Is moving abroad looking good right about now? I bet it does. But don’t be too quick to pack your bags. There are some things you might want to do first.
Before my move abroad, I prepared as best as I could based on what I knew at the time. Yet, I still have one regret: I wish I had opened a no-foreign-transaction-fee, good-points credit card before moving abroad. You know … one of those truly American inventions that prey on folks who accumulate interest but can be advantageous when paid off in full every month.
It’s a good thing it’s not a life-or-death regret, but it would have been nice.
At the start of a move abroad, not everyone knows how long the adventure will last. Look at me: I moved abroad with two checked bags and a plan to live in Europe for two, or maybe three, years. Fast forward 11 years and I’m still here. The joke was on me.
Looking back, there are a few things I wish I had done to better prepare for a life outside the United States. I didn’t think about many of these items because, at the start of a wild adventure, who wants to think about the nitty-gritty, boring things?
I wanted to live abroad, sip coffee from a sidewalk cafe, ride a bike along canals and never look back. Well, some things bite you in the butt if you don’t prepare. You’ll thank yourself later by spending some time thinking about and executing this list.
Your future self will thank me. You’re welcome.
(Author’s note: This list was compiled from an American point of view, but many items also apply to expats coming from other countries.)
Have a plan when it comes to your finances
As an expat, you will most likely be operating in different currencies, at least for a while. Do you plan to keep bank accounts in your home country? Will you be withdrawing money from ATMs or transferring money abroad?
Americans have an especially tricky situation. As an American expat, many banks don’t want to allow you to open a brokerage account because of the reporting obligations to the U.S. authorities. The Catch-22 of this whole thing? American banks don’t want long-term expats to continue to trade in their U.S. brokerage accounts even though are still obliged to file taxes every year in the U.S.
American expats sometimes operate in this no-go, gray zone. It sucks, but you just have to accept it and work within the limitations.
Do some research before moving abroad. Make a plan. Decide what you will do for the next two years. Will this change if you stay longer? Make sure you are comfortable with your financial plan, but be prepared to adjust if things (or regulations) change.
Apply for traveler-friendly credit cards and checking accounts
Are you still going to operate from your foreign accounts? Then you’ll probably want a better credit card without foreign transaction fees, which tack on three percent to all your transactions in other currencies. This is probably my biggest regret. Now I don’t dare apply in fear of disrupting the delicate financial balance that some American expats live in … where’s my money and does the system care?
However, I’m happy I was already prepared with a traveler-friendly checking account. I arranged that before a long trip while I still worked in the U.S. and it’s been incredibly advantageous. One month while traveling abroad, I had $40 refunded into my account from various ATM fees in different countries.
Maintain a mailing address
I’ve found that having a U.S. mailing address is almost essential. If you don’t have family and friends to use as a mailing address, a virtual mailbox could be a good option.
Renew your driver’s license
Not everyone moving abroad can keep their U.S. driver’s license and maybe not everyone wants to. Some expats will exchange their licenses when applying for a foreign driver’s license. But if you don’t, it may be worth renewing your driver’s license before you move abroad to give yourself maximum flexibility.
(Editor’s note: In most European countries, you can only drive for six months using your American license before you’re required to get the license of the host country, which entails taking expensive lessons.)
Medical records, prescriptions, health insurance
Get a copy of your medical records from your family doctor, including your medications and prescriptions.
If you have prescriptions you can’t go without, check if your doctor can write you a prescription for a longer period. This will help so that you don’t have interruptions before you arrange a new family doctor and get a new prescription.
Arrange travel insurance before you leave to bridge the gap between the end of your current health insurance and a new policy in your new location.
Book a one-way ticket
If at some point your adventure abroad changes from temporary to permanent, you might consider booking a one-way ticket. This saves the hassle of knowing the date of your next trip in advance.
When I first moved here, I always bought round trip tickets from the U.S. to Europe and then back to the U.S. It was cheaper that way, but I always had to know when I was returning to the U.S. to visit. So then I booked a one way ticket after a few years, U.S. to Europe as my final destination. Maybe some people just book a one-way ticket at the beginning of their move abroad. That’s the easiest way, but maybe I wasn’t ready to admit that I’d be living in Europe for so long.
It took me two years before I finally booked a one-way ticket. I chose to drive to a busy U.S. airport that had cheaper flight carriers, which for me was New York. I hopped on a one-way flight and it has made booking flights so much more convenient.
Other things to think about
- Do you need to establish a power of attorney so someone can act on your behalf?
- Do you need documents with an apostille stamp before moving abroad to apply for a visa? (This can be on birth certificates, marriage certificates, etc. It’s a pain to get them while you are already abroad.)
- Know what to do when it comes to tax time. Do you need to file in your home country (for example, for a partial year)? For Americans abroad, you always need to file taxes in the U.S. (even if you don’t have to pay anything). You’ll also need to check each year whether you need to file an FBAR (Report of Foreign Bank and Financial Accounts)!
This is not a comprehensive list, but it’s a start. Everyone might require slightly different things.
My number one piece of advice is to do your research. After all, you don’t know what you don’t know. Talk with other people who have made the move abroad.
Good luck with your adventure abroad. Once you get past this boring stuff, it is a lot of fun!
(Author’s note: This post is for informational purposes only and does not constitute financial advice. Please consult a qualified financial professional for guidance specific to your situation.)
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See more Expat Essentials here in Dispatches’ archives.
Lane Henry is an accidental long-term expat. She is an American who came to the Netherlands for two years—or so she thought. She has now lived in the Netherlands and explored Europe for over a decade.
