A number of wealthy Brits are believed to have left the country after Labour came to power in 2024, fearing the UK will become a more hostile tax environment.
Income tax and employee’s National Insurance were not touched by chancellor Rachel Reeves in her first Budget, as she instead directed the extra tax burden towards businesses and people set to inherit larger estates.
There’s now growing fears of tax hikes in the 2025 Autumn Budget as economic growth remains anaemic and some proposed cuts have failed to pass through parliament.
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More people are considering moving abroad – polling by the Adam Smith Institute, a think tank, suggests one in four young Brits have seriously considered or are actively planning to leave the country.
The most expensive countries for an expat
While many UK expats leave the country in search of a cheaper cost of living, some end up in destinations where costs remain high, new research from international insurance firm William Russell found.
The firm worked out the average cost of everyday expenditure, including public transport tickets, a litre of petrol, utility bills, gym membership fees, restaurant meals. They then gave each country a score out of ten.
After crunching the numbers, William Russell found that Switzerland is the most expensive country for expats, scoring 9.29 out of 10.
As the central European country is perhaps best known for its banking sector that pays outsized salaries, it may be little surprise that living costs are hefty.
The average cost of a meal for two people in a mid-range restaurant here is staggeringly high, at £99.84, while gym memberships are the most expensive on the list at £65.74 every month.
Utility and internet bills will set expats back another £238.52 each month, on average, while the cost of public transport is large at £3.08 for the average one-way ticket.
The second-most expensive country for an expat is also in Europe, though much further north. Iceland has an expenditure score of 8.48 as its high living costs makes it an uncompetitive place to move to for expats.
The average price of a one-way public transport ticket in the Nordic nation is £3.77 – the highest of the countries analysed – while the cost of a restaurant meal for two beats Switzerland, setting expats back £103.
Where Iceland does make up for its other high costs is in basic utility and internet bills, which are £124.75 a month.
The third and fourth-most expensive countries for expats are also Nordic – Norway received an expat expenditure score of 7.72, while Denmark scored 7.28. In fifth place was the Netherlands with a score of 7.01.
A list of the top 5 most expensive countries for expats, and their average living costs can be found below.
Rank | Country | One-way Ticket (Local Transport) | 1 Litre of Petrol | Basic Utilities (Monthly) | Internet (60 Mbps or More, Unlimited Data, Cable/ADSL Monthly) | Fitness Club, Monthly Fee for 1 Adult | Cinema, International Release, 1 Seat | Meal for 2 People, Mid-range Restaurant, Three-course | Expat Expenditure Score /10 |
|---|---|---|---|---|---|---|---|---|---|
1 | Switzerland | £3.08 | £1.64 | £194.20 | £44.32 | £65.74 | £18.15 | £99.84 | 9.29 |
2 | Iceland | £3.77 | £1.84 | £64.31 | £60.44 | £59.34 | £12.89 | £103.00 | 8.48 |
3 | Norway | £3.00 | £1.54 | £175.48 | £44.24 | £34.95 | £11.43 | £71.47 | 7.72 |
4 | Denmark | £2.74 | £1.63 | £170.06 | £30.40 | £32.39 | £14.28 | £79.96 | 7.28 |
5 | Netherlands | £2.73 | £1.65 | £192.66 | £35.88 | £30.84 | £11.94 | £68.23 | 7.01 |
Source: William Russell (22 August)
The least expensive countries for an expat
There are a wealth of countries where you can comfortably live on a low budget.
Chief among them is Mexico, which received an expat expenditure score of only 0.67.
The average cost of a one-way public transport ticket here is just 46p, while a meal for two people at a mid-range restaurant is also low, at £30.66. The price of a monthly gym membership is the cheapest among the countries analysed, at just £25.21 a month.
The country also has the cheapest average utility bills on the list at £46.06, though you will have to add on £20.32 a month for internet coverage.
Two eastern European countries tie as the joint second-cheapest countries for expats – Lithuania and Poland both have an expat expenditure score of 2.23.
Lithuania has the lowest average internet bill on the list at just £11.64 per month while also enjoying cheap public transport tickets, restaurant meals, and cinema tickets.
The cost of public transport in Poland is also low, at just 87p for a one-way ticket, and residents enjoy cheaper average gym memberships of £27.71 a month than those in Lithuania, who pay £30.93 a month.
Dining out in Poland is also cheaper than in its neighbour, costing an average of £35.82 for a three course meal for two, compared to £51.17 in Lithuania
The fourth-least expensive country for an expat is outside of Europe – South Korea scores 2.28 in William Russell’s analysis. Hungary is the fifth-least expensive country, scoring just 2.55.
A list of the top 5 least expensive countries for expats, and their average living costs can be found below.
Rank | Country | One-way Ticket (Local Transport) | 1 Litre of Petrol | Basic Utilities (Monthly) | Internet (60 Mbps or More, Unlimited Data, Cable/ADSL Monthly) | Fitness Club, Monthly Fee for 1 Adult | Cinema, International Release, 1 Seat | Meal for 2 People, Mid-range Restaurant, Three-course | Expat Expenditure Score /10 |
|---|---|---|---|---|---|---|---|---|---|
1 | Mexico | £0.46 | £0.93 | £46.06 | £20.32 | £25.21 | £3.45 | £30.66 | 0.67 |
2 | Lithuania | £0.85 | £1.23 | £175.28 | £11.64 | £30.93 | £6.82 | £51.17 | 2.23 |
3 | Poland | £0.87 | £1.27 | £217.73 | £12.36 | £27.71 | £5.77 | £35.82 | 2.23 |
4 | South Korea | £0.79 | £0.87 | £120.99 | £15.53 | £37.09 | £7.89 | £31.57 | 2.28 |
5 | Hungary | £0.94 | £1.27 | £107.36 | £14.87 | £37.85 | £6.27 | £37.60 | 2.55 |
Source: William Russell (22 August)
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