Expat wealth management: what it is, key focus areas, and average costs 

Moving abroad can be an exciting prospect, yet there are many challenges worth considering beforehand, so exploring ways to manage your wealth while living overseas is vital. 

We reveal what expat wealth management is, why it’s important, what it focuses on, and more. 

What is expat wealth management, and why is it important? 

Expat wealth management is a specialised form of wealth management tailored to those who live abroad. 

If you’re living outside of the UK, your finances will be affected. For example, there will be different tax rules compared to those in the UK, and you may not be eligible for annual increases in the state pension. 

If you’re planning to access your pension overseas, you’ll also need to figure out the best way to do this, as well as ensure you have a bank account and that you follow all local rules. 

Additionally, you may have to pay taxes in more than one country and follow different tax rules for each country. However, you may not have to pay tax on the same income in two countries if there’s a double taxation agreement with the UK. 

There’s also a lot to consider in terms of currency – what’s the best way to access your money, and will currency fluctuations impact it? 

Understanding how to manage your finances effectively is crucial if you plan to live abroad. 

What does expat wealth management focus on? 

Expat wealth management focuses on many aspects of your finances, including: 

• Understanding your tax obligations so you pay the correct amount of tax 

• Navigating currency fluctuations so you don’t lose money 

• Ensuring you meet all legal regulations in the country you live in 

• Estate planning in accordance with any inheritance and tax rules 

• Optimising your investment portfolio 

• Finding the best way to access your bank account and savings 

• Deciding on the best way to access your pensions 

• Funding long-term care and healthcare 

• Funding education for your children 

• Transferring your pensions overseas 

A key aspect that impacts your tax obligations is your residency status. This will likely determine whether you pay tax on income and gains generated overseas or just on UK income.  

Additionally, depending on your situation, you may need an overseas mortgage if you plan to buy a property abroad. You can apply this while still in the UK or when you move overseas.  

A financial adviser with an understanding of expat wealth management can help you navigate both of these situations.  

Why setting goals is important for expat wealth management 

One of the most important aspects of expat wealth management is defining your short and long-term goals. 

For example, are you planning to buy a property in the country you’re moving to? Are you interested in estate planning? Are you planning to travel during your retirement? 

If you have savings or investments, you may want to consider opening a non-resident bank account, which can help you send and receive money, including rental income. You can also manage your money and transact in various currencies. 

You could consider a self-invested personal pension (SIPP) for investments or to transfer your pension, but you won’t get tax relief if you’re not a UK resident. 

If you have an individual savings account (ISA) and are no longer a UK resident, you can no longer contribute to it, unless you are a Crown employee working overseas or their spouse or civil partner. However, you can keep your ISA and get tax relief on it or transfer it if you choose. 

An expat wealth manager can help you reach your long-term goals, although they’ll need to know: 

• Your assets 

• Your liabilities 

• Your earnings and sources of income 

• Your spending patterns/expenses 

If you’re interested in investing, an expat wealth manager can help you build a portfolio in line with your risk appetite and future goals and navigate your tax liabilities.  

Can expat wealth management help with my pension? 

When it comes to pensions, there’s much to consider. For example, you may no longer receive tax relief, and currency fluctuations could impact your pot.  

If you do decide to transfer your pension to a qualifying recognised overseas pension scheme (QROPS), you may have to pay 25% tax and navigate various rules.  

With the UK state pension, whether or not you benefit from any annual increases depends on where you decide to live. If the state pension is going to partly fund your retirement and not increase in the future, you’ll want to consider how to make up the shortfall.  

How much does financial advice cost for expats? 

How much financial advice costs for expats depends on what you’re seeking help with.  

You’ll usually have to pay an initial fee for wealth management and ongoing costs of between 1% and 2% of your asset portfolio. 

It’s worth asking for a breakdown of any fees and what this will cover, as well as whether any additional fees will apply.  

How can you find an expat wealth manager? 

While you can do your own research to find expert financial advice, you can also use a service like Unbiased. 

Unbiased can quickly match you with a qualified expat financial adviser who can help you sort and optimise your finances before you move abroad.