Moving Overseas 101

Most of the time you don't know what you don't know.

That's never truer than when you're thinking about moving overseas. There's just no way you can consider and address all the issues you need to understand. And just when you think you have it all figured out, something new pops up out of the blue.

After seven international relocations in four countries, this is something I do know.

If you're new to this idea of moving overseas and living in a foreign country, you're sure to have lots of questions. Let's start with some basics.

Moving Overseas: What's an Expat?

The word "expat" is short for expatriate and not ex-patriot. Those are two very different things. An expatriate is a person temporarily or permanently residing in a country and culture other than that of their upbringing or legal residence. The word comes from the Latin ex (out of) and patria (country, fatherland). It has nothing to do with patriotism or rejecting one's home country.

In fact, you needn't commit to just one country when you become an expat. It's okay to be fickle and try a few on for size.

Moving Overseas: Should I Become a Citizen or Resident?

You don't give up citizenship at home when you move to and obtain residency in another country. And a resident visa does not make you a citizen of your adopted country. Yes, you can give up citizenship at home and petition to become a citizen in another country, but very few people ever do that. It's difficult to do and benefits are few.

Most countries extend benefits to residents as well as citizens. I'm thinking specifically of retiree programs offered in Panama, Mexico, and Ecuador, for example. If you have a resident visa in these countries, you'll be eligible for the same discounts and health care benefits that retired citizens receive.

Move Overseas and Earn $91,400 Tax-Free

You can't avoid the taxman by moving overseas. Your personal federal income tax obligations to your home country remain, despite your relocation. If you maintain property at home you'll still be responsible for property taxes. Unless you are earning an income in your new country, though, it is doubtful you will be liable for income tax in that country.

You'll want to investigate tax issues as you decide where to relocate. There can be definite tax advantages to living in another country. Like the U.S. foreign-earned-income exclusion which, if you qualify in 2009, allows you and your spouse each to be exempt from income tax on foreign earnings of up to $91,400.

(Be aware: relocating overseas does not release you from legal obligations like child support, alimony, or other decreed financial judgments. Don't leave home for the wrong reasons.)

What Are You Waiting For?

The world is small and getting smaller. Airplane travel, though painful, has turned long distances into short ones. Today's technology allows us to instantly communicate with people anywhere in the world. Via the Internet we chat, bank, shop, order movies and music, watch TV, catch up on the news, and see one another in real time at any time. Most of the goods, services, and technology (including top-quality medical care) you are used to at home will be available in your new country. While prices, language, culture, and the weather may be different, it won't be too difficult to adapt, and most often you'll be pleasantly surprised by these differences.

As promised, these are just the basics....to get you started. There's more you need to know, of course, to make an informed decision about moving overseas. And I'm obviously biased, but I think your best resource for information of this type is right in front of you.

Visit http://www.internationalliving.com, surf our website and check out our bookstore for titles that delve deep into some of the topics I've mentioned above.

Welcome to the world as seen from a slightly more exciting, adventurous, and contrarian perspective...the world of International Living. It's a big world, full of opportunity for fun and for profit. We're standing by, ready to help any way we can to make your international living dreams come true.

http://www.internationalliving.com