An Expat Guide to Living in EU (Updated 2025)
If you’re a UK citizen living in or planning to move to any EU country, understanding the financial and tax implications is crucial. Each EU country has its own tax laws and residency rules, but many share common frameworks shaped by EU regulations and international treaties.
Alongside our expertise in Retirement and Investment planning and to help you navigate local tax situations and reporting, we’ve partnered with local experts in various countries within Europe who provide on-the-ground insight and support. Our combined knowledge ensures you get practical, compliant, and tax-efficient advice tailored to expat life.
Asset Reporting and Tax Residency
- Spend more than 183 days in that country per year (consecutively or not).
- Have your main residence, economic interests, or habitual abode there.
Tax residency means you’re generally liable to declare worldwide income and assets in that country. Non-residents usually pay tax only on income sourced within the country.
All EU countries participate in the Common Reporting Standard (CRS), so undisclosed foreign assets and income are likely to be detected. Full and timely declarations are essential to avoid penalties.
Taxation & Social Contributions in the EU
Income Tax
Most EU countries apply progressive income tax rates that vary significantly:
- Lower bands typically start around 10-20%.
- Top marginal rates can exceed 40-50% depending on the country.
Many countries impose additional regional or municipal taxes and social charges.
Capital gains are generally taxable but rates and exemptions differ widely. Some countries exempt the sale of your main residence after a minimum holding period.
- Employees and employers typically pay contributions towards healthcare, pensions, and unemployment.
- Rates vary by country and employment status (employee vs self-employed).
- Coordination rules under EU law usually prevent double social security payments.
Inheritance and Gift Tax in the EU
Inheritance and gift taxes vary widely in rates and exemptions across EU countries. Some impose flat rates; others use progressive scales depending on the relationship between donor and recipient.
Several countries have forced heirship rules limiting how estates can be distributed, so legal advice is crucial for estate planning.
UK Pensions & Retirement in the EU
- Transferring UK pensions to the country of residence may offer currency flexibility and local tax benefits, but careful analysis is necessary.
- QROPS (Qualifying Recognised Overseas Pension Schemes) and SIPPs remain popular for expats but have complex tax implications.
- Double Tax Treaties between the UK and EU countries determine where pensions are taxed.
- Some countries tax UK State Pension; others exempt it or provide relief.
Expat Tax Regimes and Incentives Across the EU
Many EU countries offer special tax regimes to attract expats, retirees, and highly skilled workers:
Non-Habitual Resident or Similar Regimes
Several countries offer residency or citizenship in exchange for investment, with varying requirements and benefits.
Final Thoughts
Living in the EU as a UK expat offers incredible opportunities but requires careful financial planning:
- Understand the tax residency rules of your destination country.
- Review your pension and investment arrangements carefully.
- Explore local expat-friendly tax regimes early.
- Work with bilingual, cross-border advisers who understand both UK and local laws.
Explore Our Country-Specific Guides
For detailed, tailored advice, be sure to check out our in-depth guides for:
- France
- Belgium
- Spain
- Italy
- Greece
Each guide covers the unique tax rules, residency requirements, pension considerations, and local financial products relevant to UK expats in those countries.
Contact Us
Looking for tailored financial advice for your move anywhere in the EU?
Whether you need help with pensions, taxes, residency, or investment planning — our trusted local partners across the EU and UK-registered cross-border experts are here to help.
✅ Speak with cross-border specialists in your destination country
✅ Get bilingual support from local experts
✅ Receive a personalised financial plan for pensions, taxes, and residency
👉 Contact us today to book your free consultation.
