With the budgets feeling tighter in the UK, some Britons are looking overseas for a cheaper lifestyle. Tax-free destinations could offer some of the best value considering a move abroad in 2026.According to a new study, 61 per cent of Britons would consider a move offering more affordability, with lower living costs and tax-free living among the biggest draws. International health insurance specialist, William Russell, analysed tax-free and low-tax countries using factors including average rent, utility bills, salaries and day-to-day living costs to reveal the cheapest destinations for a single person to relocate to next year.Leading the rankings is Mauritius, where estimated monthly living costs for a single person come in at just £439. The island nation also stood out for its low utility costs, averaging only £41 per month.Mauritius has the lowest estimated living costs | GETTYCheapest tax-free countries for expats (estimated monthly costs)Mauritius – £439Panama – £580Bahrain – £609Andorra – £662Malta – £670Qatar – £678United Arab Emirates – £713Cyprus – £750Seychelles – £775Hong Kong – £800Researchers said Mauritius offers “a consistent pattern of affordability across housing, utilities, and general expenses”, making it particularly attractive for financially minded expats. It is also home to beautiful white-sand beaches and must-see coral reefs.Another beautiful beach destination – Panama – ranked second with estimated monthly costs of £580, helped by relatively low rents and property prices.Meanwhile, Bahrain came third, combining zero personal income tax with one of the strongest salary levels in the study. The research also found several destinations popular with British expats featured strongly thanks to their combination of warm climates and manageable living costs, including Malta, Cyprus and the United Arab Emirates.Panama is home to beautiful beaches | GETTYBahrain was one of the Middle East destinations on the list | GETTYElsewhere in the findings, Andorra was highlighted for offering the cheapest one-way flights from London, with fares averaging just £22.Seychelles recorded the lowest property prices in the study at £611 per square metre, while Liechtenstein stood out for exceptionally high post-tax salaries, averaging more than £7,000 per month.Despite higher living costs in some destinations, the report suggests many tax-free countries continue to appeal to Britons seeking a better balance between income and expenses, particularly as affordability pressures remain high in the UK.For more relocation recommendations, a European country with pristine lakes and breathtaking scenery has been named one of the top for British expats.