Most Brit expats feel financially secure, study finds

Happy, content and secure: the majority of British expats in Spain feel financially stable

If newspapers and popular media are to be believed (pinches of salt all round, we say), then the image of the traditional British expat can usually be divided into two distinct and conflicting camps.

They are either fabulously wealthy and able to swan around in yachts, supercars and cavernous villas with nary a care in the world, or they are close to destitution, and forced to sell their possessions in order to raise the air fare back home…

That’s your narrative, and it’s one that sells papers. But the truth is less sensationalist, as you all well know. But exactly how comfortable are most British expats? An exact measure is hard to define, but a recent study by expat wealth management specialists deVere Group has found that more than half – 54 per cent – feel ‘upbeat’ about their current finances.

The group, which is the world’s largest independent financial advisory organisation, polled British people living in some of the world’s most popular expat destinations (including Spain, France, Germany, Thailand, Italy and the USA) to ask how financially secure they felt.

While the majority of expats are reassuringly at ease with how things are going, 19 per cent did report feelings of anxiety over their current situation, with 27 per cent saying that they didn’t know.

“It’s hugely encouraging that the vast majority of British expats around the world are feeling positive about their current financial situation,” said Nigel Green, Chief Executive of deVere Group.

“The findings were to be expected, though, and for three key reasons. Firstly, because there is – despite recent events in parts of the Eurozone – an underlying feeling that the global economy is gradually beginning to pick up.

“Secondly,” he continued, “many expats leave the UK for career promotions and salary incentive. Therefore, they are bound to be feeling confident about their personal finances.

“And thirdly, whether attracted by higher salaries or lured by a country’s lifestyle, which is often the case for those expats in Italy, France and Spain, expats are often able to use their status to their financial advantage, primarily significantly reducing their tax liabilities.”

The study by deVere Group polled 472 expats in the first quarter of the year. Figures from the British Home Office estimates that there are approximately 4.7 million Brits living abroad full time.

The largest proportion of these expats is thought to reside in Spain, attracted by the brilliant climate, excellent infrastructure, cheap flights back to the UK and wide choice of property available.

While not every expat in Spain lives the life of Riley, many will recognise themselves in deVere Group’s description of the financially secure. A typical expat in Spain is either working in a high-paying profession or has retired there in financial comfort.

A handful have returned to the UK after experiencing unexpected financial hardship, but for those that leave their place is nearly always taken by a fresh batch of financially stable expats lured to the sunny skies and brilliant lifestyle combination that only southern Spain can offer.