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I am planning to get a phone through KPN with a subscription of 2 years, where I would pay for the phone in monthly installments over those 2 years. What would happen if I decided to move abroad before the end of this period? Can I cancel the contract and continue paying for just the phone itself on a monthly basis, or will I bound to the contract until the 2 years are up?

You will have to pay off the rest of the loan at once. Evenso with the rest of the subscription.

Why don't buy a phone and pay it at once? Then you don't have a loan if you move abroad. 

Then you only have to pay of the rest of the subscription period ( remaining months at once).