How Should You Adjust Your Financial Planning If You Are Considering a Relocation Abroad? [VIDEO]

In Investments, Lifestyle, Video by Shlomo FreundLeave a Comment

This question comes from Natalie Shva 世娜莉 from Israel.

Thank you Natalie Shva 世娜莉! @everyone , please add your new questions in the comments or send them directly to me. I do a Q&A session every Monday on LinkedIn and every Wednesday on Instagram


Here is the full text of the video:

Hi everyone. This is Shlomo here and we are on our weekly Q&A session on LinkedIn.

This week we have 2 questions from 2 followers. One’s Natalie and she’s from Israel and she’s asking me this I’m reading from my notes here.

So, she’s asking,

“How should I adjust my financial planning if I‘m considering a relocation abroad?”


Now I did the relocation abroad 6 or 7 years ago. I moved from Israel to China and I lived there for 3 years and now I’m back in Israel though we still doing longer locations in various places around the world but not as long as those 3 years in China. Just those several months.

But for a longer relocation, there are definitely few things that you need to consider. I’m gonna go one by one and looking, – get my notes here.

So Natalie, One is it obviously that your monthly costs. I mean there could very very much from the ones that you have here or wherever you are now.

You need to figure out what’s your salary is going to be.

What is going to be and how much expense data over what’s expense of the rent and other big things that you’re gonna spend on.

So as an example.

In China, about 45% of my salary back then was on rent. We still decided to move but I figured this out before that will still be okay. It wasn’t easy but still was possible.

So, question is,

How passionate you are for what you’re about to do abroad?

The second thing is about, “Taxes.”

Taxes, tax rates varies different places around the world.

And there are tax increments between the country that your resident in and the country that you’re moving on.

Not every time – not with every country. So you need to check that.

The thing is that also sometimes tax rate for foreigners in the country and for locals are not the same. So find out about those as well.

Also, find out what’s your status back home in terms of Health Insurance.

So example,

In Israel, we decided to keep paying it. So just as an emergency, there is a good coverage.  And the worst thing that can happen, we can go back home. We can go back to Israel and get the best treatment here.

But the thing is that you still need to pay for this. So this is something to consider. So check the status of that. And if you’re staying for longer longer time, sometimes they won’t accept any more for that National Health Insurance.

Just another thing, What are your benefit when you’re returning (??) if you’re going for a long time. Something is there benefit for returning citizens to their home country so check that out.

Now, here’s something that many people don’t consider and these are “Investments”.

If you’re moving to a new place, you have a great opportunity to finding out what are good investments (??) of that country. Maybe specifically saying real estate. So when we were in Portugal as an example a few months ago.I checked the real estate investments in there and saw what are the ROI‘s on this – what the (Return Of Investment) is and if I should do it or not. Eventually, I said not to do it. I can’t say it was complicated. It was I didn’t have time for that.

But definitely, If you’re going far for a new place – check that. Maybe you’ll find interesting opportunities. So have a look at that. You might find out that you got really a good ones.

And another thing, What’s the status of your employment?

Meaning, are you a probation period and then what happens with the probation period ending?

Are you hired legally?

Sometimes companies, – they are hiring for a few months until all the paperwork is done. So you need to find out about this. And If not then, How long the setup is going to take?

That’s it for this week. Thank you very much! And join me every week on Monday for LinkedIn and I also have a live session on Wednesday on Instagram. That’s at Free Financial Self.



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