What Do You Need To Budget For When Moving Abroad?
Making the decision to emigrate is not always easy. With so much to consider, it can be all too simple to forget about the financial side of things. While you may think you have everything under control, the last thing you need when you arrive in a new country is to struggle financially. So if you’re all caught up in trying to find a new home or working out how exactly you’re going to ship all of your belongings across the sea, stop for a moment and take note of these budgeting tips.
In additional to all of the obvious costs, such as buying or renting a new home, travel ticket to your new country of residence and shipping fees for your belongings, here are some less obvious factors to bear in mind:
- Foreign Exchange
You’ll have to exchange a lump sum of cash before you head off to your new country. However, you may find that you want to transfer money between your account in the UK and your bank account in your new country of residence. Whatever the reason for this, it is wise to consider using a foreign currency broker rather than your bank in the UK as the latter will charge higher fees and you may lose out on the best exchange rate. You can transfer your money abroad easily using Moneycorp’s online service. Make sure you get the best exchange rate every time, thanks to our foreign exchange solutions.
- Capital Gains Tax
If you have made a profit from selling your existing home, you need to take into account the fact that you may be taxed twice on it. This payment is known as capital gains tax (CGT) and those selling up to move abroad may have to pay it both in their existing country and in their new country of residence.
- Foreign Property Tax
While we’re on the subject of property, you’ll need to do your research into the housing market in your new home country before you move there. The cost of legal fees and tax may well be higher than in the UK, bumping up the price of the property you’re looking to buy. Be sure that you have enough money saved to account for this.
You haven’t worked for all of these years just to throw away your state pension, but depending on the country you move to, you may no longer be entitled to a raise in your pension, which could mean you lose out on a lot of money later on in life. Those moving to a country in the European Economic Area only or a country that has a special pension agreement with the UK will be entitled to the annual rise in state pension.
- Health Insurance
Although it receives a lot of complaints, we’re lucky to have the NHS in the UK. In many countries, it is compulsory to pay for healthcare, which could leave you short if you become seriously ill and cannot afford to pay for care.
- Cost Of Living
Depending on the country you move to, the cost of living may well be higher than in the UK. While you are likely to earn more money for the same job role as in the UK to help counteract this, there’s no certainty that you will be able to secure as good a job in your new country. One way to combat this is to ensure you have secured employment that will more than cover the cost of living before you relocate.
- Returning Home
If you’ve left a lot of family and friends in the UK, you’re likely to want to come back and visit them every now and again. You need to bear in mind the cost of the flights each and every time you do this. If you’ve moved really far away, it may be difficult to be able to save the necessary money each time you want to come home for a special occasion.
Have you recently moved abroad? Perhaps you’re considering relocating? Have you thought of all of the financial implications? Share your tips on our Facebook and Twitter pages.