Leaving the UK? What you need to consider when moving abroad

A growing number of UK residents are heading overseas in search of better opportunities, lower living costs, and improved quality of life.

With an estimated 5.5 million British citizens living abroad – including 77,000 who emigrated in the 12 months to 2024 - data from the Office for National Statistics (ONS) estimates the trend is accelerating (after levels decreased during the Covid-19 pandemic), driven by economic pressures, post-Brexit realities, and the rise of remote work. The shift is also no longer limited to retirees—families, professionals, and remote workers are increasingly seeking better prospects abroad.

If you’re drawn to a new life abroad, there are some key considerations to factor into your planning.

1. Location

You should think about how well a country aligns with your lifestyle, values and long-term goals. Do you want a slower pace of life or a bustling urban environment? Climate is often a major factor, while language is another key consideration. Visa and residency requirements vary widely, so this will also need to be carefully considered.

2. Cost of living

The cost of living will vary greatly depending on where you choose to live. By researching average monthly expenses, including rent, utilities, food, healthcare, insurance and schooling, you can avoid surprises and ensure your income or savings will support your new life.

Southern European countries like Spain and Portugal often offer cheaper housing, groceries, and transport compared to the UK. Cities like Toronto, Sydney, or New York may have higher living costs but offer better salaries or public services.

3. Tax implications

You may still be liable for UK taxes depending on your income sources and residency status (determined annually by the Statutory Residence Test). You may need to pay income tax on UK-based assets like rental properties, pensions, or dividends. However, many countries have Double Taxation Agreements with the UK, which prevent you from being taxed twice on the same income. A tax adviser can help ensure compliance and optimise your tax position.

4. Keeping your UK residence

You may want to keep your UK home while living abroad, either as a rental investment or for flexibility if you plan to return periodically. This can be beneficial financially, but also affects your tax status and residency classification. You’ll need to manage property maintenance, insurance, and possibly pay council tax or other local charges. If you rent it out, you’ll also need to declare rental income and comply with landlord regulations.

5. Healthcare and insurance

Most countries require private health insurance or contributions to public healthcare systems. Some destinations, like Spain and Portugal, offer high-quality public healthcare at low cost, while others—such as the US—have expensive systems that require comprehensive insurance. It’s also important to understand how prescriptions, emergency care, and specialist treatments are handled.

6. Education and family needs

International schools are often the go-to choice for expats, offering British or international curricula, but they can be expensive. Public schools may be free or low-cost, but language barriers and curriculum differences can pose challenges. Language classes and support programmes may also be beneficial for your children.

Planning will pay off

Relocating abroad is a major life decision that requires careful planning. From understanding tax obligations to choosing the right destination, UK residents have more options than ever—but also more responsibilities. Whether you're chasing sunshine, savings, or a fresh start, being informed is the first step toward a successful move.