{"id":3720,"date":"2025-12-11T12:17:03","date_gmt":"2025-12-11T12:17:03","guid":{"rendered":"https:\/\/relocate.me\/blog\/?p=3720"},"modified":"2026-01-28T10:01:01","modified_gmt":"2026-01-28T10:01:01","slug":"expat-financial-planning","status":"publish","type":"post","link":"https:\/\/relocate.me\/blog\/money-and-taxes\/expat-financial-planning\/","title":{"rendered":"The Ultimate Expat Financial Planning Guide: Managing Money Before and After Moving to Europe"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>When preparing to move to Europe, many expats focus on <a href=\"https:\/\/relocate.me\/visas\">visas<\/a>, job options, and finding a place to live. But sorting out your finances is just as important. <a href=\"https:\/\/www.internations.org\/expat-insider\/2024\/personal-finance-index-40454\" target=\"_blank\" rel=\"nofollow noopener\">Two in five expats<\/a> (40%) living in the United Kingdom say <a href=\"https:\/\/relocate.me\/cost-of-living\/united-kingdom\">high costs<\/a> were among their biggest concerns when planning their move, compared to only 25% globally. And interestingly, no European country made the top 10 list for the best expat personal finance destinations in the 2024 Expat Insider survey. This shows that planning your finances ahead of time can make a real difference in how comfortable your move turns out.<\/p>\n<p>So, what should expats do with their money once they arrive in Europe? This guide breaks down the main steps of expat financial planning before and after moving to Europe, and helps you prepare and avoid unexpected expenses along the way.<\/p>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Expat Financial Planning, Step #1: Plan your savings and look into visa requirements<\/h2>\n<p>Before you even apply for a visa, you\u2019ll 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.<\/p>\n<p>In Portugal, for example, the <a href=\"https:\/\/relocate.me\/visas\/portugal\/d8-visa\">Digital Nomad Visa<\/a> requires proof of a steady monthly income and at least \u20ac10,000 in personal savings. If you\u2019re applying for the <a href=\"https:\/\/relocate.me\/visas\/portugal\/job-seeker-visa\">Job Seeker Visa<\/a> instead, the requirement is lower, but you still need to show that you have at least three months\u2019 worth of Portugal\u2019s minimum salary, which is <a href=\"https:\/\/relocate.me\/salaries\/portugal-average-salary\">\u20ac870 per month<\/a> in 2025. In Germany, the <a href=\"https:\/\/relocate.me\/visas\/germany\/freelance-visa\">Freelance Visa<\/a> usually asks for proof of savings close to \u20ac10,000. In the UK, the <a href=\"https:\/\/relocate.me\/visas\/united-kingdom\/skilled-worker-visa\">Skilled Worker Visa<\/a> requires a minimum of \u00a31,270 held for at least 28 consecutive days.<\/p>\n<p>The point is, most countries want to see that you won\u2019t 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:<\/p>\n<ul>\n<li>Visa application fees<\/li>\n<li>Flights and moving expenses<\/li>\n<li>Housing deposits and short-term rent<\/li>\n<li>2\u20133 months of living expenses while you settle in<\/li>\n<\/ul>\n<p>A good rule of thumb is to take the amount you think you\u2019ll need and try to double it. It might take a few months or more to <a href=\"https:\/\/relocate.me\/international-jobs\">find a stable job<\/a> or get your first payment if you\u2019re freelancing. Having some money saved can give you time to settle in at your own pace.<\/p>\n<\/div>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Step# 2: Understand the cost of living where you\u2019re headed<\/h2>\n<p>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 <a href=\"https:\/\/relocate.me\/cost-of-living\/spain\">Spain<\/a> might spend around \u20ac700 to \u20ac800 a month, excluding rent. In <a href=\"https:\/\/relocate.me\/cost-of-living\/germany\/munich\">Munich<\/a> or <a href=\"https:\/\/relocate.me\/moving-to-austria\/vienna\">Vienna<\/a>, everyday expenses are closer to \u20ac1,000. These are just estimates, of course, but they give you an idea of what to expect.<\/p>\n<p>Rent is usually the biggest monthly expense, and this can vary widely too. In <a href=\"https:\/\/relocate.me\/cost-of-living\/france\/paris\">Paris<\/a>, you might pay anywhere from \u20ac1,200 to \u20ac1,600 for a one-bedroom flat. In <a href=\"https:\/\/relocate.me\/cost-of-living\/spain\/madrid\">Madrid<\/a>, the average rent is around \u20ac1,368, while in <a href=\"https:\/\/relocate.me\/cost-of-living\/spain\/madrid\">Amsterdam<\/a>, a one-bedroom apartment in the city centre can cost about \u20ac2,040. You\u2019ll likely be asked to pay a deposit and a few months\u2019 rent in advance, so make sure to factor that into your budget as well.<\/p>\n<p>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.<\/p>\n<p>To get a clearer picture of everyday expenses, some <a href=\"https:\/\/www.numbeo.com\/cost-of-living\/in\/Berlin\" target=\"_blank\" rel=\"nofollow noopener\">aggregating websites<\/a> 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\u2019s a good place to start when preparing your finances. If you prefer something a bit easier to navigate, take a look at <a href=\"https:\/\/relocate.me\/\">Relocate.me<\/a>\u2019s <a href=\"https:\/\/relocate.me\/cost-of-living\">Cost of Living<\/a> pages. We&#8217;ve simplified important details for popular cities, and you can also compare countries side by side.<\/p>\n<\/div>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Step #3: Research your banking options and set up a multi-currency account<\/h2>\n<p>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 <a href=\"https:\/\/wise.com\/fr\/account\/\" target=\"_blank\" rel=\"nofollow noopener\">Wise<\/a> or <a href=\"https:\/\/n26.com\/en-de\/free-bank-account\" target=\"_blank\" rel=\"nofollow noopener\">N26<\/a>, since these let you hold balances in different currencies and convert between them with low fees. That can be useful if you\u2019re still earning money in your home currency or need to show you have euros for visa purposes.<\/p>\n<p>Opening a local bank account in Europe is something many expats leave for later, and that\u2019s 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\u2019re fully settled. In <a href=\"https:\/\/relocate.me\/moving-to-germany\">Germany<\/a>, for example, you\u2019ll usually need to show your <i>Anmeldung<\/i> (local registration), along with your residence documents and visa before you can book an appointment at a bank\u2014and even then, getting a slot might take a while.<\/p>\n<p>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 <a href=\"https:\/\/wise.com\/help\/articles\/2813542\/where-can-i-open-a-wise-balance\" target=\"_blank\" rel=\"nofollow noopener\">supported list<\/a>. 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\u2019s a good idea to always have a backup and avoid keeping all your funds in a single account.<\/p>\n<p>Once you\u2019re 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.<\/p>\n<\/div>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Step #4: Learn the basics of taxation and how to avoid double taxation<\/h2>\n<p>Taxation is one of the trickiest areas for expats, especially if you\u2019re from a country that taxes based on <a href=\"https:\/\/relocate.me\/visas\/united-states\/american-citizenship\">citizenship<\/a>. The <a href=\"https:\/\/www.americansabroad.org\/taxation#:~:text=The%20United%20States%20uses%20citizenship,where%20the%20income%20was%20earned.\" target=\"_blank\" rel=\"nofollow noopener\">United States<\/a> is the clearest example of this. As a U.S. citizen, you\u2019ll still need to file a tax return every year, even if you\u2019ve 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.<\/p>\n<p>To avoid paying tax twice on the same income or capital, many countries have <a href=\"https:\/\/taxation-customs.ec.europa.eu\/taxation\/tax-transparency-cooperation\/double-taxations-conventions_en\" target=\"_blank\" rel=\"nofollow noopener\">double taxation conventions<\/a> (DTCs). The United States has these <a href=\"https:\/\/www.irs.gov\/businesses\/international-businesses\/united-states-income-tax-treaties-a-to-z\" target=\"_blank\" rel=\"nofollow noopener\">agreements<\/a> with several European countries, including the Netherlands, Germany, and France. If you\u2019re a U.S. citizen, these treaties help reduce or eliminate double taxation but do not remove your obligation to file with the <a href=\"https:\/\/www.irs.gov\/\" target=\"_blank\" rel=\"nofollow noopener\">IRS<\/a>. In many cases, you will also need to submit additional forms, such as the <a href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/foreign-earned-income-exclusion\" target=\"_blank\" rel=\"nofollow noopener\">Foreign Earned Income Exclusion<\/a> or <a href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/foreign-tax-credit\" target=\"_blank\" rel=\"nofollow noopener\">Foreign Tax Credit<\/a>.<\/p>\n<p>If you\u2019re from India, the rules are a bit different. India uses a residency-based system, which means once you\u2019re no longer considered a resident for tax purposes, you generally stop being taxed there. Still, it\u2019s important to check if there\u2019s <a href=\"https:\/\/incometaxindia.gov.in\/Pages\/international-taxation\/dtaa.aspx\" target=\"_blank\" rel=\"nofollow noopener\">a treaty<\/a> between India and the European country you\u2019re moving to\u2014and what type of agreement they hold. For example, if you\u2019re considering <a href=\"https:\/\/relocate.me\/visas\/finland\">Finland<\/a> and <a href=\"https:\/\/relocate.me\/visas\/portugal\">Portugal<\/a>, 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.<\/p>\n<p>Taxation is one of those areas where it\u2019s helpful to speak to an advisor, at least for an initial consultation. It can help you avoid unexpected expenses later on.<\/p>\n<h3>A note for U.S. citizens on foreign investments<\/h3>\n<p>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\u2019re 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.<\/p>\n<p>This is why many advisors recommend that Americans avoid buying <a href=\"https:\/\/creativeplanning.com\/international\/insights\/investment\/why-americans-should-never-own-shares-in-a-non-us-mutual-fund\/\" target=\"_blank\" rel=\"nofollow noopener\">non-U.S. mutual funds<\/a> 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\u2019re figuring out what rules apply to your situation. Also, U.S.-based funds also tend to have <a href=\"https:\/\/www.researchgate.net\/publication\/24045464_Mutual_Fund_Fees_Around_the_World\" target=\"_blank\" rel=\"nofollow noopener\">lower fees<\/a> than their European counterparts, and this can make a big difference on your investment over time.<\/p>\n<p>There are also <a href=\"https:\/\/www.taxfairnessabroad.org\/blog\/the-unseen-burden-of-us-citizenship-abroad?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=month-one&amp;utm_content=ap_8bb1lmklu0\" target=\"_blank\" rel=\"nofollow noopener\">compliance challenges<\/a> 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 <a href=\"https:\/\/www.irs.gov\/businesses\/corporations\/foreign-account-tax-compliance-act-fatca\" target=\"_blank\" rel=\"nofollow noopener\">FATCA<\/a>, 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.<\/p>\n<\/div>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Step #5: Start building your financial record in Europe<\/h2>\n<p>Once you\u2019ve relocated, your financial track record doesn\u2019t follow you across borders. Most banks, landlords, and lenders only consider your financial history <i>within<\/i> your new country, and foreign credit scores or documents typically don\u2019t count.<\/p>\n<p>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 <a href=\"https:\/\/www.reddit.com\/r\/germany\/comments\/ubf8y0\/establishing_credit_in_germany\/\" target=\"_blank\" rel=\"nofollow noopener\">won\u2019t carry much weight<\/a> with a bank in Germany, the <a href=\"https:\/\/relocate.me\/moving-to-netherlands\">Netherlands<\/a>, or <a href=\"https:\/\/relocate.me\/moving-to-spain\">Spain<\/a>. In Germany, for example, banks and landlords often check your <a href=\"https:\/\/www.schufa.de\/en\/\" target=\"_blank\" rel=\"nofollow noopener\">SCHUFA report<\/a>, which is the country\u2019s 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.<\/p>\n<p>To start building a local financial record, you can:<\/p>\n<ul>\n<li>Open a local current account early and use it regularly<\/li>\n<li>Register for services in your name (e.g. utilities, internet)<\/li>\n<li>Get a local credit card (even with a small limit)<\/li>\n<li>Pay bills on time and keeping receipts or statements<\/li>\n<\/ul>\n<p>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\u2019ve previously lived in the EU.<\/p>\n<\/div>\n<p>\u00a0<\/p>\n<div class=\"content__item\">\n<h2>Get help with your expat financial planning before moving to Europe<\/h2>\n<p>When you move to Europe, you will need to understand new systems for banking, taxes, and insurance. Some processes\u2014like how to access <a href=\"https:\/\/relocate.me\/healthcare\/germany\">public healthcare<\/a> or which accounts you open\u2014may 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.<\/p>\n<p>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 <a href=\"https:\/\/airtable.com\/appglD2M9RAFgqkyk\/shrQb41wpIh5PRwLw\" target=\"_blank\" rel=\"noopener\">connect you<\/a> 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!<\/p>\n<\/div>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>When preparing to move to Europe, many expats focus on visas, job options, and finding a place to live. But sorting out your finances is just as important. Two in five expats (40%) living in the United Kingdom say high costs were among their biggest concerns when planning their move, compared to only 25% globally. [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":3721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[80],"tags":[],"class_list":["post-3720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-and-taxes"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/posts\/3720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/comments?post=3720"}],"version-history":[{"count":2,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/posts\/3720\/revisions"}],"predecessor-version":[{"id":3766,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/posts\/3720\/revisions\/3766"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/media\/3721"}],"wp:attachment":[{"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/media?parent=3720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/categories?post=3720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relocate.me\/blog\/wp-json\/wp\/v2\/tags?post=3720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}