British Families Look to European Private Schools as VAT Drives Up UK Education Costs
In recent months, Forth Capital has observed a notable trend: a growing number of British families are seeking alternatives to UK private schools, and many are looking to Europe. The catalyst? A 20% VAT charge on private education, introduced by the UK Labour government and implemented in January 2025. This tax hike is reshaping the education decisions of affluent families, prompting many to reconsider not only where and how they educate their children, but whether relocating abroad could make greater financial and lifestyle sense.
This shift presents both challenges and opportunities. For families facing a substantial increase in school fees, the European private education market offers potential savings, broader international curriculum, and in some cases, a chance to enhance their family's overall quality of life.
What’s Driving the Move Abroad?
The introduction of VAT significantly increased UK private education costs. Most schools passed the charge to parents, and many raised fees by over 20%, combining inflation and the new tax load. For families with children in the upper expense brackets, total annual costs can reach £40,000–£50,000 or more when boarding, extras, and related costs are included.
Comparatively, private and international schools in Europe often offer more moderate pricing, especially day schools or combined boarding options while still offering bilingual or International Baccalaureate curriculum and potential tax incentives for expats. For example:
- At International School of Bremen, day‑pupil fees start at around €12,500 for certain grades and rise to about €18,700 for older grades; full boarding and tuition are reported to cost under €49,000 in its first year.
- In Spain and Portugal, many international day schools charge substantially less than premium UK schools, sometimes by 30–60%, though exact differences depend on location, amenities, and prestige.
- In Switzerland, St George’s fees for its senior school range from CHF 31,400 (£29,319) to CHF 48,250 (£45,056) a year for day students. Elite boarding schools such as Beau Soleil remain at the top end of the market, with fees reported in the CHF 100,000+ range.
Figures are indicative and based on publicly available data as of 2025; exact fees vary by grade and boarding options.
Education and Relocation: A Combined Strategy
At Forth Capital, we specialise in guiding families through the financial and lifestyle decisions that come with cross-border relocation. Increasingly, education is at the heart of these discussions, not just as a cost to manage but as a driver of broader wealth planning and tax strategy.
Families exploring international schools often raise important questions:
- Will we face a higher or lower tax burden in our destination country?
- How can we structure our assets to remain tax-efficient across borders?
- What are the realistic costs of housing, healthcare, and daily life compared to the UK?
- How will currency fluctuations affect our ability to fund school fees abroad?
These are not hypothetical concerns. A move to Geneva may offer more favourable tax arrangements depending on personal circumstances, while a relocation to Lisbon can provide a more affordable cost of living. However, local tax laws and residency rules vary, so professional advice should always be sought before making relocation or investment decisions. Without detailed planning, such moves could inadvertently trigger tax liabilities or complicate long-term investment goals.
That’s why we take a fully integrated approach, aligning education choices with wealth management, tax planning, and international compliance.
UK Schools Responding with International Expansion
Leading UK independent schools are increasingly expanding abroad in response to rising UK costs and growing global demand. Brighton College, for instance, has announced it will open new campuses in Madrid, Rome, and Lisbon by 2027, extending its already successful international model in the UAE, Singapore, and Thailand.
While not stated explicitly, this move aligns closely with the surge in interest from UK families exploring European education options following the introduction of VAT on private school fees. It signals a broader recognition within the education sector that cross-border schooling is now a mainstream consideration for globally mobile families.
For parents seeking to retain a strong connection to the British curriculum, including IGCSEs and A-Levels, all while benefiting from a European lifestyle and potentially lower fees, these international campuses offer an ideal solution. At Forth Capital, we help families evaluate these opportunities through both educational and financial lenses.
Currency Risk and Tuition Payments
One often overlooked factor when paying for education abroad is currency risk. Many international schools price their fees in euros or Swiss francs. For UK-based or GBP-denominated investors, this introduces exposure to exchange rate fluctuations.
At Forth Capital, we help clients manage these risks through:
- Strategic currency conversions
- Offshore banking options
- Multi-currency investment structures
A proactive approach can help families reduce the impact of currency fluctuations and plan with greater confidence around education costs.
Planning Considerations: More Than Just School Fees
Choosing a school abroad is just one part of the puzzle. For families relocating internationally, the real complexity lies in coordinating every aspect of life and wealth across borders.
Some key planning areas include:
- Visa and residency requirements – ensuring both parents and children can legally reside, work, or study in the host country.
- Healthcare access – understanding whether public coverage is available or whether private health insurance is required, particularly for fast-track visa approvals.
- Tax residency – staying compliant while avoiding unnecessary tax exposure.
- Pension and investment access – ensuring your retirement plans, ISAs, or offshore accounts remain accessible and tax-efficient from abroad.
- Cross-border estate planning – addressing how succession laws, forced heirship, and domicile rules affect your family’s long-term wealth transfer.
Smart Education Choices Start with Smart Financial Planning
The new VAT on UK private school fees has intensified a broader shift already underway, as globally mobile families seek smarter solutions for education, lifestyle, and long-term wealth planning. European private schools present not only cost-effective alternatives but also access to globally respected curriculum and enriched cultural experiences.
Choosing to educate or relocate abroad is about more than reducing costs, it’s about aligning your financial strategy, tax planning, and family goals for the future.
Making the Complex Simple, for Expats Worldwide
At Forth Capital, we specialise in helping families navigate these complexities. Whether you're exploring education options abroad or planning a full relocation, we can help you structure your wealth, protect your assets, and plan confidently for the future.
If you’d like to schedule an initial consultation to discuss your financial planning and wealth management, please get in touch today or email us at [email protected]
Niamh Aitken DipPFS
International Financial Planner
As a dual-qualified and dual-licenced Financial Planner, I offer tailored financial planning services to international private clients. I help them understand their options, optimise their UK pensions and investments, and create a robust financial plan for their future lives.
Frequently Asked Questions
It depends on your travel pattern and ties to the UK. In some cases, yes. But significant time abroad may change your residency status, especially if the whole family relocates.
Many European international schools are highly regarded, offering the IB, British A-Levels, or American AP curriculum. Institutions in Switzerland, Germany, Spain, and Portugal often have strong academic reputations, experienced international faculty, and excellent university progression rates. As with UK schools, it is important to review league tables, curriculum structure, and university outcomes.
Yes, but there are important considerations. You may draw on pensions, investment accounts, or property income to help fund overseas fees. However, access to pensions typically depends on your age and the rules of your pension scheme (currently from age 55, rising to 57 in 2028), unless you have a protected pension age or are in special circumstances (e.g. ill health).
You must also account for currency exchange risk, tax implications both in the UK and in your country of residence, and whether your ability to contribute to or access those assets remains intact after relocating. Because tax and pension rules (especially for expatriates) are complex and evolving, consulting specialists in offshore or multi-currency planning can add flexibility and efficiency.
Ideally 12–18 months in advance. School application cycles often begin a year ahead, and securing visas, relocating finances, and finding housing all take time. The earlier you begin planning, the more options you’ll have, especially for competitive schools and tax-efficient structuring.
It can. Eligibility for “home” fees at UK universities depends on a student’s residency and immigration status over the years before they apply. If maintaining UK university access is part of your long-term plan, we recommend discussing this early in your relocation journey.
The information in this article is for general guidance only and does not constitute personalised financial, investment, or tax advice. It is based on current understanding of regulations and tax laws, which are subject to change. Any references to financial or tax benefits will depend on individual circumstances and local legislation. The value of investments and the income from them can fall as well as rise, and you may not get back the amount originally invested. Changes in currency exchange rates may also affect the value of overseas investments or income. Readers should seek independent professional advice before making any financial or relocation decisions.
Last updated 17 October 2025
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