Whether it’s the lower cost of living, new opportunities in work and retirement, or simply sunnier climates, moving abroad can offer many advantages. But once you’ve settled into your new life overseas, financial efficiency becomes just as important as enjoying the sunshine.
From understanding local tax rules and buying property to managing foreign assets and planning how to pass them on, expats face unique financial challenges that can quickly become complex.
A UK-based financial planner is unlikely to be equipped, regulated, licensed, or certified to guide you through all the tax rules local to your new home. Indeed, there are specific regulations in place that only allow financial planners and advisers to give advice in countries where they are authorised.
That’s why it’s important to work with a planner who understands the rules in both your country of residence and the UK.
Read on to discover six ways you could benefit from having a local financial planner.
1. Remaining tax-efficient
Local tax laws will most certainly differ significantly from those in the UK or your home country, and this can have a direct impact on your earnings, pensions, and investments.
Take Spain as an example. If you spend more than half the year there, you are considered a Spanish tax resident. This means not only is your income taxable in Spain, but most other assets will be too. Many tax-efficient products in the UK, such as ISAs, also lose their advantages under Spanish rules, and most income and gains are taxable.
So, without proper planning, you could end up facing higher tax bills than necessary, or even double taxation.
A financial planner with expertise in both the UK and your local system can help you navigate these rules, remain compliant, and structure your finances to avoid unnecessary tax burdens.
2. Getting the most from your pension
For many expats, one of the most pressing financial concerns is how to access a UK pension efficiently while living abroad.
You may face challenges such as currency fluctuations, complex pension transfer rules, loss of certain tax benefits, and the risk that your State Pension may not increase in line with the ‘triple lock’.
As such, having the right withdrawal strategy can make a significant difference to the income you receive in retirement.
A financial planner who understands both UK pension regulations and the rules in your country of residence can help you choose the most suitable pension structure, minimise taxes on withdrawals, manage currency risk, and ensure your retirement income remains sustainable over the long term.
You can read about accessing your pension abroad in our previous article on the topic.
3. Ensuring your estate plan remains efficient
Inheritance Tax (IHT) rules can differ widely between countries, and depending on how long you’ve lived abroad, you may be subject to local rules as well as the ones in your home country. This makes estate planning a critical part of financial planning when living abroad.
It’s important to review your existing will to ensure it is still valid and enforceable in your country of residence. Careful planning is also needed for IHT, particularly with the UK moving to a residence-based system as of April 2025.
By addressing these issues early, you can pass on more wealth efficiently, minimise the impact of cross-border IHT, and avoid potential disputes within your family.
You can find out more about this in our previous article on the topic.
4. Navigating local rules when buying property
For UK expats, purchasing property overseas can be an exciting opportunity, but it comes with a unique set of financial and legal challenges.
From navigating local property laws and taxes to understanding mortgage options and inheritance implications, the process can quickly become complex.
Currency fluctuations can also affect the true cost of your investment, while unfamiliar rules around rental income or capital gains may impact your long-term returns.
A financial planner with expertise in both UK and local regulations can help you structure the purchase efficiently, ensure compliance with tax obligations, and plan for the long-term ownership and eventual succession of your property.
5. Shifting your investments
Once you move overseas, UK-based investment strategies may no longer be the most effective option. Regulatory restrictions, exposure to different currencies, and the shift in your personal goals all mean that your portfolio should be reassessed through the lens of life as an expat.
A financial plan designed for your circumstances can align your investments with your risk profile, time horizon, and residency status, while also diversifying across international markets and asset classes. It will take into account the impact of foreign exchange risk and ensure that your holdings remain compliant with local regulations.
6. Ensuring you have the right healthcare and insurance
Living overseas requires a careful reassessment of risks that might be taken for granted in the UK, and the right planning can make all the difference.
A comprehensive financial plan ensures you have adequate health coverage in your country of residence, emergency funds to cover unexpected costs, and life insurance so that your loved ones are properly protected.
It also allows you to plan for long-term care in later life, helping you and your family remain financially secure.
Get in touch
To find out more about a financial planner with international expertise can help you, get in touch.
Email contact@ambient-wm.com or call us on +34 658 077 450.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.