Living Abroad Finance Guide: Simple Tips for UK Expats

If you’re packing up and heading out of the UK, your money habits need a quick refresh. You don’t have to start from scratch – many of the tools you already use can travel with you, you just need to know the rules. Below are the most useful steps to keep your savings growing, your credit intact, and your budget realistic while you settle abroad.

Keeping Your Savings Safe

The first thing most people ask is, "Can I keep my ISA when I move?" The short answer: yes, you can keep an existing ISA, but you can’t add new contributions once you’re a non‑resident. That means any cash you already have stays tax‑free, but new UK‑based deposits are blocked. If you’re moving to the US, for example, you’ll also face different reporting requirements, so keep records of your ISA balance and the date you became a tax resident abroad.

To keep your money working, look for a high‑interest savings account in your new country that offers easy access and low fees. Compare the interest rate, withdrawal limits, and any currency conversion costs. In many cases, a multi‑currency account lets you hold pounds, euros, or dollars in the same place, reducing the need to constantly exchange cash.

Managing Credit and Loans Overseas

Your UK credit score doesn’t magically follow you overseas, but lenders in your new home often ask for a UK credit check as part of the application. If you have a clean record, request a copy of your report before you leave and keep it handy. Some international banks accept a UK credit file as proof of reliability, which can help you secure a car loan or a mortgage later.

If you plan to keep a UK credit card for online purchases, make sure the issuer allows foreign transactions without hefty fees. Pay the balance in full each month to avoid extra interest, and set up alerts in your new time zone so you don’t miss a payment.

When you need a loan abroad, start by checking the local credit score system. In many EU countries, the scoring model is similar to the UK’s, so you might need to build a new history from scratch. Use a secured credit card or a small personal loan to create a positive record quickly. Remember, a higher credit score often means lower interest rates, which saves you money in the long run.

Budgeting abroad is a mix of tracking your new expenses and converting your existing financial goals. Begin by listing the essential costs: rent, utilities, transportation, and any remaining UK commitments like mortgage payments or loan repayments. Use a simple spreadsheet or a budgeting app that supports multiple currencies. Set a realistic monthly target for savings – aim for at least 10 % of your income after you’ve covered the basics.

Don’t overlook the hidden costs of moving, such as international health insurance, visa fees, and the occasional exchange‑rate surprise. These items can bite into your budget if you’re not prepared. A good rule of thumb is to keep a small emergency fund in the local currency – enough to cover three to six weeks of living expenses.

Finally, stay on top of tax obligations. The UK still expects you to file a self‑assessment if you have UK‑sourced income, but you may also need to declare your worldwide earnings in your new country. Many nations have double‑tax treaties with the UK, which can prevent you from paying tax twice on the same income. Consult a tax adviser who specializes in expat issues to keep things clean.

Living abroad opens up new opportunities, and with the right financial habits you can enjoy them without stress. Keep your existing ISAs, protect your credit, choose local accounts wisely, and budget with both currencies in mind. Follow these steps and you’ll have a solid financial foundation wherever you call home.