Move abroad.

When you move abroad, it’s not just about packing your bags and booking a flight. You need to tackle the legal and financial side of things, which, trust us, can get a little nerdy—but we’ve got you covered! Here are the critical things you absolutely need to consider:

1. Deregistering from Your Current Authorities: When you leave your home country, you’ll need to officially deregister from your local tax and municipal authorities. This is crucial because failing to do so can leave you with a hefty tax burden, even if you’ve already moved.
For example, in Germany, if you don’t properly deregister, they can keep taxing you on your worldwide income for years—even if you’re living in a tax-free paradise like Dubai. Talk about an uninvited guest! So, make sure you follow the right steps and avoid paying taxes for a place you no longer live in.

2. Tax Residency Status: Becoming a tax resident in a new country isn’t just about unpacking your suitcase. You need to be physically present in a country for 183 days or more to be considered a tax resident. This is a rule in most jurisdictions, but of course, check your destination’s specifics before you assume you’re golden.
Some countries, like Cyprus, have tax treaties with over 60 countries, including the UK and the US, which means you won’t get double-taxed. That’s a major win for your wallet, especially if you’re moving from a higher-tax country. Understanding where you’re considered a tax resident can help you save big on income taxes, dividends, and capital gains.

3. Domicile vs. Residency: This is where things get tricky. Domicile is your permanent home, while residency is more about where you’re living temporarily. The problem is, many people confuse these two, and it can have serious tax implications. For example, even if you’re no longer living in your home country, if your domicile remains there, you could still be taxed as if you were living there.
This means that you need to consider both your residency status (for taxes and benefits) and your domicile (for long-term legal implications).

4. Exit Taxes and Capital Gains: Some countries impose an exit tax when you leave. In the US, for example, you could be taxed on your worldwide assets when you expatriate. That includes capital gains from investments and even your home!
On the flip side, countries like Malta offer more lenient exit tax rules, which can make relocating easier for entrepreneurs and investors looking to liquidate assets or move funds without being taxed to oblivion. Understanding this can help you avoid nasty surprises down the road.

5. Health Insurance and Social Security: One of the most important aspects of relocating is figuring out how your healthcare and social security benefits will work once you’re in a new country. For EU citizens, the good news is that reciprocal healthcare agreements make it easier to access medical services across the EU—meaning you won’t be stuck without coverage if you move to a neighboring country.
However, for expats heading to places like the UAE, things can be more complicated. The UAE doesn’t have a public healthcare system, so you’ll need to get private health insurance to cover your medical expenses. Be sure to budget for this, as insurance costs can add up quickly.

When it comes to picking the perfect new home base for your business or lifestyle, there are a few key factors to weigh—so grab your calculator, your passport, and let’s dive into the details!

1. Tax System: The Secret Power-Up: The right tax system can feel like unlocking a hidden level, offering you massive advantages. Here’s a peek at some of the best options:

• Cyprus: With a corporate tax rate of 12.5%, Cyprus is a favorite for entrepreneurs looking to save big, especially on foreign income. Plus, there’s no inheritance tax—so you can pass on wealth to the next generation without worrying about a heavy tax bill.
• Portugal: Portugal’s Non-Habitual Resident (NHR) program offers huge perks, including tax exemptions on foreign income for up to 10 years. This means you can avoid paying taxes on pensions, dividends, and other foreign-source income. Sweet deal!
• Dubai: Say goodbye to income tax altogether—Dubai offers a zero income tax policy, making it a top pick for high earners and investors.

2. Cost of Living: Saving or Splurging? Living costs can seriously impact your financial freedom, so let’s do a little comparison:

• Portugal: Lisbon’s average rent for a one-bedroom apartment is around €800/month. When you add in groceries, transportation, and healthcare, Portugal remains one of the most affordable European destinations.
• Dubai: A similar apartment in Dubai can cost around €1,500/month, not to mention the higher cost of eating out and transportation. But with zero income tax, it may still offer a good return on investment for your lifestyle.

3. Healthcare: Protecting Your Health & Wealth: Access to healthcare is crucial—whether you’re enjoying a sunny beach in Cyprus or exploring the urban landscape of Lisbon:

• Malta: Residents can access free public healthcare, which is comprehensive, though some services may have waiting times. If you prefer faster treatment, private insurance is an option.
• Dubai: Healthcare in Dubai is top-notch, but you’ll typically need private health insurance. Premium plans can be pricey, but they provide access to world-class doctors and medical facilities. If you’re a business owner, many employers provide health benefits, but it’s something to factor into your budget.

Moving abroad can feel like navigating through a giant maze of tax laws, visa requirements, and compliance forms. But don’t worry—Nerdy.Money is here to help you unlock the best path forward. We’ve built a streamlined digital platform to guide you through every step of the relocation process—from personalized tax advice to managing your legal and financial responsibilities.

At Nerdy.Money, we’ve built a one-stop platform that connects you with all the resources you need for a seamless international move. Need personalized advice? Book a consulting session with one of our nerdy experts. Ready to take action? Set up your company abroad directly through our platform, with full legal, tax, and accounting support to keep you on track.

Ready to level up your global adventure? Visit our services to explore how we can help you make your move smarter, faster, and more efficient than ever before!