Managing money across borders becomes more complex when you move from the UK to Europe. This article explains how banking, investments, regulation and currency exposure change once you become tax resident abroad, and why planning around risk, time horizon and local tax rules is essential for protecting your wealth and day-to-day finances.
Managing money across borders even when making the short trip across the channel to Europe requires more planning than many people expect.
Banking, savings, investments and everyday spending may need to adapt to a new regulatory system, a new currency and a new tax environment. Decisions that felt straightforward in the UK, such as holding cash in pounds or using an ISA for long-term savings, can have different implications once you live in Europe.
This guide is designed to help British citizens approaching a move to Europe understand the key financial decisions ahead.
It explains how banking changes when you live abroad, how UK-based investments may be treated differently, why some European countries have their own tax-efficient wealth structures, and how currency planning affects everything from weekly groceries to long-term retirement security.
With the right preparation, you can avoid costly mistakes and ensure your financial life supports your move, instead of complicating it.
This article provides general guidance only and does not constitute regulated financial, tax or investment advice. Rules vary by jurisdiction and change over time. If you are planning a move to Europe, we can introduce you to a trusted partner for a short, no-obligation discovery call.
Many British citizens assume their banking arrangements will remain the same after they leave the UK. In practice, access to certain banking services can change.
Some UK banks allow customers to retain accounts with minimal disruption, while others may restrict services or require updated residency documents.
Once you relocate, you may need to manage income and expenses in multiple currencies, split between the UK and your new country.
Everyday spending becomes less efficient if you continue to rely entirely on a UK account and card, as transactions may incur foreign exchange charges and fees.
For this reason, many people choose to use a combination of:
Some international banks, including Standard Chartered, offer dedicated accounts for globally mobile customers. Some of these bank accounts can help support multi-currency holdings and transfers, although suitability depends on your circumstances.
The Financial Conduct Authority (FCA) regulates financial services and advice provided in the UK, but only the UK.
When they move abroad, many people are surprised to learn that FCA protection does not automatically apply once they become resident overseas.
Advisers offering cross-border investment or pension guidance may need to be regulated in both the UK and the country where you live. If they are not, you may not be protected by:
This is especially relevant for investment decisions taken after moving to Europe. If you receive advice from an unregulated or incorrectly regulated individual, you could have limited recourse if something goes wrong.
One of the biggest financial changes for British expats is how existing UK assets are treated for tax purposes once they become tax resident in Europe. Below we look at some of the more common UK investment structures and what you might expect when living in Europe.
The tax advantages of ISAs do not typically transfer abroad. In many European countries, income and gains within ISAs may become fully taxable, sometimes annually.
Some funds held by UK investors can receive significantly different tax treatment in Europe, including in some cases taxation of gains on a mark-to-market basis, even if no units are sold.
Pensions are usually taxed based on the domestic law of the country in which you become tax resident and any applicable double tax treaty. Some countries apply income tax and social charges to pension income.
If your pension remains in the UK, you may also continue to be subject to UK tax on certain payments. Whether you can avoid double taxation depends on the terms of the tax treaty between the UK and your country of residence. Understanding where the taxing rights fall, and how to claim relief if needed, is an important part of planning your move.
If you retain UK rental property or other UK-sourced income, you may need to declare it both in the UK and in your new country and then rely on treaty relief to avoid double taxation.
Banking and wealth decisions are closely connected to tax planning.
While tax rules differ across each country in Europe, most European countries have double tax treaties with the UK, which are designed to prevent the same income being taxed twice.
However, these treaties must be applied correctly, and in some situations relief may need to be claimed.
You may also continue to have UK tax responsibilities after leaving the UK, such as income from rental property or pensions.
Changes to the UK’s Inheritance Tax regime from 2025 mean that liability may depend on how many years you were UK tax resident within a 20-year period.
As already mentioned, UK investments that are tax-efficient, such as ISAs, are often taxed differently once you live abroad.
Similarly investments in Europe will be taxed differently if you return to the UK and become a UK tax resident again.
A separate article in this moving to Europe series explores tax residency, double tax agreements, asset treatment and timing considerations in more detail.
Many European countries provide locally tax-efficient investment structures, for example:
However, suitability depends on much more than tax efficiency alone. Factors to consider include:
A product can be tax-efficient while being entirely unsuited to your goals.
Wealth planning across borders puts your objectives first and evaluates tax consequences afterwards, not the other way around.
Currency strategy affects almost every financial decision when relocating to Europe. Even when investments perform as expected, changes in the exchange rate between GBP and EUR can alter the real value of your wealth, income and tax payments.
Below we look at some of the areas that currency fluctuations can have the most significant impact and should be considered in any financial decision making.
If your income or savings are held in a different currency from the one you need for tax payments, exchange rate movement can lead to unexpected shortfalls or overpayments, even when nothing else has changed.
There is no universal rule about whether you should transfer your investments into schemes using the local currency.
The decision will depend on a number of key factors including:
Broadly speaking, the planned time spent outside the UK is a major factor, however it’s vital to understand that plans change. What might start out as a short term plan to live abroad, can easily become indefinite. While indefinite, long term plans can be curtailed by unseen events. The following are typical approaches made by moving to Europe:
In recent years, GBP/EUR has moved through notable highs and lows, falling below €1.10 at some points and exceeding €1.20 at others. For large transfers, property purchases or long-term investment decisions, these changes can make a substantial difference.
Fraudsters frequently target people moving abroad. This is because new systems create tension and unfamiliarity opens the door to people claiming they are trustworthy and are acting in your best interests.
While some practices have decline, the rise of AI and social media means that scams and fraudsters are becoming far more difficult to spot. So, you should prepare yourself and be ultra-cautious of:
Always verify firms on the Financial Conduct Authority Register and take time to confirm regulation in the country where you will be living.
If something seems amiss, avoid signing anything and avoid handing over any money and ensure you fully understand:
Remember, reviews online can easily faked (good and bad) so can’t necessarily be relied upon in isolation. Instead of looking at 5 or 1 star reviews, try looking at the 2/3/4 stars as these are likely to be more considered.
There’s no such thing as too many questions. That gut feeling you have is telling you something isn’t quite as it seems, even if you don’t know what it is. If that means getting a second or third opinion, do it. Take your time and ensure you are entirely comfortable and fully understand the risks involved.
Remember one essential fact: It’s much easier to stop making a bad financial decision before handing any money over or signing a contract, than try to correct it and get your money back.
If you know you are moving to Europe, or are close to confirming your plans, we can introduce you to:
This service is designed for people who are preparing to relocate and want tailored financial guidance.
Submitting your details is free and there is no obligation to proceed with paid advice.
You can either request a general discovery call which will enable you to have a general conversation about your financial situation, or you can choose one or more of our specific introductions here: Request a free introduction and discovery call
