Each year, thousands of individuals and families make the life-changing decision to relocate abroad to a foreign country. While the most common reasons to relocate abroad are hopes of improved quality of life, searching for a more extensive job market, and finding better educational opportunities for children, moving abroad can be a massive expense, even for a single individual. However, there are tons of ways to relocate to a foreign country on a budget. And contrary to popular belief, despite the initial costs, moving abroad can have a massively beneficial impact on your finances.
Moving, even to a new house in a different neighborhood, will be a cost. And there are a few crucial aspects that you will need to consider before deciding to move to a new country. Apart from the actual costs of moving abroad, and budgetary essentials such as top International Health Insurance and a few others, deciding to relocate overseas can have the following benefits to your financial health in the long run.
Potential Income Tax Reduction
Absolutely nobody out there enjoys paying income tax, although avoiding taxes can land you in a heap of trouble with the law. One massive financial perk of moving abroad is that you might have to pay much less income tax. While this will depend on your country of choice, most ex-pats pay a reduced foreign nationals tax percentage on their incomes, which is lower than the tax percentage for nationals. At the same time, the actual income tax percentage may be even lower than that in your home country, which means you can pocket much more of your income, even if you are earning the same after conversions.
A Lower Cost Of Living
Depending on which country you are considering, your general living costs could be much lower than what they are currently. For example, the cost of renting a tiny studio apartment in some areas of the United States can cost as much as $1800 per month, while a much larger two-bedroom apartment in South Africa will cost under $1000 on average. As a result, you could save a massive fortune on your living costs even if you earn the same income. Because the cost of living refers to housing costs, food costs, transportation, and even internet costs, you should consider which countries are the most affordable if you are hoping to save significantly on your living costs.
The Potential Need For Less
In some countries, you need more simple because less is available, such as public transportation. Therefore, you may find that you may not need a personal vehicle when moving to specific countries where infrastructure is extensive. You may also spend less on entertainment as the region may offer various free activities. However, you will need to do extensive research to uncover which countries are the most affordable in entertainment, transport, and other extra expenses that impact your monthly budget.
A Broader Job Market
In some areas of the world, jobs are frighteningly scarce, while in other areas, the job market offers an abundance of opportunities for various industries. As a result, if you choose from the best countries to work in, your financial health could benefit from having more career opportunities than you would have currently. If you opt for a country where your specific professional skillset is high in demand, you will have more career growth opportunities as well, and you will probably never find yourself without employment. A broader job market will also give you the peace of mind that comes with knowing you won’t likely be out of work anytime soon.
Lower Crime Rates
This may be somewhat overlooked as a financial impact. However, if crime rates are high in your home country, and you have experienced home break-ins, pick-pocketing, hi-jackings, and other forms of theft-related crimes, then you already know just how much crime can impact your financial health. Replacing stolen items is a cost no one should have to endure. If you move to a region where crime rates are low, you will probably never have to replace household items or other personal belongings.
Relocating abroad can benefit your finances in numerous ways. And while the financial benefits may be the most alluring for working professionals, the chance of being able to give yourself or your family a better quality of life, heightened education opportunities, and even a safer way of life is also worth considering. However, before you decide to move abroad, you should research a few countries to decide which is best and secure employment before making the big move. It will also be a great idea to consult an immigration specialist to help you move. Once you have selected the best country and are ready for the life-altering experience, you should consider insurance for ex-pats that will protect your health and wealth at the same time.