How to Move Abroad as an American in 2025

It’s estimated that 5.5 million Americans live abroad, according to AARO, However, other sources put the number as high as 9 million.

That number is growing each year, as more people look for new lifestyles, career opportunities, and affordable places to call home.

Several forces are fueling this rise. Remote work has untethered millions of professionals from office jobs, while digital nomad visas make it easier than ever to live legally in another country. At the same time, investor programs like Golden Visas have opened new doors for families seeking long-term residency and mobility in Europe and beyond.

As exciting as it sounds to pack your bags and start a new adventure overseas, proper preparation is key to a successful transition. To that end, we’ve created a practical checklist to help make your move abroad as smooth as possible.

Moving abroad isn’t just about booking a flight; it’s about setting yourself up for success in a new country. This guide will walk you through the key steps to confidently plan your move.

Why More Americans Are Moving Abroad in 2025

The number of Americans seeking life overseas continues to climb in 2025. For some, the motivation is financial, escaping high housing and healthcare costs in the US For others, it’s about lifestyle, from finding safer communities to enjoying a slower pace of life.

Governments around the world are responding to this demand by offering digital nomad visas, retiree-friendly programs, and investment pathways that make relocation easier than ever. Combined with the growth of remote work, Americans now have more freedom to choose where they want to live, without giving up their careers.

Retirees, too, are finding that their dollars go further abroad, with affordable healthcare and housing allowing them to stretch their savings while enjoying a higher quality of life.

Before you dive into logistics, it’s worth recognizing that your personal situation will largely determine which countries make sense for you. Different life stages and goals line up with different visa pathways:

Choose Your Path Abroad

Before you dive into logistics, it’s worth recognizing that your personal situation will largely determine which countries make sense for you. Different life stages and goals line up with different visa pathways:

Remote Workers

If you work online for a US or global employer, you’ll want to explore countries offering digital nomad visas, such as Thailand’s Long-Term Resident (LTR) Visa. These programs let you live legally abroad while keeping your remote job, often with more flexible stay rules than traditional work permits. Many also have minimal residency requirements, making them ideal if you want the freedom to move between destinations.

Retirees

If you’re living on Social Security, pensions, or savings, you’ll likely prioritize affordability, healthcare access, and stability. Countries like Portugal, Costa Rica, and Mexico are attractive because your money stretches further, and residency programs are tailored to retirees.

Students

Planning to continue your education? Some countries, such as Germany and Norway, offer low-cost or even tuition-free higher education for international students. Choosing this path not only saves money but also gives you long-term residency options while studying abroad.

Career Professionals

If your move is tied to a career opportunity, you may follow work visas or company-sponsored transfers. Multinational firms often provide relocation assistance, which can make settling into a new country easier. This route can be especially valuable if you want to gain global experience while advancing your career.

By starting with your situation, you can narrow down destinations that best align with your financial, professional, or lifestyle goals.

Plan Your Finances Beyond the Flight

Moving abroad isn’t just about securing a visa and buying a plane ticket; it’s about restructuring your financial life to fit a new country. Careful planning now will prevent stress later.

Cost of Living

Research how everyday expenses compare with the US, including housing, food, transportation, and healthcare. Countries like Mexico and Thailand are often much cheaper, while Switzerland or Singapore can be more expensive than many American cities.

Banking & Money Management

Most expats keep a US-based account to pay loans, credit cards, or retirement contributions while opening a local account for daily expenses. Keeping a US bank account open while living abroad isn’t always straightforward. Some institutions may require a US address. Look into a US-based bank that supports expats; alternatively, international banks with US ties or fintech services (like Currencies Direct) can help bridge the gap and reduce transfer fees. Before you move, investigate the requirements for opening a bank account in your host country. Some banks may ask for proof of residence, a local tax ID, or other documentation.

Currency Fluctuations

If you earn in US dollars but spend in another currency, exchange rate shifts can quickly affect your budget. To manage this, consider using multi-currency accounts and timing your transfers for when rates are more favorable.

Emergency Fund

Always set aside savings for the unexpected, flights back to the US, sudden medical bills, or moving costs if your plans change. A dedicated emergency fund provides security and peace of mind during your adjustment period.

Financial planners typically recommend setting aside 3–6 months’ worth of living expenses. If you’re self-employed or freelancing, aim for the higher end (or even more) to cover leaner months when work may not be as steady. Treat this as a safety net so you can focus on enjoying expat life without constant financial stress.

Understand Visa & Residency Options

Every country has its own visa requirements, and they vary widely. Some of the most common visas Americans pursue include:

• Digital Nomad Visas: Offered in dozens of countries, these allow remote workers to live legally abroad while keeping a US-based job.
• Retirement Visas: Countries like Costa Rica, Portugal, and Mexico welcome retirees with steady income or pension benefits.
• Investor/Golden Visas: Programs in places like Portugal, Malta, and Greece grant residency in exchange for qualifying investments.
• Work Visas: If you’ve secured a job abroad, your employer may sponsor a visa tied to your contract.

Start researching visa requirements early, including minimum income thresholds, documentation, and whether the visa can eventually lead to permanent residency or citizenship. Bureaucratic delays are common, so it’s best to start months in advance.

Healthcare Abroad

Healthcare is another critical piece of expat life. Many countries provide public healthcare systems that are high quality and far more affordable than in the US. However, access often depends on your visa status or residency permit.

In fact, many visa programs, including popular digital nomad and Golden Visa options, require proof of private health insurance before approval. Even where public healthcare is available, most new expats will need private coverage at least initially.

Make sure you’re covered from the day you arrive, whether through international travel insurance or a local private plan. Once you establish residency, you can explore transitioning into the public system if you’re eligible.

Finding Housing Abroad

Securing housing is one of the first major steps when moving abroad. For most expats, renting is the best starting point because it provides flexibility and allows time to explore neighborhoods before making a long-term commitment.

If you decide to purchase property later, research any restrictions on foreign buyers in your host country, as well as the tax implications of ownership. Some countries impose extra property taxes on non-residents, while others limit what type of real estate foreigners can buy.

If you eventually sell property abroad, remember that the US taxes capital gains on worldwide income, including foreign real estate. While you may also owe tax in your host country, treaties and IRS foreign tax credits can help reduce double taxation.

Best Countries for Americans Moving Abroad in 2025

Looking for inspiration on where to settle abroad? Here are some of the most popular destinations for Americans in 2025, each offering a mix of lifestyle, culture, and visa opportunities.

• Germany – Known for its strong economy, excellent healthcare, and vibrant cities like Berlin and Munich. Germany offers expats high living standards and clear tax treaty protections.
• Spain – Famous for its sunny climate, Mediterranean culture, and affordable lifestyle. Spain is also attractive thanks to its residency visa options for expats.
• Costa Rica – A top choice for retirees and digital nomads, offering tropical beauty and the laid-back “Pura Vida” lifestyle. Residency visas are widely available for those seeking a long-term stay.
• Luxembourg – Safe, multilingual, and centrally located in Europe. Luxembourg also has strong expat benefits and favorable tax treaties with the US.
• Belgium – Home to EU institutions, rich culture, and excellent public services. Belgium appeals to Americans seeking both career opportunities and a family-friendly environment.

Explore even more destinations in our full archive of Country Guides

Tax Treaties

Tax treaties are agreements between the US and many other countries that determine which nation has the primary right to tax certain types of income. They work alongside other IRS provisions, such as the Foreign Tax Credit, to reduce or even eliminate double taxation for US expats. For example, a treaty may clarify how Social Security income should be taxed between the two countries, helping ensure the same income isn’t fully taxed twice.

Totalization Agreements

Totalization agreements, on the other hand, focus on Social Security contributions. Without them, you might have to pay into the US Social Security system and your host country’s system simultaneously. These agreements prevent double payments and let you combine work credits from both systems to qualify for retirement benefits later.

Build Your Community Abroad

No matter where you move, having a support system makes all the difference. Expat life can feel isolating at first, but building a network abroad has never been easier.

You can start even before the move:

Online Communities

Facebook groups, Reddit threads, and expat-focused platforms like Expatsi are great starting points. Expatsi, in particular, offers tools to explore country options, connect with like-minded expats, and even join guided relocation tours.

Professional Associations

If you’re relocating for work, professional associations can help you expand your network, find career opportunities, and get support from others in your industry.

Local Meetups & Language Exchanges

Once you arrive, don’t overlook the value of local meetups and language exchanges. These not only help you practice the language but also create meaningful connections with locals and fellow expats.

A strong community abroad offers more than companionship; it delivers practical advice on navigating bureaucracy and invaluable emotional support during the ups and downs of expat life.

Know Your Tax Obligations in the US and Abroad

Last but certainly not least, you can’t forget about your US tax obligation. Here’s the tricky part many Americans overlook: moving abroad doesn’t end your US tax responsibilities.

The United States is one of the few countries that taxes citizens on their worldwide income, no matter where they live. If you earn above the annual filing threshold, you’ll still need to file a US tax return each year.

The good news? The IRS offers several tools to prevent double taxation:

Tax Benefits for Expats

• Foreign Earned Income Exclusion (FEIE):Lets you exclude up to $130,000 (2025) of foreign earned income if you meet the Bona Fide residency or Physical Presence tests.
• Foreign Tax Credit (FTC): Allows a dollar-for-dollar credit for income taxes you’ve already paid to another country.
• Foreign Housing Exclusion: Helps offset the high cost of living in expensive cities abroad (like London, Zurich, or Hong Kong).
• Child Tax Credit (CTC): For 2025, you can claim up to $2,200 per child under 17, with up to $1,700 refundable through the Additional Child Tax Credit (ACTC). Keep in mind, income excluded under the FEIE doesn’t count toward qualifying for the refundable portion.

US Reporting Obligations

On top of that, if your foreign bank accounts exceed certain thresholds, you may also need to file additional reports:

• FBAR (FinCEN 114): Required if your total foreign account balances combined exceed $10,000 at any point during the year.
• FATCA (Form 8938): Required for higher thresholds, depending on your filing status and residence abroad.

Self-Employment Tax

You are still responsible for US self-employment tax if you’re self-employed, whether as a freelancer, consultant, small business owner, or independent contractor. This 15.3% tax covers Social Security and Medicare and applies to your net earnings, no matter where in the world you live.

This often comes as a surprise to Americans abroad, especially digital nomads, who frequently earn income through freelancing or running online businesses. Even if you qualify for the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to reduce your income tax, self-employment tax still applies.

Don’t Forget State Taxes

Each state has different rules, and some may still treat you as a resident if you keep ties like a home, driver’s license, or voter registration. If you have state-sourced income (like rental property or business activity), you may also need to keep filing there. Be sure to check your state’s filing obligations and cut ties if necessary to avoid unexpected taxes.

Local Tax Obligations

In addition to US taxes, you may also owe income tax in your country of residence. Most countries consider you a tax resident if you spend 183 days or more there in a year, which can trigger local filing and payment requirements. In many cases, this means being taxed on your worldwide income, not just what you earn locally. Rules vary, so always check the tax laws where you live to avoid unexpected obligations or penalties.

Move Abroad Confidently

Moving abroad is exciting, but it comes with complex tax and financial questions that can be overwhelming on your own. With MyExpatTaxes, you’ll have a trusted partner to guide you through every step, from planning before your move to filing confidently each year your abroad. Get the clarity you need to focus on building your new life, while we ensure the tax side is taken care of.

Frequently Asked Questions