5 financial mistakes all expats should avoid

Published on: 02/15/17 12:27:pm 5 common mitakes every expat should avoid making...

When moving to a new country with the perfect recipe of higher wages, lower taxes and better way of life what could possibly go wrong? As fellow expats we know it’s not quite that simple and many things can and will go wrong.

Hopefully this blog can help international workers like you to avoid some of the more common financial mistakes made by expats.

1. No local bank account

While opening a bank account in your new country may require you to take a week’s annual leave, without a local bank account your utility bills could become unnecessarily high thanks to excessive bank charges.

2. Failing to prepare…

Arriving in a new destination with no plan is a common occurrence. Maybe you only intend to stay for a couple of years, on average an expat stays in one location for seven years so you aren’t looking too far into the future and a higher cost of living can discourage saving.

Setting a savings goal and sticking to it is a necessity if you are to achieve the perfect retirement. Our blog on how to Make a million in 7 years has more information on this.
Looking at a map image

Finding your way around the local rules and regulations can prove daunting without good professional advice.

3. A taxing matter

Many expats make the mistake of assuming they no longer need to pay tax in their home country. This is not the case and failing to take advice now could come back to haunt you in the future. Consulting a professional adviser with local knowledge can be especially important in places like Switzerland where tax rules differ slightly from canton to canton. GWM Switzerland are experts in inter canton and cross-border advice and you can contact them here.

4. I’m insured. Are you sure?

When uprooting your family and moving to a new country, it is essential to make sure you are covered with general and life insurance. If you have insurance from back home, check they are transferrable before it’s too late.

In the UAE, which operates on Sharia Law, transferring wealth after a death can prove harder than one would think if an offshore based Will is not completed.

Senior Financial Planner Gemma discusses education fee planning.

5. The price of a proper education

As an expat in most parts of the world school fees will be an unavoidable expense. You want to give your children the best start in life from primary age to university and we can help you achieve it without it getting in the way of the rest of your lifetime ambitions. Have you started to plan for what could be a substantial outlay at a time in your life when you least need it?

Make sure you are getting the most from your expat status with our FREE 10 things all expats need to know e-guide.

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