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.
Hong Kong is celebrating 20th return anniversary
/in Current Events, Expat Lifestyle /by David TompkinsJuly 1, 2017 is the 20th anniversary of Hong Kong‘s return to China after many years under UK rule. President Xi Jinping is visiting the Hong Kong for the 20th return anniversary. After around 100 years as a British colony region, Hong Kong was handed over to China in 1997 under the “One Country, Two Systems” agreement. Hong Kong is known for its advanced healthcare system, excellent transit system and an active nightlife. It is a popular expat destination around the world and many expats coming from western countries find it relatively easy to adapt.
Cantonese and Mandarin are the dominant languages in Hong Kong, but English is also widely spoken so it can be an easy place to adjust for expatriates living there. As a global city, English is taught at schools. In fact, there is a constant need for expat native English speakers at both international schools and adult English learning institutions. Hong Kong is also recognised as a prosperous global business district in Asia. If you’re used to a fast-paced lifestyle, then Hong Kong is the place for you. It also has an excellent health care system for expats and locals alike.
Communities and organisations across China mainland will be celebrating the 20th return anniversary, from gala shows and culture festivals, to fireworks, sporting events, exhibitions, etc. Expats living and working in Hong Kong are encouraged to explore the various events and celebrations. All travellers are welcomed to discover Hong Kong by participating in major events and activities taking place in the region.
For more information on celebration events and publicity materials, please visit the official site of Hong Kong’s 20th return anniversary or click here for events brochure:
Digital nomad career options while living abroad as an expat
/in Expat Lifestyle /by David TompkinsDigital nomads are often referred to as people who earn income remotely and mostly online, rather than from a physical permanent office. Today, digital nomads can be found in many industries such as writing, IT, media, tutoring, medical service, blog writer, consulting and more. For expatriates living and traveling abroad, the flexibility and freedom of a digital nomad is the ultimate global lifestyle. In this article, we will discuss why expats are becoming digital nomads along with the careers that are ideal for this exciting lifestyle.
Why So Many People Are Eager to Become Digital Nomads – A Freelance Career in a Globalized Economy
One of the most advantages of the digital nomad life is the freedom to travel and live in new places without restrictions. This is especially attractive to expatriates who are already living overseas. Expatriates working as digital nomad can earn money as they travel and may be open to more career opportunities. For expat spouses living abroad with their employed expat partners, a digital nomad career is often a perfect solution for not having permission to work in the new destination country.
Another reason why people become digital nomads would be differences in currency values and cost of living. For example, if you are earning US dollar but living in Thailand, you will benefit from the currency conversion as $1 USD equals to $34 Thai Baht. Therefore, your income could lead you to a better quality of life and let you have more time for leisure. As would be expected, the cost of living in many developed and third world countries can be a fraction of the costs in North America or Europe.
Digital Nomad Career Options for Expats
We have compiled a list of you will need to acquire the right skills & contacts. Please check the list of skills & careers that are ideally suited for expatriates living abroad:
Don’t forget International Health Insurance if you are a digital nomad
For digital nomads living abroad, it is important to note that you will be responsible for obtaining your own international health insurance plans as you won’t be supported by an employer and the country you live in may have little or no medical coverage or even adequate healthcare facilities. Domestic plans may not even cover you or will only cover you in that one country, which is not ideal if you wish to travel or obtain health coverage abroad. You will probably lose your current health plan coverage if you live abroad or it may not cover overseas travel. If you have questions about our international medical insurance plans or you want to discuss your needs and produce a customized quote, please contact us or complete the quote form. Also don’t forget to obtain individual life and disability coverage as well if you are a digital nomad.
5 Things you should know about being an American expatriate
/in Expat Tips /by David TompkinsWhen making the decision to move abroad and become an expatriate, about 83% of the US Americans are generally satisfied with life abroad, according to a recent survey by InterNations. Among the US expat respondents, over two-fifths want to stay in their destination country forever. As more and more Americans tend to live around the world, we are going to discuss some tips and facts to help future and current long-staying US expatriates to better prepare for the steps into the unknown.
One of the most important things that US expatriates should know about is US Expat Taxes. The US is few of the countries which requires tax filing to its residents after they have moved abroad, even if you are paying tax in your destination country. In order to prevent penalties and earn tax credit, US American expatriates must file US tax obligation on time. Special regulations may apply when using foreign taxes paid as a credit against US tax obligations. It is important for future and current US expats to understand US tax programs and talk to a expat tax professional.
According to US International Social Security Agreements, The US has established many bilateral social security agreements that allow American expats to only pay social security taxes to one of the two governments. Some of the eligible countries are: Italy, Germany, Canada, United Kingdom, Spain, France, Chile, Japan, etc. This regulation can help eliminate dual social security taxation. When working expatriates retire, the contribution to the social security system of other country may count as well.
However, the exact regulations may have certain exclusions and rules such as self-employment rules, territoriality rules, etc. US American expatriates should examine your destination country’s agreement descriptions to make sure that you are covered while you live abroad. Again, talk to your tax and legal adviser.
If you are thinking about driving in your destination country, please be aware that road conditions and driving regulations can be different from those in the United States. Insurance and a valid driver’s license are required in most countries. Many countries may not accept a US driver’s license, so you may want to apply for an International Driving Permit (IDP) or local driver’s license.
One of the most important considerations for American expats is obtaining global medical coverage, especially where local plans may be non-existent or adequate medical care may not be available. Your domestic health plan in the USA probably won’t cover you abroad so you need to search out an international plan assuming you will become a non-US resident. Therefore, it is critical for US expatriates to purchase an international health insurance plan. A good plan should provide a large direct pay medical network so you and your family wont have to pay out of pocket fee in multiple currencies. In addition, many international health insurance plan providers offer international medical networks with English speaking doctors and medical staff for those who don’t speak the local language.
If you are an US expatriate who is living abroad and travel often back to the United States, it is also important to get the USA coverage option in your international health insurance plan. Most American expats residing abroad will seek out a global medical plan that includes the USA because if they suffer a serious medical illness or injury, the expat will most likely want to seek medical treatment back home in the USA. It is important to contact your international health insurance needs with an expat insurance expert such as Expat Financial and weigh the costs and benefits of having an international health insurance plan that provides full coverage in the United States of America.
Foreign Bank Account Report (FBAR) is a report of foreign bank accounts that based solely on your overseas account balances. This may be the case if you have a balance that exceeded $10,000 or more in your foreign bank accounts at any point during the year.
Expat Financial offers independent advice, solutions and excellent service and support to clients around the world and we have extensive experience in sourcing medical cover for individual American expats and expat employers worldwide. We offer a variety of excellent global medical plans that can meet almost any need and budget. For more information and to review the plans that we offer, contact our office or visit our international health insurance page. If your organization has a group of two or more expatriate employees, our firm can source international group insurance plans.
Is your company meeting it’s “Duty of Care” obligations to it’s expat employees?
/in Group Plans /by David TompkinsAn Expat Employer’s Fiduciary Duty of Care for Expats
Sending employees abroad is a big financial, moral and legal responsibility for expatriate employers. Many professionals are constantly talking about the importance of providing a “duty of care” for expat employees sent to work abroad and even when sending employees for long or short term assignments and meetings. What does this mean? In my view, it basically means that the global employer needs to take all steps required to safeguard and prepare for the safety, well being and health of their employees. It is the fiduciary responsibility that experienced global mobility managers realize is so important regardless of the legal implications – its a moral responsibility. This is especially true today in a world where conflict and terrorism can strike almost anywhere. It makes sense to plan for what your employees may face abroad.
Employers Should Examine Their Obligations
It is critical that expat employers meet the overseas obligations of their employees, whom can find themselves in new and sometimes hazardous regions and countries that they may not be adequately prepared for. It is vital that HR managers carefully read over the employment contracts to make sure that the company is fulfilling its obligations to their employees. This means that employers should examine their employees’ needs and country location to prepare for contingencies. Our firm has access to very detailed country information that can provide global mobility managers with key insights for each destination, including security reports.
Expat Employers Should Identify Risks
When your HR department is sending employees overseas, it often make sense to ID risk and adopt prevention measures and train employees. You can’t hope that nothing terrible will happen. You can’t account for all the risks that your employees and their dependents may face working or traveling abroad, but you can take steps now to plan and mitigate those situations. We recently had an employer who finally agreed to implement a comprehensive kidnap and ransom program with security evacuation and in the first year of the policy it was used after a group of employers were kidnapped by bandits. Luckily with the assistance of on-sight negotiators paid by the insurer and a ransom being negotiated, the hostages were released unharmed.
heart rate monitor and doctors in an emergency room
Inadequate Insurance Coverage for Expats
A recent report from Cigna mentioned that 50% of expatriate employees feel that their expat employers are not meeting their duty of care requirements for the global assignments that they are on. Furthermore, three quarters felt that they did not have sufficient funds to support their healthcare expenses. We often run into situations where new and even existing expat employers will send employees and their dependents (spouse & children) on overseas assignments with inadequate planning and especially insurance coverage. With more an more companies and non-profit organizations sending employees for short or long term assignments to high risk countries such as Iraq & Afghanistan, the requirement to provide a secure and safe work location is vital. Our firm has extensive experience in working with employers operating in such areas where civil strife and conflict are commonplace.
Common Expat Insurance Deficiencies We Have Observed
Here are a list of deficiencies that we often encounter:
What Expat Insurance Coverage Can Help Your Company Meet It’s Duty of Care?
A group expat plan that is properly designed and sourced can provide a high level of global insurance coverage that will fully meet the duty of care for your expatriate workforce stationed around the world. We are able to source the following coverage for our group expatriate clients:
It is critical that your global mobility department fully commit to the duty of care philosophy and provide global coverage for your employees that exceeds what is required no matter where they are posted. Our firm can source plans for individuals and groups. For more information on the global benefit plans that we can offer your international workers, please contact us today.
When should you apply for international health insurance?
/in international health insurance /by David TompkinsMoving abroad is one of the most important and exciting decisions you will ever make. Living abroad, either permanently or temporarily, can be a challenging and rewarding experience. To stay healthy and fit while living and working abroad, there are many health risks that you want to avoid. In fact, to better plan and prepare a safe journey before departure, one of the most important considerations would be an appropriate international health insurance plan. In this article, we will discuss steps that should be taken to apply for international health insurance before or after you have moved abroad.
Start Looking Early
Generally speaking, most insurance companies require health insurance application at least 30 to 45 days prior to departure. You should allow for a week or two for the health insurance underwriters to process your application, but also they need to check whether there is geographical exclusions that may apply depending on level of cover or due to a pre-existing medical condition. It is suggested future expatriates to start research your destination’s health care situation, and contact your employer and find out whether you are covered under employee benefit package.
Yes You Can Apply After You Move Abroad
Note that you can apply if you have already moved abroad – some people will purchase emergency travel medical insurance and then transition to a global health plan. Sometime you may simply want to move to another insurance company. Or you may be striking out on your own and have to leave your employer’s group expat benefit plan.
What to Look For in Global Medical Coverage?
International health insurance provides essential cover for inpatient, day patient care, accommodation costs, cancer care, mental health care, etc. The Cigna Gold and Platinum plans can also provide inpatient maternity care after a waiting period. The earlier you apply, the earlier that waiting period will be removed – which is key if you plan to have children when living abroad Some employee health insurance plans are focused on basic local coverage, and this is not applicable to expats who are internationally mobile. It is important for expatriates to obtain an appropriate international health insurance plan with flexible and comprehensive cover.
Doctor posing with a world globe.
What if You Have a Pre-existing Medical Condition?
There are many chronic medical conditions or pre-existing conditions that expats and their families may suffer from. The top 5 well-known chronic conditions are heart disease, arthritis, HIV, diabetes or depression. If expats with pre-existing medical conditions are travelling in a location where the healthcare facilities are substandard, it is all the more important to have full coverage. An untreated medical problem can quickly become serious. If you have a pre-existing medical condition, it is even more important that you apply as soon as possible. It will often take time to gather previous medical history and tests and the underwriters may have to write to your doctor to obtain additional information. This can all take a lot of time and you may not get a decision from the underwriter before you leave.
In many cases, pre-existing medical conditions should being placed on the group benefit plan prior to the effective date. Individual expatriate health insurance plans will either exclude previous medical condition, decline the application or raise the premium. However, we work global medical insurance companies who can provide full coverage for pre-existing medical conditions on the medical coverage for both the employees and dependents if the employer has more than 25 or 30 global employees – including both expats and local nationals. To learn more, please read our blog article “Expat Benefit Plans – Make sure pre-existing conditions are covered!
Talk to Expat Financial to Discuss Your Global Medical Insurance Needs
It makes sense to obtain a quote and apply as early as possible. It also is critical that you talk to an expatriate insurance expert that can discuss your requirements and provide quotes from a variety of global medical insurance providers based on your unique needs. We offer a variety of excellent global medical plans that can meet almost any need and budget. For more information and to review the plans that we offer, contact our office or visit our international health insurance page. If your organization has a group of two or more expatriate employees, our firm can source international group insurance plans.
5 Tips for expats to stay healthy and fit while working and living abroad
/in Expat Lifestyle, Expat Tips /by David TompkinsFor many expatriates, working and living abroad opens the doors to new adventures and challenges. However, it is very important to stay healthy and fit while experiencing your new expat assignment. There are many potential health risks that you will definitely want to avoid, especially in some third world countries. In this article, we will discuss five tips on how to stay healthy while living in a new country.
1. Eat Healthy and Drink Clean Water
Clean water is critical for staying healthy, whether it is used for food production, drinking or domestic purposes. According to a recent report retrieved from World Health Organization (WHO), contaminated drinking-water is estimated to cause hundreds of thousands of deaths each year. Expatriates living and working abroad should be aware of the potential health risks of contaminated water and should take steps to secure clean water at work and at home. This is especially the case in water-stressed areas where drinking-water without improved sanitation. Contaminated water is a major transmission source of many diseases such as diarrhea, typhoid, dysentery, cholera, etc. It is strongly recommended expatriates to boil water before drinking if you are not 100% sure that the water is safe. In the end, maintaining hydration is critical both home and abroad, especially in hot climates.
According to World Health Organization (WHO), developing a healthy diet helps protect against leading noncommunicable diseases such as diabetes, obesity, heart disease and cancer. Expatriates living and working abroad should avoid fast food or street food stands. Always go to local grocery stores or markets to find some fresh fruits and vegetables – but you should be careful eating raw vegetables in some developed countries. It is suggested to avoid unhealthy weight gain through consuming excess calories, sugar and salt.
2. Build an Exercise Routine
Physical activity has significant benefits for your health while living abroad as an expatriate. It has been reported by the WHO that physical inactivity has been identified as the fourth leading risk factor for mortality causing 3.2 million deaths globally. Expatriates should exercise regularly through cycling, walking or sports while living and working abroad. Some expatriates may find it hard to rebuild an exercising routine in their destination country due to security risks or extreme climates. One suggestion is to purchase an exercise machine at home or join a gym. A healthy exercise routine will help expatriates to stay active and energetic.
3. Obtain International Health Insurance
In many countries where local public healthcare facilities may not up to western standards, expatriates will want to use private medical care. However, these private facilities are usually very expensive, especially in emergency situations. Without appropriate international health insurance plan, expatriates could end up with receiving large medical bills and putting your financial status at risk. A global medical plan can not only cover large medical expenses, but it can also cover you for preventative health and medical tests that can help you maintain you and your family’s health. This can even include vaccinations and health monitoring.
An international health insurance plan will provide expatriates and their families worldwide coverage (except in the USA unless you add it as optional benefit). It allows you to seek medical care internationally and is critical for expatriates residing in less developed countries where medical care facilities are below standard. Expatriates living and working abroad will benefit from an international insurance plan with day-patient care and full hospital coverage, extensive cancer coverage, dental and vision care, international medical evacuation and repatriation.
4. Be Aware of the Potential Health Risks
Expatriates living and working abroad may travel frequently. There are many potential health risks such as tropical diseases, respiratory illness, open wounds, etc. These diseases may not make people feel too bad at first, however, they can get deteriorate very fast and become life threatening. If you feel sick in your destination country, seek medical help as soon as possible. Don’t postpone treatment. To stay healthy, it is often important to update routine vaccinations and avoid any potential health risks. Expatriates should always consult a medical professional about vaccination requirements before traveling.
5. Stay Socially Active and Maintain your Mental Health
Expatriates may find not as easy to socialize as they did back in their home country. However, researches have shown that staying socially active can help people maintain good emotional and physical health – especially when you are living abroad and living in a new country and experiencing culture shock. It is important for expatriates to join a group of trusted friends they can socialize with and plan some activities together in their destination country – most cities have active expat social scenes and clubs. These kinds of social interaction offer many benefits to expatriates. For example, global relocation and stresses may have negative impact and cause mental health challenges such as depression. Being socially active will minimize the stress level, monitor signs of depression and prevent other mental health issues.
Also, don’t forget to help your expat spouse and children as their new life abroad can be exciting, but also stressful and isolating. If your spouse is unable to obtain a work permit, maybe he or she can work remotely or volunteer. For expat kids who are experiencing difficulties living abroad, making friends and getting used to the new school – maybe consult a psychologist if required. Many expat health plans will cover mental health and counselling.
Expat Financial offers independent advice, solutions and excellent service and support to clients around the world and we have extensive experience in sourcing medical cover for individual expats and expat employers worldwide. For expats who may have questions about international medical insurance plans we offer to individual expats or expatriate group insurance plans, please contact us. We look forward to hearing from you soon.
6 Tips on How to Become an Expat
/in Expat Tips /by David TompkinsAn expatriate, or expat, is a person who lives outside of their native country, according to the definition of Oxford dictionary. Today, more and more people are willing to leave their home country and experience a brand new job or lifestyle abroad. To better prepare you for life overseas, we will discuss six simple tips on how to become an expatriate.
If you are interested in living abroad, the first step you would want to take is to find a job in your desired destination country. According to research, one of the reasons why people want to become expat is that expatriate employers often offer relatively higher salaries. Therefore, expat employees are more likely to experience a higher standard of living while working abroad.
In order to succeed in an international job, Expat resource centre offer excellent information on job hunting. Practical suggestions such as prepare CV and research the job market before you move, ensure that you have work permits or visa at hand, etc. to help future expats realize their dreams. To learn more, please view Expat employment – Job hunting tips.
Another option to become an expat is through studying abroad. And it is very popular among teens. According to NAFSA study, the number of American students studying abroad during 2015 grew from 304,467 to 313,415. Studying overseas can be a great way to get a global perspective and the chance to learn a new language. The cost of studying abroad can be expensive, but in some less developed countries the tuition costs can sometimes be lower. However, more and more universities and colleges offer scholarships and bursaries. It is worth the time to research online for tuition funds to support foreign students.
When moving overseas, one of the most unexpected events would be culture shock. And sometimes it can be quite frustrating depending on where you are moving to. For example, tipping in restaurants is common and considered normal in the U.S. and Canada. You are expected to add a 15% – 20% mark up to the bill in any restaurant; while in China or Japan, tipping in local restaurants is not required and can be considered insulting. There might be exceptions for some high-end western style cafes. However, even in these cafes, tipping is already included in the bill. It is suggested that future expats should do some research about your destination’s culture to avoid any embarrassment. The more research you can do on the customs and practices in your destination country the more successful your expat experience will become.
It is always suggested if you travel to your destination country before relocating for a short trip. Through traveling, you will get to know its culture, food, people, etc. You will have a general idea whether the country that you are moving to will be suitable or not.
If you are traveling abroad for a short term trip up to one year, it is critical to obtain medical coverage for your entire trip that will cover emergency illnesses or injuries abroad. Our firm offers several travel medical plans from various insurers and providers. With IMG Patriot travel insurance coverage, you are covered with trip cancellation, lost baggage, emergency evacuation & repatriation, covering from as short as 15 days to 24 months. To learn more, please view the brochure below.
Retiring overseas is becoming more and more popular for citizens around the world and is a great way to become an expat. Generally speaking, South America, Asia and Europe are among the most popular expat retirement destinations. This is not only because of its favourable weather and beaches, but also its relatively low cost of living. For example, if retiring in Thailand, the cost of living is much lower than in the western countries. It’s possible to buy a one-bedroom home in Chiang Mai for around $50,000, according to several sources. Expats can pay around $500 per month to rent a home in Chiang Mai. According to International Living Magazine, Thailand is a very inexpensive country for expatriates. You will want to obtain tax and legal advice before retiring abroad as this can greatly impact your finances.
If you want to become an expatriate, it is critical for you to obtain an international health insurance plan that will not only cover medical treatment in your destination country, but also globally. Medical expenses while living abroad can be extremely expensive and local medical care in your new country may not be up to Western standards, especially if you are moving to a developing country. In some Asian countries such as China and Singapore, the cost of medical assistance can be surprisingly expensive for expats living there.
If you are an American citizen, you will want to include cover for the United States as most Americans will want to obtain treatment back home. Expats should make sure that their plan includes medical evacuation and repatriation coverage. Please contact us today for a quote and to discuss your expatriate insurance requirements. We would be delighted to be of assistance as we are expat insurance specialists.
The impact of noncommunicable chronic diseases for expats
/in Expat Lifestyle, Expat Tips /by Crystal GuoHow the Global Impact of Chronic Conditions is Impacting Expatriates
Recently, Cigna has released a study on the global epidemic of noncommunicable chronic diseases and held a seminar for their brokers and clients. The study examined the situation of noncommunicable chronic diseases around the world and provided excellent suggestions for prevention. According to World Health Organization (WHO), a noncommunicable chronic disease is characterized by long duration and generally slow progression – these conditions are becoming more commonplace for local nationals and even expats. The wide spread of chronic diseases are putting expatriates’ health at risk. In this article, we will discuss the main types of chronic diseases based on Cigna’s research and advice for expatriate communities from expatriate health insurance professional perspective.
The Global Epidemic of Chronic Disease is Increasing
As stated by Cigna’s study, noncommunicable diseases account for six in ten deaths worldwide. Major noncommunicable chronic diseases usually refer to diabetes, cardiovascular diseases and cancer. According to Cigna’s report, approximately 19% of the American have diabetes, the figure rises up to 30% in Middle East; Just over 30% of Chinese have some form of diabetes. This is the leading cause of kidney failure, blindness, heart diseases, stroke and death.
The rates of obesity in adults and children are increasing globally. And in some parts of the world, the situation is getting worse. Obesity is another cause of cardiovascular diseases due to the force of the heart to push around a greater volume of blood, which easily causes high blood pressure. Scientists predict by 2025, one in five of the population will suffer from obesity; 36.5% of adults are considered obese, according to Cigna’s report.
How to Prevent from Noncommunicable Chronic Diseases as an Expat?
According to the World Health Organization (WHO), most chronic diseases are caused by three major risk factors: an unhealthy diet, lack of exercise and tobacco. Many expats working abroad often do not have the time to eat healthy foods or exercise and may be surrounded by fast food restaurants, vending machines and food trucks. However, building a healthy diet is crucial for your health when living and working abroad. When shopping at grocery stores, make sure to cut the high-sugar and high-carbohydrate food from your shopping list. Replace them with vegetables, fruits, fish, eggs and other healthy choices based on your eating schedule.
Regular exercise is good for your body, both physically and mentally. However, expats may find hard to rebuild an exercise routing when working and living abroad. Many expat may live in cities with few exercise options or in very extreme climates or in areas with bad security. Often the easiest way to start exercising is practicing yoga at home or purchase an exercise machine. Expats should develop a personal exercise routine and live an active lifestyle.
International Health Insurance is Critical for Expats Worldwide
Most expat employers may not aware of the cost of the treatment of chronic diseases for expatriate employees overseas can be very high. It usually requires a specific plan to cover ongoing health needs. If an expat develops an illness later on it may be recognized as a pre-existing condition when trying to obtain health coverage. A global benefit plan can offer full coverage for pre-existing medical conditions to avoid claims being denied or coverage being restricted for expat employees.
Expat Financial is able to offer flexible international expat group insurance plans in most regions around the globe: Africa, Europe, Asia, Middle East, North America, South America, Caribbean, Oceania, Central America, and all major cities in the world. Expat Financial can also offer international health insurance plans for individual expatriates that may be able to cover some existing chronic conditions depending on their severity and subject to underwriter approval. 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.
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.
The benefits of taking an expat mining job in Africa
/in Expat Lifestyle, Expat Tips /by David TompkinsExpat Mining Assignments in Africa – A Great Opportunity
In the past 10 or 20 years, there has been a mining boom in Africa as more and more global mining firms have been searching for minerals and setting up producing mines, most in very remote regions of the continent. As companies have increased exploration, especially in Central Africa, they have had to recruit expatriate talent from around the world to fill vital management and executive functions at mine exploration and development sites.
According to several reports, in 2015, almost 65% of international mining companies claimed to increase investment on explosives as the market environment continue to improve. This means a shortage in local mining job market, especially for expat mining professionals.
With the recent improvements in metal prices, especially for gold, we are confident that the mining industry will continue to grow in Africa. There will be benefits for both local nationals and expatriates. In this article, we will discuss the benefits of expat mining jobs in Africa.
Excellent Career Opportunities for Expats in Africa Mining Industry
According to 2016 Ernst & Young Africa Attractiveness Survey, the long term outlook for economic growth & investment in Africa remains positive. Many major and minor mining firms are actively looking experienced and talented people from around the world. Positions such as mine engineering, electrical technicians, structural engineering, geologists are required for various mine operations. Other skilled expat positions in mining are available. Working overseas, especially in remote mine sites, can be quite challenging, but can also boost your mining industry career.
Explore Africa’s Culture
There are 54 countries in Africa today. Each country has a diverse culture, unique art and music representing regions. For example, Ghana, the second biggest producer of gold in Africa, has over 100 ethnic groups residents inside the country. In history, Ghana is the place of the great Ashanti empire during the late 17th century. Kumasi, served as capital of the empire, is one of the most advanced cities in Africa. The Ghanaian people are friendly to expat community. For expatriates working in Africa, Ghana has much to offer. There are also many other countries in Africa that can offer expatriates excellent cultural activities, resorts and tourist spots to explore.
Attractive Expatriate Salaries Available in Africa
Expatriates looking for mining jobs in Africa will find that the remuneration package is usually quite competitive. Many major mining firms will offer excellent accommodations with laundry services, expatriate community facilities such as basketball courts, fitness centre, satellite TV, etc. Mining companies are often willing to provide lucrative expatriate salary to attract and retain mining professionals. This can include schooling for your children posted abroad with families. Expatriates who are proficient in English and a second language are often highly preferred employees. If you have experience in working in Africa, this can be a great asset.
Working in Africa Can be an Adventure
Africa is a land full of adventures and wonders: safaris, camping, diving, etc. Working in Africa is a way to get a completely different adventurous experience. You are working with local people during day time and spend weekend with them together. You will not only experience adventure travel and outdoor exploration, but also a chance to learn local language and lead an intercultural lifestyle. It is worth noting that some parts of Africa can be unsafe, so you should make sure that you and your employer will be taking steps to insure your safety.
Future expatriates need to keep in mind that working & living in Africa will have challenges. For example, the water supply and electricity in some countries is unreliable and there are often danger roads and more exotic illnesses in the region. South Africa, one of the richest country in Africa, has very good medical facilities and many expats working in the region will travel or be evacuated there to receive treatment. However, in some other poor African countries, the healthcare facilities is often far below standard. It is vital that expatriate mining professionals obtain excellent expat insurance coverage from their employer or on their own.
Many mining companies will offer health insurance plans for expat mining staff that they employ. It is crucial for expat employers and employees to obtain international health insurance with global life and accident coverage, dental and long term disability coverage. Some mining executives working in Africa will have to source their own coverage, especially if they are working as consultants – luckily our firm has a wide range of individual plans available. Evacuation coverage is obviously critical for mining employees residing in most Africa countries as more serious illnesses and injuries will often require medical care in another country or even in another continent, such as Europe. Another concern is civil strife, war and terrorism – which can be quite common in certain African nations. Thus, it is critical that your corporate policy for your expats in Africa have full war and terrorism coverage.
If you have questions about our international medical insurance plans or you want to discuss your needs and produce a customized quote, please contact us or complete the quote form. We have extensive experience in sourcing global mining insurance coverage. For more information, please view our Global Mining Brochure. A quality expat benefit plan is critical if your resource company wants to protect & cover its employees, cover its risks and help retain and and attract the top mining employee talent to operations in Africa.
7 Tips for managing expat finances
/in Expat Tips /by David TompkinsFor 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.