The Ultimate Expat Financial Planning Guide: Managing Money Before and After Moving to Europe

Expat Financial Planning, Step #1: Plan your savings and look into visa requirements

Before you even apply for a visa, you’ll likely need to prove that you have enough money in your account to support yourself. Each country has its own rules for financial means, and the amount you need to show can vary depending on the visa type.

In Portugal, for example, the Digital Nomad Visa requires proof of a steady monthly income and at least €10,000 in personal savings. If you’re applying for the Job Seeker Visa instead, the requirement is lower, but you still need to show that you have at least three months’ worth of Portugal’s minimum salary, which is €870 per month in 2025. In Germany, the Freelance Visa usually asks for proof of savings close to €10,000. In the UK, the Skilled Worker Visa requires a minimum of £1,270 held for at least 28 consecutive days.

The point is, most countries want to see that you won’t need public support to get by. So, the first step of your expat financial planning should be building a financial buffer. At a minimum, try to save enough to cover:

• Visa application fees
• Flights and moving expenses
• Housing deposits and short-term rent
• 2–3 months of living expenses while you settle in

A good rule of thumb is to take the amount you think you’ll need and try to double it. It might take a few months or more to find a stable job or get your first payment if you’re freelancing. Having some money saved can give you time to settle in at your own pace.

Step# 2: Understand the cost of living where you’re headed

Life in Europe can be more affordable than in the US or other parts of the world, but that depends on where you go. A single person in Spain might spend around €700 to €800 a month, excluding rent. In Munich or Vienna, everyday expenses are closer to €1,000. These are just estimates, of course, but they give you an idea of what to expect.

Rent is usually the biggest monthly expense, and this can vary widely too. In Paris, you might pay anywhere from €1,200 to €1,600 for a one-bedroom flat. In Madrid, the average rent is around €1,368, while in Amsterdam, a one-bedroom apartment in the city centre can cost about €2,040. You’ll likely be asked to pay a deposit and a few months’ rent in advance, so make sure to factor that into your budget as well.

When calculating how much you need to bring, think about more than just rent and groceries. Add in transport, utilities, internet, and any one-off costs like furniture, household basics, or initial insurance. And keep in mind that it can take time to get into the local healthcare system or set up basic services. You might need to pay out of pocket in the beginning.

To get a clearer picture of everyday expenses, some aggregating websites let you compare the cost of living between cities. It shows average prices for groceries, transportation, dining out, and even smaller essentials like eggs, cheese and beer. It’s a good place to start when preparing your finances. If you prefer something a bit easier to navigate, take a look at Relocate.me’s Cost of Living pages. We've simplified important details for popular cities, and you can also compare countries side by side.

Step #3: Research your banking options and set up a multi-currency account

As part of your expat financial planning, it helps to sort out your banking options before moving to Europe. Many expats start with a digital service like Wise or N26, since these let you hold balances in different currencies and convert between them with low fees. That can be useful if you’re still earning money in your home currency or need to show you have euros for visa purposes.

Opening a local bank account in Europe is something many expats leave for later, and that’s fine. Traditional banks often require proof of address, your visa, and sometimes a tax number or registration certificate, which you might not have until you’re fully settled. In Germany, for example, you’ll usually need to show your Anmeldung (local registration), along with your residence documents and visa before you can book an appointment at a bank—and even then, getting a slot might take a while.

In the meantime, digital apps or money services platforms can cover your basic banking needs. Wise is a good starting point, as it lets you receive transfers, make payments, and use local account details, without the requirement of a local address. Just be aware that Wise is not a licensed bank, and some nationalities have reported issues using the platform, even when their country still appears on the supported list. If you are planning to rely on it, take this into account and do not trust in opening Wise too late; rather, rule out from the beginning that you can use it. Also, it’s a good idea to always have a backup and avoid keeping all your funds in a single account.

Once you’re set up with a permanent address and have all the required documents, you can decide if opening a traditional bank account is worth it. Many expats end up skipping it, as the process can be slow and paperwork-heavy, and they manage just fine with digital services.

Step #4: Learn the basics of taxation and how to avoid double taxation

Taxation is one of the trickiest areas for expats, especially if you’re from a country that taxes based on citizenship. The United States is the clearest example of this. As a U.S. citizen, you’ll still need to file a tax return every year, even if you’ve been living abroad for years. You may also need to file a local tax return and pay taxes in the European country where you live.

To avoid paying tax twice on the same income or capital, many countries have double taxation conventions (DTCs). The United States has these agreements with several European countries, including the Netherlands, Germany, and France. If you’re a U.S. citizen, these treaties help reduce or eliminate double taxation but do not remove your obligation to file with the IRS. In many cases, you will also need to submit additional forms, such as the Foreign Earned Income Exclusion or Foreign Tax Credit.

If you’re from India, the rules are a bit different. India uses a residency-based system, which means once you’re no longer considered a resident for tax purposes, you generally stop being taxed there. Still, it’s important to check if there’s a treaty between India and the European country you’re moving to—and what type of agreement they hold. For example, if you’re considering Finland and Portugal, and they both have tax treaties with your home country, perhaps Portugal offers better terms depending on your situation, and in that case, it might make more sense from a tax perspective.

Taxation is one of those areas where it’s helpful to speak to an advisor, at least for an initial consultation. It can help you avoid unexpected expenses later on.

A note for U.S. citizens on foreign investments

One thing that often catches Americans abroad by surprise is the treatment of foreign mutual funds. Under U.S. tax law, these are classified as Passive Foreign Investment Companies (PFICs), and they’re taxed heavily. In addition, you have to file a special form every year for each one you hold, which takes time and usually requires a tax expert to get right.

This is why many advisors recommend that Americans avoid buying non-U.S. mutual funds altogether. That includes European ETFs or similar products that might be offered by local banks. Instead, consider keeping your investments in the U.S., at least while you’re figuring out what rules apply to your situation. Also, U.S.-based funds also tend to have lower fees than their European counterparts, and this can make a big difference on your investment over time.

There are also compliance challenges that come with holding foreign bank accounts as a U.S. citizen. Many banks in Europe ask Americans to close their accounts or refuse to open new ones due to the complexity of U.S. reporting rules like FATCA, which create extra work for non-U.S. banks that serve U.S. account holders. So make sure you do some research before moving all your money abroad.

Step #5: Start building your financial record in Europe

Once you’ve relocated, your financial track record doesn’t follow you across borders. Most banks, landlords, and lenders only consider your financial history within your new country, and foreign credit scores or documents typically don’t count.

This can make it harder to rent a place, open some accounts, or access credit in your first year. For instance, a strong credit score from the US, Canada, or India won’t carry much weight with a bank in Germany, the Netherlands, or Spain. In Germany, for example, banks and landlords often check your SCHUFA report, which is the country’s main credit file system. Since SCHUFA only collects data locally, newcomers usually start with no financial record at all. This pattern is common across Europe, as credit reporting systems generally do not share data between countries, even when the same bureaus operate in both.

To start building a local financial record, you can:

• Open a local current account early and use it regularly
• Register for services in your name (e.g. utilities, internet)
• Get a local credit card (even with a small limit)
• Pay bills on time and keeping receipts or statements

If you expect to move again within Europe later on, it helps to keep paperwork and account records from your current country, as many European banks are more open to applicants who’ve previously lived in the EU.

Get help with your expat financial planning before moving to Europe

When you move to Europe, you will need to understand new systems for banking, taxes, and insurance. Some processes—like how to access public healthcare or which accounts you open—may require paperwork or proof you may not have expected. Some of these requirements will come up right away. Others might come up again later if you apply for residence renewals, change your visa type, or apply for permanent residence.

Speaking with a relocation advisor or financial expert before your move can help you prepare and organise what you need ahead of time. We can connect you right away with someone who understands the challenges of expat financial planning. This support will show you what to expect and what documents or steps you might need in the future. Good luck!