Managing finances and taxes across borders can get complicated fast. This guide covers the key financial issues everybody planning a move abroad should understand, including tax, currency, wealth and healthcare. Whether you're early in the planning phase or already packing, this article will help you ask the right questions before you move.
Moving abroad creates a web of financial complexity that’s easy to ignore, until it catches up with you, at which point it can become very expensive and incredibly stressful.
Whether navigating unfamiliar tax systems, volatile currencies, understanding different investment options, getting your financial setup in order before you move is critical.
This guide is designed for anyone of any nationality planning to move abroad and should help you spot the pitfalls, understand the hidden costs, and take control of your finances when relocating overseas.
Please be aware that this is a general guide and not designed to be used in isolation, you should always seek advice from a trusted professional before making any decisions.
Researching the cost of living is essential, that’s a given no matter whether you’re living abroad or not. But when you’re planning to live abroad it comprises far more than comparing rent, food or eating out.
When you live abroad, you also need to understand:
Currency exchange is one of the biggest hidden costs of expat life and unavoidable.
Imagine this: you’re earning an income in GBP but living in a Eurozone country. Even a small dip in sterling’s value and your monthly budget could take a real hit. The same applies if you’re paid in USD but paying a mortgage in local currency.
Over time, fluctuations can add up to thousands in gains or losses and the volatility in recent years is far greater than we’ve seen in the past.
And it’s not just about rates, it’s how you manage the conversions and money transfers:
Getting professional advice on currency strategy isn’t just for high-net-worth individuals, it’s essential for anyone who wants to protect their income and spending power abroad.
If there’s one thing that causes more confusion (and stress) than anything else for expats, it’s tax, and like currencies, it’s unavoidable.
Every country has its own tax laws, and many don’t align neatly.
Just because you’ve left your home country doesn’t mean you’ll be exempt from the tax laws back home. You may still be subject to income tax, capital gains tax, inheritance tax and more. This is even more likely if you earn an income from or have assets in your home country.
You need to get clear on:
Some countries have double tax agreements (DTAs) to prevent you from being taxed twice, but these don’t eliminate complexity. You may still need to file returns in both countries, and if you miss deadlines or get it wrong, penalties can be severe.
In addition, the tax authorities are communicating more and have access to more information than ever, which means you can’t simply hide and hope for the best.
Cross-border tax planning isn’t just a “nice to have”. It’s a necessity if you want to stay compliant and avoid nasty surprises down the line.
This is where things get even more complex and potentially risky.
Just because an investment platform or advisor is regulated in one country doesn’t mean they’re allowed to advise you in another.
Financial regulations are highly jurisdictional. Once you become a tax resident in a new country, your existing advisor may no longer be authorised to help you, and you may not be able to invest in or open platforms back home.
Key questions to ask yourself:
Before you move, we recommend speaking to an independent wealth manager to give you clarity on:
In short: don’t assume your financial setup will simply transfer abroad with you and get help to avoid unnecessary taxes.
Pensions are another area where things can quickly become complicated, whether investing or drawing income from your pension.
If you're drawing from a private pension, you’ll need to understand how it will be taxed in your new country. Some DTAs allow pensions to be taxed only in the country of residence; others split the rights or let the country of origin keep taxing them.
State pensions often have separate rules. You might:
Also consider whether pension lump sums, withdrawals or annuities will trigger additional reporting. In some countries, tax on pension income is far higher than you might expect.
Opening a bank account abroad can be surprisingly difficult without the right paperwork, especially if you have not yet moved. Many countries require proof of address, tax numbers, and even local employment to open a current account.
Before you move, check:
Sorting your financial infrastructure early on avoids unnecessary fees and delays, while also ensuring you can spend money locally and internationally without facing extortionate fees.
Many countries require proof of health insurance as a condition of residency or visa approval. But even in those with public systems, you may not have immediate or full access as a newcomer.
Key costs to factor into your move:
Some policies become invalid once you leave your home country or change tax residency, so always check the small print.
It’s not just about income, it’s also about how you move money too.
If you’re sending funds between countries regularly (eg for rent, mortgages, or day to day spending), small fees and poor exchange rates can add up quickly.
Banks are typically the most expensive way to transfer funds, while specialist services can offer better rates, lower fees, and more flexible options.
Look into:
If your financial life straddles multiple currencies, optimising how you move money can save thousands a year.
Too many expats try to navigate these issues alone, often because they don’t know where to turn, or because they’re trying to save money.
But international finance is not DIY-friendly, every situation is different and every jurisdiction has its own rules. While the amount of information online is useful, it can often be out of date and it is never aligned to your unique situation.
Getting advice from someone who understands cross-border finance, whether tax, investments, currency strategy or pension structuring, can be the difference between a smooth transition and a financial mess.
And remember, tailored advice is never free. While some companies might offer discovery calls, free consultations or free reports, these will rarely take your entire situation into account nor will they offer you protection against poor advice.
If you want formal, independent advice on your own personal situation which you can rely upon you will have to go through anti-money laundering checks, a full review of your situation and this will cost money.
This article is written for any body moving abroad to raise awareness of the questions you should be asking during your initial planning and decision making. So let’s take a look at a couple of examples of how this might manifest in the real world.
Sarah is a US citizen relocating from California to London for work. Her salary will be paid in USD from the US, and she’ll be living and renting in the UK. What are her top 5 financial considerations?
James is a British semi-retired contractor moving to Tuscany. His income is a mix of UK pension payments, rental income from a property in Manchester (both in GBP) and some self-employed income in Italy (paid in Euros). What are his top 5 financial considerations?
What if GBP devalues by 10%?
James’s pension and rental income will buy less in Italy. If his GBP income was worth €3,000/month, a 10% drop could reduce that to €2,700, potentially affecting rent, food, and insurance affordability unless he adjusts his budget or finds euro-based income.
Moving abroad offers amazing opportunities, but it brings financial challenges that need careful planning. Tax, currency, investments, pensions, and regulation don’t reset just because you’ve changed location. They evolve, and they will become much more complex.
But with the right support, it’s possible to structure your finances for clarity, compliance, and long-term confidence.
Don’t just assume things will carry on as normal. Seek advice before you move, both locally and at home, and build a plan that works in each country.
