Plan Then Go

Banking, Money & Taxes

Managing money across borders is one of the most practical challenges of expat life. The right setup saves you hundreds — even thousands — per year in fees and simplifies your financial life significantly.

Banking Setup for Expats

Most expats maintain accounts in both their home country and their new country. Here’s why and how:

  • Home country account — keep this active for receiving income (Social Security, pensions, investments), paying US-based obligations, and as a financial safety net

  • Local bank account — essential for paying rent, utilities, and local expenses; many landlords require local bank transfers

  • International-friendly account — Charles Schwab checking (worldwide ATM fee refunds) or Wise multi-currency account

Transferring Money Internationally

Traditional bank wire transfers are expensive — $25–$50 per transfer plus poor exchange rates that can cost you 2–4% of every transfer. Better options:

  • Wise (formerly TransferWise) — the gold standard for expats; uses the real exchange rate with transparent, low fees

  • OFX — great for larger transfers ($10,000+) with competitive rates and no transfer fees

  • Revolut — multi-currency digital bank with free ATM withdrawals up to a monthly limit

US Tax Obligations for Expats

The United States is one of only two countries that taxes its citizens on worldwide income, regardless of where they live. As a US expat, you must:

  • File a US tax return every year, even if all your income is earned abroad

  • Report all foreign bank accounts if combined balances exceed $10,000 (FBAR filing)

  • File FATCA Form 8938 if foreign financial assets exceed reporting thresholds

  • You may qualify for the Foreign Earned Income Exclusion (up to ~$120,000 in 2024)

💡 Pro Tip

Hire a tax professional who specializes in expat taxation. The rules are complex, and mistakes can result in significant penalties. Many expat-focused CPAs work remotely and charge $300–$800 for annual filing. It’s money well spent for peace of mind and potential savings.

Credit Cards for Expats

Keep at least one US credit card active to maintain your credit history. Choose cards with no foreign transaction fees: Chase Sapphire Preferred, Capital One Venture, or the Bank of America Travel Rewards card are all excellent choices. Notify your card issuer of your move to prevent fraud alerts from blocking your purchases.

Your Next Step

Open a Wise account and a Charles Schwab checking account before your move. These two accounts will handle 90% of your international money needs with minimal fees.