Overseas Bank Accounts Offshore Bank Account Tax More

Those who are considering retiring abroad and living overseas often have questions about money management. Opening overseas bank accounts may be a good idea for you, and an international or offshore bank account can be a convenient and legal way to handle your finances while living overseas.

Overseas Bank Accounts When Retiring Abroad

Countries that offer retirement visas to retirees living overseas often require that these retirees open and maintain a local bank account. Setting up an offshore bank account before you even enter your destination country can provide you with convenient access to your money once you do arrive. Before you leave home, you’ll want to ensure that you have access to your pension while living overseas.

Overseas bank accounts, debit cards and an offshore bank account can keep you in contact with your money, but you’ll also need to make sure that your insurance and your will are both legally applicable while you are living overseas. Talk to your health insurance and property insurance providers if you plan to maintain ownership of your property in the United States, since retiring abroad may affect the details of your coverage.

Paying Taxes While Living Overseas

If you are a U.S. citizen who is living overseas but not working in your country of residence, you will most likely be obligated to pay U.S. income taxes on any income you receive, such as pension or investment income.

You may also be obligated to pay local taxes if your visa permits you to work and you are collecting a local income. If you’re working and paying taxes in both countries, you may be eligible for a deduction. Contact your tax advisor for details.