Recently, many clients and friends have asked us about moving abroad. What does it take to live in another country? The honest answer is: It depends. The first questions we ask are “Why?” and “Where?” Your motivation and destination shape what’s required and what challenges you may face. To get you started, here are some key areas to consider.
Residency and Visas
- Extended Visa or Permanent Residency: Permanent residency gives you the right to live and work in another country indefinitely, though without full citizenship rights (like voting or holding office). Each country sets its own requirements, so it’s important to research the rules where you’re headed.
- Golden Visas: Many countries—such as Portugal, Spain, Greece, Malta, Italy, and certain Caribbean nations—offer residency (or even citizenship) in exchange for investment. These often require six-figure investments in real estate, businesses, or funds.
- Retirement Visas: Some countries grant residency to retirees with sufficient passive income (like Social Security or pensions). Rules differ widely, but the goal is to show you can support yourself without working.
- Work Visas: If you plan to earn income locally, you’ll need a work visa—which is often more difficult to obtain.
- Background Check: Many countries require a criminal record certificate and FBI background check. Guidance is available on the U.S. State Department website.
Social Security & Healthcare
Social Security: Your U.S. benefits generally continue while living abroad.
Healthcare: Medicare does not cover you overseas. Best is to find a local health care plan, which often is not as expensive (as in the US) or sometimes an international health care plan can provide coverage.
Taxes
To whatever country you intend to move, your taxes will become more complicated:
- You’ll still need to file a U.S. tax return, and you may also have to file in your new country if you live there more than 183 days per year.
- Tax Treaties to ‘avoid Double taxation’ between the U.S. and many countries determine how much you’ll owe in each jurisdiction.
- Your retirement accounts might suddenly face much higher taxes. Some countries—such as Finland, Denmark, and Japan—have starting tax rates above 50%. These countries provide excellent health care and social welfare programs, but the tax cost can come as a shock.
Investments
Your U.S. portfolio was designed with U.S. residency in mind. Moving abroad may require adjustments for currency exposure, local regulations, and tax implications. Opening investment accounts in your new country may also be challenging—this is where a global investment advisor becomes invaluable.
Estate Planning
Estate rules vary by country, and your U.S. plan may need changes. U.S. estate taxes apply to your worldwide assets, and assets held abroad may be subject to local inheritance laws. The US has estate tax treaties with 15 countries. Finding an international estate lawyer to coordinate your U.S. will with local estate laws is important and will avoid complications for your heirs.
Don’t Forget Your “Why”
Logistics matter, but so does motivation. People move abroad for many reasons — retirement in a warmer climate, lower living costs, new work opportunities, or simply a change of pace. Before making a permanent leap, consider a trial run. Many countries allow stays of up to 180 days without requiring residency. This can help you experience daily life—very differently from a holiday—before committing to a full move. For some, a part-time arrangement works best: spending half the year in the U.S. and half abroad. This way, you can enjoy the benefits of both worlds while keeping U.S. tax residency.
Final Thought
Every country is different, and moving abroad involves both opportunities and challenges. If you’re considering this step, seek guidance from a financial planner with international experience — especially someone familiar with your chosen country. With careful planning, you can make the transition smoother and avoid costly mistakes.
