Leaving Australia Permanently Checklist: Moving Overseas

Leaving Australia Permanently Checklist: Your Guide For Moving Overseas

Are you moving overseas from Australia for good? I’ve compiled a “Leaving Australia Permanently Checklist” to help make your move as smooth as possible.

Firstly, congratulations! Moving overseas from Australia is a big step, but one that will result in more freedom, excitement, and adventure for you (I know from first-hand experience). I moved to South America in 2021 and never looked back. It was easily one of the best decisions of my life so far.

If you’re moving overseas, there’s a few things you need to do when cutting ties with Australia. This helps you avoid double taxation and sets you up as a foreign resident for tax purposes.

I’ve listed the key points out below to make your life easier. There’s a lot to cover so grab a pen and paper (and maybe a double espresso ☕), and let’s get to it.

Leaving Australia Permanently Checklist:

1. Get Your Visa or Residency Sorted

The first step on the “Leaving Australia Permanently Checklist” is getting your paperwork in order. Without it, your journey overseas will be short-lived. Thankfully there are lots of visa and residency options available to you as an Australian.

You can either apply for a digital nomad, work, or study visa, or you can often set up a company in the local country and employ yourself. I’ve done this in South America and it gives me a renewable 12-month work visa, with permanent residency and citizenship available after 2-3 years. Of course, this is subject to the rules in your destination country.

A) Research the Requirements

Each country has its own rules for granting visas and residency. Some may welcome you as a digital nomad, while others require work contracts or a substantial investment in the local economy. Once you’ve got a shortlist of best countries to live in you can start researching the visa and residency process for each country (they do vary quite a bit).

• Digital Nomad Visas: Countries like Portugal, Italy, Croatia, Spain, Ecuador, and Buenos Aires offer special visas for remote workers. You’ll often need to show proof of income, work contracts, and minimum income thresholds. These visas are usually for 6-24 months. In some countries the visa process can be quite lengthy (and tedious) so it’s worth getting onto sooner rather than later.
  
• Work Visas: If you’re moving overseas for an international job, you can ask your employer to sponsor you so that you meet the requirements for a work visa. This may include proof of qualifications, language skills, or professional licenses.
  
• Study Visas: If you’re planning to study abroad, confirm your enrolment at a recognised institution, and ensure you meet any financial requirements to support yourself.

B) Gather Necessary Documentation

Before you apply for a visa, you’ll need to prove you meet the requirements. Every visa application comes with a list of documents you’ll need. Start early to avoid last-minute surprises. Some even require apostilles or certified copies of birth certificates (which you might need to FedEx at the last minute for $150+). Yes, it’s definitely a process.

• Proof of Income: Many countries require proof that you can support yourself. You can show this via bank statements, contracts, or pay slips.
  
• Health Insurance: Some countries require evidence of international health coverage before they grant your visa. There are different levels of insurance so check what level of cover is required.
  
• Criminal Background Check: Most visas require a clean record, which means you’ll need a National Police Check from Australia (and it may need to be authenticated).

C) Apply Early, Plan for Delays

Visa processes are often long and unpredictable (with lots of red tape and bureaucracy). Applications can take months to be approved. Start your application well before your planned move to allow for any delays or rejections.

• Time Frames: Research how long your chosen country typically takes to process visa applications (check Reddit for honest recent experiences). Some countries process in weeks, others can take months. Some you can apply for while in the country, and some you have to apply for via a consulate.
  
• Delays: Bureaucracy is unpredictable. Documents get lost, applications get stuck in limbo, immigration lawyers ghost you, and interviews take time to schedule. Prepare for the unexpected (and take lots of deep breaths). It’s all part of the rollercoaster ride.

D) Consider Setting Up a Foreign Company

If you’re wanting more freedom or to live as a digital nomad, setting up a foreign company can be a great solution. Many countries offer tax benefits or simplified residency options for entrepreneurs and business owners. Setting up a US LLC allows you to accept foreign payments via Stripe with minimal currency conversion, and taxes are usually only payable in the country you live in (unless you operate in the US).

• Employ Yourself: By creating a foreign entity and paying yourself a salary, you can meet income requirements for certain visas. This can also offer tax advantages, depending on the country.
  
• Business-Friendly Nations: Countries like Estonia, Singapore, Nicaragua, Panama, and the US offer favourable conditions for setting up a company. Some also have fast-track residency options for business owners.

E) Apply for Permanent Residency or Citizenship by Investment

If you’re a high-income earner who is ready to settle and build a long-term life in your new country, consider applying for permanent residency or citizenship via investment. Lots of countries offer this as an option (referred to as “golden visas”) and the investment can vary from $50-500k AUD.

• Permanent Residency: Many countries offer residency after a few years of living there on a temporary visa. Others, like Spain or Italy, may have special programs that allow you to apply earlier through investment or job creation.
  
• Citizenship by Investment: Some countries, such as Portugal, Malta, Georgia, The Bahamas, and Monaco offer fast-track citizenship in exchange for significant investment in real estate or local businesses.

You can always start with a tourist visa to get a feel for a place before permanently settling. Then, you can apply for a temporary visa, followed by permanent residency or citizenship a few years later. If you spend 3-5 years in a country you’ll often qualify for residency or citizenship. Otherwise you can make a financial investment if you have the funds available. It all depends on what works for you.

It’s like dating. You might not want to marry the country initially; you want to get to know her first, date her, and then make a long-term commitment.

2. Book Your Flights, Long-Term Accommodation, and Set Up an International Bank Account

A) Book Your Flights

Booking your flight is the next step on the “Leaving Australia Permanently Checklist”. It’s one of the most exciting steps of setting up your new life overseas (my favourite!) so enjoy the process. You can either use a travel agent or Google Flights. Book as early as possible to get cheaper flights (not 3 weeks before leaving like I did) to make the moving overseas process as smooth as possible.

• Flexible Tickets: Life is unpredictable, especially during a big move. Consider buying a flexible ticket that allows for date changes in case your plans shift.
  
• One-Way or Return? Depending on your visa type, some countries may require proof of a return ticket or onward travel. However, some don’t. Check what your destination country requires to save yourself a headache on arrival. (There’s something exciting about buying a one-way ticket and jumping into the unknown!).
  
• Travel Insurance: For extra peace of mind, get some travel insurance that covers unexpected cancellations, lost luggage, and emergencies.

B) Book Long-Term Accommodation

Where are you planning to call home? Having a home base overseas will make everything a lot easier (including for tax purposes). Finding somewhere with great services, shopping, and an expat social scene will help you get settled. Find a space that offers freedom, comfort, and adventure.

• Temporary vs Permanent: Depending on your situation, you may want to start with temporary accommodation (Airbnb, serviced apartments, Booking.com) until you get a feel for a place and find something more permanent. Longer term housing is a lot cheaper when you negotiate in person. Plus, there are usually more options available than what you find online.
  
• Rental Contracts: Be sure to get a rental agreement for something more permanent and ensure it’s registered with the local authorities. Meet the landlord and check them out before paying a deposit. It’s worth doing some research to avoid complications later. You can also get a referral from an expat Facebook group. Expats are super friendly and love helping each other out.
  
• Neighbourhood Research: Look into different areas of the city or region where you’re moving. Consider factors like coworking spots, expat communities, local transport, lifestyle needs, and safety.

Finding a solid community makes all the difference to life abroad. It can truly make or break your experience, so I recommend finding a community that shares similar interests to you: language meetups, digital nomads, exercise groups, salsa dancing, Jiu Jitsu, or health & wellness.

C) Set Up an International Bank Account

When moving overseas, you’re going to need an international bank account to move money around and avoid ridiculous ATM fees. However, it’s pretty difficult to set up a bank account in a new country until you have a temporary visa or residency. In the meantime, you can set up a free account with Wise – they have low currency conversion fees and it’s super easy to use.

• Local Bank Account: Some countries require you to have a local bank account to pay bills, receive a salary, or meet visa requirements. Research what documents are needed to open one (passport, proof of address, visa status).
  
• Multi-Currency Accounts: If you plan to move money between countries or keep multiple currencies, look into multi-currency accounts with low fees, such as Wise or Revolut.
  
• Tax Considerations: Opening a foreign bank account may have tax implications in Australia depending on your tax residency. Make sure you’re aware of any reporting requirements to avoid penalties.

This is where the real adventure begins! Once you’ve booked your flights, found your new home, and set up your financial base – it’s time to break up (i.e. cut ties) with Australia.

Moving overseas never felt so good!

3. Sort Out Your Australian Property and Cancel Your Utilities

Next step on the “Leaving Australia Permanently Checklist” Breaking up with Australia Agenda is sorting out your property and utilities. You’ll want to do this once you’re a month or so away from your departure date (unless you’re selling your property as you might need a 3-6 month window to arrange everything).

A) Renting? Give Proper Notice

If you’re renting in Australia, you’ll need to tie up all the loose ends before you leave. Your exit needs to be as smooth as your entry once was (if you want your bond back).

• Notice Period: Most lease agreements require at least 30 days’ notice to cancel outside of the contract term, plus break fees and any rent until the tenant is replaced. Check your lease to be sure of the details. You can always negotiate this if they haven’t adhered to house repairs or requests in a timely manner. And be sure to communicate everything in writing (email is fine).
  
• Final Inspection: Schedule a final inspection with your landlord. Ensure the place is in good condition to avoid losing your bond.
  
• Bond Return: Handle the bond return process carefully. Document the condition of the property to avoid disputes down the track.

B) Own Property? Rent It or Sell It

If you own a home, the decision to rent or sell is significant. Both options have their rewards and challenges.

• Renting Out Your Property: Renting can provide steady income while living overseas, but you’ll need to manage tenants or hire a property manager. Consider the costs, from maintenance to property management fees. You’ll also have to pay tax on the rental income, which as a foreign resident starts at 32.5% and there’s no tax-free threshold.
  
• Selling Your Property: If selling feels simpler, you’ll need to deal with real estate agents, legal processes, and market conditions. Research your options and see what makes more financial sense. Regardless of when you sell it, you’ll be up for CGT if it’s an investment property. Plus, once you become a non-tax resident you’re no longer eligible for the 50% CGT discount. If it’s your primary residence, there are exemptions available.

C) Cancel Utilities

Make sure you’re not paying bills for a home you no longer live in. Closing your accounts with utility providers will save you money and stress down the track (no one wants to call utility providers from a beach in Thailand, right?).

• Electricity, Gas, Water: Notify each provider in advance. Some may require 30 days notice before they’ll cancel you’re service.
  
• Internet and Phone: Disconnect your internet, and switch your phone bill to an annual prepaid subscription. Ensure any final bills are paid so that there are no surprises later. I recommend switching your mobile phone plan to prepaid so that you keep your Australian number (which is super handy for return trips and mobile banking codes). I recently had my Peruvian mobile number disconnected randomly because I’m a foreigner, and I had to get a new number. Luckily, all my banking and security apps are linked to my Australian number.
  
• Yard Maintenance and Cleaners: If you have regular services (gardeners, or cleaners), cancel or transfer them once their services are no longer needed.

4. Cancel Your Memberships

When moving overseas from Australia, it’s easy to overlook regular memberships and subscriptions. These recurring charges may seem small, but they add up over time and can sometimes affect your tax residency.

A) Gym Memberships and Other Subscriptions

• Gym Memberships: Check the cancellation policy. Some gyms require up to 30 days’ notice, so start the process before you leave.
  
• Streaming Services and Newspapers: Review all digital subscriptions—Netflix, Spotify, newspapers, and other services. Don’t let them quietly charge you after you’ve gone. Plus, if you sign-up in a developing country you’ll often get a cheaper rate.
  
• E-Toll Accounts: If you have an E-Toll account, make sure to cancel or close it, so you’re not charged for any toll roads you no longer use.

B) Private Health Insurance

Don’t forget to review your private health insurance policy and check what’s included. Once you’re 100% sure you’re leaving Australia permanently and won’t be needing it, it’s usually best to cancel your premium.

• Private Health Insurance: Contact your provider to cancel. If you’ve prepaid your premiums, ask if you’re entitled to a refund.
  
• International Coverage: If you’re continuing your health insurance overseas, check with your provider to ensure coverage in your new country.

C) Get Your International Driver’s License

If you plan to drive in your new country, you might need an international driver’s license, or you can apply for a local license once you arrive.

• International Driver’s License: Apply for one before you leave. It will make driving abroad much easier.
  
• Local License: Once settled, consider getting a local license in your new country.
  
• Motorbike License: This is easier to get in your destination country (Australia is super regulated). If you’re riding a scooter or motorbike, I recommend getting a license so that you’re covered by your travel / health insurance.

D) Childcare

If you have kids, don’t forget to handle any childcare arrangements, both locally and overseas.

• Cancel Childcare Services: If you have a childcare or nanny service in place, give proper notice to avoid any issues with your final payments.
  
• New Schooling: Check your destination country for schooling and childcare options. Have you thought about whether you’ll send your kids to a public school, international school, or if you’ll home-school instead?

5. Sell Your Car and Other Possessions

Next up on the “Leaving Australia Permanently Checklist” is selling all of your possessions (unless you’re taking them with you when you move overseas). Depending on how much stuff you own, you might need to allow extra time for this. You can sell or donate your items, and take high-quality pieces to Cash Converters (boosting your travel fund!).

A) Sell Your Car

Your car, once a symbol of freedom, may now be a burden if you’re not coming back to Australia (and can also affect your tax-residency). Selling it frees you from future hassles.

• Timing is Key: Cars lose value quickly, so selling it sooner can get you a better price.
  
• Where to Sell: Consider selling through dealerships, private sales, or online platforms like Carsales or Gumtree.
  
• Car Insurance and Registration: Don’t forget to cancel your car insurance and transfer or deregister the vehicle once it’s sold.

B) Sell Large Household Items

Most people either sell or donate their furniture and belongings that are no longer needed (or you can always put them in storage at a relative’s house). It’s a Marie Kondo experience of getting rid of anything that doesn’t bring you joy. You can also put stuff in storage, but it’s not worth the hassle or ongoing fees in most cases.

• Online Marketplaces: Use platforms like Gumtree, Facebook Marketplace, or even host a garage sale to sell what you no longer need. Cash Converters is also an option.
  
• Avoid Storage Fees: Holding onto big items can cost you in storage fees. Let go of anything that won’t serve you in your new life.

You’ll be surprised at how good it feels to let go of all your old possessions. It can be a freeing experience to live with less. Especially when you’re embarking on a new overseas adventure!

6. Update Your Addresses / Set Up Mail Forwarding

Next on the “Leaving Australia Permanently Checklist” is updating your address (unfortunately the admin tasks are pretty relentless).

Want my unsolicited advice? Grab a glass of red wine or kombucha to help you through the tedious steps.

A) Set Up Mail Forwarding

Even when you’re overseas, important mail still needs to find its way to you.

• Trusted Address: You can have your mail forwarded to a relative or trusted friend who can handle it for you (thanks Mum!).
  
• Mail Forwarding Services: Alternatively, you can use a professional mail forwarding service like HotSnail to ensure that nothing is missed. Australia Post also offers a redirection service for up to 12 months to forward your mail overseas.

B) Update Your Addresses

Make sure everyone who needs to know where you are has your new address.

• Banks: Update your bank with your new residential address and postal address to receive important statements and notifications. Set up electronic communications if you haven’t already.
  
• Investment Accounts: Make sure your investment providers (RAIZ, Commbank, NABtrade, Swyftx) have your new home address for tax and account updates.
  
• Superannuation Fund: Notify your super fund where you’ll be living for security purposes. You can still contribute to super while living overseas.
  
• Australian Electoral Commission (AEC): Remove yourself from the voting register if you don’t plan to return anytime soon (this is super important to avoid tax residency issues).
  
• Australian Tax Office (ATO): Inform the ATO that you’re leaving the country and provide them with your overseas address.

7. Get Health Insurance for Overseas

Next on the “Leaving Australia Permanently Checklist” is Health insurance.

A) Medicare No Longer Covers You

Once you leave Australia, Medicare is no longer an option—unless you’re in a country with a reciprocal health care agreement, and even then, it’s limited. You’ll also want to avoid using Medicare on your return trips to Australia to avoid triggering tax residency issues.

• Reciprocal Agreements: Some countries offer basic health coverage for Australians, but it won’t be the same as Medicare. Make sure you understand the limits.
  
• Tax Implications: Using Medicare as a non-tax resident could trigger your tax residency in Australia, which could result in extra tax.

Instead of using Medicare, you can either pay for health insurance in your new country, or put an amount (i.e. $200) into a savings account each month for emergencies and health issues. If you’re living in a developing country (SE Asia or South America), health services are usually a lot cheaper than in Australia. Just be sure to find the high-quality service providers and check Google Maps for reviews.

To give you an idea, I’ve currently got top-quality braces which cost $1,500 AUD (this is 1/4 what I was quoted in Australia).

Plus, if you decide to move back to Australia after 5+ years of living overseas, you can re-enrol in Medicare and access health services.

B) Health Insurance Options in Your New Country

• Local Health Insurance: Research the health care system in your new country. If you’re paying local taxes, you’ll likely be eligible for the local health services.
  
• Private Insurance: In some countries, private insurance is required as part of the visa process, and might offer better coverage or faster access to care. Compare the options available.

Your health is your most important quality. Look after yourself and have a plan in place for if you get sick or have an accident.

I’m covered by local health services as I pay taxes where I live in South America. I also have a savings account for health emergencies. Thankfully I haven’t had to use it yet (except for some blood tests and dental work).

C) Consider International Health Insurance

If you plan to travel frequently or live in multiple countries, international health insurance might be the best option.

• Comprehensive Coverage: International health insurance typically covers hospital stays, doctor visits, emergency care, and even medical evacuation in case of serious emergencies.
  
• Pre-existing Conditions: Check if your insurance covers any pre-existing conditions. Not all policies do, and it’s crucial to be covered for your specific needs.

D) Recommended Health Insurer

• ACS Expat Tax Insurance: This is a great choice for expats needing health insurance coverage overseas. A friend of mine is insured with them and needed hernia surgery a few years ago and it was covered 100%. The premiums are around $120-250 per month depending on your age.

8. Pay Off Any Debts

Next on the “Leaving Australia Permanently Checklist” is to pay off any debts. However, it might be handy to keep access to some of your debt in the short-term for any cash-flow issues that might arise.

A) Clear Outstanding Debts Before You Leave

Handling debts while still in Australia is much easier than trying to manage them from abroad. Check with your bank for any potential issues that might arise when moving overseas.

• Credit Cards: Pay off any outstanding balances if possible. If you need access to a higher credit limit, arrange this before you leave Australia.
  
• Personal Loans: Pay off any outstanding balances if possible.
  
• Mortgage: If you have a mortgage, make sure your payments are set up to continue smoothly, or consider selling the property if you don’t plan to return.

The less ties you have to Australia, the more freedom you’ll feel.

B) HECS-HELP and Student Loans

If you have a HECS-HELP loan, unfortunately you’re still responsible for paying it back, even when moving overseas.

• Inform the ATO: When you start earning income abroad, you must inform the Australian Tax Office. Your repayments will be based on your worldwide income.
  
• Avoid Penalties: Make sure you understand your obligations to avoid unexpected penalties.

C) Protect Your Credit Score

Old debts can affect your credit score. Take care of them before leaving Australia to maintain a good standing with financial institutions.

9. Review Your International Taxes and Australian Reporting Requirements

Unfortunately, moving overseas doesn’t free you from the responsibilities of taxes and reporting. With the right guidance, you can navigate ATO requirements and minimise unnecessary taxes.

A) Consult with an Expat Accountant

Moving overseas can makes your taxes more complicated, but an expat accountant can help you stay compliant and avoid costly issues from arising.

• Tax Compliance: An expat accountant will guide you through the tax rules of both Australia and your new country, ensuring you’re fully compliant. They’ll identify any areas to save tax (legally).
  
• Avoid Penalties: An accountant will help you avoid penalties by managing your international taxes. They’ll also help you stay on top of your Australian reporting requirements while living overseas.

B) Superannuation

Even while living overseas, you may still want to contribute to your superannuation for retirement or investment purposes. Thankfully, contributing to superannuation won’t trigger any tax residency issues. It’s worth looking into, as superannuation earnings are only taxed at 15%. The downside is that it’s locked away until retirement age (usually 60-65).

• Retirement Options: Your new country might have different retirement savings plans. It’s important to consider where you want to retire, and invest in the local currency (which eliminates FX exposure). If you choose Australian superannuation, once you retire and convert into pension mode, your super is tax-free (if you’re a tax resident of Australia). An accountant or financial planner can help you figure out the best strategy.

C) HELP Debt

If you have a HECS-HELP loan, your obligation doesn’t end just because you’ve left Australia.

• Repayment Obligations: When moving overseas, the ATO requires you to declare your worldwide income as long as you have a HECS-HELP debt. You still need to pay back your debt while living overseas. There are different rates and thresholds and your accountant can help with guidance around your repayment obligations.

D) Australian Investment Income

If you have Australian investments—like shares or rental properties—you’ll still need to declare that income while living abroad.

• Australian Investments: An accountant can help you manage rental income, shares, or other investments to ensure you’re meeting your reporting obligations. Most share platforms have rules around foreign residents and there may be limitations placed on your accounts.
  
• Deemed Disposal: It’s usually worth submitting a “deemed disposal” in your Australian tax return when departing Australia. This reduces future capital gains tax (CGT) on share and crypto sales. You take the market value of the shares on the date you depart as if you had sold them. You then pay tax on the deemed disposal, and any future earnings are taxed in the destination country. The good news? Some countries don’t tax capital gains on investments.

Your investments should work for you, no matter where in the world you are. Australian real estate property will always be taxable (even if you live overseas) as it’s considered Australian-sourced income.

E) Tax Treaties

To avoid paying taxes in both Australia and your new country, it’s worth checking if there’s a tax treaty in place.

• Double Taxation: A tax treaty protects you from paying taxes twice on the same income. Your accountant can explain how it applies and help you benefit from exemptions or credits.

F) Tax Residency

Becoming a non-tax resident of Australia is the key to simplifying your international tax situation.

• Non-Tax Residency: Your accountant can guide you through the process of officially becoming a non-tax resident (just follow the steps in this article) and the obligations that come with it.

Leaving behind your tax residency (and cutting ties with Australia) is the first step toward financial freedom abroad.

G) Budgeting for Your New Life

Life in a new country comes with new costs: visa, immigration lawyers, and household expenses. An accountant can help you with a short-term budget when moving overseas.

• Cost of Living: Your cost of living is likely going to be lower than Australia (unless you’re moving to Dubai or Europe). Make a list of your expected living costs, legal fees, and business expenses in your new country. Figure out how much income you need to cover your household bills, savings fund, and investments.
  
• Taxes: The taxes in your destination country will be different to Australia. In most cases, it will be lower (unless you’re moving to Scandinavia). It’s important to work with a local accountant to set up your taxes properly and abide by your visa requirements for a smooth long-term residency process. Not all accountants are created equal, and especially when a foreign language is involved, it’s even more important to get it right. Check expat tax groups for recommendations. I also recommend verifying the information you receive from your accountant / lawyer with the relevant tax authority to avoid misinformation and errors.

By working with an expat accountant, you can focus on the exciting stuff – like building your new life overseas!

That officially wraps up the “Leaving Australia Permanently Checklist”. I hope this article gave you some clarity on cutting ties with Australia and moving overseas.

PS – Good luck with the move!

Want To Know More?

Here at Adventure Tax, we specialise in providing international tax solutions to Australian expats and digital nomads. Navigating tax-residency and overseas taxes can be complicated and stressful. We’re here to make it easier. To find out more, send us an email or book a call with our team.

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