Considering an offer to go abroad is both exciting and challenging. As a potential expatriate, you will need to clearly understand what the offer includes, what it will take to get moved and settled, and how your family and lifestyle will be supported abroad. There are many considerations involved in making an informed decision to accept an offer to relocate abroad. This is the final article in a series on company relocation. If you are an employee who is considering a move abroad for work, this article is for you. Below is a list of important considerations to make when considering an offer to relocate. This guide is meant to help you understand all of the pieces involved in the decision making and relocation process.
Carefully consider offered compensation, benefits, and taxes.
Because compensation, benefits, and tax requirements and expectations vary greatly by country, carefully consider your offer in light of those requirements and expectations. For example, the cost of living varies by country and even city. If you are considering a move to a location that has a higher cost of living, carefully review the compensation offered. You should consider the following:
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- base salary and what, if any, cost of living adjustments are offered;
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- consider your local and home country income tax implications. Some companies will offer tax equalization, that is, if you are subject to double taxation, the company will pay anything above what you would have paid at home so your tax burden would be the same as before your relocation;
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- stock vesting, grants, and options, including their tax implications;
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- bonus, commissions, and other compensation, including their tax implications;
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- health benefits; and
- miscellaneous benefits, including moving assistance, transportation costs, and education and language training.
Carefully consider family and lifestyle financials.
Consider what expenses will be involved in your move abroad, particularly the expenses that differ from or are in addition to your current expanses. Your offer may include payment of some, most, or all of the expenses involved in your relocation. Below is a list of some of the basic financial outlays possible.
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- Additional, different health care coverage programs, including private coverage;
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- supplemental health insurance;
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- travellers’ insurance;
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- rental/home insurance;
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- life insurance;
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- car insurance;
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- travel expenses, including expenses for family members or to visit family members that stay behind;
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- agreement on home leave, the time you will be given to go home to visit family;
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- country conditions, including political stability, safety, and cleanliness;
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- visas and work permits for family members (adopted children, children of divorce, civil partnerships, etc.);
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- pre-move visit (with family if family is coming, too);
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- temporary housing/hotel costs;
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- rent, deposits, and utilities;
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- home buying and/or selling expenses;
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- moving and shipping expenses;
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- purchase or lease of car or public transportation;
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- driver’s license;
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- required education or foreign language classes for you or your family members;
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- child care and education needs, including private care and school;
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- health care needs;
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- pet immigration;
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- an agreed upon timeline for you to live abroad with an anticipated time frame for your return home; and
- reintegration assistance for when you have returned home.
Create a budget for relocation expenses and life abroad.
It is imperative that you determine your expenses and create an appropriate budget before you relocate, and preferably during your decisionmaking process. Because most companies will offer some financial assistance for employee relocation, determine what, if any, financial assistance your company offers for your relocation and what you will be obligated to cover. You can also create a budget for your new life abroad, which should be calculated based on your take home pay (after taxes) and the cost of living abroad. This will help you to make sure the relocation is feasible for you and your family.
Understand the steps involved in relocation.
There are many different pieces and steps involved in a relocation abroad, many that you never thought of before. You may be able to complete many of the following steps on your own, however, some will be too difficult or time consuming to do yourself. You can work with a relocation service, many of which offer relocation packages. Or, your employer may help with many or all of the steps involved. Once you have decided to accept an offer to relocate, get started right away on the long list of things you will have to do.
Before you go:
1. Get your (and your family’s) visas and/or work permits in order.
When entering another country, you must do so legally. This means that you will likely need to apply for a visa and/or a work permit, which should be done well in advance of your arrival date. Many companies will pay for and help in your visa or work permit applications. If you have family moving with you, you will need to determine what kind of visa and/or work permit each family member will need. Furthermore, if you have pets you would like to bring with you, they will have their own unique entry and travel requirements. Many companies will help employees bring their family and pets with them abroad.
2. Start your housing search early.
Whether you will look for temporary housing, for a rental, or to purchase a home, start this process early. You will first need to determine who will sign the lease, you or your company. Many companies will sign the lease and pay for housing for their employees. If you are signing the lease, you will likely need to show that you are authorized to work locally and have a local bank account set up. If you cannot show proof of the above, you may have a hard time finding an agent or landlord who is even willing to work with you.
It may be difficult for you, as an individual, to find a landlord who is willing to let you sign a lease. Many landlords would rather work with companies rather than expats, particularly in places that have very competitive housing markets. You will probably want to work with a local agent to help in your search, especially if you plan to start (or complete) your search from abroad before you arrive in country. The Globig Marketplace has vetted relocation experts by country to assist you with this process.
Temporary housing options are ideal for startups expanding abroad because they generally include all utilities and are furnished. This means, you (or your company) will not have the hassle of setting up and paying for utilities separately and you do not have to ship as many belongings. Furthermore, many offer very short term or month-to-month leases. Many cities around the world have an abundance of serviced apartments (executive housing) available.
3. Ship your belongings.
Determine what you need to bring with you (many apartments can be rented furnished) and figure out the best and most affordable way to send your belongings ahead of your arrival. Working with a local expert is the best way to ensure your shipping costs are reasonable and your belongings arrive intact. You can find vetted experts in the Globig Marketplace by country to assist you.
4. Set up your phone.
If your company doesn’t offer you a company phone, you will need to set up your own phone. Your phone may have to be ‘unlocked’ to be used overseas and you may need to order a SIM card in advance. You may be able to use your current plan from your home country, but it will likely cost much more money to use an international plan.
Once you arrive:
5. Open a personal bank account.
There are many options available to you for a local bank account. Required documents vary by bank, but generally include identification (sometimes 2 types), a mailing address, and proof of income, which could be a letter from your employer. You should transfer enough money to your local bank account to cover your early expenses, most importantly, rent. Opening a bank account is a great way to start building your credit, which will not follow abroad and can take years to build. Assume that it could take several months for you to open a bank account in a foreign country since you don’t have prior credit and they will need to do extensive background checks on you. Another good reason to prepare well in advance.
6. Determine what your primary mode of transportation will be.
There are likely many options available to you to get around. In most major cities, public transportation is the prefered mode of transportation, and, of course private transportation such as private cars and taxis are plentiful. You should carefully consider the best option for your transportation needs.
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- Do you need a car?
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- Can you find or afford parking?
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- Can you buy a car? Will you need to pay in cash?
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- Can you afford car insurance?
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- Do you need a driver’s license? Can you get a driver’s license?
- Does transportation affect where you choose to live?
7. Set up your utilities.
Utilities you may need to set up include tv, Internet, insurance (renters’ or homeowners’), water, electricity, and gas. If you purchase a home, you may need to set up all of the above utilities. If you rent a home, your rental agreement will specify which utilities you are responsible for.
In determining what internet and telephone option is best for you, consider whether the service works at your location and the price. In many countries, you will not be able to choose your utilities providers. Private renters’ and/or homeowners’ insurance is available through many different companies and may or may not be required by the lease or purchase agreement.
Relocating abroad for work can be one of the most rewarding experiences of your life, particularly if you have a supportive family that is excited to move abroad with you. However, as you can see, you have many things to consider before you accept an offer to relocate for work and a lot of things to take care of before and during your relocation. It is imperative that you are on the same page as your employer and family regarding your relocation.
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