My #1 goal on this blog is to share about becoming an expat. I feel that living abroad makes some significant, positive changes in a person. so I guess I feel living abroad is something pretty awesome. Unfortunately, it’s also something pretty scary for those interested. But scary is just an alternative to exciting, given the right mindset.

To date, I’ve helped a handful of people with their move abroad. The most popular help needed is deciding to “go for it.” In my experience, there are 5 big reasons why people don’t follow their dream of living in another country. After each, I tell you why each reason doesn’t really matter.

#1. Work

Number one reason is “I have a job.” People actually ask “How could I leave my career?”

To people who offer this excuse, I say you aren’t hurting your career, you’re helping it.

For nearly all employers, any international experience is a major plus. Upon your return, you will command a more senior position, higher salary and more respect. You can also expect more independence since, to move abroad obviously took the fortitude to have done what they likely haven’t. If you can’t believe me, read this article on the Harvard Business Review how living abroad can make you a better manager.

And you know what? For many of us in corporate life, the job itself may be the mealticket to a new adventure overseas. Does your company operate in other countries, in any capacity? Look for transfer opportunities. For people who step forward, the company may throw in relocation funding, language tutoring, and visa assistance. Wow!

Let’s say you’re an information security manager in Boston. Your boss’s boss knows of an planned data centre in San Jose, Costa Rica and he’s in dire need of a senior manager with native English skills. You, of all people would be the ideal candidate for the role, but he only learns you’re interested because you’re now resigning to move abroad. (That’s from my own experience, by the way. I turned down his offer, but my lesson was Speak Up Earlier!)

Bottom Line: Raise your hand up for transfers/relocation- even if the question isn’t asked. Regardless, taking a new position abroad is destined to be a major stepping stone for your career.

#2. Children

If you have children, they are the most important thing in your life. (I speak from experience here, too).

That’s why I think parents should consider living abroad even more – for the sake of broadening their kids’ horizons.
Our daughter attended preschool in Prague for her first 2 years of school age.  Now we’re in Canada, but she still speaks fondly of her Czech friends and loves to dance to Czech kids tunes.

Does she remember our travels?  She can personally remember her and daddy’s trip up the Eiffel Tower, walking around the Acropolis and visiting friends in Germany. — This all before she turned 5 years old a few months ago!

Kids with such experiences become more social, learn a foreign language more easily and will be more resourceful at problem solving. I truly believe that.  Time abroad for children is the best gift a parent can offer.

For young adult children, the transition is tougher and appreciation will come later.  The key to success is with communication and respect.  Get young adults involved early on in the decision making.

Bottom Line: Do it for you and do it for your children.

#3. Family / Relationships

Having family nearby can make the decision to move abroad more difficult. Then again, for some, family is just the reason some want to leave. (ha ha!)
Seriously, unless your beloved grandmother has only a few months left, feel free to leave for a few years. But decide – for you. Everyone will be around when you get back. Decide and decide now.
As for that certain relationship with a significant other. Maybe you’re waiting for someone to pop the question. Maybe you’re waiting for something…but it’s been a while already, right?
In both cases, I’m telling you that the initial shock and pain of saying “I’m leaving for…” will go away be responded by “We’ll miss you, but we’re proud of you. Bon voyage!”

Bottom Line: You can’t live your life in “wait-mode.” Otherwise, there will always be a reason to wait.

#4. Personal Concerns & Fears

Maybe you’re worried about your health, your safety, or some basic fear of strange languages and customs? Maybe you don’t know what to do when bored.

This is the first reason of this list that I can personally understand. Believe it or not, I get butterflies every time I am moving to a new place, visiting a new country or starting a new job. But you know, I think that’s normal. It’s normal to be nervous. These new adventures interest us just because there is a lot of “unknown.” And isn’t that what it’s all about?

Bottom Line: Sure, all that “unknown” may scare most people away, but maybe that adventure is what sets you apart from others.

#5. Finances

Okay, this is a genuine reason like all the above. But it’s special because it’s also a valid reason not to just take off to live for another country.
UNLESS, that chance to live abroad means making considerable more money than you’re making in your current position. Right? Did you know in Russia, over a third of the expats earn more than a quarter million dollars? Yes, over $250,000. That because Russian employers find it “fashionable” to hire expatriates and pay them crazy salaries.

And don’t forget that your worldwide income is tax-free, to a limit.

If you’re in heavy debt, than a move abroad can be more than difficult to pull off. What’s abnormal debt? Statistics say that half of Americans with credit cards have over $3,000 in rotating balance debt. I personally would not call that a serious debt, but it’s a good start. However, a move abroad could turn it into serious debt.

Bottom line: It’s important to carefully consider the cash-in versus the cash-out for every move. Odds are good overseas will win.

Related posts:

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Today is a banner day. I just got word that our mortgage refinance application was approved. Oh, man, that rocks!

…so, now we only owe two and a half million. Thankfully, that’s not dollars, but in Czech crowns. In fact, I’m real thankful that’s not in dollars, since I’d be jumping out of a window if I owed anybody a million dollars, let alone two mill.

(Of course, a couple million crowns ain’t exactly peanuts either, which is why I have a mortgage.)

You may be asking “Why do you have a mortgage? Why refinance when you should just sell it? Aren’t you moving in like…10 days?”

Why do you have a mortgage?
You’re joking right? Or else you’re extremely rich? In either case, I’m not.
We have a mortgage because we’re not wealthy enough to own our place. Downtown Prague is not cheap. Well, it’s cheaper than say, New York, London, Moscow or Rome, but hey…I can’t buy on 5th avenue either.

Why refinance when you should just sell it?
We bought our flat 3 years ago and I don’t believe flipping our property is the smartest thing for us now.

Aren’t you moving in like…10 days?
Well, yes, we are moving in …10 days. But we did buy our apartment. —It hurts me to say that. No, it doesn’t hurt to say we bought, it hurts to call it an “apartment” after getting used to calling it a flat for the last couple years.

Got any questions? Throw your wonders in the comments – I’ll answer. No, I’m not shy about revealing our finances. Well, to a point, but give me a try.

Don't Ask Me What This Says...

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This is the 2nd post about wiring money overseas. In the first post, I talked about words we come across

And what great timing for this post! Today I need to wire just under $3,000 to rent a RV for a month out of Germany.

Let’s use my case as an example scenario…

I need to pay about 2217 euros to pay off the balance on a RV rental (family vacation coming up in June).
My options are these:

1. Use local (Czech) bank to wire transfer ~55,500 Czech koruna.
2. Use Paypal and their “send money” option.
3. Use our bank account in US to wire transfer ~$3,000 USD.

What makes my mind? Fees, interim charges, & the ever-fluctuating exchange rates.

Here are some facts I know:
Fact: The Euro/Czech koruna exchange rate is fair, but has been better.
Fact: Dollar/Euro exchange rate is great for option #3 now. (Savings of ~$300 from a month ago)
Fact: Paypal charges up to 3.9% for int’l money transfers.

First, a few words about my attention to exchange rates. Caring about exchange rates is all fine. But unless you have accounts based on different currencies (and with money), then the knowledge does you little good. Right?

I learned this the hard way. “Oh, if only I had enough dollars in our US account, I could have saved quite a bit, this time….hmmmm.”

Now, the fact that Paypal would charge me 3.9% for a transfer of just under $3k ($2,987) pisses me off.
That’s $116; earned for doing what exactly? So that rules out option #3 of using Paypal. They may be fine for minor e-commerce, but Paypal is no replacement for a international money transfer done through banks.

Fees and Charges
Multiple fees and charges here.
For the international money transfer itself, banks charge between $1 and $10. That’s paid by the sender, taken from the balance. Recipient will rarely get charged to receive money. That’s all typical and you probably know this already. But what you might not know is that the transfer fee, say $10, can be taken by each interim bank used for the transfer. For an IBAN transfer, each bank that your transfer goes through is entitled to take their little bite from the balance (yes, without asking permission). The way to avoid surprise is to ask your banking rep ahead of time “What amount will arrive if I transfer $X?” But when dealing with currency exchange, that question gets tougher for them to answer.

Lastly, a fee for exchanging money is common. It’s and it’s typically a flat fee (not proportional to the amount). In short, the larger the transfer, the smaller the exchange fee means to you.

There are other options.

- You can use Western Union or Travelex. But not a smart idea between strangers (ala 419 scams or “Dear Sir, I will share 60% of FIVE MILLION DOLLARS…”). Also, if you use these services, you’ll be shocked how little money ends up in your pocket. One example, sending $400 by Western Union might eat up $40-$50. If you believe “Oh, but it’s worth it!“, then you’re desperate.

- You can carry up to $10,000 undeclared in your carry-on bag. Don’t laugh; it’s perfectly legal. And if some uppity TSA agent insists on detaining you, then you remind them of Steve Bierfeldt.

Well, I’ve got to run. I have to transfer some cash to Germany. Oh, my choice? I’m using our US bank account and I’m sending $2987 today. It will cost me $10. Not bad.

Any questions? Write and ask – I’m here for you.

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For almost anyone, the idea of transferring money can be stressful. If you’re like me, you’re triple-checking it “went through” even if transferring money between accounts of the same bank.

But this article is not about accounts in the same bank, nor about banks in the same country. This is about international money transfers.

I’m talking about doing it across the ocean,

when source and/or destination doesn’t speak English,

and you’re not a financial guru anyway. …yup, stressful.

Well, stress no more.

I’ll do this in a couple parts.
In Part I: we go over some words we’d better understand.
In Part II, we’ll go over some principles about foreign exchange, and do some scenarios.
In Part III, we’ll recap, plus set some expectations about fees.

PART I
Disclaimer #1: I am not a bank nor a financial expert. Seek the helpful advice of a relevant professional, like your bank’s customer representative. I can accept no liability for the disappearance of your life’s savings as a result of your following this blog post.
In short, take me with a grain of salt.

Words To Know

SWIFT
The network of banks. Nearly every bank on the world is a part of the SWIFTnet network. And every bank has what’s called a SWIFT code, or BIC. If you see an 11 character code- that’s the BIC.
By the way, SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication.”

BIC
BIC is a code for the bank (It stands for bank identifier code). It’s a unique number for each bank, just like your social security number is unique to you. BIC is also called the SWIFT code. The SWIFT code or BIC is always 8 or 11 characters. A bank’s primary office has 8 characters. If it’s a local branch, the last 3 specify that branch. For example, NatWest in London is NWBKGB2L. Or Kommercni Banka in Prague is KOMBCZPP.
If you need your bank’s BIC code, look on their website or just ask for it.

IBAN
IBAN is a code for 1 bank account (it stands for International Bank Account Number). Caution: it’s an intimidatingly long string of numbers and letters, starting with a code per country, bank & account.
You must ask for your account’s IBAN number, because it denotes YOUR account.

Bank Transfer
This is what we’re on about, right? To transfer money, you need a IBAN and a BIC. That’s it. Oh, and the money to transfer.

Only so many hours in a workday…tune in til next post when we’ll discuss principles of foreign exchange and cover some scenarios.

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In a prior post, I mentioned how most countries do not require a visa just to visit. But some do. Some examples include Bolivia, India, Russia (& most of the former Soviet Republics), Cambodia, Vietnam. This post will set your expectations about getting a tourist visa for those countries.
[quote]
Filling out Paperwork, Paperwork, Paperwork
Needing a visa doesn’t mean someone does it for you. You’ll need to fill out a visa application.

Yes, every country has its own visa application form. The form could be available online or you must visit the nearest embassy. Nothing is standard across all forms. And you’d better fill it out as it’s expected.

What Does The Visa Application Ask?
Just “name, rank & serial number” would be nice, but don’t count on it.

Generalizing here, but as a minimum, you will provide:
Name, nationality, birthday, passport number, address (both yours and where you’ll stay) and contact information like phone number/fax/e-mail (both yours and where you’ll stay), why and for how long you expect to stay

You may also be asked your marital status, your occupation and employment history. Some countries even ask you to write a short, personal essay explaining why you want to see their country!

After finishing the form, it is also common to provide:
Bank statement or proof of financial support, a copy of HIV vaccinations, confirmation or invitation from a local hotel or friend (both cases sometimes called your “sponsor” and copies of your hotel confirmation & return flight.
Tack on 1 or 2 passport photos and you’re all set!

Why so personal? They want to ensure you not only intend to visit, but you intend to leave, too.

Click for bigger picture

Paying for Permission to Visit
Well, of course we have to pay. And of course, payments are always “non-refundable and subject to change without notice.” {shrug}
Now, you may be thinking about the poor desk clerk who has to handle all this. You’re paying for his time, right? No, actually in modern countries, visa processing is outsourced. Those 3rd party services are the most expensive portion of your fees.

On top of that, expect to pay for consular fees and postage to send it back to you, typically performed by some private courier like FedEx or DHL.
How much you ask? Could be anything from $15 (Australia) to $130+ (Bolivia, Chile, Brazil). Typical is $30-$50. Is it fair? Well, unlike the price, that answer is negotiable.

Recall that visas and their respective fees are typically reciprocity for the same requirement placed on their citizens. Visas are commonly required because it’s tit-for-tat for them. That helps explain why a country has different visa fees for different visitors.

Take the USA for example. Their site clearly has the attitude “Well, they do to us, so we do it to them” (“however, when a foreign government imposes such fees on U.S. citizens for certain types of visas, the United States will impose a “reciprocal” fee to nationals of that country…“)

What Does It Matter Why I Am Going?
If you’re entering a foreign country and you need permission to enter that foreign country, then it’s reasonable to expect them to be curious why you are entering that foreign country. Yes?

If you are visiting their zoo and miniature toy museum, then you’re a tourist. Prepare for the easiest visa process.
If you are going to sell or for negotiations, then you are on a business trip. Expect questions such as “Are you bringing any goods? Will they stay?”
If anything else, e.g. work, study, adoption, immigration, then you can expect much more paperwork.

Mark your answers wisely.

Click for bigger picture

How Long Does it Take?!?
Time to approve a tourist visas differs. (no surprise, right?)
First, the fastest… to visit Australia, we Americans do need a visa. And Americans need just 30 seconds.
Wow, the necessary tourist visa takes 30 seconds to approve! That is, if you use their Electronic Travel Authority (ETA). For Americans who typically demand fast gratification, that’s a welcome visa process!

Unfortunately, the vast majority of countries take far longer.

I made pictures of my tourist visas to India and Russia. India took about 2 weeks and Russia took 1 week.
Keep in mind, here in Prague, I live only a 5 minute walk away from the Russian embassy, so I knew of the morning lines. I was prepared for waiting a couple hours per visit. I was prepared for the the paperwork that reminded me of the Soviet Union. But after all was filed properly, I got it after 1 week.

A sharp contrast from my buddy, Bill, who after 3 weeks, still didn’t get his visa & passport mailed to him. I felt bad, but I left for Moscow without him.

My tribute video to Bill.

How to shorten the time?
Call into the embassy and check the visa’s approval status. These people are human. They surf the web, too. They forget things. Call after 3 or 4 days to check its status. Call again if its been 2 weeks.
If you don’t live near the embassy, factor in the time for the courier to deliver your passport back.
And, as my friend Bill above can testify to, do not depend on their “expedited service!”

Anything else?
Speaking of time, be sure your passport is good for long enough after the visa should expire.
I’ll use Chile as the example again. Your passport must be good for minimum 90 days after expected departure, else no visa granted.
Most countries have a US embassy which offers “expedited passport services” if you get in a jam while visiting. But think about that … do you really want to surrender your passport and fate to government processing while you’re traveling?
Also – be sure to have two blank pages left in your passport. A very standard request, but often overlooked if a tourist travels enough.
I can’t stress enough to do your own homework for a specific country. Prime example is Russia. They have special demands on sponsorship and things like migration cards that make even a well-seasoned traveler cringe.

I want to repeat two big points I said in the beginning:

• This post talks about the short-term visa. Another post to come for extended stay or long-term visa (like to work or stay over 90 days).
• It’s very important to do your own homework.

As Americans, you can feel (somewhat) secure that your own Department of State has the latest info. Check this site to get the latest on your specific destination.

Sure hope this was helpful to somebody. Let me know

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I’m not just adventurous in real life (yeah, right), I’m adventurous in website administration.

My dream of helping people live overseas suddenly found a glass ceiling – enough time to answer e-mails.
So, one idea I came up with is to create a forum where people could ask questions (and I still answer them), but future people could see the same questions (& answers!).

A central place for questions. Easy access to (everyone’s) answers. It’s a win-win idea.

I present the world’s newest Expat’s Questions and Answers forum: www.expatyourself.com/forum

You may think it’s light on the questions so far…you’re right. You need to ask them first.

Please post your questions there and I will be very diligent about answering them.

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Whoo-Hoo!!

Now that I threw out that disclaimer, let me get you excited about this idea: tax free income.

Besides other obvious benefits to living overseas, there is a huge financial perk. For US citizens earning income outside the United States, their income (up to a certain amount) is tax free.

So, you’re skeptical on the phrase “up to a certain amount”? Are you sitting? For 2009, my salary is tax free up to $91,400. I think that’s a fairly high amount by most people’s living standards (including ours).

And the even better news? For whatever reason, the US government continues to raise this tax exclusion amount higher and higher every year, regardless whoever is in office. (That’s good evidence the IRS doesn’t mind having this policy in place.) In fact, every year, on average, the amount goes up a couple thousand dollars.

For this site, I made a quick chart showing the last 11 years:

Another Disclaimer
This does not mean we avoid filing paperwork every year. Yes, US citizens are obligated to file the paperwork, regardless where we live. For this, you want to file the special form to declare your income is excluded from taxes: form 2555.
Some good news is, as expats, we do get an additional 2-month time extension, pushing the deadline from 15 April to 15 June. Thankfully, instructions for the form 2555 are relatively simple (certainly doesn’t require 2 months!).

So, to summarize the Good and the Bad:

Good:

• Our first $91,000 is tax free
• We get 2 months more time to file

Bad:

• We must file as we always have
• One more form to fill out, the 2555

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Check, cheque, Czech

Moving anywhere, whether across the street or across the ocean, requires considerable planning. The below checklist was written by Kathy Dorf of Clements International as a helpful international moving checklist for moving overseas.

Investigate Your New Country’s Rules

Regulations and laws vary widely among different countries, so it is important to research these before moving abroad. Contact the appropriate embassy or consulate for information relevant to expatriates relocating to the country, including:

Visas and permits

Vaccines for family members

Restrictions or taxes on shipped household items

Taxes involved in shipping your car

Vaccines and quarantines for pets insurance

File Applications for Passports, Visas and Permits

Do this early, as this process takes time to complete. It is also wise to renew early if any of these documents is set to expire in the near future.

Gather Important Documents

Be sure to request official copies of important personal documents and allow at least several weeks to receive them. Suggested items include:

Birth and Marriage Certificates

Naturalization, Green Card, Proof of Citizenship, etc.

Social Security Cards

Vaccination, Medical and Dental Records

Insurance Policies

Academic Records and Diplomas

Employment Records

Proof of Residency (utility bill, statement, etc.)

Living Will and Testament

International Moving and Shipping Companies

Contact international moving and shipping companies to obtain quotes for transporting your belongings overseas. Since it could take over a month for your items to arrive, plan ahead when scheduling your shipment.

Insurance

It is critical to determine the exact insurance requirements and availability at your new destination as limits vary widely throughout the world.

Auto Insurance

Anyone planning to operate an automobile internationally will need to purchase an International Auto Insurance policy. Requirements vary among countries, so select an insurance provider with the expertise and resources to ensure the policy meets your needs.

Property Insurance

International personal property insurance, which can include transit and destination coverage, protects items damaged during the relocation process, while in your foreign residence or during shipping and transit. Contact an insurance provider specializing in expatriates for more information.

Health Insurance

Even if your destination country has a socialized healthcare system, you may not be eligible for coverage. If you are not covered under a group medical insurance program, individual policies can be purchased to protect you in a foreign country. These policies include worldwide medical protection and also can include evacuation services. Costs are reasonable and, in many cases, less expensive than stateside coverage.

Bank and Credit Card Accounts

Review your accounts and notify your banks that you will be overseas. Also consider online international banking, which makes it easier to transfer and manage funds between countries.

Prescription Drugs

If you or a family member takes prescription drugs, purchase additional quantities and obtain a copy of the medical file related to the condition. Keep them in your carry-on luggage in the event any bags are lost in transit.

International Driving Permit

Renew your driver’s license if it is set to expire soon. Acquire an international driving permit (IDP) and take extra forms to renew it annually by mail. You can obtain an IDP at a local office of the American Automobile Association and the American Automobile Touring Alliance (through the National Auto Club). Remember to carry both your IDP and your U.S. state driver’s license with you at all times.

Tax Obligations

Each country has distinct tax rules for foreign earned income. Determine your obligations and gather the necessary paperwork.

Pets

If your pet is moving with you, ensure it receives proper vaccinations and identify a pet carrier. If you have decided not to bring a pet, allow enough time to find it a new home.

Flight and Hotel Reservations

Make any necessary travel arrangements as soon as your travel dates are set.

VOIP Phone Service

Consider using VOIP (Voice over Internet Protocol) phone service, otherwise known as broadband phone service. This is an affordable way for expatriates to make local, long-distance and international calls, all for a monthly fee.

Cancel Subscriptions and Forward Mail

Cancel all publication subscriptions and complete the appropriate forms at the post office to ensure your mail is forwarded to your new address.

Do Your Research

Learn about the country’s history and culture before you move, so you are prepared with the necessary knowledge to adapt quickly to your new home

Article published courtesy of Clements International

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Need a reason to become an expat? Here are the most popular:
• “I have no job. Now what?” – There are countries begging for English speaking workers.
• “I want to retire cheaply.” – Go retire for cheap in a country with a low cost of living.
• “Looking for adventure and whatever comes my way!” – Plenty of adventure abroad.
• “Wanted by the Man.” – “I understand extradition from Rio is very complicated.” (Fletch, 1984)

Other popular reasons for US citizens:
• Broadening children with new cultures, new languages, new sights.
• Making your first $92,000 tax-free from the US government (for 2009 tax year)
• Speaking of taxes, you get an extra 2 months to file. April 15th – No. June 15th – Yes!
• Finding that special someone.

Hey, if these reasons aren’t quite enough, how about 100 reasons more? Enjoy!

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