Having Children Abroad: Financial Planning for Expat Families

Having a child while living abroad is an exciting and joyful event that also brings a cascade of practical, legal, and financial planning decisions. For expat families, the combination of working in a foreign country without full access to home-country benefits, potential dual nationality for the child, international school fees on the horizon, and the need to update financial and legal documents creates a substantial planning agenda.

This guide covers the key financial planning priorities for expat families expecting or raising children abroad, from before the birth through the early years and into education planning.

Nothing in this article constitutes legal or financial advice. Regulations vary significantly by country. Seek independent professional advice tailored to your circumstances.

Healthcare and Maternity Costs

The first major financial consideration for an expat expecting a child is healthcare. Unless living in a country with reciprocal healthcare arrangements with the UK (which for most popular expat destinations — UAE, Singapore, Thailand, Bali, etc. — is not the case), private medical care costs apply.

Maternity costs in key expat destinations (approximate figures, as of 2026):

• UAE (Dubai/Abu Dhabi): Private hospital delivery typically AED 15,000–50,000 (approximately £3,200–£10,700) depending on hospital, type of birth, and complications. International PMI typically covers this if maternity cover has been held for the required waiting period (often 10–12 months).
• Singapore: Private hospital delivery SGD 10,000–25,000+ (approximately £6,000–£15,000). Government restructured hospitals offer lower rates. PMI cover recommended.
• Spain/Cyprus/Greece: EU residents or those with valid health entitlements may access state healthcare; expats without entitlement need private insurance.
• Thailand: Private hospital delivery in Bangkok THB 100,000–300,000 (approximately £2,300–£6,900) for international-standard hospitals.

International PMI maternity coverage. Most international health insurance policies include maternity as an add-on or core benefit, with a waiting period of 10–12 months before cover applies. If you are planning to start a family abroad, checking and upgrading your PMI well in advance of conception is strongly advisable.

Post-natal costs. Factor in post-natal care, paediatric consultations, vaccinations, and any complications requiring additional hospitalisation.

Maternity and Paternity Pay for Expats

Statutory Maternity Pay (SMP) is a UK entitlement applicable only to those employed in the UK and paying UK National Insurance. Expats employed abroad by foreign employers do not receive UK SMP.

Options for expats:

• Local maternity/paternity entitlements. Most countries have their own statutory maternity pay schemes. In the UAE, the UAE Labour Law provides for 60 days of paid maternity leave for private-sector employees. Singapore provides 16 weeks of paid maternity leave for qualifying mothers. Spain provides 16 weeks. Thailand increased statutory maternity leave to 120 days (from 98) from 7 December 2025, with the employer required to pay full wages for 60 of those days.

• Employer-enhanced packages. Multinational employers often have enhanced maternity/paternity policies that exceed local statutory requirements. Check your employment contract.

• UK employer with overseas posting. If you are a UK employee posted abroad by a UK employer and remain on UK payroll, UK SMP rules may still apply. Confirm with your employer.

• Self-employed expats. Have no statutory entitlement to maternity pay in most jurisdictions. Financial planning — saving adequately before a planned pregnancy — is essential.

State benefits in the UK. Child Benefit and means-tested support for children (now delivered through Universal Credit, which replaced Child Tax Credit — tax credits ended on 5 April 2025) generally require the claimant to be resident and ordinarily resident in the UK. Non-UK residents are generally not eligible. On return to the UK, entitlements begin from the date of qualifying residency.

Birth Registration and Nationality

A child born abroad to a British parent may be entitled to British citizenship by descent. Registration should be done promptly at the nearest British Consulate or through the HMRC Overseas Registration of Birth process.

Key nationality points:

• A child born abroad to a British citizen parent is British by descent in most cases. Registration is not automatic — it must be applied for.
• The child may also be entitled to citizenship of the birth country, depending on local law. UAE-born children of non-UAE nationals do not automatically receive UAE citizenship. Singapore-born children of non-permanent residents do not automatically receive Singaporean citizenship.
• Dual nationality is permitted under UK law, but not all countries recognise it. Check the rules for each relevant country.

A valid British passport for the child should be obtained promptly. A child with a British passport has the right to return to the UK regardless of what happens to the parents' residency status abroad.

Education Savings Planning

Education costs for expat children are discussed in depth in our dedicated articles on international school fees and university planning. In summary:

International school fees. Annual fees at well-regarded international schools in major expat destinations range from £8,000–£30,000 per year or more. Depending on the destination, school-related costs (registration, uniforms, activities, transport) add substantially to headline fees. A child born now will start school within five years — saving early is essential.

UK boarding school. If the child is likely to attend boarding school in the UK from age 11 or 13, fees can reach £40,000–£50,000 per year at senior schools (2026 figures). A boarding school savings plan should ideally start from birth.

University. UK university fees for non-resident UK nationals are set at international rates — potentially £25,000–£50,000 per year or more, depending on the institution and course.

Savings vehicles for children's education:

• Junior ISA (JISA). Available for UK-resident children (including those temporarily abroad in some circumstances). Up to £9,000 per year (2026). Tax-free growth and income.
• Offshore investment bond. Tax-efficient accumulation over 10–18 years. Gains assessed on surrender; top-slicing may reduce tax. Particularly useful for internationally mobile families.
• Bare trust for children. Assets held for a child in a bare trust are taxed as the child's income and gains, which can be tax-efficient if the child has little other income.
• Education savings plans. International school savings plans exist through some insurers — review terms carefully; flexibility is important given the uncertainty in an expat life.

Updating Financial and Legal Documents

The birth of a child triggers a cascade of document updates:

Will. This is the most urgent update. If you have a will, it needs to be revised to include the child as a beneficiary and to appoint guardians. If you do not have a will, make one now — the birth of a child makes the absence of a will particularly serious. Consider making wills in each country where you have significant assets.

Guardian appointment. If both parents die, who cares for the child? This must be specified in the will and the named guardian should agree in advance. For internationally mobile families, consider carefully where the child would be raised, and what that means for the guardian.

Pension Expression of Wish. Pension death benefits can be directed to trustees for the benefit of minor children rather than being paid directly. Update your Expression of Wish for every pension scheme.

Life insurance. A new child dramatically increases the financial protection required. The cost of raising a child in the UK to age 18 is estimated at over £200,000; the cost of education adds considerably more. Ensure life insurance covers the financial loss if either or both parents die while the child is a dependent.

Critical illness cover and income protection. As above — a new financial dependent means the protection gap from illness or disability is significantly larger.

Tax Implications of Having Children Abroad

Child Benefit (UK). Generally not available while you are non-UK resident; eligibility resumes on return to the UK. Note that Child Benefit is not itself dependent on National Insurance contributions — but maintaining your NI record through voluntary contributions while abroad protects separate entitlements such as the UK State Pension, which is a worthwhile consideration for expat parents.

Child's UK tax residency. A child born abroad to British parents is generally not UK tax-resident unless they live in the UK. If the child inherits UK assets or has UK-source income, their tax position needs separate consideration.

International school fees and tax. School fees are not tax-deductible in the UK. However, in some countries (Singapore, for example), employer-provided education benefits may be treated more favourably. Check the local tax treatment of employer-provided school fee benefits.

Financial Planning for the New Family Budget

The arrival of a child typically changes household expenditure significantly:

• Childcare costs (nannies and domestic helpers are common and relatively affordable in UAE, Singapore, and Thailand; less so in Europe)
• Healthcare and paediatric costs
• Increased life insurance and protection premiums
• Education savings contributions
• Larger accommodation needs

Updating the household budget and financial plan to reflect these additional costs is an important step, typically requiring a comprehensive review of income, expenditure, savings, and investment plans.

How Global Investments Can Help

Global Investments advises internationally mobile families at all stages of family life, including the significant financial planning changes that accompany the birth of a child. Our advisers understand the specific challenges facing expat families — from multi-jurisdictional estate planning to education savings and cross-border insurance.

We can assist with estate planning updates, education savings strategy, life insurance and protection review, financial plan recalibration for the new family budget, and investment planning for long-term family goals.

Speak with a Global Investments adviser. Early planning — ideally before the birth — is always more effective than reactive planning afterwards.

This article is for general information only and does not constitute legal or financial advice. Rules on nationality, benefits, and tax vary by country and are subject to change. Always seek independent professional advice.