Chase Buchanan highlights six often-overlooked financial risks British expats may encounter when relocating overseas

Paphos, Cyprus, October 9, 2026 -- For many British expats, the biggest financial challenges of moving overseas aren’t necessarily the most obvious, which can mean that even well-prepared UK nationals may make avoidable financial mistakes.

While exchange rates, property prices and relocation costs typically receive plenty of attention, the financial implications of becoming tax resident in another country, restructuring investments or planning for retirement across multiple jurisdictions often prove far more expensive in the long run.

Chase Buchanan Private Wealth Management, the international financial advisory firm, regularly works with clients who have discovered that seemingly straightforward financial decisions become significantly more complex when accounting for two countries’ tax systems, and that tailored financial planning can help reduce the risk of unnecessary costs or unexpected tax exposure.

Assuming Tax Residency Is Straightforward

Many people who choose to relocate from the UK might believe that they will automatically stop paying UK tax and will no longer be required to submit returns to HMRC. They may also assume that, once they become resident in another country, their tax and reporting obligations will be determined solely by the number of days they spend there each year.

In reality, tax-residence rules vary between jurisdictions and often consider more than the number of days spent in a country. In some circumstances, an individual may be regarded as tax resident in two places simultaneously. Where a relevant double taxation agreement applies, its tie-breaker provisions may determine residence for treaty purposes.

Tax residence is only one part of the picture. The treatment of particular income and gains may depend on the relevant treaty, the source and nature of the income, where work is performed, and where assets are situated. Professional tax advice may therefore be needed to establish an individual’s obligations in each jurisdiction.

Underestimating the Long-Term Impact of Currency Risk

Expats may recognise that an unfavourable exchange rate can affect the value of income earned in another currency but may be less aware of its longer-term repercussions.

This means that FX volatility isn’t a question of how much cash transfers will be worth at a particular point in time, but about whether ongoing salaries, pension benefits or investment returns will vary in real-world terms, and what that means for expats’ purchasing power and lifestyle.

Depending on their circumstances, expats may wish to review their currency exposure across their income, expenditure, assets and liabilities. Possible approaches vary and may involve costs and risks, so any currency-management arrangements should be assessed for suitability.

Not Reviewing or Restructuring Investments

Savings and investment portfolios may contain a mixture of diverse assets, products and accounts. Although some may remain appropriate and continue to align with an investor's objectives and risk profile, other holdings may need to be reviewed following a change of residence.

UK-specific tax wrappers may not receive the same treatment in the holder’s new country of residence. For example, an existing ISA can retain its UK tax advantages after its holder becomes non-UK resident, although further contributions are generally prohibited and the new country of residence may tax income or gains arising within it. Certain investments and pensions may also be categorised differently by another tax authority, potentially impacting their tax treatment and value.

Expats also need to consider how pension income and investment returns will be assessed for tax purposes, the reporting requirements that may apply, and whether restructuring, transferring, or reinvesting parts of their wealth may be appropriate.

Assuming Retirement Plans Will Remain Sufficient

In some instances, expats may decide to leave UK-based pensions as they are, although the suitability of this approach will depend on their circumstances and plans. Drawing pensions from overseas is possible but can bring complications regarding tax treatment, projected income, and accessibility.

Different jurisdictions may also treat overseas pension income differently. Existing arrangements, alternative retirement structures and, where suitable, the possibility of an overseas transfer may therefore need to be considered carefully. Pension transfers can have significant and sometimes irreversible tax and financial consequences and should be assessed with appropriately qualified advice.

Assuming Estate Plans Will Not Require Updating

Relocating overseas may affect an existing UK will, the taxation and administration of an estate, and how assets pass to beneficiaries.

Many expats review or update their wills following relocation or verify whether their existing wills remain valid and effective in each relevant jurisdiction. However, succession planning extends beyond the validity of the will itself.

Relevant considerations may include forced heirship legislation, local succession laws and the possibility of an estate being exposed to inheritance taxes in more than one jurisdiction. Reviewing these issues can help expats make informed decisions about passing wealth to their intended beneficiaries.

Treating Relocation as a One-Off Event

Expats planning a move overseas typically spend months coordinating their affairs, sourcing a place to live, looking at employment or retirement options, and setting themselves up for a comfortable life, but their financial planning requirements do not necessarily end once they have settled.

A broader financial plan may consider the long-term implications of a move, including retirement, access to healthcare, succession planning, ownership of overseas properties, and the possibility that the individual or family may return to the UK.

This forms part of an ongoing wealth management strategy, helping expats maintain oversight of their assets, estates and tax position, and providing guidance to help their arrangements remain aligned with their circumstances, objectives and expectations.

How Cross-Border Financial Planning Can Address Common Expat Mistakes

Thinking about moving to another country is exciting, but focusing only on income tax bands or the value of specific income streams or products can mean expats may overlook the wider picture or concentrate on only a few isolated elements of their relocation.

Moving between countries can change how almost every part of a person’s financial affairs interacts, from investments to pensions, currency exposure, estate planning and residency, making a coordinated review valuable before important decisions are taken.

Wealth managers can help clients understand the wider financial planning implications of living across different jurisdictions and identify where specialist local tax or legal advice may be required. They can also help clients consider how their arrangements may affect their circumstances now and into the future.

About the company: Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, the UK and the USA. Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID. Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD). Investing in financial instruments involves risk and may not be suitable for all investors. The value of investments may go up as well as down and past performance is not a reliable indicator of future results. You may lose part or all of your invested capital.

Contact Info:
Name: Viktor Nyics
Email: Send Email
Organization: Chase Buchanan Ltd
Website: https://chasebuchanan.com/

Release ID: 89205607

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