Rising energy costs affect everyone, but for expats the increase in fuel and electricity prices can be especially steep. So what does this mean for moving abroad? If you’re considering packing up your things and moving overseas, should you still go or should you stay? It depends on your energy consumption before you move as well as your ability to accept the change in lifestyle that accompanies life in another country. Here’s what you need to know about rising energy costs and their effect on expats worldwide.
What is happening
The price of oil has been fluctuating for the last few years, but it’s been going up steadily for the last few months. This means that costs related to energy are rising.
For expatriates, this means that there may be an increased cost of living and a higher risk of doing business in their new country. It also means that some people might reconsider moving abroad during these times. There is one upside though: when prices are high it can sometimes mean more stable prices for expats because supply and demand is higher than usual.
Why this affects expats
Many people across the world are faced with rising energy costs and higher costs of living following the war in Ukraine and the COVID-19 pandemic. Of course, if you’re looking to move abroad, rising energy costs will be a deciding factor on whether or not you go. For some who have been living abroad for a few years, they may have returned back to their home county since prices in certain places started to increase.
However, while it may sound tempting for some to move back home or not bother going to live abroad; it is important to realise there are ways to manage the rising costs.
What you can do
Currently, energy prices in the UK are high, but moving abroad doesn’t mean you’ll pay the same or more. In fact, if you live in Portugal, Malta, USA, or UAE, your energy prices will be lower than in the UK.
In this sense, you should not stop your plans for moving abroad, because living in another country may lower your monthly energy costs. The costs of living abroad should still be estimated, as there might be an expense you didn’t consider before, but as said, don’t let rising energy costs discourage you from moving abroad.
A smart way to manage your energy consumption is by lowering the temperature inside and outside, turning off appliances when they’re not in use, and trying to replace old appliances with new ones that are eco-friendly.
The Mediterranean and Dubai, however, are hotter regions, so you won’t need to turn on your gas during the summer. In addition, Portugal does not require you to pay council tax, so researching the differences in prices is definitely worthwhile; as a guide to your decision-making.
How RHJ Accountants Can Help
We recognise more than ever that individuals and businesses from the UK and other countries may be globally mobile. We aim to make you aware of the tax-efficient opportunities, available tax relief and structure finances for life at home and abroad.
Our international team of specialists operate from offices in the UK and Portugal. We work together synergistically to provide tax efficient solutions to our clients to help them grow their business whilst keeping tax liabilities to a minimum.
Get in touch with us today to find out more, or to make use of our services.