Working Abroad: Tax, Banking, and Money Explained

Working in another country creates tax obligations in two places, banking challenges, and currency risk. Here is how to navigate all three correctly.

Moving abroad for work is exciting and financially complex in equal measure. If you do not set things up correctly in the first 90 days, you may face double taxation, frozen home-country accounts, missed pension contributions, and currency losses.

Banking Setup Abroad

• Open a local account before or within 2 weeks of arrival — required for salary
• Keep home country account active — needed for tax returns, pension, and credit history
• Set up a Wise account as a bridge — cheapest way to move money between countries
• Notify your home bank of your move — prevents fraud alerts blocking your account

Tax Residency in Two Countries

Most countries have double tax treaties that prevent you paying full tax in two places simultaneously. The treaty typically means you pay tax where you are resident and claim a credit in your home country for taxes already paid. The critical error is assuming you have automatically left one country's tax system.

Pension Considerations

• UK SIPP/ISA: contributions may still be tax-deductible while abroad with earned UK income
• US 401k/IRA: US citizens must file taxes regardless of location
• Check whether your employer pension transfers, freezes, or gets lost on exit
• Track all pension pots across countries — many expats have forgotten multiple pensions