A Financial Checklist for Living in Emerging and Developing Economies

Yes

No

Have you researched cost-of-living expenses in your country of residence?

Have you researched historical inflation rates in your country of residence? (Tip: In developing countries, inflation rates can be much higher than in the developed world.)

Do you know how much it will cost to sustain your desired lifestyle? (Tip: Some items, such as housing, school fees, and cars, can be very expensive in the developing world.)

Do you understand how much the value of your home currency, or the currency you “think” in, can fluctuate against the local currency you plan to live in, in the short term and in the long term?

Yes

No

Will you have access to a satisfactory range of banking products?

Do you know what documentation you’ll need to open a bank account? (Tip: You may need to show a work permit, valid visa, utility bill, or lease agreement.)

Are joint accounts offered at the bank you’ve selected?

Will a non-working spouse be able to access accounts you set up?

As a foreigner, will you be able to borrow money in the local currency? Will you be able to get a credit card in the local currency?

Yes

No

Do you plan on investing overseas?

Do you understand how you may not be protected against financial fraud in the offshore world? Are you prepared to deal with a less developed, less regulated, and often higher-risk investment market than may exist in your home country?

Have you researched the fees you’ll pay when investing overseas?

Are you familiar with how your home country handles overseas investments and what regulations, taxes, and penalties you may be subject to?

Yes

No

Will you be able to buy property in your country of residence?

Is there a developed mortgage market for foreigners?

Will you need to pay cash for any property you purchase?

Are you aware of any taxes you may have to pay when you sell property overseas (for example, local taxes or capital gains taxes if you’re a U.S. citizen)?

Yes

No

Have you researched insurance options in your planned country of residence?

Will you be able to obtain adequate medical insurance?

Will your home country medical policy cover you if you are spending an extended amount of time abroad?

If you have an expat health insurance policy, are you aware of the policy’s limits and restrictions?

If you need medical care, will you be able to return to your home country and access a national medical program?

Will you be able to obtain adequate term life or property insurance?

Yes

No

Are you prepared to deal with a more complex tax situation as an expat?

Do you know what taxes you’ll need to pay, both in your home country and country of residence?

Is there a double-taxation agreement in effect between your home country and your country of residence?

If a double-taxation agreement exists, do you understand how it affects you?

Yes

No

Will you have access to your home country’s national pension plans or government-incentivized retirement savings structures?

Will you be able to participate in local retirement savings schemes?

If so, will those schemes allow you to adequately prepare for retirement?

Have you analyzed how your long-term cash flow may be affected by a move overseas?

Yes

No

Are you prepared to deal with cross-border estate planning issues?

Will you be considered a resident of your home country when it comes to estate/inheritance tax? (Tip: While you may be a non-resident for income tax purposes, that isn’t always the case for estate tax.)

Have you developed a coordinated set of estate planning documents that address both home country and country-of-residence issues?

Are you familiar with trust law, as well as recognition of powers of attorney, living wills and health care directives, in your country of residence?

Yes

No

Will you have access to experienced professionals who can help you with cross-border planning issues?

Will you have access to professionals who are focused on providing objective advice, rather than just selling a product (e.g., insurance, real estate, investments)?