5 things to consider before relocating abroad for work

Remember, there is more to relocation than just boarding a plane.

Factor in expenses linked with shipping your belongings, securing temporary accommodation upon arrival (this could be a hotel or an Air BnB and it could get extended), navigating the visa application process, and locating a permanent apartment in your new city.

Do not ignore hidden costs, like international phone plans, local transportation. whether you need to buy  car or whether the city has a good public transportation, furniture rental for your temporary accommodation, and certain unexpected costs that may pop up after the shift.

Ask your employer if it provides a relocation package. Some of the firms offer monetary support with some or all of these moving costs. Learning their support structure upfront will help you manage your budget effectively.

Also read | A check-list to keep in mind when relocating to a new city for a job

Home visits

Distance can be difficult, especially when you are missing near and dear ones back home.  Before you accept the overseas position, have an honest conversation with yourself about how often you can realistically afford to travel back home.

International flight tickets, especially during Christmas, New Year and summer holidays, are expensive. Don’t just consider the flight costs, but also consider potential local travel expenses within your home country. Consider if there will be paid leave in your new contract, and how they might align with your desired travel frequency.

Consider your partner's career

If you are planning to relocate with your partner, explore the visa requirements and job market opportunities in your new location.  Start by asking yourself a few questions: can your spouse easily acquire a work permit? Can her/his skill set be effectively used abroad?  Your spouse's ability to secure employment can significantly impact your overall household budget.

Also read | Moving abroad? Here are some financial tips for a smooth transition

Research benefits beyond salary

Monthly wages are crucial, but they are not the only factor to think about. Access to healthcare, social security benefits, and schooling options for your kids are all significant aspects that can impact your standard of life in a foreign country.

Take time to evaluate the healthcare system in your new location and find out about the health insurance provided by your employer. In addition, research the availability and expenses of schooling, if required. These factors can greatly impact your general well-being and lifestyle.

Get ahead of currency fluctuations

The exchange rate can enormously affect your purchasing power.  Before you migrate to another country, keep an eye on the exchange rate between your home currency and the currency of your new country.  Understanding the economic stability of your destination is also important.  A volatile currency or an unstable economy can impact the cost of living and your overall financial well-being.

Savings & retirement

Changing your country of residence can affect your retirement plans. Find out how the social security system in the new location differs from that of your home country and determine any adjustments that might be necessary in your savings strategy. Those reaching the age of retirement must look at worldwide pension transfers.

Banking abroad

Get to know the banking system in the new country where you plan to move to. Ask about charges associated with opening an account and find out if the new bank you have joined provides international banking. This will be needed when handling money and sending cash back home.

Also read | Can employees switch from old to new regime mid-year? CAs seek clarification from I-T dept

Taxes

Taxation statutes differ significantly across countries. Study about tax legislation in your destination and understand what it implies for you as a taxpayer.

Investigate whether or not there’s a tax treaty between your host country and the one you hail from, so as to avoid double taxation. To help you manoeuvre these complex matters, consult a certified public accountant.

By considering these factors carefully, one can proceed with confidence and a clear financial roadmap for one's international assignment. Remember, failing to plan is planning to fail. Thus, always prepare yourself adequately.