Things to Consider When Self-Investing for British Expats

For many British expats, self-investing might seem like an appealing way to manage wealth abroad. The idea of having control over your finances and potential returns can be enticing. However, this approach comes with several risks that could end up costing you more than you expect. Here are some key pitfalls to be aware of when self-investing as an expat.

1. Complex Taxation and Compliance

Tax rules can be complicated for expats, as you’re often dealing with both UK tax and the tax laws of your host country. Without expert knowledge, it’s easy to overlook important details, which could lead to unexpected tax bills, fines, or penalties. Keeping track of the UK’s tax requirements while ensuring compliance with your new country’s tax system can be overwhelming and risky.

2. Limited Knowledge of Local Markets

Investing in foreign markets without understanding them fully can lead to poor decisions. As an expat, you may be unfamiliar with investment opportunities in your host country, or the local market might operate differently from those you’re used to in the UK. Ignoring local savings accounts, pension schemes, or tax-advantaged opportunities can mean missed chances to grow your wealth efficiently.

3. Currency Risk

If you’re investing or indeed spending in a currency other than your income or home currency (GBP), you’re exposed to currency fluctuations. A change in exchange rates can impact the value of your investments or disposable income, leading to unexpected losses. This adds a layer of complexity that many expats overlook when making investment decisions.

4. Emotional Investing

Self-investing requires a steady hand. Without professional advice, making impulsive decisions based on market fear or excitement is all too easy. Emotional responses to market downturns or rallies can lead to buying or selling at the wrong times, ultimately hurting your returns.

5. Overconfidence

It’s tempting to think that self-investing is simple, especially with access to online resources. However, overconfidence in your ability to manage investments can lead to risky decisions. Markets are complex, and a lack of experience and professional guidance can cause you to miss critical opportunities or mismanage risk.

6. Lack of Professional Support

One of the biggest drawbacks of self-investing is missing out on expert advice. Financial advisers help you navigate tax complexities, understand local markets, and avoid costly mistakes. However, due to regulatory restrictions, UK financial advisers often cannot advise British expats living in Europe.

UK-based advisers generally do not hold the required regulatory permissions to offer advice for expats living in most European countries, which can leave you without proper support or consumer protection. In contrast, working with a regulated adviser with authority to work in Europe ensures these safeguards are built in.

Avoiding the Risks and Pitfalls of Self-Investing as an Expat

While self-investing offers control, it can come with significant risks. Here at Chase Buchanan, our highly qualified advisers can:

• Help you navigate the complexities of local tax laws
• Offer access to our extensive experience of local markets
• Ensure you understand the effect of currency fluctuations on your investments and disposable income
• Work to remove any emotional decision-making and mitigate against costly mistakes

For many British expats, working with an expert who holds the appropriate regulatory permissions in their host country provides the expertise and guidance they need to navigate these challenges effectively and ensure their wealth grows securely and efficiently.

Chase Buchanan Wealth Management holds full European permissions to help remove any stress and ensure that your pensions and investments are regulation and tax-compliant in your new adopted home.

Written by: Darren Fletcher – Head of Global Sales – Chase Buchanan Wealth Management.

All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.

*Information correct as at June 2025