“We had travelled extensively across Europe and always felt that we should experience the quality of life, infrastructure and facilities more deeply by living here. Vacations only give you a glimpse,” said Arnav.
In August 2024, the couple packed up their lives in Bengaluru and moved to London, UK. Among the many destinations they considered, London ticked all the boxes. “It has plenty of opportunities in tech, the pay is good—lower than the US but better than major European hubs—and the long-term path to permanent residency or citizenship is clearer. And, of course, we didn’t have to learn a new language,” Arnav said.
But London, consistently ranked among the world’s 10 most expensive cities, demands its share of financial and lifestyle adjustments. Housing was the first reality check for the couple. “We now live in a 600 square feet one-bedroom apartment, compared to the 1,600 sq. ft three-bedroom we had in Bengaluru,” said Arnav. “Rent and utilities take up nearly 25% of our combined income. For single earners, it can climb to half their take-home pay.”
However, he is not complaining. “The rent pinches but doesn’t feel like a downgrade. The modern apartments here make efficient use of space. Besides, we spend a lot of our time outdoors as there’s so much to do in the city.”
As part ofMint’s series on Indian expats, the couple shares their experience of living in London.
Career opportunities
Both Arnav and Sayani work in tech firms in London. Arnav moved on a UK Global Talent Visa, a visa option that allows highly skilled professionals in different fields to live and work in the UK without a job offer. Sayani has moved as a dependent.
“Finding jobs wasn’t difficult for both of us. Our experience with global tech companies helped, and already having the visa made the search easier than finding employers who can sponsor fresh work visas,” said Arnav.
In general, he added, London offers good career opportunities for those in tech and finance. “The number of jobs and pay scales is good. Marketing or sales might be trickier for expats as locals or UK-educated candidates often get preference.”
As for the pay, the UK offers higher salaries than India, Arnav noted. “Average Indian salaries are still less than half of what you’d make in the UK in tech and finance roles,” he said.
While pockets of India, particularly in top tech or finance positions, have seen salaries rise, the difference continues to be large. “Even within Europe, there are variations, but compared to India, London is still far ahead in terms of average pay,” he added.
Higher salaries make up for the higher cost of living in London for the couple.
Cost of living
Rent has been the single biggest dent in the couple’s finances. Beyond housing, the city’s everyday expenses, from groceries to transport and dining out, feel higher but not unmanageable. “Most of our expenses, on both essentials and lifestyle, are about 1.5X to 2X what we paid in India,” Arnav said.
Back in Bengaluru, the couple lived in Indiranagar, one of the city’s upscale neighbourhoods, and dined out often. “Compared to Bengaluru, London does feel expensive, but not exorbitant,” he added.
The couple has seen a notable jump in their incomes in London, so the higher cost of living hasn’t changed their financial situation much.
“Our earnings here increased in line with expenses, so our savings rate has not changed. We’re able to maintain a lifestyle similar to Bengaluru, which already was a bit extravagant.”
Moreover, the move has made European holidays and luxury cars more affordable for the couple. “Long weekends to Italy, Spain, Portugal, or the Nordic countries are easy from London, and some destinations don’t even require flying. For instance, Paris is just a two-hour train ride,” Arnav said.
Apart from proximity, spending in pounds across Europe doesn’t carry the disadvantage of converting from a weaker currency like the INR to the Euro.
A luxury car enthusiast, Arnav is keen to buy a Jaguar or an even more premium car, once he secures his UK driving licence.
“A premium car here costs nearly half of what it would in India,” he explained. “The used car market in London is also very large. Unlike in India, driving a pre-owned car isn’t taboo, which makes owning a high-end car so much more affordable.”
Taxes and social security
Arnav and Sayani pay an effective tax of 35% and 30%, respectively. However, they get several social security benefits in return, said Arnav. “The tax outgo is the same, but taxes here don’t feel as high.”
Of the 30-35% of their tax contribution, about one-third goes towards National Insurance (NI), which covers state pension and free healthcare under the UK’s publicly funded National Healthcare Service (NHS). The NHS covers OPD visits, hospital treatment and emergency care, among others. “We both also have separate employer-sponsored private medical insurance that covers private clinics, eye care and dental checkups,” Arnav said.
Residents become eligible for a partial pension after continuous 10 years of contributions, whereas 35 years of NI contributions are needed to qualify for a full pension.
There is a welfare safety net too for unemployment and disability, wherein the state pays a fixed monthly allowance, depending on the NI contributions, for up to six months. “We have not had to avail any of these, but it’s comforting to know we’re covered for such emergencies.”
Apart from social security, there are some tax-saving mechanisms too, Arnav added. Some of these are especially devised for expats, like tax exemptions on foreign assets for the first four years and for the time spent outside the UK.
“The second benefit is called Overseas Workday Relief. Both of our workplaces allow 1-2 months of remote work, so if we work from India, income for those months is tax-free. I have work trips to the US, those too get excluded,” Arnav explained.
That’s not all. “Also, up to £20,000 invested in an Individual Savings Account (ISA), any dividends, gains or interest earned are tax-free.”
Through an ISA, UK residents can invest in savings accounts, stocks, and exchange-traded funds (ETFs).
Investments and housing
After accounting for essential and discretionary spends, the couple saves about 40% of their household income—20% as liquid savings and 20% invested across India and the US.
“We are largely conservative investors, but have diversified globally,” said Arnav. As much as 60% of their investment portfolio is in India, primarily in debt and large-cap funds and a small portion in stocks and crypto. The remaining 40% is invested globally—concentrated in the US markets in a mix of index ETFs, blue-chip stocks and a small exposure in emerging fields.
So far, their strategy has paid off. “The last three-year XIRR on our Indian portfolio is 16%, while the global portfolio is at 24%. The latter has delivered higher returns because I had invested during the 2020 crash,” said Arnav.
The couple is saving up to buy a home in London, and it’s not a modest goal. “Depending on where and what size we like, it could be anywhere between £500,000 and £700,000 ( ₹5.9 crore and ₹8.2 crore),” he said.
An independent house located about an hour outside the city might cost £300,000, while properties closer to London start at £600,000 and can climb up to £1.5 million. With mortgage rates hovering around 3-4%, the couple believes it makes sense to buy the house on a loan. “The monthly payments on a 25-30 year mortgage work out to nearly the same as rent,” he added.
The couple doesn’t plan to return to India anytime soon. “For now, we plan to settle here in the UK,” Arnav said. Though Sayani would like a dual life: London in the summer, Bengaluru in the winter, he laughed. “So far, living in London has felt like an extended vacation, like the ones we took from India.”
Note: This article reflects the personal experiences of Arnav Gupta and Sayani Bhattacharjee living and working in London. Costs, income, lifestyle choices, and financial priorities may vary for others based on individual circumstances and goals.
