Expats urged to do their financial homework before committing to move abroad

18 Jul, 2019

18 July 2019 Immigration is a hot topic in the UK right now, however it’s easy to forget how many British expats reside in the EU.

According to data from the United Nations, there were just over 4.5 million Brits living abroad in 2017, with 1.3 million residing in EU member states. Whilst this number is thought to have fallen slightly since the Brexit negotiations began, it remains a significant number.

One of the key challenges for expats is managing their money when relocating, and understanding what they can do to ensure their finances are adequate, safe and accessible.

Here are three tips to help anyone thinking of relocating to Europe:

  • Set Clear Financial Goals

If you relocate abroad, the chances are that you’ll seek out guidance from the likes of Withers Worldwide an immigration and relocation specialist.

By the same token, it makes sense to take some professional financial advice when looking to manage your funds as an expat, this will help you to set your goals and ensure you have sufficient funds for your new life overseas.

You should also get an understanding of international currency fluctuations, which can impact on your financial goals when switching funds between different currencies.

If you do your homework you won’t be in for any nasty surprises and associated stress and more likely to enjoy your new life abroad.

  • Understand the Tax Implications

One of the most common misconceptions surrounding expats is that they immediately exempt from their home nation’s tax system, but it’s not as cut and dried as that.

For example, an expat who is longer classed as a UK resident may still be responsible for the tax levies on profits generated by a business or property located in the UK, whilst the same principle applies to accrued pension income.

This creates a complex tax situation, and one that may require you to pay levies both at home and abroad, therefore take some advice from an expat tax specialist before you u sticks and leave the UK.

  • Checking the Local Cost of Living is Vital

If you’ve relocated for the purpose of work, the chances are that your earnings may be similar to what they were in the UK.

The same cannot necessarily said about the cost of living, however, which can vary dramatically from one country to another and have a significant bearing on your disposable income levels as an expat.

So, before you relocate, you should carry out some research on your chosen destination, and look to factor in any cost increases or potential savings on your monthly budget,

This type of proactive approach can be really rewarding and reduce worry and stress, especially if you’re looking to manage your money carefully and save for the future.