If you have accepted a job offer to work overseas or are intending on travelling and working overseas one of you major concerns will undoubtedly be how you are going to manage your money effectively.
You will likely have many questions that need answering such as – What should I do with my overseas earnings?, How can I maintain a good domestic credit rating while out of the country for a long time? And, how much, if any, tax should I be paying? To help you find the answers to these questions we have outlined below 5 things that you should do regarding your finances when working overseas.
Keep Your Domestic Bank Account and Credit Cards
It doesn’t matter how long you are intending on working overseas, if you know you will return at some point it is important to keep your domestic bank accounts open and keep any credit cards you have valid and usable. This means when you go home you will not have to start again and will have credit cards and bank accounts that you can start using again straight away. It is also important that you continue to send money to at least one of your domestic bank accounts to pay bills like your mobile phone.
Get Yourself an Offshore Account
Although every country has a slightly different tax system, depending on your living arrangements you may qualify for much lower taxes and higher interest rates with offshore accounts. It is also worth checking if your local tax code enables you to only pay tax on any income brought back home, as you may be able to keep your overseas earnings in your offshore account, earning interest on money in that account as long as you are out there.
Bank With a Bank With Global Interests
One of the major problems about working away from your home country is that ATM machines can be very temperamental. It therefore makes sense to open a bank account with a bank that has interests around the world and many branches or partner branches, and then you will know for sure that you will access your money wherever you are.
Send Payments To Your Domestic Account
While you are away from your home country it can be very easy to forget about what’s happening there. However, it makes sense to have a contingency plan that keeps your credit score at a good level and maybe even raises it. While abroad consider purchasing some items while you are out there using your domestic based credit cards and have a direct debit payment or standing order to clear the balance at the end of the month. This will do wonders for your credit score.
Keep In Mind Your Taxes
If you are earning a decent amount of money from working abroad, it may be worth seeking the services and advice of an accountant, particularly one who has experience and knowledge of international finance. They will keep you informed and advise you as to how you can legally fulfil your tax obligations domestically on what you earn overseas. It is also important to keep any receipts from anything you purchase while working abroad as they could be proof of tax-deductible items.