Is there a tax advantage to moving overseas? And, are the other aspects of moving overseas worth the trouble and expense of moving overseas and finding work? If a person is moving to a country they have always wanted to experience with a job already lined up, this may be a good experience. What about families moving abroad? Will there be a safe environment for the spouse and children? Are there schools for those who speak English or will the children be thrown into classes where they must learn and speak another language? Will it be necessary to purchase a family car and, when it is time to return to America, can a car such as a Bently be sold?
Can Foreign Income Be Tax-free?
One important question to consider when moving overseas temporarily for a job is a tax liability. People who are still U.S. citizens while working overseas will owe income taxes on all money earned within the United States, but the job income from foreign earnings might be exempt. Before moving overseas for a job, consider all the advantages and the liabilities concerning the U.S. Internal Revenue Service. It will be an advantage to meet with a tax lawyer or IRS representative before beginning the adventure.
Working overseas for at least part of the year will complicate taxes and may present a tax liability in both countries. The IRS claims that all U.S. citizens or resident aliens of the U.S. who are living abroad will be taxed on all income. But, they can qualify to exclude certain housing costs and foreign earnings. The foreign country might charge taxes based on different standards than the IRS. There is a chance of finding oneself with double taxes. The rules are not straightforward for avoiding double taxation.
Is moving Overseas a Good Idea All Around?
People with high-paying jobs overseas who enjoy lower housing and other living costs might have a financial advantage. But, this advantage will depend on a lot of factors. Moving the family to a country with a language and customs they are not familiar with or don’t want to conform to might be a mistake. Taking young children away from friends, schools, and other aspects of their familiar lives can be traumatic.
On the other hand, if the family plans the adventure together, the time spent overseas might be a fun adventure and learning experience. All family members should learn at least the basics of the new language and customs. A few favorite possessions should be taken to the new country with the children. Large items, such as cars, might need to be put in storage or sold before moving. A new vehicle then needs to be purchased in the new country and then sold when it is time to move back stateside.
Selling a foreign car might present problems, especially if time is limited. Perhaps it would be advantageous to go check out webuyexotics.com. Buying or selling a car in an unfamiliar country can be inconvenient and even risky. This online car selling and buying site cuts out the middle man and the risk. They make the owner an offer on each car determined by the Blue Book price and other factors. The car is paid for in cash, and the owner can go on to other moving tasks.
The Issues of Housing, Transportation, and More
Moving overseas to work involves more than tax advantages and transportation.
- The lifestyle changes must be acceptable for all members of the family. Changing languages, cultures, work ethic, climate, and quality of life can be a huge adjustment. The whole family should do some homework before the move is finalized. Visit the country before deciding to move there even temporarily.
- A whole new social network will need to be established. This is not easy for some people. Are there friends already in the new area or will the family need to find all new friends and support systems? Will the children integrate successfully? Are there international schools to use?
- What about the Visas? Many countries require the wage earner to have a work permit or a visa to live and work there. It is essential to check with the relevant foreign embassies for more information. In some countries, the visa must be valid for a specific period of time. Other countries require applicants that have a higher degree of skill and specialized knowledge. Countries such as Canada and Australia have a points-based visa system for people wanting to settle in the country permanently.
- Consider the area finance and cost of living. Be sure about job security, wages, and benefits before committing to a move. Ask how hard will it be to set up a local bank account and how to get by until it is set up and operating. Research the prospective employer to make sure they are stable and trustworthy. Will the pay be adequate and will there be an opportunity for advancement? What are the work ethic and conditions? It is also important to research the travel costs of visits to the home country to see family or in an emergency.
- Relocation and setting up housing expenses matter. Does the new employer cover any relocation costs? Make a list of costs and set a budget to cover them. These costs include shipping furniture and belongings both there and back home again, travel costs both ways, temporary accommodations while permanent housing is found, housing costs, vehicle costs, and food availability and costs. It may make more sense to sell furniture and other belongings before moving, purchase new furniture and other goods at the new location, and sell those items before moving back to the U.S. Shipping costs can be prohibitive.
- Consider the possibility of renting versus purchasing expensive items such as housing, furniture, and vehicles. If the stay is temporary, renting might be the way to go for housing and car. But, if the stay is a permanent or lengthy one, purchasing might be better. It all depends on the local conditions and ownership rules. It is important to work with reliable rental or purchase agencies who are familiar with the rules.
Deciding to move the family to a new country for work and living can be a great idea, or it can be unfortunate. Success depends on the research done beforehand and the preparations made.