As expats prepare to start 2026, a clear-headed view of your current situation and how to access potential opportunities will get the year off to the best possible start.
With European financial and legal rules in constant flux, savvy British expats living in Spain, Switzerland, and Portugal would do well to review their financial plans ahead of the new tax year in April. Treat yourself to a rewarding financial detox to optimise your wealth-influenced lifestyle and legacy with our nine simple steps.
In a master spreadsheet, fill in your net worth, monthly income, and outgoing costs, plus appropriate currencies, with the intention of repeating the habit quarterly.
Start by reviewing bank accounts, subscriptions, and spending habits to regain control of your spending. Analyse your monthly income and outgoings. Think: is each genuinely adding value to my life? Note where you could save money from slipping away unnoticed.
List all your income sources, whether state and/or private pensions, freelance/employed work, interest and investments. Match each income with the correct tax rules for your country of residence and for the UK. Be sure that your new country of residence has a double tax treaty with the UK – Spain and Portugal do; Switzerland has one only for corporations and capital gains taxes (gov.uk).
Mark expenses as regular, occasional, or one-off, such as trips, family support, and health emergencies. Don’t fall into the trap of relying on the 2025 expense count for 2026 spend estimates because living costs can change.
In a separate tab, record your active accounts, such as UK ISAs, SIPPs, Swiss 2nd and 3rd pillars, and offshore investments. Note each currency used per account to manage exchange rate nuances as they happen.
Are you keeping on top of your repayments? Inspect your loans, credit cards, mortgages, or other debts you might have, and compare the interest you’re paying on those debts with the returns you might be earning from your savings or investments. If the interest on your debt is higher than the interest or growth you’re earning elsewhere, it may make more sense to pay off the debt first – prioritise whichever gives you more peace of mind.
One of the biggest mistakes expats abroad make is missing important wealth management deadlines and legal updates. A tax band reduction, aimed at lowering cantonal taxes in Bern to 440 million CHF over the next four years, could be an excellent reason for wealthier expats to relocate to Bern to reduce their tax bills. However, other cantons will see higher taxes and austere budget cuts, which could affect quality of life (swiss.info.ch).
In Spain, the new year will see a crackdown by the Spanish government on digital financial reporting for businesses and freelancers (ebfconsulting.com), tax reductions in Valencia, and a 100% tax on property bought by non-EU buyers. Portugal has recently passed a law targeting foreigners keen to settle, requiring that Brits (and other non-EU citizens) live in Portugal for 10 years before becoming eligible for citizenship.
Find a competent tax specialist who is knowledgeable about global tax affairs, the UK’s treaty rules, and your country’s domestic rules to protect yourself against future uncertainty. Come to the initial meeting armed with research of your own. Knowing where you pay tax will help you hit the ground running. Ask yourself if you need to apply for UK self-assessment, which is relevant if you need to receive UK rental income and pensions abroad. Be transparent about regional asset reporting abroad to avoid the high cost of non-compliance (Private Client Consultancy).
Your retirement security depends on how well your pensions are structured, but relocating abroad reshuffles the rules. Start by checking your UK State Pension forecast and any gaps in your National Insurance record; voluntary top-ups can increase your future income. Next, review workplace or private pensions (SIPPs, defined benefit or contribution schemes) for performance, fees, and named beneficiaries.
If you hold or plan to transfer funds overseas, weigh the pros and cons of QROPS, SIPPS, or local options like Switzerland’s Pillar 2 or 3a – unlike the latter, a 2nd pillar is the equivalent of an occupational pension. Here, withdrawals are taxed as lump sums, and rates vary by canton, so identifying your tax tier could save you thousands. Always confirm which country taxes your pension withdrawals to stop double taxation. A January review ensures your pensions work efficiently – and your retirement income stays firmly within your control.
Recent figures highlight how quickly currency values can shift and why expats should plan with flexibility in mind. As of November 2025, one euro equals about £0.88 and 0.93 CHF,, reflecting mild but meaningful movement from earlier in the year. Over six months, the euro averaged £0.86 and 0.94 CHF, showing how exchange rates fluctuate even in stable markets (European Central Bank).
For those transferring pensions, paying mortgages, or making large purchases abroad, small percentage changes can have a significant impact on income and lifestyle. Building buffers into budgets, setting up regular transfer schedules that reduce timing risk, or using forward contracts with a regulated FX provider can help protect your spending power against future volatility. Even having a kitty of cash in your local currency will allow you to outsmart the exchange rates.
Anyone approaching their next chapter will treasure the appeal of a stable lifestyle and income. During your financial detox, take a moment to evaluate your shares, bonds, and property values. Is each worth keeping? What value does it bring to your portfolio? The last thing you want is a weakening pound when all your assets are UK-based. Diversify your assets into multiple currencies and forms – whether property, cash, bonds, dividends, or collectables – or watch their investment value drop.
Don’t compromise carefully planned financial security for your loved ones if you die abroad. Assuming UK-based inheritance and taxation rules don’t change overseas could land your family in hot water. Spain’s forced heirship rules mean that if you do not express your wishes in a will, your estate will be split among your children, other descendants, and your spouse. However, asset inheritance will be skipped if not specified (holbornassets.pt). In Portugal, the law determines who receives the entire wealth – if you have no descendants, it goes to the Portuguese State (Private Client Consultancy). Switzerland has a similar arrangement, but with more options for who might inherit within the family.
Ensure this never happens by reviewing the beneficiary designations in pensions and insurance policies, and consider if the UK inheritance tax law applies to you abroad (under EU succession regulation 650/2012, this is possible for some countries). If not, your inheritors may be billed instead of the estate.
Private healthcare will help you afford life-saving health treatments whilst living abroad. Before you can apply, though, you need to have asked yourself the right questions, in particular: Am I eligible for citizen-level state care in the country where I reside? For British expats, the S1 form would take the pressure off complete reliance on private healthcare, and is welcomed in countries such as Spain, where free public healthcare reaches an impressive standard. In other countries, such as Portugal, it’s worth getting private healthcare to speed up long waiting times and access specialist care quickly.
Also worth considering is whether you’ll need a ‘living will’ and whether it’s valid abroad. The will dictates who acts on your behalf should you require emergency healthcare but are unable to make decisions for yourself.
Once you’ve divided your review into bite-sized steps, it’s time to mark your three financial priorities for the year. Perhaps you wish to rebalance your portfolio from growth to income, plan tax-effective gifts for the grandchildren, or do both. Aim to complete just three priorities by December next year.
Voilà! You should be reassured that you’re on track to maintain your financial security and feel optimistic for the year ahead. Remember that small changes can make a big difference!
