Council Post: Six Financial Planning Considerations For Americans Moving Abroad (2024)

FAQs

What happens to my US investments if I move abroad? ›

Even after living abroad, foreigners are typically still allowed to own and manage their US financial accounts and assets. However, US citizens and holders of green cards who reside overseas can be subject to more tax and reporting obligations.

Many expatriates maintain dual bank accounts: one in their home country to handle ongoing payments or transfers and another in their destination country. Overseas accounts can take time to set up, sometimes requiring a local address that's not a hotel or P.O. box.

The reason why U.S. financial firms (sometimes banks, too) may not retain non-U.S. resident clients is that U.S. anti-money laundering and anti-tax evasion legislation imposes a responsibility on financial firms to ensure that they are able to verify the source of their client's incomes, which may not be possible if ...

Yes, but the bank may require that you maintain a valid U.S. mailing address and phone number while living overseas.

Your money should be easy to access and transfer between countries. Financial security is also important, so choose a reputable bank that complies with international regulations and has a solid capital base. Most expats have a bank account in their home country and a local account in their host country.

When you budget for a move abroad, you anticipate and save up toward those costs. The travel community online often suggests from $5000 to $8000 USD per person as a starting budget to move overseas. To calculate the budget that's right for you, review these five areas of finance and lifestyle.

So, how to go about keeping a mailbox in the US while living abroad? For some, maintaining a US mailing address simply involves updating their primary address to that of a parent, another family member, or a trusted friend. Others might opt for a US virtual mailbox or retain their US property to preserve their address.

Yes! It's hugely important for customers to inform their bank of their travel plans in advance. This helps to protect against fraudulent activity and ensures that you have access to your funds while you are away. Be aware of any limits on the amount of money that can be withdrawn or spent while you are abroad.

Should I close my bank account if I move to another country? ›

For the following reasons, we generally recommend to keep most of your free accounts open (if possible): If you ever return to the US for work, you can save a lot of administrative hassle by already having an active account. You can receive payments of friends/family or reimbursem*nts (taxes, travel etc.)

You should definitely consider filing a travel notice for every trip outside your country. If you don't file a travel alert with your card issuer, your credit card may get declined and you might need to contact your credit card company to approve your transactions.

U.S. expat brokerage account restrictions vary between brokerage firms. Some firms let clients keep their existing brokerage account once they have moved overseas but will not permit clients to open a new brokerage account due to residency in a foreign country.

ETFs can be a great option for expat investors as they don't face the same compliance restrictions as mutual funds.

International investing may help U.S. investors to spread their investment risk among foreign companies and markets in addition to U.S. companies and markets. Growth. International investing takes advantage of the potential for growth in some foreign economies, particularly in emerging markets.

If your destination country does not allow foreign ownership of certain stocks, you may need to sell them before your move. This will ensure compliance with the local regulations and prevent any potential legal issues.

All capital gains made by a US citizen are taxable. If you sell a property, you have to report the sale on your US tax return. This is true regardless of where the property is located.

Not all U.S. brokerages accept nonresident clients. However, many major brokerage firms and online platforms cater to international investors. International brokers often offer multilingual support and are experienced in handling foreign investors' requirements.

When moving abroad permanently, it is generally true that 401(k) and IRA accounts can be maintained and managed from anywhere in the world. However, there may be limitations and restrictions based on the type of account, the destination country, and local retirement account regulations.