What do you wish someone had warned you about, money-wise, before moving?
Posted by PollutionSuitable523@reddit | expats | View on Reddit | 36 comments
Hey all,
What's been the most genuinely annoying part of the financial side of being an expat.
Things I'm wondering about:
- Anything you got caught out by (early on and even now)?
- Where should I look to get advice on moving, particularly regarding finances?
- Anything stressful about managing finances as an expat?
- Any tools you found useful in researching/managing finances internationally?
Appreciate any war stories.
worldisbraindead@reddit
PollutionSuitable523@reddit (OP)
Do you use any tools to help you with the taxes?
worldisbraindead@reddit
If your US returns aren’t overly complex, you can use online solutions like TurboTax…BUT, you want to make sure that the version you purchase allows you to file electronically! Not all versions do. Otherwise, you’ll have to print, sign, and FedEx which just adds another step and €40.
For filing in Spain, I hire a professional.
Desperate-Stuff6968@reddit
Learn how the local tax system works and figure out how to use it to your advantage in whatever way(s) you can.
Case In Point: I found out that contributions made to foreign pensions don't count towards the maximum fund size limit in my home country.
Used this to my advantage while living in the UK to dramatically increase the size of my retirement fund in the most tax efficient way possible.
PollutionSuitable523@reddit (OP)
How did you find out about this? Friend, google, AI, etc.?
Desperate-Stuff6968@reddit
It helps that I work in an industry that is adjacent to finance and that I was used to developing investing strategies in my home country to use the available investment and tax incentives there - so really I was just adapting a process that I already had in place to what was available under the UK system.
Essentially, I started out with the following problem statement: "I want to make the most efficient use of the available investment & tax incentives in the UK for the duration of my time here. Considering my unique circumstances, what is the best way to do that?"
From there, I researched the UK tax rules (and how that interacts with my home country's tax rules) and developed an investing strategy.
I later conferred with a UK financial advisor and a financial advisor to confirm that my understanding was correct.
Worth doing something similar if you have money to invest and want to use your time abroad as (amongst other more important things) an opportunity to build wealth.
douglas_creek@reddit
How long it can take to establish banking and receive a paycheck in your new country. We luckily had savings and a US credit card (paid with card, payed card off with savings) that covered the 9+weeks it took to establish bank accounts, but we would have been in serious issues without it. There was no way in this EU country to get paid for work without an EU bank account.
PollutionSuitable523@reddit (OP)
What country was it, if you don't mind me asking?
douglas_creek@reddit
Finland
douglas_creek@reddit
And some of it was our fault for not realizing you can walk into the government agencies and pull a ticket to wait, instead of making appointments that were two to four weeks out for availability.
Bottom line for anyone coming here: go in person to International House for DVV, Vero, Kela, then in person to the police station for ID (show up first thing when they open), and it doesn't hurt to try at the banks.
Doing this would have shaved about 3 weeks off the process of getting banking and strong ID.
Catcher_Thelonious@reddit
"Based on experiences shared on Reddit, the most frustrating financial aspects of moving abroad involve banking nightmares (frozen accounts), unexpected tax liabilities, and the hidden costs of setting up a new home. Key advice often centers on saving 6–12 months of expenses, researching local tax treaties, and avoiding converting prices to your home currency."
PollutionSuitable523@reddit (OP)
What did you use to research the new country's financial landscape?
The-American-Abroad@reddit
I would invest serious time into finding quality accountants / lawyers etc. locally. America is basically straightforward enough to do your own taxes and contracts, etc.
But abroad in another country, in another language, is a different story. I lost a couple years of time by thinking I could manage a residence permit, taxes, etc. and other official stuff on my own.
PollutionSuitable523@reddit (OP)
What kind of tools did you use if any to do it yourself?
call-ana@reddit
It doesn’t work like that in some countries but if your solution is “Be rich” yeah, I agree with you.
call-ana@reddit
That taxes could be as high as 50%+
Aggravating_Ring_714@reddit
If you don’t know what you’re doing, yeah.
Competitive-Leg-962@reddit
Denmark?
Telecom_VoIP_Fan@reddit
Well, in my case, since I am from the UK, I made the mistake of not keeping up my National Insurance pension payments. Although I was able to make up some of the missing contributions, it has still affected my rights. So, even if you are working overseas, you should keep up payments into the UK pension - I would not be surprised if this also holds true for other national pension schemes in home countries.
Desperate-Stuff6968@reddit
You can also contribute 100% of your salary or £60k (the lower of the two) in the UK tax year that you leave and £3,600 (£2,880 with 20% tax relief) for the following five UK tax years immediately after becoming non-resident.
Very solid investment mechanism if you're out of the UK temporarily, or if you've left the UK but want to make use of an additional tax advantaged way to invest (aside from whatever may be available in the country you're now in).
Congressive@reddit
Caught out early: The Foreign Account Tax Compliance Act (FATCA) limit for reporting used to be $10,000, but now it's supposedly $50,000 for individuals? Some foreign banks didn't want to deal with me because of the headaches of FATCA (on their end). Citibank, in Asia, for example, said, "No Americans." I made the mistake of reporting for several years. Now, I don't have a foreign bank account.
Caught out early: ATM and international fees. Try negotiating with your bank. I call every six months or so and ask. Sometimes they waive the fees. I pay roughly $10 in fees every time I withdraw \~$400 from my US debit card. The banks get me for 1-3% on international transactions. That sucks. Now, I just move money to my wife's local bank account and save on fees.
Caught out later: Not all virtual mobile numbers are accepted by some financial institutions.
Caught out later: Fidelity closed my account when they figured out I was overseas. Now, it's almost impossible for me to open an account without being in the US.
Tip: Use Wise (formerly TransferWise) to move money around.
Tip: Look into H&R Block's Expat Tax Service. They've been solid for me.
Advice about moving: Google search "expat advice" or whatever. Tons of information.
Stress about finances: I'm in a country that has a reputation for fraud and scams, so a huge source of anxiety is security and protection while transacting online. Change passwords often. Call the institutions and make them note your account that you're overseas.
Tip: Freeze your credit with all three reporting agencies. It's easy to unfreeze if necessary, and doesn't affect your current credit score.
Tools: Get every financial mobile app setup while you're at home. Don't wait until you're out of the country. In addition to four credit card companies, I use Wise, Zelle, PayPal, and Venmo (rarely).
Tip: Be very cautious about using local pay apps like GCash, and only use Apple or Google Pay online.
Tip: If you can get one, use a local credit card, NOT an ATM card, to pay for everything possible, and just pay it off in real-time.
Something to think about: If you manage finances for somebody else like elderly parents, make sure you have copies of the POA notarized at home and abroad.
volvo64@reddit
You can open a Schwab international account to replace your fidelity account. You can open it while abroad.
19puppylove99@reddit
I really really wish I would have had a degree in something that could lead to long term career in my country of choice.
I went as an English teacher and burned out after just a couple school years. Figured out how to game the system for visas for a total of 4 years stay but now I’m finally getting ready to go back to my home country and just knuckle down and actually get a good career going
I was 23 when I left, 27 now. No regrets but it would have helped so much to have a game plan for long term
ObjectiveCaramel9225@reddit
It's difficult to get any kind of credit.
Awesome one may think - cannot get into debt.
Yes, but also it's difficult to get a mortgage that isn't eye wateringly expensive, or buy major items on credit like cars for example.
Where one works they may get a credit cardslnperhaps, but often with low limits or in some cases it's actually has to be preloaded to function - ie there's no credit.
Same with loans. In fact in some places, before you can leave the country they'll need you to get a bank letter confirming no outstanding debt so your mobility is restricted. Further, if you have debt and get laid off, you cannot leave until that is dealt with... Could be tricky if it's a large sum.
And then in your home country, because your employment contract is based overseas in places they won't accept, they won't approve mortgages and stuff. At least that's the rule in the UK these days.
I had an example where I wanted to mortgage a cheap property - $150 k USD roughly. Too little for an expat mortgage - they wanted $300k plus to look at it and charged a significantly higher rate. But the amount was too much for any loan or credit I could get.
So you're stuck saving up, which limits the ability to invest in property. Even on a decent expat salary, the cost of property goes up faster than I'm prepared to lay out as cash purchase.
NemuriNezumi@reddit
that my british, spanish and italian phone numbers wouldn't work in japan for calls
goldenvisa6387@reddit
Relocation decisions usually depend on budget, family needs, and long-term goals.
thin_wild_duke@reddit
Sold my house, car, etc to move to Canada, and on arrival found that I couldn't get a credit card because I had no credit history in Canada.
The only thing to do was get a couple of in-store cards and build up a 'history' of three or four months of purchases.
It was bizarre.
Union_Biker@reddit
Trump. He destroyed the value of the dollar.
Just-Here2-Learn@reddit
Lollllllll
Pan_Duh_Pan_Duh@reddit
-Taxes…LOL
-Travel Insurance… Still looking for the best deal (any recommendations?)
-ATM FEES?! Seriously, I hate carrying large amounts of cash anywhere I’m not gonna be for long, but it can be surprisingly difficult to correctly guess how much you’ll need, and those fee’s will really add up.
Some countries have had a trend of switching to online payments/digital transportation cards/etc, which can be difficult if you can’t use your bank/use that service - this was most frequently a problem for me in Thailand. Currently looking into online/digital global banking.
-Lodgings: More and more hostels have started to upgrade to capsule style lodgings, which has been really nice. Also, surprisingly, Hostels were my favorite in Asia, not my favorite in Europe. But it’s hard to know which lodgings are the most ideal, because depending on where you go, a hostel might be best in one country, but a private lodging will be better and more accessible in another.
-TAXI SCAMS! Seriously, despite knowing this, each country seems to have a slightly different way of getting snagged by this. I fell for one in Kosovo and in Vietnam. Just in general, scams are just one of those things that always hurts a little because it can take a big chunk of your money. And it can’t be helped, the more you travel, eventually you’ll hit one or two.
I lived in Japan 2.5ish years, digital nomad for 1 year, about to go back on the road. Hopefully I’ll get a better hang on my finances this time around (which I didn’t do bad my second time doing this.)
edbgon@reddit
I should have spoken with someone experienced with expats about what to do with my 401k and other savings before it gets too complex.
nickelchrome@reddit
Any insights worth sharing?
SergioGiorgio@reddit
Keep a local address in your home country…parent, sibling etc. Also same story for a phone number….don’t cut all ties.
daluzy@reddit
We maintain an address in the States for banking. It is a buddies house. This makes the bank happy as it is a US address. We setup express send stuff via the bank to transfer money to our Colombian bank, no drama. We do go back to the States often for months at a time so the bank folks know us and our situation so I assume this helps. This has been going on for 20 years now.
We use a Google Fi phone as it has a US phone number which we need for SMS and 2FA stuff. Cost e $28 a month. We do not use the data as it gets turned off after about three months overseas, but the US number and SMS functions still work. Have been doing the Google Fi phone for going on 6 years now.
The largest pain in the butt is having a credit card cancelled or some dirtball steals your data, as the new cards go to the US address. So, we only use the card in a few places, large national chain grocery stores, hardware stores or hotels and airfare. So far no issues.
I cannot imagine trying to bank as a US person without having a US based address and phone number. This started with FACTA, which was suppose to stop money laundering and fraud, but it only seems to impact normal folks as the crooks are still crooking.
Good luck, be well.
FinestTreesInDa7Seas@reddit
I lived in the US for a few years, and the biggest thing that I didn't anticipate was how difficult it would be to have no credit rating.
I didn't need to borrow money, but I wanted a credit card with at least a $20k limit (to pay utilities, property taxes, etc). No banks wanted to give me a limit higher than $2000.
I had to establish a relationship with a bank that could use my assets and finances instead of my credit rating.
Caveat2026@reddit
There was a time when I had to get a new credit card about once every two months because the bank simply could not believe that *anyone* would go to a supermarket and then withdraw money within 30 minutes from each other, on the same day of the week, at the same place, in the same city, over and over again. It took me nearly a year to get it into their system that my credit card was *allowed* to withdraw money and buy milk and potatoes there!