Financial Tips for When Moving Abroad

Many Indian residents move abroad when provided with good employment opportunities and/or business partnerships. However, it’s a big decision which affects several areas, but especially the finances.
The following are some of the things to keep in mind when planning to move abroad:

Loans and Credit Cards

If you have any existing loans, then there are two things you can do- you can either close the loan account by prepaying the debt, or you can continue repaying the loan even after moving abroad. However, note that prepayment may attract a fine and if the remaining debt is high, then it’s clearance can also leave you in a cash crunch. So, it’s better to continue the repayment for which you just need to open an NRE/NRO with the bank in question. This account will be used for the payment of the EMIs.
If you have any credit cards, then it’s best to surrender them before moving abroad. This is because using them overseas can attract high charges. Instead, you should get new credit cards in the new country.

Investments

Your investments are another thing to take care of before you move. Once again, you can either choose to keep them or redeem them.
If you have invested in mutual funds through SIPs or Provident Funds, then you can keep on investing by opening an NRO/NRE account. You also need to update your KYC documents for the NRI status.
Note: Some fund houses don’t allow investments from NRIs. So, you should check with yours if you want to keep your mutual fund investments.

Taxes

It helps to familiarize yourself with the taxation system of the country you are moving to. Also, if you will spend more than 182 days in India in a year, then you will be considered as a taxpayer in India as well. So, bear this in mind when analyzing your tax situation.
Before you leave India, you also have to get a NOC from the IT department which is regarded as a proof that you have paid all your taxes in the country.