What is expat wealth management?

Curious about a life overseas? Then it’s time to get your finances in order.

Living as an expat can impact your savings and investments, pension, tax obligations, and more. Not to mention, you might need to continue following local rules in your old country as well as your new one.

Having a plan for expat wealth management can help you sustain a good life in a new location. Here, we look at the importance of wealth management and key considerations for expats.

Also, check out the Wise account, an alternative way to manage your money overseas. You can hold money in 40+ currencies and convert between them at the mid-market rate whenever you need. Or spend like a local in 150+ countries with a Wise card. Plus, there’s even dedicated support for large amount transfers.

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Why is wealth management so important for expats?

Wherever you go in the world, you need access to money. Expat wealth management can be complicated because you can face financial, tax, and regulatory obligations in more than one location.

In practice, this could look like complying with UK tax obligations as well as local ones in your new location. Different locations have different rules – failing to meet them could get you in trouble with local authorities. Plus, exchange rates can impact the value of your investments and money held in different currencies.

And combined with the challenges of familiarising yourself with a new country, this can make the transition to an expat lifestyle tough. Getting to grips with your local system can help you meet your personal financial goals, take advantage of good investment opportunities, and ultimately fund your life overseas.

Wealth management for UK expats: Key considerations

So, what is expat wealth management impacted by? Your savings and investments, pension, tax obligations, and property ownership all come into play. Let’s take a look at these factors in depth.

Expat savings and investments

Whether you can keep your UK bank account abroad comes down to your provider. If you have an Individual Savings Account (ISA), you can’t pay into this while living overseas – unless you’re a Crown employee, or your spouse or civil partner is one.¹ You can still keep the account open and pay into it if you return to the UK.

For savings and investments, UK expats have the option of opening a non-resident bank account, also known as an offshore account. Having an offshore account can make it easier to handle financial obligations overseas – such as receiving rental income or making investments.

With an offshore account, you can manage multiple currencies in one place, and you don’t need to switch banks every time you move to a new location. These accounts do come at a cost and have eligibility criteria, so make sure you check through a few different providers to find one that works for you.

Expats can make UK investments using a non-resident bank account, but there’s always the option of using investment platforms or offshore bonds, trusts, and international stocks and shares.

📚Best expat accounts in the UK

Pensions and retirement

Claiming your pension might seem like a long way off, but it’s best to get started early if you want a well-funded retirement. And if you’re closer to being able to claim, you need to make sure your pension is accessible in whichever country you choose to live in.

You can pay into a UK pension plan even if you’re living abroad. But you may not be able to claim tax relief, plus, foreign exchange rates could impact what your pension is worth.

You can still claim a UK workplace or personal pension overseas. When it comes to claiming a state pension, you need to have paid enough UK National Insurance.²

There are alternative options. For example, you may be able to transfer a UK pension into a Qualifying Recognised Overseas Pension Scheme (QROPS), to protect against currency fluctuations. Moving to a QROPS can come at a cost, though – 25% tax on the transfer.³

You can also opt for a Self Invested Personal Pension (SIPP), which lets you control which investments contribute to your pension fund. SIPP pensions are suitable for both UK residents and non-residents and could be especially attractive for keen investors who’d like to control how their pension is funded.

📚Transferring your pension abroad

Tax implications for UK expats

Your tax obligations in the UK are determined by your residency status. And residency status depends on how many days you spend in the UK each tax year. It’s best to check HMRC guidance on residency status to make sure you’re meeting the requirements.

Non-residents don’t pay tax on income or gains generated overseas, but if you still have UK income, you might need to pay tax on it. For example, if you have a property in the UK, any rental income could be subject to income tax.

Getting taxed in the right place – and only once – is also something you want to make sure goes right. The UK has double taxation agreements in place with some countries to make sure you only pay once.⁴

Buying property abroad as an expat

To buy a property abroad, you’ll need an overseas mortgage. This might be something you can arrange with a UK mortgage provider or an overseas one.

If you already have a mortgage with a UK provider, you may want to stick with them for preferential rates or familiarity with their terms. But international mortgage products are harder to come by, so you may not have as many options as you’d like.

If you use a local mortgage provider, there will likely be eligibility and residency requirements to meet, but you could have more options. This all depends on the specific provider and location, so be sure to do your own research.

💡Did you know? If you’re planning on sending or receiving large amounts, Wise has a dedicated team of experts ready to help with every step of your transfer. Simply email us or request a call back below.

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Relocating

General relocation costs are something you should consider, too.

Moving abroad, you could face:

• Visa costs
• Customs duty for belongings shipped to you
• Temporary accommodation while you find or secure a new home
• Foreign exchange rates if you’re using a UK account overseas

Plus, there are costs associated with setting up an offshore account, transferring a pension, and continuing to receive UK income while abroad. It’s worth doing the maths before you relocate to make sure you can cover costs before making the move.

Health and education costs

Healthcare systems differ from country to country. You’ll likely need to pay for treatment or take out insurance to cover costs.

Do some research on the healthcare system in your new country of residence to make sure you understand how to access it.

If you plan on moving between a few countries, global healthcare insurance could be the right option. Bupa⁵ , AXA⁶ , and Allianz⁷ all have global insurance options that mean you can access care in different countries.

Expats also have education costs to think about. International schools across the world offer English language education around the world, but the fees can be expensive. Depending on where you’re located, you may be able to enrol children in local schools. For some families, homeschooling could also be an option. Ultimately, this comes down to personal preference and lifestyle.

Choosing a wealth management expert

A wealth management expert can help you with financial planning, choosing financial products, and ensuring you pay the right amount of tax in the right country.

You can opt for an independent wealth management expert or services provided through a bank or financial institution.

If you’re already using a specific bank for other services, there may be benefits to using them for wealth management too. However, you might be limited to financial products provided by the bank, where an independent advisor may be able to offer alternatives.

Along with services, you should consider which accreditations you’d like your wealth manager to have. For example, if you’re looking for someone who can help you build a nest egg for the future, you might opt for a certified financial planner.

Local expertise should also be on your list of priorities for a wealth management expert. You’ll also want a clear scope of fees before going ahead – will they charge a percentage of your portfolio, a fixed fee, or an hourly rate?

Average cost and fees for expat wealth management

Expat wealth management fees vary depending on which provider you choose.

On average, you can expect to pay an initial cost and then ongoing cost of between 1-2%⁸ , and sometimes up to 3%⁹ of your asset portfolio. Specific products and advice can have additional fees attached – for example, a one-off property purchase will incur a separate cost.⁸

So it’s likely that whoever you choose, you’ll pay an ongoing percentage plus additional fees for specific services.

Send, spend and receive money across borders with Wise

Whether your first overseas adventure beckons or you’re a seasoned expat, getting your finances in order can bring a sense of security and stability to your new life. Planning your expat wealth management strategy early gives you the best shot at keeping your finances on track overseas.

Opening a Wise account may be part of your strategy as a way to manage your money overseas, especially as you will likely be sending and receiving money in different currencies. You can hold money in 40+ currencies, and spend like a local in 150+ countries with a Wise card. You'll get the mid-market exchange rate for your currency conversions and any fees* are upfront and transparent.

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With Wise, you’ll get:

• Fast and easy setup with no physical paperwork
• Low, upfront, transparent fees*
• Mid-market exchange rate for currency conversions 24/7
• Fully trackable transfers
• Fast transfer times (65% of transfers are completed in under 20 seconds)
• Two-factor authentication and real-time notifications
• Dedicated support for large transfers - request a callback below

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Sources used in this article:

1. Gov.uk - individual savings accounts
2. Gov.uk - retiring abroad
3. Moneyhelper.org - moving your pension overseas
4. Gov.uk- tax on UK income if you live abroad
5. Bupa global- global health insurance information
6. AXA- international healthcare information
7. Allianz- international health insurance
8. Chase Buchanan - cost of expat financial advice
9. HSBC - expat wealth download brochure

Sources last checked: 26 February 2025