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Originally Posted by phamilyman Ah, you're focused on convenience, while turbanator wants to avoid hassles. |
In my case there is a bit more to it than just convenience. As I said, in many countries you actually do need a local bank account. For instance to receive a salary. There are also cases where you might have to prove you actually live in that country (and not just for tax purposes) and then having a local account showing that you spend money in that country, pay rent, utilities, insurances and do shopping. It won't look so good if you show up with an overseas bank statement.
These days with electronic banking and statements it's relatively simple and easy to have all the information you need for your tax declaration. What is useful to figure out per country, in advance, what it actually is, what format, what info etc. So for instance for my Dutch tax I need the total amounts on all my accounts worldwide, on the 1st of January and 31st of December, interest is not taxed. But for my US tax I need to have the highest amount on the worldwide accounts during the fiscal year and the interest.
In India the fiscal year runs different from the calendar year! Many banks can get you the information. You just have to ask for it. So a single mail to them, might get you the information you require as. My current resident status in India means I only need to declare my Indian income and bank details. But as from next year that becomes all my "worldly belonging", due to the length of my stay in India.
The other thing is I have found very useful, having accounts in multiple countries, it can save me substantial money. When we lived in the Netherlands, we used to take the ferry Hook of Holland to Dover every month to visit our house in Suffolk. For some reason the exact same trip was 10% cheaper if I bought it online on the Stenaline UK website, compared to the Stenaline NL site. But you need to have a local debit card. Credit cards, especially in Europe often occur additional charges. And they are tied to one physical address. To date you will find online sites that won't allow you the use of a "foreign credit card".
Same story here in India with the Delhi-Amsterdam KLM flight. There is often a substantial difference in fare. Sometimes the Dutch site is cheaper, sometimes the Indian one is. Never found any logic in it. But in order to get the best fair on the Dutch KLM site you need to have a local debit (bank card) to be able to use the Dutch Ideal banking transfer system.
We will visit my mother in law in Barbados for our Christmas holiday. We have a few accounts there. Overall it works out considerable cheaper to transfer our holiday budget to that account and use our local debit cards and cash withdrawn from the local ATM's. By doing so, you only have transfer cost once and you get the best exchange rate as well.
If you like buying things on line, you might find that sometimes there are restrictions, or even dedicated websites set up per country/region. For instance, on iTune you will get different content depending where you sign up.
Although I don't mind paying taxes perse, doing the taxes paperwork is not my favorite past time. But getting the relevant information from the banks has been the relative easy part I find. For the last eight years I have had to file tax declarations in multiple countries, usually three. Hopefully I don't need to file in the US anymore as from next year onwards, because by then it will have been several years since we left. Which is a big relief because the US tax declaration is actually three different ones in itself. In our case it consisted of filing in Kansas (because that's where my office was and thus salary paid from), Missouri (because that's where we lived) and then finally there is a federal declaration.
Jeroen