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7 Tips for managing expat finances

For expats, those retiring offshore or even those going abroad for over a year, managing expat finances is critical. For most, moving abroad and working overseas can be one of the most exciting things of your life. However, expats will want to plan ahead to preserve and grow expat finances and investments. It is very important for individuals and families to plan ahead and maximize their expat finances. In this article, we will discuss 7 great tips for managing and protecting expat finances and investment while living and working abroad.

1. Know Your Expat Tax Status 

A common misunderstanding about expat tax is when expats move abroad, they are instantly exempt from their hometown tax system. This is usually not the case. For example, a British expat living abroad who is no longer a UK resident (spend fewer than 16 days in the UK), he or she may still be responsible for tax of the profits of a UK business or property situated in the UK, and UK pension income. Other countries such as Argentina, joint filling income tax is not available. For American expats, the complexity of expat tax can be quite daunting. Expat tax issues can be very complicated and it often makes sense to work with a professional firm. It is important to do research and visit your local tax office before moving overseas to make sure that you know the rules. We often recommend that expatriates talk to an expat tax expert such as Trowbridge.

2. The Cost of Living for Expats

Before accepting a job offer overseas, you should definitely do some detailed research on the cost of living in your destination country. This may include any additional costs you may face: school fees, transportation fees (driving a car and parking fees), rent an apartment or buy a house, leisure and entertainment, etc. The cost of living for expatriates can vary significantly from one place to another and will often be more expensive than what the locals pay. For example, according to Numbeo, in Mexico, rent a 3 bedroom apartment in city centre costs over $500 USD; Whereas in Singapore, a 3 bedroom apartment rent per month could almost $4,000 USD. Knowing the cost of living in your destination country will give you peace of mind and let you plan ahead.

3. Currency Management is Critical for Expats

It is common for expats to exchange currencies from their hometown bank accounts into destination country’s currency. However, banks may charge high flat rates and currency exchange rates which expats will want to avoid. This is especially important for expat families with international payments across countries. Some international banks offer fixed exchange rate for a period of time. Expats should definitely explore different methods of managing currencies as this can save quite a bit of money and time. You can obtain more information on currencies and currency issues on our Foreign Exchange page and you should talk to an exchange expert.

4. Organize your Expat Investment Portfolio

You should organize and take stock of all your current investments before your become an expatriate. You should try to make sure you will be able to manage your various stock, bank and investment properties from abroad or if you will have to sell some of those investments before you go offshore, especially for tax reasons. Many expatriates often sell their homes before living abroad, but when they return they find that they should have retained and rented the home as house values have increased dramatically – this is especially trued for many Canadian and Australian expatriates.

Your risk profile may change because you will be living abroad. Will you have the time and ability to manage your investment portfolio and will your new expat location impact your investment decisions. If you have a private or company pension plan, you should examine how living abroad will impact your retirement savings and taxes. It makes sense to talk to an investment expert before you live abroad.

5. Have You Cancelled Payments in your Hometown?

This is obvious. However, many expats may forget to cancel their orders in hometown and receive penalty charges. Remember to cancel any subscriptions such as phone, internet, magazines, etc before you move abroad.

6. Do you have Adequate Life & Disability Insurance? 

One of the most overlooked parts of protecting you and your family’s financial future is making sure that you have adequate life and disability coverage. While your employer may provide some coverage, more often than not it will be inadequate to fully protect you and your family members from the financial hardships associated with a death or disability. Many expats employers only provide medical coverage and expats are expected to obtain their own life insurance or disability income cover. However, when you are living abroad you may not qualify for local coverage and such life cover may not be desirable or even available in your new home country. Also, expats needs something both global and portable. Note that most expat life and disability plans are not portable back to your country of citizenship and if you have existing coverage, its probably a great idea to see if you can retain the policies as expat plans are usually more expensive.

To learn more about your expat life and disability requirements & the policies available, contact our firm for more information.

6. The Importance of Obtaining International Health Insurance

To many expats living and working abroad, the local healthcare system is usually not the best choice. The cost of using private medical care is usually very high in many parts of the world or you may be living in a country where medical care is inadequate and you may need to see medical care regionally or globally – sometime you may have to be evacuated. Either way, a large medical bill can wipe out your investments and put your financial future in peril.

With an appropriate international medical plan in place, many individual expats and their families are covered worldwide (except in the USA unless you add it as optional benefit). International health insurance plan provides day-patient care and full hospital coverage, extensive cancer coverage, maternity and baby care (conditions may apply), dental & vision care and international medical evacuation and repatriation. This is especially important for expats going to visit rural area in some less developed countries.

Expat Financial offers independent advice, solutions and ongoing service and support to clients around much of the world and we have extensive experience in sourcing medical cover for individual expats and expat employers worldwide. We can source plans from large and secure global insurance companies with excellent global service and support. 

If you have questions about international medical insurance plans we offer to individual expats or your company requires a global expatriate group insurance plan, please contact us or complete the quote form. We look forward to hearing from you soon. 

2017 Travel Destinations: Best of China for Expats & Visitors

Why international health insurance is critical in Beijing for expats

Beijing is the capital of China and is located in the northern China. It is a city that is well known for its cultural heritage sites such as the Forbidden City, Temple of Heaven, Summer Palace, Ming Tombs and of course the Great Wall. Besides being the economic center in China, this fascinating city is home to many multinationals from abroad and local Chinese companies headquarters. Many firms are willing to bring in new expats from abroad with western education and experience. In this article, we will discuss healthcare in Beijing, why international health insurance is critical for expats and expatriate group insurance plans for international employers if wishing to open a market in Beijing.

Healthcare in Beijing

Generally speaking, the standard of healthcare system in Beijing is higher than in most cities within China. Since Beijing is the capital city of China with a large population, many well-known doctors and medical experts reside there. Many patients travel to Beijing just to see a well-known doctor in one of the many hospitals that are located there. Public hospitals in Beijing are not only serving local residents, but also patients come from all over the places in China. As a result, most public hospitals in Beijing are often overcrowded, with long waiting period and long line-ups. One should also note that the air pollution is a significant concern for both locals and expatriates in China. The health impacts of that pollution will impact the health of expatriates in Beijing and having medical coverage and preventative healthcare is critical.

Private hospitals and clinics are also available in Beijing. These private medical facilities usually have English speaking doctors and medical staff. Some of them are even expatriates from western countries. High end private international clinics such as Beijing United Family Hospital are one of the options for many foreigners. Such private medical firms are able to provide faster medical appointments and urgent medical treatment. Many private international clinics offer direct billing with global insurance companies, which is very convenient for expatriates living and working in Beijing. Therefore, most expats in Beijing would want to choose the city’s private medical centers.

The High Cost of Medical Care in Beijing & the Rest of China

Like most of China, private health treatment has become extremely expensive in Beijing, even rivaling the United States. Even at public hospitals with special foreign or VIP departments, medical costs are rising, according to recent reports. For example, an uncomplicated birthing procedure at private international clinics Beijing United Family Hospital costs between over $13,000 USD. The cost of one standard private hospital room can be thousands US dollar per night. In case of medical emergency, the costs are estimated to double or triple. Without an appropriate medical coverage plan, expatriates could end up with paying tens of thousands of US dollars or even more.

expat healthcare if critical

Why International Health Insurance Is Critical For Expats In Beijing? 

Many expats working in Beijing may qualify for the local public health insurance system. However, the public health insurance plans does not meet most expat needs, especially if you want to get treated at a private facility or outside of China. As noted above, medical treatment fees in Beijing are relatively high and expats may find that they still need to pay a certain amount of co-payment when go to public hospitals.

For expats who prefer private hospitals and clinics, it is critical to obtain an international health insurance plan. A typical international health insurance plan will provide coverage options such as hospital coverageoutpatient treatment, medical emergency evacuation, routine health check-ups, dental & vision care and US coverage options. It will help you maintain your health and avoid financial risks while working and living in Beijing. It is also very important to have an international health insurance plan that provides international emergency evacuation and repatriation coverage. 

International Group Insurance Plans For Expatriate Employees in Beijing

While we can source individual medical plans for expats in Beijing and the rest of China, Expatriate group insurance plans are critical for international employers who wish to open an office in Beijing or already have expat employees there. An international group insurance plan for expats in Asia will usually include life insurance, health insurance, dental, evacuation and disability insurance to expatriate employees and even some key local nationals. It will not only protect expatriate employees in Beijing, but also will protect employer’s business as providing medical coverage is a key fiduciary responsibility. The international expat group insurance plans can be tailored to meet the needs of your employees working in Beijing so that your business objectives can be achieved. It is critical that that a global benefit plan cover pre-existing medical conditions and provide easy access and direct payment to the hospitals in the city and the rest of China. 

Get Insurance From Expat Financial for Beijing Expats

Expat Financial offers independent advice, solutions and ongoing service and support to clients around much of the world and we have extensive experience in sourcing medical cover for individual expats and expat employers in Beijing and the rest of China. We can source plans from large and secure global insurance companies with excellent global service and support. Our firm can offer a wide array of individual expat health insurance plans for expats China and even Chinese expatriates living overseas. If you have questions about our international medical insurance plans and expatriates group insurance plans or you want to discuss your needs and produce a customized quote, please contact us or complete the quote form. We look forward to hearing from you soon.