As economic pressures and remote work opportunities drive more Britons to consider life abroad, many are surprised to discover that the financial reality of international relocation extends far beyond flight tickets and shipping costs.
Despite extensive research, thousands of UK residents who relocate internationally each year find themselves unprepared for the hidden expenses and financial adjustments accompanying a move overseas.
Paul Stewart, founder of My Baggage, breaks down the hidden costs of moving abroad for Britons in 2025:
The Visa Investment
Beyond the basic application fees (which vary significantly by destination), visa requirements often include proof of substantial savings, guaranteed income, or investment in local property. Many countries require considerable financial reserves simply to qualify for residency. Additionally, professional visa assistance—often necessary to navigate complex immigration systems—typically adds hundreds to thousands to relocation budgets.
The Housing Hurdle
While many Britons move abroad seeking more affordable housing, the initial costs can be shocking. Unlike the UK’s typical one-month deposit, countries like Italy usually require 3-6 months’ rent upfront, while others demand non-refundable “key money.” Those purchasing property abroad face foreign transaction fees, unfamiliar legal systems, and in some countries, requirements to pay 30-50% of property value upfront rather than the UK’s typical 10-20% deposit.
The Healthcare Calculation
The NHS safety net disappears for most expatriates, with international health insurance averaging thousands annually per person—significantly higher for those over 50 or with pre-existing conditions. Even in countries with public healthcare, many expats discover mandatory waiting periods of 6-12 months before coverage begins, necessitating expensive private coverage during the transition.
The Banking Burden
Financial infrastructure differences create unexpected costs, with international money transfers costing Britons hundreds to thousands annually in fees and exchange rate markups. Many countries require minimum balances to open accounts, while maintaining UK accounts simultaneously often incurs non-resident fees monthly. Credit histories rarely transfer internationally, forcing many expats to rebuild financial credibility from scratch.
The Tax Tangle
Dual taxation agreements don’t eliminate all tax complications. Many Britons abroad face higher income tax rates, property taxes two to three times UK rates, and unexpected wealth taxes on global assets. Professional tax assistance becomes essential, adding a significant annual expense to living costs—an expense few anticipate when budgeting for their move.
The Return Reserve
Perhaps the most overlooked expense is the “return fund”—money set aside in case the international move doesn’t work out. Experts recommend maintaining 3-6 months of UK living expenses plus return shipping costs for a household as an emergency reserve, funds essentially removed from active use during the relocation period.
Paul Stewart concludes:
“The average Briton underestimates their first-year relocation costs by 40-60%. While headline figures about cheaper housing or lower living costs abroad are often accurate, they rarely account for the substantial transition expenses or ongoing financial adjustments.
The most financially successful relocations involve thorough research into country-specific costs and maintaining a significant financial buffer. Many expatriates report that their second year abroad becomes significantly more affordable once these initial hurdles are cleared.
Those who plan for these hidden costs not only avoid financial stress but position themselves to truly enjoy the lifestyle benefits that motivated their international move in the first place.”
