Every year thousands of Brits relocate abroad to take advantage of sunnier weather, charming locations and diverse cultures. But they also move abroad to save money, too. Find out why.

Tax Free

As if cheaper property wasn’t enough, many properties abroad do not face as much of a tax burden as they do in the UK. Plus, some countries have far more lenient tax ratios on income, as well as cheaper living costs in general.

If you choose wisely and opt to move abroad in order to work you can benefit not only from experiencing another part of the world and its culture, but you can actually earn more and pay less in tax by living abroad.

Global cities such as Dubai have massive tax-free benefits, where you can work for large pay packets tax-free. Working expatriates in Dubai legitimately avoid all forms of income tax, keeping spending to modest levels, and investing their income offshore for higher rates of interest and, again, less taxation. This method is proving extremely popular for those desperate to build up their pension pot.

Dubai also offers generous taxation on property. For example, purchasing property in Dubai can net you up to 18% rental yields per year, says Giulio Giancovich, a senior consultant at The Best In Dubai. “With up to 51% tax free growth and an expected 15 million tourists by 2010, the buy to let market is a very attractive prospect for property owners,” he says.

The Moroccan Government is also refraining from taxing rental income for five years after taking ownership of property, something that is proving a phenomenal incentive to participate.

Malta, too, offers a favourable tax climate. “Malta boasts far lower taxation than the UK and there are no annual council or property taxes and inheritance tax was abolished in 1992,” continues Mark Bodega of HIFX. “Since joining the EU in 2004, the Maltese property market has shifted up a gear. As a result we are getting a substantial amount of enquiries from property investors seeking to purchase property to rent, and more discerning buyers looking for the excellent tax rates available to the higher tax payer.”

Cheaper Cost of Living

Unless you move to Scandinavia or notoriously expensive destinations such as Moscow or Tokyo, as soon as you move abroad you’ll notice that your cash gets you further than it does in the UK, with a lower cost of living and quite often a better quality of life. The cost of living throughout the EU has levelled out somewhat since the introduction of the euro, and local produce, such as fruit, vegetables and wine, still cost considerably less in France, Spain and Portugal than in the UK.

Developing countries such as Turkey are even cheaper. By contrast, your grocery bill on many of the Caribbean islands will be high, as everything is imported. The dollar/pound exchange rate is extremely favourable for UK citizens travelling to the US, but the cost of living there is good regardless.

Cheaper Property

Property prices abroad remain, for the most part, significantly cheaper than those in the UK – plus, in many countries notably the former Eastern bloc, prices are rising at remarkable rates. So if you buy wisely abroad now, you could make a lucrative profit. Plus, if you are thinking of downsizing in retirement, cashing in on the value of your UK property now and moving to a cheaper overseas destination could leave you plenty more money to play with in retirement.

Currently, the best investments are in properties in areas such as Turkey, which has a strong and growing economy yet offers prices cheap in comparison to more established markets, plus an EU membership in prospect. (Read more: 2007 Overseas Property Hotspots).

“The affordability of Turkish property, with prices significantly lower than established markets, is a major attraction,” says Dominic Whiting, editor of the Buying in Turkey guide. “Apartments are available in the coastal resorts from as little as £35,000 and villas from £65,000.”

Julie Anthony, Sunseekers Altinkum UK Representative, agrees. “With new mortgage laws recently passed and a population of over 70 million, Turkey offers a huge and dynamic domestic market to foreign investors, with prices rising by as much as 25% a year in some places. Now is a great time for Brits to buy as the exchange rate is good and Turkey is on the up. For example, in Altinkum, a development area, a new marina is being built and two golf courses are planned for next year.”

But even properties in more established markets such as Spain will still cost you less. Andrew Goodsell, Chief Executive of Saga, explains: “Spain has always been a popular choice for those looking to purchase a holiday home – its sunnier climes, relatively lower cost of living, cheaper property prices and its close proximity mean it is the perfect choice.”

Further afield, New Zealand is an increasingly popular choice. “With a typical three bedroom detached property in New Zealand costing £100,000, no stamp duty or Capital Gains Tax and year-on-year capital appreciation of between 10-15%, it’s easy to see why so many of us are upping sticks and moving out there for good,” says Mark Bodega of HiFX, the foreign currency exchange specialists.

To find your overseas property, visit www.justoverseas.co.uk