If you are moving abroad to work remotely, one of the big questions on your mind may be the issue of what you will do with your money. Should you keep it back in your home country? Or should you move it to your new country?
It is a big decision to make, so here are some of the things that you may want to consider before deciding whether to move it or not.
Advantages of Keeping Your Money Back Home
One reason you may want to keep your money back home is because of the sheer convenience of doing so. If you want to move your money to your new country, you may have to open a local bank account first, which may cost money and be a big hassle depending on where you are.
At the same time, you may be able to get easy access to your money via an ATM wherever you are, which may mean setting up a local account is simply not worth the hassle.
Some remote workers may decide that their money is safer back in their home country. For example, in the UK your savings in banks are protected up to £80,000, which may not be the same in your new country.
Another thing to consider is taxes. If you keep your money back home you may not have to worry about tax issues in your new country. If you move a large sum of money over to your new country, you may find that this has tax implications that you were not previously obliged to pay.
Advantages of Moving Your Money Abroad
On the other hand, if you transfer your money abroad it may be more economical. ATM charges can add up over the months, and by transferring your money to your new country in one or a few large transfers you may be able to drastically cut the amount you spend on fees.
If you are living abroad but your money is in your home country, you may end up paying tax on your savings even if you do not have to. In the UK at least you can usually reclaim this, but it can be a hassle to deal with.
Keeping money in a local bank account will make it easier to pay for services in your new country, such as broadband, health insurance and any other services for which you need to pay.
Other Factors to Consider
When you are making your decision, other factors could affect it. For example, your bank may not allow you to keep your account back home, so you may have no choice. Also, you may want to consider the political and economical stability of the country in which you are living. Some countries are less stable than others, and if you move your money to your new country, it may be less secure.
Think Carefully Before Making a Decision
There are pros and cons of both keeping your money at home and transferring it to your new country, so think carefully before you move your money. You may even want to do both, keeping some money back in your home country and transferring your living costs to your new country.
Find out about your options in advance, but don’t make any decisions until you have been living somewhere for a few months or more, as that way you will have a better idea about what you should do.