Moving from one country to another is no big deal today, courtesy of the modern facilities the whole process would seem like a breeze. However, there are certain personal things, especially on the financial front, one needs to get a grip on firmly. For example, bank accounts, loans, physical assets etc these aspects require special attention. So, today we will focus on the things NRIs should consider while moving from one foreign country to another, America to Canada or vis a vis.
Deal Wisely With Bank Accounts & Credit Cards
You might be having a single bank account or multiple bank accounts in the country you are currently residing in. But if you are moving to another country then it is always better to close all the accounts if you have no plans to return to the country from where you are planning to shift to another. In case it is only a temporary move, then the concerned you can keep one account in operation. As far as credit cards are concerned, it is better to cancel all the cards if you are moving for good, especially if those cards won’t benefit you in any way in the new country of your residence. But, you can keep the credit card that would offer handsome offers in the other country.
Take Appropriate Action Regarding Assets
You must be holding assets and investments in the country you are residing now. So, you need to take a call on whether you want to maintain them or dissolve them so that you don’t get hassled in the new country you are going to reside. For example, if you own a property or two, you will have to deal with everything regarding the same from another country, maintenance bills, utility bills, rental income etc. If you feel you cannot manage the tasks individually from another country then you should avail the services of a property management firm or ask friends/relatives to look after your assets. In case you feel you can’t trust anyone then it is better to dispose of the physical assets.
Be Precise With Loans
Managing liability is another problem if you are moving to a new country. First and foremost, you should find out if you are permitted to move abroad if you have a loan in your name. If the loan is prohibiting you from shifting to another country then it is better to pay off the entire liability and move on. In case the amount is too high for you to pay now, then you should look for the option to transfer the liability to someone else. Most importantly, it is advisable to be proactive in matters of the loan rather than sitting on it till the last moment.
Know About Taxation Laws In The New Country
It is also in your best interest to understand thoroughly the taxation laws in the new country you will be shifting to and how poles apart the new tax regime is from the old one. Most countries have a Double Taxation Avoidance Agreement with India and it is better to know whether the current move would impact your present tax status or not. If you receive any income in the current country you reside in even after you relocate to another one, then they also come under the tax net. So, familiarize yourself with tax matters in the new country.