US Expat Guide to Moving Abroad: 2025 Edition
Moving abroad as a US citizen is an exciting adventure, offering the promise of new opportunities, cultural experiences, and, for many, a better quality of life. However, moving to a new country comes with its own set of challenges, especially when it comes to navigating the complex landscape of taxes, healthcare, and other logistics. In this guide, we’ll walk you through the essential tips to ensure your transition to life abroad is as smooth as possible in 2025.
Why Americans Are Choosing to Move Abroad
In 2024, more Americans than ever are seeking new beginnings overseas. Many are driven by the rising cost of living in the US, political or social unrest, or simply the desire for a different lifestyle. Expat communities are growing across Europe, Asia, and South America, with countries offering appealing incentives like remote worker visas, affordable housing, and high-quality healthcare.
The reasons vary, but one common theme is the increased flexibility of remote work, which allows Americans to live in more affordable countries while maintaining US-based jobs. Additionally, retirees are finding better cost-of-living options abroad, allowing their retirement savings to stretch further.
Are You Ready to Move Abroad?
Choose the answer to each question that best describes you or your current situation, and learn how ready you are to start a life abroad.
Are You Ready to Move Abroad?
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You’re an adventurer!
You have an adventurous spirit but you may need to prepare a bit more to ensure a smooth transition abroad. Consider researching more about the cultural, legal, and financial aspects of living overseas. Check out our guide 25 Thing Every Expat Should Know
You’re on track!
You’re on the right track. You’ve started to think about what life abroad will entail. Keep building on your preparations to avoid any surprises once you’ve moved. Check out our guide 25 Thing Every Expat Should Know
You’re ready!
You’re ready to move abroad! You seem well-prepared and have done your homework! You’re ready to embrace the expat life with confidence. Check out our guide 25 Thing Every Expat Should Know
Where Expats Are Moving: Top Countries for 2025
The best countries for US expats in 2025 based on a combination of different factors are listed below:
- Portugal: Known for its mild climate, affordable living, and tax incentives for foreign retirees.
- Mexico: A perennial favorite due to its proximity to the US, cost of living, and expat-friendly policies.
- Spain: Attracting expats with its lifestyle, culture, and residency options for remote workers.
- Costa Rica: Known for its stable government, excellent healthcare, and natural beauty.
- United Arab Emirates (UAE): With no income tax and a thriving expat community, it’s especially attractive to high earners and professionals.
8 Essential Tips for US Expats Moving Abroad
1. Know Your Visa Requirements
Every country has its own visa requirements, and it’s essential to understand the specifics before making the move. Whether you’re relocating for work, retirement, or lifestyle reasons, knowing the duration of your visa, renewal processes, required documents, and potential pathways to permanent residency or citizenship is crucial.
If you plan to work remotely, investigate whether the country offers a digital nomad visa or other visas tailored for remote workers. This type of visa typically allows longer stays than tourist visas and can simplify the bureaucratic process.
2. Plan for Paying US Taxes and Foreign Taxes
Even after moving abroad, US citizens must file and pay US taxes. The US is one of the few countries that taxes its citizens on worldwide income, regardless of where they live. That said, various tax treaties and benefits, such as the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit, can help reduce your tax burden.
Here’s what to keep in mind:
- Foreign Earned Income Exclusion (FEIE): You may be able to exclude up to a certain amount of your foreign earned income from US income tax (for the 2024 tax year, the limit is $126,500).
- Foreign Tax Credit: If you’re paying taxes in your host country, you can often claim those payments as a credit against your US tax bill.
- FBAR and FATCA Reporting: If you have more than $10,000 in foreign financial accounts, you must report these to the US government via FBAR (Foreign Bank Account Reporting). Higher limits are applied to determine if you must file a FATCA report, which depends on your filing status and where you live.
Understanding these tax rules early can help you avoid costly penalties and ensure you’re compliant with both US and foreign tax laws. Penalties for not filing a tax return when required are a minimum of $485 but could be as high as 25% of any tax owed. Failure to file FBAR and FATCA reports can quickly exceed $10,000 per year.
For more detailed information, check out our Taxes for Expats Guide.
3. Choosing to Rent or Buy Housing Abroad
Deciding whether to rent or buy a new home abroad will depend on your long-term plans, financial situation, and the real estate market in your destination country. Renting often makes sense for new expats, as it provides flexibility while you settle in. On the other hand, buying property may offer financial advantages if you plan to stay long-term or want to invest.
Before making any decisions, consider researching the local laws and taxation around buying property as an expat in your new home country, and be sure to consult with local experts. For additional resources on purchasing real estate abroad, read our Guide to Buying and Selling Real Estate Abroad.
This comprehensive guide is filled with valuable insights and tools to help you confidently explore the realm of global property investment.
4. Health Care While Living Abroad
Healthcare is another critical consideration anywhere around the world. Many countries provide high-quality healthcare at a fraction of the cost of the US, but the availability of public healthcare to expats varies by country. In some European countries, you may need to purchase private insurance, especially if you’re not a permanent resident.
Be sure to:
- Research the healthcare system in your destination country and find out whether you’ll have access to public healthcare as an expat.
- Compare the cost and coverage of private health insurance plans tailored for expats.
- Ensure that you have travel health insurance in place before leaving the US if public or private coverage won’t begin immediately upon your arrival.
5. Opening a Foreign Bank Account
Having a local bank account will make it easier to manage your finances while living abroad, from paying rent to receiving your salary. However, opening a foreign bank account can involve strict Know Your Customer (KYC) procedures and some banks may require proof of residence, a local tax ID, or other documentation.
It’s also essential to understand how your foreign account may impact your US taxes and financial reporting obligations (such as FATCA). Some expats choose to work with an international bank that has branches in both the US and their host country.
6. Prepare for Culture Shock in Your New Country
Moving to a foreign country often brings excitement, but adapting to a new culture can be challenging. Culture shock is a real experience many expats face, from adjusting to different social norms to new ways of doing everyday tasks. Engage with the local community, learn key phrases in the local language (e.g., Spanish in Spain or Portuguese in Portugal), and make efforts to immerse yourself in the culture. Many expats find that participating in local activities or using apps that connect expats with locals can make the adjustment smoother.
Learn where the best tax havens are, common traps, and ways to save money on your US expat taxes.
7. Manage Your Cost of Living Abroad
The cost of living varies dramatically between countries. For example, countries like Mexico and Thailand tend to have a lower cost of living compared to the US or countries in Europe like Germany and Ireland. Make sure to research how everyday expenses such as groceries, transportation, and healthcare compare. You may also need to consider fluctuating currencies and whether to keep a bank account in the US or open one locally.
8. Ensure Your Work Permit and Visa Are in Order
Whether you’re moving as a digital nomad, on a job offer, or for short-term work, ensuring your work visa and permit requirements are met is critical. Each country, like Japan, China, Netherlands, Italy, etc., has its own rules regarding work permits. Make sure to start your visa application process early, especially if you need a work permit or plan to bring family members with you.
Need Help Moving Abroad? Greenback is Here to Help!
Relocating abroad can be the adventure of a lifetime, but it requires careful planning before the big move. From understanding visa requirements and navigating taxes to choosing housing and healthcare, there are several factors to consider. By preparing ahead of time, you can avoid common pitfalls and set yourself up for a successful expatriate life.
For expert advice on managing your expat taxes, explore Greenback’s Expat Tax Services and discover top expat-rated services chosen by Expats at the 2024 Expat Choice Awards. You can also gather valuable insights into what’s working best for expats worldwide.
If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions.
