Moving abroad is one of life's great adventures — but the financial side can be overwhelming. Most expats waste thousands in avoidable fees, wrong insurance and poor exchange rates in their first year. Here's how to avoid every single one of them.
Average amount expats overpay in their first year abroad through avoidable fees, wrong products and poor exchange rates
The single biggest financial mistake expats make is leaving their banking arrangements to the last minute. Set up your accounts before you leave and you'll save hundreds in the first month alone.
Both allow you to hold money in 30-50 currencies simultaneously, exchange at real market rates and spend abroad with minimal fees. Open before you leave — it takes 10 minutes.
N26 works across most of Europe. For non-EU destinations, research the best local digital bank in your destination country and open online if possible. You'll need a local IBAN for rent and salary.
Never close your UK account. You'll still need it for UK pension contributions, any UK income and as a financial safety net. Most UK banks allow non-residents to keep existing accounts.
Never use your bank's exchange rate to send money abroad. Banks typically charge 3-5% above the real rate. Wise charges 0.4-1% — on a £10,000 transfer that's a saving of £250-450 in one transaction.
Your UK mobile plan almost certainly won't work cost-effectively abroad long-term. Here's what to do instead:
The best solution for the first few weeks before you get a local SIM. One SIM card works across 200 countries with competitive data rates and no surprise roaming bills.
In most countries you have freedom to choose your electricity and gas supplier, but landlords often leave new tenants on expensive default tariffs. Switch as soon as your contract allows.
Getting insurance wrong as an expat is expensive. Here's what you actually need:
If you're moving within the EU as a UK citizen, you're no longer covered by the European Health Insurance Card (EHIC). You'll need either local national insurance contributions or private health insurance. In countries like Germany and France, joining the public health system as an employee is mandatory and covers most costs.
Your existing UK travel insurance almost certainly won't cover a permanent move abroad. You need a specialist expat policy. Compare via your destination country's insurance section on PennySaver UK.
Don't assume your UK contents policy covers belongings during the move or at your new address. Get a specific quote for your new address — in many European countries contents insurance is surprisingly affordable.
Rental markets vary enormously across countries. Here's how to avoid the most common and expensive mistakes:
In many European cities, short-term furnished apartments (1-3 months) are available on platforms like Spotahome and HousingAnywhere. These are ideal while you search for a long-term place, avoiding the pressure of committing to a 12-month lease before you know the city.
Cost of living varies enormously between countries and even between cities. A few key principles: