This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, it is subject to change and we are not responsible for any errors or omissions.
British expats often face unique challenges when managing their wealth. They might face tax liabilities in multiple countries, currency exchange and varying access to financial services (e.g. protection policies like life insurance or investment opportunities).
At Scottsdale, our financial advisers recognise these challenges. As expats ourselves and with British clients living across Europe, our aim is to help them achieve long-term financial security. Below, we offer a short guide to wealth management for expats in 2024-25.
We hope these insights are useful. Get in touch to discuss your own financial plan with us via a free, no-obligation consultation.
What is wealth management?
Wealth management is a dedicated financial service that helps individuals, families, and businesses grow, preserve, and protect their wealth.
As such, it encompasses various financial disciplines, such as investment management, tax planning, estate planning, retirement planning, and risk management.
Wealth management looks different to each person. A tailored approach is required to take the individual’s specific financial goals, needs, circumstances, risk tolerance, values, and investment horizon into account.
Your goals & challenges
What is your attitude to wealth, and what are you trying to achieve?
For instance, a young British expat couple in Spain might focus on starting a family, travelling, and saving for a first home. Their wealth management plan will likely lean towards growth.
By contrast, a UK resident nearing retirement may be looking to retire in Spain. They want to preserve and use their wealth to produce a sustainable income whilst retired overseas.
Both groups will require a unique financial plan to achieve their goals.
Common challenges
Despite the tailored nature of wealth management, expats often face similar challenges when building a financial plan.
In particular, navigating tax laws in the UK and the host country will be necessary. Where will you pay income tax (if any)? What about taxes on investments, such as dividends and capital gains? Inheritance tax and “wealth taxes” may also come into the picture.
When moving overseas, you also need to consider exchange rate fluctuations. A British expat may have most of their wealth currently tied up in UK pounds (GBP). However, what currency does your new country use? How will you move money between jurisdictions to achieve good exchange rates and low fees?
Managing finances can also be difficult for expats. For instance, you may need to provide proof of address to set up and maintain bank accounts in various countries. If you live a “nomadic” lifestyle, moving from country to country, this may be a challenge.
Tax planning & compliance
As a British expat, a good starting point for tax planning is to ask yourself where you are a tax resident. In the UK, the Statutory Residence Test is used for this purpose. (This is quite a complex process, so seek professional advice if you need help).
For instance, a British expat could be living in Spain right now, but their tax residency could still be in the UK. Both countries have a Double Taxation Agreement (DTA) to help ensure they would not pay tax on the same income in both countries.
A common misconception occurs around UK inheritance tax (IHT). In our experience as financial advisers, many British expats believe they no longer have to pay it once they leave the UK. However, the UK is introducing new rules in April 2025. These are expected to make people liable for UK IHT for up to 10 years after they leave the UK.
Protecting wealth
Be careful not to assume that your current protection policies will remain valid if you relocate abroad. For instance, a life insurance provider may require that you take out a new policy if you move to a country deemed “high risk”.
Being an expat can bring unexpected costs, such as needing to fly home for a sudden family emergency. There may be economic or geopolitical risks in certain host countries. Consider always having an emergency fund ready, just in case (e.g. 3-6 months of living costs).
Income protection, critical illness cover, and private medical insurance for expats could also be options to explore. Be careful to read the fine print carefully and be honest with your information when filling out applications.
Final thoughts
There are many other areas of wealth management for expats that we could cover. We have not had time to fully discuss investing, currencies, and banking, for example. However, this guide should get you started in your discussions with a specialist expat financial adviser.
If you want to ensure you’re taking the right steps to safeguard your financial future, please get in touch to speak with an expat financial adviser here at Scottsdale.