Moving overseas doesn’t have to mean buying a property straight away. In fact, increasing numbers of overseas buyers are considering renting first, giving themselves time to explore an area before making a major financial commitment.
According to the Your Overseas Home Annual Buyer Survey 2026, nearly one in four respondents (22.7%) intend to rent before buying abroad. And this isn’t simply younger people or “digital nomads” testing out life overseas. Almost 85% of those planning to rent first are aged between 50 and 80.
But that raises its own questions and problems, as we try to manage properties, incomes, payments and responsibilities in two different countries simultaneously. So here are eight ways to organise your money for the first six months, while keeping your longer-term property plans on track.
1. Keep your money organised in two countries
It’s all too easy to make expensive mistakes when you’re trying to manage money in two countries. The “interest free” period that gets forgotten, the phone contract that passes but you keep on paying anyway, the tax benefits of one country that don’t apply any more when you live overseas. Or simply the poor exchange rate you get when using the wrong bank card in the wrong country.
So amidst all the new pleasures of life overseas, it’s worth making the effort to stay organised and be proactive. That can be as simple as maintaining a spreadsheet with all the important dates and expenses noted. There will be AI programme that help you organise your finances across different countries (being careful what you allow it to do on your behalf!) or you can pay an IFA or accountant to manage your money.
Keeping your UK bank account
If you’re renting before buying, it can make sense to retain your UK bank account alongside an account in your new country. Your UK account might continue receiving pensions, rental income, dividends or earnings. Meanwhile, your overseas account can pay the rent, utilities, shopping and other everyday expenses.
Before you leave, check that your British bank will allow you to keep your account when living abroad. Some banks restrict services depending on your country of residence.
Check what you need to open an overseas account. In some countries, you can do this before becoming resident. Elsewhere, you may need a local address, residency documents or a tax identification number.
Once both accounts are running, you can transfer money between them whenever necessary.
You don’t need to use a high street bank for those international payments. Smart Currency Exchange can help you arrange transfers, with a personal account manager available to discuss your requirements.
2. Work out how much money you’ll need to get started
One common concern when renting abroad is the expense of getting established while you’re still managing financial commitments in Britain.
Even if you rent out your UK home, you could have mortgage payments, insurance, maintenance costs or periods without tenants.
Meanwhile, you’ll have overseas rental deposits, moving costs, utilities and possibly expenses such as buying a car.
Start with a realistic six-month budget. When budgeting overseas, the simplest way is to write down everything you spend money on in the UK first. Some of that you will have to spend when you move overseas and some you might abandon. It will definitely be time to consider those subscriptions, gym memberships and other random expenses that tend to be forgotten.
Use the Your Overseas Home Cost of Living Index to estimate what that might cost in your chosen country.
According to their latest data, Spain is 32% cheaper than the UK for a basket of more than 50 everyday goods and services. France is 20% cheaper, Cyprus 17% and Dubai 9%.
How much cheaper is everyday life overseas?
The table compares typical expenses in four popular destinations with equivalent costs in the UK.
| Spending category | Spain | France | Cyprus | Dubai |
| Groceries | 22% less | 24% less | 3% less | 1% more |
| Running a home | 32% less | 9% less | 7% less | 35% less |
| Transport | 21% less | 3% more | 31% less | 15% less |
| Eating out and leisure | 44% less | 35% less | 24% less | 3% less |
| Overall basket | 32% less | 20% less | 17% less | 9% less |
Source: Your Overseas Home Cost of Living Index 2026, based on prices collected in January 2026. See Your Overseas Home’s data for eight other countries.
It’s sensible to calculate your likely living costs over six months, then add your initial moving expenses and an emergency reserve. You can then decide how much money to transfer before you leave and how much to keep in the UK.
How and when to transfer?
You don’t necessarily need to transfer all six months’ living expenses at once. You could transfer enough to cover your initial costs and the first couple of months, then arrange smaller regular transfers once you’ve settled in.
And remember that even where everyday prices are lower, exchange rate movements can affect what you actually pay in pounds. Planning your currency transfers is therefore just as important as working out your overseas budget.
The next question is whether to transfer all six months’ money immediately or send it in instalments.
There isn’t a single answer. Transferring a larger amount upfront can give you reassurance that your essential expenses are covered. Keeping more money in the UK offers flexibility, especially if your plans might change.
You could transfer enough for your initial costs and the first couple of months, then arrange regular payments for the remainder.
3. Arrange regular pension payments
If you’re retiring abroad, you can continue receiving your UK State Pension overseas, either into a British account or a bank account in your new country.
If you choose overseas payments, they’ll normally be converted into your local currency at the applicable exchange rate. The government currently applies a 0.39% currency conversion charge.
Alternatively, you can continue receiving your pension in pounds and arrange your own international transfers. This gives you control over when you exchange the money and allows you to consider ways of protecting your income against currency movements.
Smart Currency Exchange offers a Regular Payment Plan, allowing you to arrange automated monthly or quarterly transfers rather than organising each payment individually.
You could transfer part of your pension each month, leaving the remainder available for UK expenses or savings.
If you’re receiving private or workplace pensions, check with your providers about their overseas payment arrangements.
You’ll also need to investigate whether your pension will be taxed in Britain, your new country or both, and whether your destination qualifies for annual UK State Pension increases.
4. Use income from renting out your UK property
You may have decided to keep your UK home and rent it out while you establish yourself overseas.
This has obvious advantages. You retain somewhere to return to if your plans change and the rental income could help pay your overseas living costs. Indeed, given the higher rental prices generally in the UK you might have a comfortable life overseas simply on the differential between UK rents and those in our favourite overseas hotspots.
However, you’ll need to investigate your tax obligations. If you’re renting out your UK home while living overseas, check HMRC’s Non-resident Landlord Scheme. Depending on your circumstances, your letting agent may have to deduct 20% tax before paying you the rent. However, you can apply to HMRC for permission to receive the rent in full and account for any tax due through Self Assessment. This can make budgeting easier when you’re relying on UK rental income to cover your living costs abroad.
Your new country may also tax that income, although a double taxation agreement could provide relief.
And don’t forget to check whether your mortgage lender and insurer permit you to rent out the property.
One important precaution: Keep a reserve in your UK account. A broken boiler or a month without tenants shouldn’t leave you unable to pay your overseas rent.
5. Protect your monthly budget from exchange rate changes
Once you’ve settled into your rented home, you’ll have a clearer idea of your monthly spending and be able to budget effectively.
Or will you? Because even if your expenses overseas stay the same, the amount you need to transfer from Britain could change, due to exchange rate changes.
Imagine you need €2,500 each month for rent and living costs. At an illustrative exchange rate of £1 = €1.20, that’s approximately £2,083.
If sterling weakens to £1 = €1.10, you’d need £2,273 to cover exactly the same expenses.
That’s almost £190 extra each month.
Over six months, an exchange rate movement like that could take a sizeable amount out of your savings.
Could you fix your exchange rate for six months?
Smart Currency Exchange offers forward contracts, allowing you to agree an exchange rate now for transfers you intend to make at a later date.
You can combine a Forward Contract with a Regular Payment Plan to fix the exchange rate for scheduled transfers, potentially for up to 12 months.
For example, you could arrange to receive €2,500 each month for six months at an agreed sterling cost. That makes budgeting easier because you know how much money you’ll need each month, regardless of subsequent currency movements.
There is a trade-off. If sterling strengthens after you fix your exchange rate, you won’t benefit from the improvement on those contracted payments. Forward Contracts are binding agreements, can require a deposit and may involve additional costs if you need to cancel or change them.
You don’t necessarily need to fix the exchange rate for all your spending. Your Smart Currency Exchange account manager can explain the available options and their implications.
Your six-month money checklist
Before you leave, and while you’re settling into your new country, make sure you’ve covered these essentials.
- Confirm that you can retain your UK bank account and investigate opening an overseas account.
- Calculate your initial moving costs and six months of living expenses, including any continuing UK bills.
- Arrange how you’ll receive your pension, salary or UK rental income.
- Check tax obligations in both countries, particularly if you’re letting out a British property.
- Set aside accessible emergency savings.
- Consider regular international transfers and whether fixing the exchange rate would make budgeting easier.
- Review your budget after three months and again before committing to a purchase.
Planning to move abroad and rent first? Contact Smart Currency Exchange for a free, no-obligation quote and find out how we can help you manage your money overseas.
Frequently asked questions
Should I transfer all my savings overseas if I’m renting first?
Not necessarily. Keeping some savings in the UK can offer flexibility, particularly if you’re still deciding where to settle or expect to buy a property later. You could transfer enough for your initial expenses and arrange regular payments for your ongoing living costs.
Can I receive my UK State Pension while renting overseas?
Yes. You can receive your UK State Pension while living overseas, either into a UK bank account or an overseas account. Private and workplace pensions have their own payment arrangements, so check with your providers.
Can I use rent from my UK property to pay my living costs abroad?
Yes. You can receive rental income into your UK bank account and arrange regular transfers overseas. However, you should allow for property expenses, potential periods without tenants and your tax obligations in both countries.
Important information: This article provides general information, not personalised financial, pension or tax advice. Tax residency and pension rules vary according to your circumstances and destination. Currency markets can move in either direction. Forward Contracts are binding agreements and may involve deposits, additional payments or cancellation costs.
Sources
- Your Overseas Home, Annual Buyer Survey 2026, cleaned respondent data (1,107 responses).
- GOV.UK, State Pension if you retire abroad: https://www.gov.uk/state-pension-if-you-retire-abroad
- GOV.UK, Non-resident Landlords Scheme: https://www.gov.uk/government/publications/non-resident-landord-guidance-notes-for-letting-agents-and-tenants-non-resident-landlords-scheme-guidance-notes/what-the-non-resident-landlords-scheme-is
- GOV.UK, Tax on UK rental income if you live abroad: https://www.gov.uk/tax-uk-income-live-abroad/rent
- Smart Currency Exchange, Regular Payment Plans: https://www.smartcurrencyexchange.com/services/regular-payment-plans/
- Smart Currency Exchange, Forward Contracts: https://www.smartcurrencyexchange.com/services/forward-contracts/
- Smart Currency Exchange, Online payments: https://www.smartcurrencyexchange.com/services/online-payments/
