. Specialised money transfer services can be cheaper. Comparing the total amount received, rather than just the fee, shows the true cost.

Tax residency

Your tax residency determines where you pay tax on your income. Rules differ by country and usually depend on how many days you spend there. In India, residency is largely determined by the number of days spent in the country in a financial year. Many countries have double taxation avoidance agreements to prevent the same income being taxed twice. Getting advice when you move can prevent costly mistakes.

Building a financial life in a new country

• Open a local bank account.
• Build a local credit history, since credit records usually do not transfer between countries.
• Understand local health insurance and pension systems.
• Keep records of income and taxes paid in both countries.

Accessibility abroad

Blind and visually impaired people moving abroad should also research the new country’s disability services, accessibility of banking and government websites, and whether assistive technology and guide dog arrangements carry over.