Monday, June 28, 2010

Expat Experiences: Bali, Indonesia - Mike Henry

Who are you?

beach

My name is Mike Henry and I am currently living on the island of Bali in Indonesia. I am originally from Melbourne, Australia.


Where, when and why did you move abroad?

I have actually been living overseas for most of my life, including 10 years in Japan, two years in China and now about one year in Bali.

I moved to Bali because I wanted a change in lifestyle. Ever since the first time I visited Bali, I knew I wanted to go back again for a longer period of time. There are so many great things about Bali including the culture, the people, the tropical weather and the many different places to visit in Bali.


What challenges did you face during the move?

Indonesia's bureaucracy can be difficult to deal with, especially immigration. Fortunately there are agents that can help you to get the right visas.

I moved to a village in Bali, so it was difficult to get internet and there was no chance of getting a telephone line. I had to get a post office box as it wasn't easy to get mail delivered to our house. Last year there were rolling blackouts once every ten days and we often had problems with the town water. It was good in a way, as I learnt not to take these things for granted.


Can you tell us something about your property?

I found my first house through an agent. When that lease expired I rented a house from a friend and it was much cheaper than going through an agent. In Indonesia you usually have to pay one year's rent in advance


What is the property market like at the moment?

The property market particularly in the south of Bali is really booming right now. Property prices are rising steadily. If you move out of the main tourist areas though, you can find more affordable accommodation...

Read more at http://www.expatfocus.com/expatriate-indonesia-experiences-mike-henry

Expat Experiences: Bulgaria - George St Clare

Who are you?

British Lion Food Store
British Lion Food Store

My name is George St Clare and I currently live in Balchik on the Northern Black Sea Coast of Bulgaria. Prior to Bulgaria, I have worked in the computer field in the UK and Qatar, computers and real estate in Russia and real estate in Malta. In Bulgaria, I run three companies - GPS systems, real estate and specialised British Food.


Where, when and why did you move abroad?

My move to Bulgaria took place at the end of 2004 from Malta. The real estate market was not really moving there at that time and there appeared to be good opportunities in that area in Bulgaria. Malta is a small island and having driven round the whole island many times in a couple of hours, it was beginning to become a lot less interesting than it had been! I am now married to my fourth Russian/Ukranian wife whom I met in Balchik.

Both the real estate and GPS markets waned with the financial crisis in 2008 and that is when I decided to move into specialised British Food. I run the British Lion Food Store in Balchik. I am pleased to say that we have the largest selection of British food in Bulgaria (around six hundred different food products) and have also branched out into selling DVDs and Books. Having lived in Russia for seven years and speaking fluent Russian, I find that the culture here suits me better than the Middle East or Malta. Virtually all Bulgarians speak Russian or at least understand it, so that is very helpful, although my Bulgarian is very basic. I did actually come out to Sofia in Bulgaria in 1977 as part of my Russian degree course and always felt I would be back!


What challenges did you face during the move?

Bulgaria is a country of challenges! The first challenge was to actually get my personal belongings imported into the country - this took two months and frequent visits to customs posts in three different towns. The mentality here is very different to that in the West and the bureaucracy is particularly stifling. This would be acceptable if the procedures were the same in every area, but each area seems to have different "rules". I had thought things would be simplified after entry into the EU in 2007, but that has proved to be very far from the case...

Read more at http://www.expatfocus.com/expatriate-bulgaria-experiences-george-st-clare

Wednesday, June 23, 2010

Expat Experiences: Costa Rica - Deb Klipper

Who are you?

Deb Klipper
Deb Klipper

I am Deb Klipper and I have been joyfully married to my best friend Rob for 28 years. I am 58, he is 62. I left a job as a Special Educator in San Antonio Texas and he retired from a job as a biomedical researcher. We have two grown daughters and two granddaughters all living in the USA. Here in Costa Rica, we have a wonderful adopted yellow Lab named “Dude” and an adopted Calico cat named “Sarita”.


Where, when and why did you move abroad?

We vacationed in Costa Rica for 3 weeks during the summer of 2002. With a rental SUV, we traveled over 2000kms. As we sat in our hotel room the night before our departure we were both in tears. We did not want to leave this place where we felt the level of peace and connectivity that we did. The seed was planted.

Once back in Texas, we began researching all things Costa Rica, how to obtain residency, how to begin the retirement process for my husband, how much pension he would receive and determine If we could afford to do this, get our home ready to sell and prepare all family and friends of our intention to move to Costa Rica.

All our married life Rob said “When we retire I want to live in a tropical country.” He was born and raised in Panama as a result of his father working as an electrician on the Canal. Rob had fairly good Spanish speaking skills, we both loved the idea of a warm year round climate and Costa Rica possessed the values most aligned to ours.

That being a non-militaristic Democratic government, no civil unrest, socialized medical system, and a cost of living that a retirement income could more readily afford. Additionally, we were both very weary of the “fear and paranoia” that the post 911 terrorism events created in the states. We were unhappy with the involvement of the US in the “war without end” and all the tax dollars supporting it. Costa Rica would become our asylum from the negative climate in the USA.

With house sold, following three garage sales, boxes packed and labeled, shipper and customs broker arranged, residency paperwork translated, stamped and ready for the Migracion officials, we boarded our plane for Costa Rica, having no idea where we would live upon landing. Our leap of faith had begun...

Read more at http://www.expatfocus.com/expatriate-costa-rica-experiences-deb-klipper

Tuesday, June 22, 2010

Financial Planning Issues for Expats Moving to the USA

There are numerous issues that need to be addressed when moving to a new country and it seems the more “developed” your new country of residence, the more important it is to understand and follow regulations.

sipp ira 401k qrops us investment portfolio management.jpg Individual Asset Management provides financial planning services to non-US citizens living and preparing to live in the United States, and I have identified seven topics that anyone moving to the US should consider:

1. Visa / citizenship issues
2. Reporting and taxation of non-US financial accounts
3. Obtaining loans / credit history
4. Pension transfer
5. Investment management
6. Estate tax
7. Education and retirement savings plans

We cannot delve into any great detail on these topics here – my purpose in this article is to highlight why each issue is important so that the reader can decide whether his or her specific situation warrants seeking further counsel.

1. Visa/citizenship issues: Entire books have been written on this topic and there are many legal firms in the US that specialize in the business of obtaining work visas, permanent residency (Green Card), and citizenship.

There are a number of avenues through which it is possible to obtain permission to live and work in the United States. Broadly speaking, it is possible to obtain a work visa, and ultimately permanent residency, through employer sponsorship, by completing a course of studies at a US institution of higher learning, or by investing in a business or an economic-development zone. There are also paths to residency for certain groups of individuals such as asylum-seekers, family-sponsored individuals, people with exceptional talents, and Diversity Lottery winners.

The bottom line is that if you have substantial funds to invest in the US or a valid business idea, are willing to study at an American university, have an exceptional and recognized talent, have family connections, or fall into certain specialized categories; then a good immigration attorney can likely find you a path to working and living in the United States.

2. Reporting and taxation of non-US financial accounts: Many non-US citizens, especially if they have been working outside their country of citizenship for some time, have acquired investment accounts in offshore jurisdictions. It is important to understand that, while you are allowed to have non-US financial accounts while living in the United States, you need to report these accounts to the US Treasury department every year if the total of the accounts amounts to more than $10,000. The form used for this is Treasury Department form TDF 90-22.1 – if you do a web search for this it will come up with links to the form and instructions. The penalties for not completing this form can be steep so I highly recommend looking into this and reporting all your financial accounts, including certain non-US pension accounts.

A further issue of great importance is the taxation of non-US accounts while you are a US tax payer. The US tax code is ridiculously complex and there are numerous gray areas so you should seek the assistance of a US tax professional familiar with expatriate tax matters – most US tax advisors are not knowledgeable in this specialized area.

If you do have offshore investment accounts, I would highly recommend that you do some tax planning several months before you move to the US. For example, it may be to your great advantage to establish a higher tax basis for your offshore investments before moving to the US since you may be liable for tax on any distributions you take from these accounts while a US resident based on the total gain of the underlying investments – not the gain from the time you entered the US – the total gain from inception. Furthermore, it is possible that you may be liable for US tax on the growth in your non-US accounts, even if you don’t take distributions. A little tax planning can go a long way in such a situation...

Read more at http://www.expatfocus.com/financial-planning-for-expats-moving-to-the-usa

Wednesday, June 16, 2010

Expat Experiences: Australia - Jennifer Tice

Who are you?

Jennifer Tice


Jennifer Tice – Former Marketing Manager and now travel blogger at www.jennifertice.com


Where, when and why did you move abroad?

I decided I needed a big change in my life, sold all of my belongings and headed overseas for an indefinite period of time. So far stops include two weeks in New Zealand, one year in Australia, and then off to Asia.


What challenges did you face during the move?

I found that once you really commit yourself to the trip things seem to fall into place. At first it was difficult to sell all of my belongings, but after a while it became a very freeing experience, and a good way to get some extra cash for traveling.


Can you tell us something about your property?

Since I have been moving around Australia every few weeks/months, I have stayed in a variety of places. Hostels for places where I am only staying for a few weeks, and then share apartments for longer stays. Gumtree.com.au is the best resource over here for looking for short term accommodation.


Are you employed or self-employed? What challenges did you face in either finding employment or running your own business?

Jennifer Tice

Finding a job abroad is all about timing, and knowing what skills you have that are applicable to vacant jobs overseas. I first found work with a temp agency for office placements which was great. Not long term contracts, but good to start getting a few days/weeks of work here and there. Then I worked in hospitality at a restaurant in Sydney for about 4 months – if you are looking to work in this field, everyone hires like crazy during November. After that time period it is going to be a lot harder to find work...

Read more at http://www.expatfocus.com/expatriate-australia-experiences-jennifer-tice

Wednesday, June 09, 2010

Expat Experiences: France - April Hollands

Who are you?

View of La Clusaz village and surrounding peaks from the La Balme  peak

I'm April Hollands, originally from Melbourne, Australia before spending a few years in London, then flitting between the French Alps as a ski bum in winters and working two jobs in Cambridge to pay for the luxury, then finally moving to the French Alps permanently and finding work.


Where, when and why did you move abroad?

I moved to London back in 2000, telling my mum I'd be back in a year and to look after all my belongings for me. By 2008, my dad made me sell my piano and my mum had a spare room! I've moved ten times in ten years. By the time I moved to my current location, St Jean de Sixt, in November 2009, the whole process of moving had become a habit. I left Australia because I wanted to explore the world before I settled down with someone. I left England because I fell in love with the snow in the French Alps. I went back to England, gained citizenship and a passport, and came straight back to France.


What challenges did you face during the move?

For the move to England, the toughest thing was realising that speaking the same language does not mean the transition will be easy. Different administrative processes, personal space and different words (thongs, pants are both items of underwear in the UK and outerwear in Australia) were all challenging to come to grips with. For the move to France, the language was by far the biggest challenge — and remains so to this day. Paperwork comes in a very close second...

Read more at http://www.expatfocus.com/expatriate-france-experiences-april-hollands