When moving to a new country, there are several things you should do before relocating. Here is a simple checklist of some of the key things to take care of before moving to the US:
1. Research your destination city
- Learn as much as possible about where you will be living. Visualize the life you’d like to lead for the first few years. For instance, do you want to live in the city or the suburbs?
- Shortlist areas and communities you want to live in. Research key attributes such as distance, availability of transport, and rental prices.
2. Find short-term accommodation and a rental car
- Ensure you have short-term accommodation for the first few weeks of your stay. Your employer/college may provide you with options. If not, you can choose from friends/family, Airbnb, or a hotel.
- Make arrangements for a rental car for the first few weeks. A car is a necessity in most cities in the US
3. Decide how you will pay for the first few weeks in the US
- Salaries in the US are usually paid every other week. You will need a means of spending for the first few weeks while waiting for your salary to get deposited. Here are some options to choose from:
- Use your debit/credit card: Ensure your card uses a global network such as Visa or Mastercard. Check if there are foreign transaction fees on the card. You may have to close your resident credit card before moving. Check with your bank to make sure you are compliant with the terms of use
- Use a Forex Card: Your local bank might offer a foreign currency card that works in the US. It might be easiest to load funds on such a card for use when you travel. Or, you could check out Wise’s multi-currency account here
4. Convert resident bank accounts to non-resident
In India, Nonresidents need can have two kinds of bank accounts:
Non-Resident Ordinary (NRO) to manage income earned in India. Convert your existing accounts to NRO.
- There are limits to how much of your existing funds can be transferred abroad.
- Interest earned can be repatriated in full. The principal amount is restricted to the levels set by the Liberalized Remittance Scheme (up to $250,000 per year per PAN).
- Interest is taxed at 30% (can be offset while filing taxes in the US)
Non-Resident External (NRE): to manage income earned abroad.
- This allows you to transfer funds from the US to India, and enjoy full repatriation benefits.
- These funds are tax-exempt in India (Tax will still be due in the US)
- It is illegal for a non-resident to hold a resident account in India. People who miss this step are non-compliant with the law. They also have the hassle of requiring an Indian phone number to maintain these accounts.
- If you have several accounts, consolidate them into one bank with good online banking
- It is straightforward to convert your accounts to NRO. Talk to your local bank representative or complete it online. Here are the links for some of the leading Indian banks: Axis Bank, ICICI Bank, HDFC Bank & SBI
- The bank will also convert any linked investment account held into NR. Visit the bank websites for further details.
5. Take care of your existing services such as phone, cable, utilities
- Decide if you want to keep your phone number open. You may need it if you plan to continue using services that need an OTP. If you do, consider moving to an inexpensive plan, and using an appropriate dual sim phone.
- Disconnect cable/utility subscriptions and close these accounts
- Update the address on accounts such as phone, insurance, PAN, and Aadhar.
- If required, update or redirect your mail to a different address within India
6. Get a US phone number
- Ensure your mobile phone will work in the US.
- You will need a US phone number with a data plan, even if it is temporary, to open accounts, receive OTPs, use Whatsapp, etc.
- You can get a pre-paid US SIM card in several places, including in most international airports.
- The temporary phone number can sometimes be converted to a permanent account once you land in the US
The process of moving countries can be overwhelming. With proper planning, it is possible to make the process easy and even enjoyable.
