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The Spanish archipelago has a reputation as a party destination, but the cost of living there is soaring for the thousands of Britons who call it home.

According to the latest figures from the Spanish National Statistics Institute, the Balearic islands of Mallorca, Minorca, Ibiza and Formentera are now home to almost 24,000 Brits.

But the cost of living has been climbing gradually in recent years. In Spain as a whole as in most large European countries inflation has taken its toll while wages have stagnated. A fall in the sterling to euro exchange rate has also affected expats, while Spain's well-publicised economic troubles mean the banks are reluctant to lend for personal or professional borrowing.

In the Balearics, where many goods are imported from the mainland and therefore more expensive the situation is even worse, with the popularity of the island pushing up property prices.

Expats Justine and Bruce Knox, who are based in Mallorca, own and run Knox Design. The islands are comparable to a city like London or Paris [in terms of price], said Justine. But I am sure there is still a small percentage of people who dont realise how much the islands have changed and still expect them to be a cheap destination."

Bruce agrees that expat life in the Balearics is expensive. Mallorca actually produces very little so we are really reliant on importing goods and that increases the price, he said.

Many expats on the islands choose to start their own businesses, but when it comes to getting financial advice, they are frustrated by the Balearic banks. A poll by Just Landed at the beginning of the year found that two-thirds of expats polled 64 per cent said that they do not trust local banks at all. They quoted "unfair" charges on their Spanish accounts as a cause for concern, while language can also be a major barrier especially as locals speak Catalan, not Spain's primary language, Castilian.

Its important that expats hoping to start businesses here have good financial, legal and business advice, said Telegraph Expat blogger Anna Nicholas. Social Security is pretty crippling here, and the bureaucracy can be exhausting.

But success stories can inspire potential expat business owners. Providing you are offering the right product and service to the right target market, it is an excellent place to run a business, said Justine. I do always recommend that, despite the potential to target English-speaking holidaymakers, it is still absolutely vital to be able to speak Spanish.

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Life's no party for expats in the Balearics

A new gambling law in Spain will make it harder for British expats to have a flutter.

Expats will be barred from playing poker with fellow English-speakers internationally, while those who enjoy virtual bingo are likely to be frustrated in Spain.

From June 1, only companies with a Spanish government-issued licence and an .es domain will be allowed to run online gambling sites in the country.

The previous Socialist Party government passed a new gambling law last year that introduced the new rules, but the implementation of this was delayed when they lost power to the Popular Party in November (Stuttgart: A0Z24E - news) .

The new law doesnt, however, cover bingo, meaning those whove taken to substituting the UKs bingo halls for a bit of a flutter online will be out of luck. It has not been banned but the legal assumption is that if it isn't on the list of regulated products, it isn't legal.

While sports betting is permitted under the new law, live in-play betting has been excluded and there has been speculation that the regulation of betting exchanges such as that run by Betfair will be delayed.

Poker players will also lose out, as while the game is covered by the new law, the player pool is restricted to Spain and it will no longer be possible to take part in international games or tournaments.

Willem van Oort, chief executive of GranViaOnline , a marketing agency specialising in the Spanish online gaming market, said many British expats wont be interested in some of the sites on offer post-regulation. These people play on the UK-based sites and because of their residence they wont be able to do this anymore. They might not be interested in Spanish language poker or casino.

There are a number of expat high rollers living on the coast. But they may find it more difficult as the land-based companies who will now be setting up websites in Spain dont really understand these people, said van Oort.

While the law was on hold, a transition period allowed companies that had not applied for licences to keep operating. However, these firms will now have to withdraw from the market if they remain unlicensed Unibet , for example, has said that it plans to stop operating in Spain from this week.

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Spanish 'ban' online bingo

Use a currency broker, and moving money abroad should be cheap and easy.

There are more than five million British expatriates scattered across the four corners of the world.

Many continue to earn their income in the UK or are retired but have pensions paid in sterling into UK accounts. Some may need to move money to meet mortgage payments in other countries.

These expats need to move their money regularly to their place of residence speedily and safely. The big currency brokers offer deals for regular payments and moving money in instalments can be cheap and easy. The advantage of opting for a broker to make regular payments is that it can be cheaper than a bank.

And particularly for the 1.2 million British pensioners living abroad, it is essential to get the most they can when moving their UK pension payments overseas.

Mark Bodega, marketing director of HiFX , explains: In just the last few years, retired British couples all over the world have seen their monthly pension incomes hit by sterlings depreciation.

Worst-hit are pensioners in South Africa, New Zealand and Australia, who have seen the domestic value of their state pension in their new countries of residence slashed by market volatility.

He has calculated that based on the typical monthly state pension of 628, a British pensioner in Australia now gets an income of A$968 a month but four years ago he would have received A$1,700.

Mr Bodega said: With further sterling volatility predicted, any British pensioners who are on a tight budget and who cannot afford to see the value of sterling decrease any further should consider one of the many regular payment schemes offered by a currency specialist in the UK such as HiFX.

HiFX says that by using a direct debit scheme, UK pensioners wanting to move their pensions to their new home every month would save around 300 on fees on the costs charged by the high-street banks.

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Expats need to make most of best currency deals

They may be happier than they were in the UK, but research shows that nearly half of workers on expat assignments think their employers should have given them more support when they moved abroad.

A survey of over 400 Britons on foreign assignments found that more than a fifth did not get any help from their employers when they were sent overseas.

Although nearly two-thirds said they enjoyed life abroad more than in the UK, 46 per cent admitted that they would have settled in easier if their company had offered them a helping hand with matters such as language learning and housing costs.

Workers were particularly left in the dark as regards their finances, with only 21 per cent being given financial advice when they relocated. Over half (52 per cent) said they felt they would have benefited from planning their finances more carefully before their move.

The traditional nature of expat postings has changed drastically in recent years, with the typical hardship packages offered to lure workers to far-flung destinations becoming less and less common.

Whereas before the economic crisis, international assignees could expect to enjoy such perks as a moving allowance, free flights home and school fees for their children, only half of those interviewed for the survey said they were given a moving allowance, while 42 per cent were offered flights back home and 41 per cent subsidised housing.

So-called trailing spouses, who follow their partners abroad on work assignments, seemed to get an especially raw deal. Only 13 per cent were offered free flights and over half said they received no support from their partners company at all.

A spokesman for Lloyds TSB International Global Mobility Banking , which commissioned the survey, said: Many companies are currently under pressure to reduce costs and were well aware how expensive overseas assignments can be for employers. But were also aware that most employees really value any help their companies can give to guide them through the logistics of moving overseas.

Shn Norman, a regional director of global mobility services at moving company Crown (Other OTC: CWLDF.PK - news) Relocations, said not helping employees adjust to their new homes could easily backfire on companies.

The ultimate goal for businesses relocating their employees is for them to remain focused on their work-related duties and regain full productivity as quickly as possible. Companies who offer services that help the assignee and their partner to adjust to their new location, like intercultural training, see a really high satisfaction rating," she said.

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Expats struggle with ‘lack of employer support’

Wealthy Kiwis returning from overseas to settle back home are contributing to the increasing prices of houses throughout the country.

Latest figures from the housing market show prices increased again in April, bringing the total national increase in house values to 3.1 per cent in the past year.

Bayleys realtor Graham Wallace, who deals with properties in Auckland's highly sought-after "leafy'' eastern suburbs, says that there is definitely an increase in expat buyers.

"I can tell you on every property, I would have at least three or four expat Kiwis.

"They're professionals, they've done very, very well and they're bringing the money they've made and their families back to New Zealand.''

Mr Wallace said expat buyers were looking to return to New Zealand for its family-friendly lifestyle.

Auckland QV valuer Glenda Whitehead said prices in the Auckland area, which increased by 5 per cent over 12 months, had also been affected by eager buyers keen to outbid one another at auctions.

"There are not that many properties on the market at the moment, so when something comes up that ticks everybody's boxes, they're all on to it like nothing on Earth.

"They get along to the auction and get a bit excited, and they might have a valuation or advice, say, of $800,000 and think, `I'll go to $850,000'.''

Ms Whitehead said buyers had been known to get carried away at auctions.

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Rich expats drive up house prices