Research published by offshore savings bank, Alliance & Leicester International Limited (ALIL), reveals that three out of 10 expatriates haven’t increased the amount they save now that they live abroad, and one in eight don’t save at all.

This is despite the reduced cost of living, beneficial taxation and enhanced incomes often enjoyed by expatriates.

Particularly hit seem to be UK expatriates in sunny Spain who are finding the Costas are costing a lot more money than they thought.

The expatriate lifestyle in Spain means that, despite lower living costs, only six out of 10 say they have increased their savings since leaving the UK – compared to eight of 10 expatriates in Germany. Indeed one in eight expatriates living in Spain do not save anything, compared to only one in 16 of those UK citizens living in Belgium.

ALIL have coined the word 'expatitis' to describe a condition where the individual’s lifestyle expands to fill their means - leading to poor financial planning.

Men are apparently more likely to suffer from expatitis than women – with 33 per cent saying they haven’t managed to increase the amount they save now that they live abroad. By comparison only 25 per cent of female expatriates admit to not making the most of the financial benefits of living abroad, by putting more money away for the future. Also – one in six male expatriates don’t save any money compared to just one in 10 women.

Those most likely to suffer from expatitis are in their late 40s and early 50s – where 42 per cent say that since living abroad they haven’t been able to increase the amount they save and indeed a further 25 per cent don’t save at all. Those most immune to poor financial planning are expatriates under 45, where only a quarter say they haven’t been able to put more money away now they are living abroad and only one in 10 say they don’t save at all.

Simon Hull, managing director of ALIL said, "This research shows that whilst many expatriates find a lower cost of living, beneficial taxation and increased income by living abroad, this does not mean that they can increase the amount of money they put away for their future."