Brenda is our Customer Solutions Manager based in the UK, having previously worked in both our Mexico and Prague branches. She has over seven years of experience moving families around the world.
“Moving to a new country isn’t just about packing boxes—it’s about moving your entire life. I know this first-hand, having lived in five different countries myself. Each relocation came with its own challenges—new cultures, immigration processes, finding a home, and settling into a new way of life.
That experience shaped me, and today, it’s what drives my passion for helping others through their own journeys. After all, moving abroad is on the top 5 more stressful things any individual/family will go through. but it is equally rewarding as it’s a blank new page to right a new chapter.”
Relocating from the UK to another country is an exciting opportunity, but financial planning is essential to ensure a smooth transition.
The cost of living can vary significantly depending on your destination, and understanding key financial considerations can help you make informed decisions.
In this blog, we shine a light on some crucial insights for UK expats to keep in mind when planning their move.
1. Cost of Living Comparison
Before making the move, research how the overall cost of living in your destination compares to the UK. Some countries, like Australia, Switzerland, and the USA, may have a higher cost of living, while destinations such as Portugal, Thailand, or Mexico can be more affordable.
Online cost comparison tools can help you estimate expenses, including rent, groceries, and transportation.
2. Housing Costs
Renting or purchasing a home abroad may come with unexpected costs. Some countries require larger upfront payments for rental deposits, agent fees, or legal costs. Property prices can also vary dramatically—while London is known for its high housing prices, cities like Berlin or Lisbon may offer more affordable options. Always research the local real estate market before committing to a move.
3. Taxes & Social Security
Understanding the tax system in your new country is crucial. Many countries have different income tax rates, and some may have higher social security contributions that impact your take-home salary.
Additionally, the UK has double taxation agreements with certain countries, which may prevent you from being taxed twice on the same income.
Consulting a tax professional can help you navigate this process. It’s also essential to look into expat insurance policies that can provide coverage for unforeseen circumstances.
4. Healthcare Expenses
The cost of healthcare can vary significantly depending on your destination.
Countries like Germany and Canada offer state-funded healthcare, while in places like the USA, private health insurance is a necessity and can be expensive.
Ensure you understand your healthcare options and budget accordingly for medical insurance and expenses. Accessing healthcare in a new country can be complex, so research local regulations and ensure you have the necessary coverage before you move.
5. Currency Exchange & Inflation
Exchange rate fluctuations can impact your finances, particularly if you are earning in GBP but spending in a foreign currency. Additionally, high inflation in some countries may erode your purchasing power over time. Keeping an eye on economic trends and considering international banking options can help mitigate financial risks.
6. Cost of Everyday Essentials
Daily expenses such as groceries, dining out, and utilities may differ from what you’re used to in the UK. Some countries impose high taxes on imported goods, making everyday items more expensive. Additionally, transportation costs, including fuel, public transport, and expats car insurance, should be factored into your budget.
7. Work & Salary Expectations
If you are relocating for work, researching salary expectations in your industry is important. Some countries have a higher cost of living but offer higher wages to compensate. Ensure your income aligns with your financial needs to maintain your desired lifestyle. If you are undertaking projects abroad, it’s important to factor in contract terms, payment structures, and any additional relocation expenses.
8. Lifestyle & Entertainment Costs
Moving is one thing, but establishing a life in a new location is another! Leisure activities, gym memberships, and social outings may be more or less expensive depending on where you move.
Some cities, such as Dubai or Singapore, have a high cost of entertainment, while others offer more budget-friendly options. Consider these factors when budgeting for your new life abroad.
9. Schooling & Education Fees
For those relocating with children, education costs are an important consideration. While some countries (Germany or Sweden, for example) offer free public schooling, others require significant investment in international or private schools. Researching schooling options and associated fees will help you plan for your family’s future.
10. Relocation & Setup Costs
The process of moving abroad involves additional costs, including shipping belongings, flights, visas, and initial deposits for housing. If you need to purchase new furniture, household essentials, or a vehicle upon arrival, these costs can add up quickly. Budgeting for these initial expenses ensures a smoother transition. Additionally, securing expat life insurance can provide peace of mind by protecting your finances and loved ones during your time abroad.
Final Thoughts
Planning a move from the UK involves more than just securing a visa and packing your bags. A well-thought-out financial strategy will help you adjust to your new home with confidence. By researching the cost of living, taxation, and essential expenses, you can better prepare for the financial realities of expat life and enjoy your international adventure to the fullest.
We have several moving guides that detail location-specific information, which you can find here.
