Director MBMG Investment Advisory
Leaving on a Jet Plane - Returning Home
If your stint as an expat is coming to an end, there are
several things to bear in mind.
Whilst leaving your home country to work abroad takes a lot of planning, it
can still seem like an adventure, no matter how many times you do it.
Planning for the move back home, however, may not seem as inspiring and can
easily be overlooked. If you are going back home, there are certain things
to take into account.
Retirement planning may be affected by the jurisdiction in which
you are resident. If you are returning home, you may no longer receive
certain expat tax advantages, for example. It’s important to consider
whether you want to continue paying into your current retirement plan or
make new arrangements in your home country.
Income, investments, savings and tax
Returning home could have implications for your investments and
savings too - certain products are only available if you are resident of a
Of course, this may also affect your tax situation, as your income could
come under a different regime. It is vital to consider in which jurisdiction
you will be entitled to receive your salary or other income. Will you be
obliged to be taxed in your home country? If not, which is the most
preferential place to be paid?
Also, if you hold assets or have bought property as an expat, there will be
tax implications either in the country where the property is owned or even
your home country. Residency tests can be complicated and vary according to
If you’re opting for a private school for your children, or
they’re planning to go to university, it’d be wise to draw up a financial
plan make the costs easier to swallow.
If you’ve closed your bank account in your home country, you may
no longer have a credit history. Just in case, it could be worthwhile
keeping an offshore bank account open until you’ve been able to open a new
account at home.
It’s important to be sure that your current life, health and
other insurance policies are valid and relevant in your home country. You
may find that you’ll need to change policies so that you’re covered as well
as you’d like to be at a cost-effective price and so that you’re eligible
for the relevant tax breaks.
Moving your things back home needs careful planning so that they
are properly covered by freight insurance and have an accurate description
and declared value. This isn’t merely to ease compensation or replacement in
the event of any breakage or loss; it also enables you to make informed
decisions regarding your tax planning.
Earning in local currency may simplify life while you’re an
expat. However, when you go home it could expose you to possible
fluctuations in currency values if you intend to repatriate some or all of
your cash assets. There are solutions available to limit this exposure,
Ask an expert
To help you plan your repatriation, it’s best to consult an
independent, impartial advisor. An advisor can point out the most tax
efficient way to deal with your investments, retirement plans and foreign
While every effort has been made to ensure that the information
contained herein is correct, MBMG Group cannot be held
responsible for any errors that may occur. The views of the
contributors may not necessarily reflect the house view of MBMG
Group. Views and opinions expressed herein may change with
market conditions and should not be used in isolation. MBMG
Group’s Personal Advisory team is on hand to advise you on
planning your next move. For further details please contact us
by e-mail on [email protected] or call +66 2 665 2536.