Moving overseas and realizing a lifelong dream is something that so many people can only ever hope to achieve.
Experiencing and living in a new country to launch a business, study, take a gap year, or even retire, are some of the most popular reasons for Americans to leave US soil.
As magical as this experience can be, it comes with its own set of unique challenges for expats to navigate.
Below are eight things most expats wish they knew before moving abroad:
Cultural Differences
Culture shock is a natural reaction that expatriates go through when confronted with a foreign culture that is different from their own.
It is a combination of physical, emotional, psychological, and sometimes even religious responses triggered by an unfamiliar culture. To get used to it and settle in, you must adjust to the new social norms and expected behaviors.
With the right approach, you can gain a deeper understanding of a new culture and grow on a personal level.
Suitable Accommodation
When moving abroad to your dream destination, start your accommodation search a few months before.
There are several house-rental portals online, including short-term options such as Airbnb. That will allow you to find more permanent accommodation without the pressure of a short timeline.
Leverage the internet and the wealth of options available on it.
Banking
Many expats choose to maintain dual bank accounts after leaving: one back home to manage ongoing expenses or transfers, and another in their new country.
Setting up a bank account overseas can take time to set up, and the requirements can be challenging for visitors and expats. Some banks require a local address to open an account and do not accept hotels or post boxes.
Travel Insurance
Prepare for life abroad by researching your destination country on travel websites to find out about possible health risks.
One of the most effective ways to stay protected while abroad is to purchase global travel insurance.
It is essential to find the perfect plan tailored to your specific needs, whether as an individual, a family, or a group. Not all insurance plans are the same, so do your research first or chat to a team of trusted professionals.
Ideally, you should purchase a plan that protects your travel expenses, health, and belongings while abroad.
Taxes
When you move overseas, your tax obligations back home do not cease to exist.
Even when living abroad, a US citizen or permanent resident still needs to file a federal income tax return and must pay tax on global earnings.
That doesn’t just apply to people living abroad for a few years – even if you never set foot on US soil again, you may still have tax obligations.
If you have moved to a country that has a tax treaty with the United States, the Foreign Tax Credit can assist. You can then claim a credit for the amount of foreign tax you have paid, limited to what the US tax would have been on the same income amount.
The purpose of this is to mitigate double taxation.
Cost of Living
Deciding where to live can be a difficult prospect for a soon-to-be expat, especially if you haven’t properly researched your options.
Your decision shouldn’t be based on the cost of living alone, but it is a major factor that requires much consideration. If budget is a problem, make a list of the top ten most affordable countries to live in and narrow down your list of choices based on those.
The cost of living abroad varies significantly from country to country. From accommodation to food, prices for essentials change depending on where you are.
Before you go, be sure that you know exactly what to expect and have a plan in place to afford those costs.
Homesickness
Moving abroad will change your idea of what home was and what it is now.
Living in a new country can be tricky at first, and feeling homesick is to be expected. If you find yourself longing for home, understand that that is often just a knee-jerk reaction to fundamental change.
Give it time and settle in before making any drastic decisions. New things take some getting used to, particularly if you are someone who prefers a comfort zone.
Relationships Will Change
Moving abroad is a major life change, so it is only natural that some relationships will change too.
Old friendships might not be the same, and others will evolve in different ways. Technology has made it much easier to stay in touch, but that might not necessarily change anything.
Some relationships are built to last, and others are meant to fade away.
That being said, you will make more friends, and your true friends back home will make more of an effort to connect over longer distances.
To End
Living abroad offers unique opportunities for personal and professional growth, but in order to thrive, you must be prepared and armed with a thorough understanding of your new country and its people.