What You Need to Know Before Moving Abroad: The Complete American Expat Checklist

Let's get the big one out of the way. The United States is one of only two countries on Earth (the other is Eritrea) that taxes its citizens on worldwide income regardless of where they live. You could spend thirty years in Barcelona without setting foot in America, and the IRS will still expect to hear from you every April.

That said, most expats don't actually owe US taxes. Here's how:

The Foreign Earned Income Exclusion (FEIE) For the 2025 tax year, you can exclude up to $126,500 of foreign earned income from US taxation. To qualify, you need to pass either the Physical Presence Test (330 days outside the US in a 12-month period) or the Bona Fide Residence Test (establishing genuine residency in another country). If you're married and both of you work abroad, you can each claim the exclusion — that's $253,000 combined.

One critical detail: the FEIE only applies to earned income. Investment income, rental income, Social Security, and pensions don't qualify. For those, you'll need the Foreign Tax Credit.

The Foreign Tax Credit (FTC) If you're paying income taxes in your new country — and you probably will be — you can claim a dollar-for-dollar credit against your US tax bill for foreign taxes paid. In practice, if you live in a country with higher tax rates than the US (most of Western Europe, for example), your FTC will wipe out your US liability entirely.

FATCA (Foreign Account Tax Compliance Act) This is the law that makes foreign banks nervous about American customers. FATCA requires foreign financial institutions to report accounts held by US citizens to the IRS. For you, it means filing Form 8938 if your foreign financial assets exceed $200,000 at year-end (or $300,000 at any point during the year, for single filers living abroad). The thresholds are higher for married couples filing jointly: $400,000 at year-end or $600,000 at any point.

The bottom line: You will still file a US tax return every year. But between the FEIE and the FTC, most middle-class expats owe zero US tax. Hire an expat-specialized CPA for your first year — it typically costs $500-$1,500 and is worth every cent. Look for firms like Greenback Expat Tax Services or Bright!Tax that specialize in Americans abroad.

Americans tend to assume healthcare abroad will be worse. In most popular expat destinations, it's significantly better and dramatically cheaper.

Here's what you need to know:

Your US health insurance probably won't work. Most domestic plans don't cover you outside the US, and Medicare doesn't cover you abroad at all (with very rare exceptions for border areas of Canada and Mexico). You'll need to either join your new country's public healthcare system, buy international health insurance, or both.

Countries with excellent public healthcare that expats can access:

• Spain: Once you're a legal resident, you can join the public system (Seguridad Social) through work or by paying about EUR 60/month as a self-employed person. Rated among the top 10 healthcare systems worldwide.
• France: The French system consistently ranks near the top globally. Legal residents join the PUMA (Protection Universelle Maladie) system. Expect copays of around 30% for most services, which most residents cover with a supplemental "mutuelle" policy costing EUR 30-80/month.
• Thailand: Not free, but absurdly affordable. A doctor's visit at a private hospital runs $30-50. A comprehensive health checkup is $100-200. Full private health insurance for a healthy 40-year-old runs about $1,500-2,500/year.
• Portugal: Legal residents get access to the SNS (Servico Nacional de Saude). Small copays for most services. Prescription drugs often cost a fraction of US prices.
• Costa Rica: The CAJA system covers legal residents for about $80-150/month depending on income. Comprehensive coverage including prescriptions and specialist care.

International health insurance options: For the first year or two, many expats use international health insurance plans. The main players:

• Cigna Global — comprehensive, widely accepted, $3,000-8,000/year depending on age and coverage level
• Allianz Care — strong in Europe, competitive pricing
• SafetyWing — popular with digital nomads, starts around $40/month but has coverage limits
• Genki — European-based, good for younger expats, from EUR 35/month

Prescriptions: If you take regular medication, research availability before you move. Many drugs that require prescriptions in the US are available over the counter abroad (and for a fraction of the price). Bring a 90-day supply with you, along with your doctor's letter explaining your prescriptions. Some US-brand medications may not exist abroad — get the generic names.

One of the most common expat mistakes is closing all US bank accounts before leaving. Don't do this.

What to keep in the US:

• At least one checking account at a bank that doesn't charge foreign transaction fees and has good international ATM access. Charles Schwab's checking account reimburses all ATM fees worldwide and has no foreign transaction fees. It's the unofficial bank of American expats for good reason.
• At least one US credit card with no foreign transaction fees. Chase Sapphire, Capital One Venture, and most Amex cards work well. Keep the billing address at a US address (family member, mail forwarding service, or PO box).
• Your US brokerage and retirement accounts. These should stay put.

Opening accounts abroad: This is where FATCA bites. Some foreign banks refuse American customers outright because the IRS reporting requirements are burdensome for them. Research before you arrive. In most major expat destinations, the large national banks will accept Americans — it's the smaller banks and fintechs that sometimes won't.

You'll typically need your passport, proof of local address (a rental contract), your visa or residency card, and sometimes a local tax ID number.

Moving money internationally: Do not wire money through your bank. Traditional international wire transfers cost $25-50 per transaction and use terrible exchange rates that hide another 2-4% fee.

Instead, use Wise (formerly TransferWise). It charges 0.4-0.7% on most currency pairs and uses the real mid-market exchange rate. For a $5,000 transfer, you'll pay about $25-35 with Wise versus $150-250 through a bank wire. Over a year of regular transfers, that difference adds up to thousands.

Other good options: OFX for larger transfers (over $10,000), Revolut if you're in Europe, and Remitly for transfers to Latin America and Southeast Asia.

FBAR reporting: If the combined balance of all your foreign financial accounts exceeds $10,000 at any point during the year — even for a single day — you must file an FBAR (FinCEN Form 114) by April 15. This includes bank accounts, investment accounts, and even accounts where you have signature authority but no ownership. The penalties for not filing are severe: up to $10,000 per violation for non-willful failures, and up to $100,000 or 50% of the account balance for willful violations. Don't mess this up.

This is where most expat plans either come together or fall apart. You cannot just show up in another country and live there. Every country has its own visa system, and the options available to you depend on your age, income, employment status, and net worth.

Here are the main visa categories and specific programs worth knowing:

Digital Nomad Visas — For remote workers employed by or freelancing for companies outside the country.

• Spain's Digital Nomad Visa (Nómada Digital): Requires EUR 2,520/month minimum income from remote work. Valid for 1 year, renewable for up to 5. Favorable tax treatment — a flat 15% on Spanish income for the first 4 years, up from the previous 24% non-resident rate.
• Portugal's Digital Nomad Visa (D8): Requires income of at least 4x the Portuguese minimum wage (approximately EUR 3,400/month in 2025). Valid for 1 year, renewable.
• Thailand's Long-Term Resident (LTR) Visa: Five-year visa for remote workers earning $80,000+/year. Major perk: 17% flat tax rate instead of Thailand's progressive rates up to 35%. Also available for retirees with $80,000+/year pension income.
• Colombia's Digital Nomad Visa: Requires income of 3x Colombia's minimum wage (roughly $900/month). One of the lowest income thresholds of any digital nomad visa.

Retirement Visas — For those who've stopped working and can prove pension or savings income.

• Panama's Pensionado Visa: One of the world's best retirement visas. Requires just $1,000/month in pension income. Comes with discounts on everything from flights to restaurants to medical bills. No minimum age requirement.
• Ecuador's Pensioner Visa (Jubilado): Requires $1,375/month in pension or Social Security income. Ecuador uses the US dollar, eliminating currency risk entirely.
• Philippines' SRRV (Special Resident Retiree's Visa): Deposit $20,000-$50,000 (depending on age) and get permanent residency. Available starting at age 35.

Non-Lucrative / Passive Income Visas — For people living on savings, investments, or passive income.

• Spain's Non-Lucrative Visa (Visado de Residencia No Lucrativa): Requires proof of approximately EUR 2,400/month in passive income or EUR 28,800 in savings. You cannot work in Spain on this visa — it's for people living on investments, savings, or remote income not sourced from Spanish clients.
• Portugal's D7 Passive Income Visa: Requires proof of regular passive income (pensions, dividends, rental income). Minimum roughly EUR 820/month (Portugal's minimum wage). Path to permanent residency in 5 years and citizenship in 5 years with basic Portuguese.
• France's Visitor Visa (Visa Long Séjour): Requires proof you can support yourself without working in France. Generally around EUR 1,400/month minimum.

Golden Visas — Residency through investment.

• Portugal's Golden Visa: The most famous, though the real estate option was eliminated in 2023. Still available through fund investments (EUR 500,000 minimum) or other qualifying investments.
• Greece's Golden Visa: Property investment of EUR 250,000 in most areas (EUR 500,000 in Athens, Thessaloniki, and Mykonos as of 2024). One of the cheapest property-based golden visas in Europe.
• Ireland's Immigrant Investor Programme: Minimum EUR 1,000,000 investment.

Work Permits — If you're being transferred by your company or hired by a local employer, they'll typically sponsor your work visa. The process varies wildly by country — from two weeks in some countries to six months in others.

Pro tip: Start your visa application 4-6 months before your planned move date. Many require apostilled documents, background checks, and health insurance proof — all of which take time to gather.

Here's the expat rule of thumb that nobody wants to hear: you should probably get rid of 70-80% of your stuff.

International shipping is expensive, slow, and stressful. A 20-foot shipping container from the US to Europe costs $3,000-7,000 depending on the destination port. To Southeast Asia or South America, expect $4,000-10,000. That's just the ocean freight — add customs duties, local delivery, and insurance, and you're often looking at $5,000-15,000 total.

It also takes 4-8 weeks by sea. Your stuff will arrive after you do, so you need to be prepared to live out of suitcases for a while.

What to ship:

• Sentimental items you can't replace
• Specialized professional equipment
• High-quality items that would cost more to replace than to ship (good kitchen equipment, musical instruments, artwork)
• Important documents (originals of birth certificates, marriage certificates, diplomas)

What to sell or donate:

• Furniture (it's cheaper to buy locally, and your US furniture may not fit local spaces — European apartments have smaller doorways and tighter staircases)
• Bulky electronics (voltage differences mean some appliances won't work, and electronics are often cheaper abroad)
• Most clothing (you'll want to dress like a local, not an American tourist, and climate may be completely different)
• Books (ship a few favorites, donate the rest, use e-books)

The suitcase strategy: Many experienced expats skip shipping entirely and move with just 2-3 large suitcases plus a carry-on each. It forces ruthless prioritization, and there's something psychologically freeing about it. You can always ship a box of things later once you've settled and know what you actually miss.

Shipping companies to consider: International Van Lines, Atlas International, and North American Van Lines for full container loads. For smaller shipments (under 500 lbs), look at Shipa Freight or Seven Seas Worldwide.

Important: Get a detailed inventory for customs. Many countries let you import household goods duty-free if you're establishing residency for the first time, but you'll need to prove the items are used personal belongings, not new goods for resale.

Good news: Social Security follows you almost everywhere.

The US pays Social Security benefits to citizens living in most countries worldwide. There are currently only a handful of exceptions — Cuba, North Korea, and a few others where US banking restrictions make payment impossible. All twenty of the most popular American expat destinations (Mexico, Canada, UK, France, Germany, Spain, Portugal, Italy, Netherlands, Ireland, Switzerland, Thailand, Philippines, Japan, South Korea, Australia, New Zealand, Costa Rica, Panama, Ecuador, Colombia) allow full Social Security payment.

You can receive payments via direct deposit into a US bank account or, in many countries, directly into a local bank account. The SSA maintains "totalization agreements" with about 30 countries that prevent you from paying Social Security taxes in both countries simultaneously.

Key things to know:

• You can apply for Social Security from abroad using the SSA's online portal or through a US embassy/consulate
• Your benefit amount is the same whether you live in Kansas or Kyoto
• If you're not a US citizen (or a citizen of a country with a totalization agreement), there are some restrictions — but this guide is for Americans, so you're fine
• Medicare does NOT work abroad, as mentioned in the healthcare section

Your 401(k) and IRA: Your US retirement accounts stay in the US. You can continue contributing to an IRA while living abroad, but there's a catch: your income must be US-sourced earned income. If you're using the FEIE to exclude all your foreign earned income, you may have no qualifying income to contribute. Some expats strategically exclude less than the maximum FEIE amount to preserve IRA contribution eligibility.

Withdrawals from 401(k) and IRA accounts while living abroad are taxed as US income, and you'll likely need to report them in your country of residence too. Check the tax treaty between the US and your destination country — most treaties have provisions to prevent double taxation of retirement income.

Roth IRA: The Roth is tricky for expats. Contributions are post-tax, so withdrawals are tax-free in the US. But your host country may not recognize the Roth's tax-free status. France, for instance, may tax Roth withdrawals as income. Canada generally respects the Roth under the US-Canada tax treaty. This is another reason to consult an expat tax specialist.

Living abroad doesn't strip you of your right to vote in US federal elections. The Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) guarantees your right to vote from anywhere in the world.

Here's how it works:

1. Register using the Federal Post Card Application (FPCA) at FVAP.gov. You vote in the last state where you had a US address. Submit a new FPCA each calendar year — many states require annual renewal for overseas voters.

2. Request your absentee ballot through the same FPCA process. Most states will email or fax your blank ballot to you, which you then print, fill out, and mail back. Some states allow electronic ballot return; most don't.

3. Use the Federal Write-In Absentee Ballot (FWAB) as a backup. If your regular ballot doesn't arrive in time, the FWAB lets you vote for federal offices by writing in your candidates.

Timing matters. Mail from overseas is slow. Request your ballot as early as possible (most states start sending ballots 45 days before the election), and mail it back immediately. Consider using a courier service like FedEx for the return if the election is close.

State and local elections: You can vote in these too, but rules vary by state. Some states let overseas voters vote in all elections; others restrict you to federal offices only.

Democrats Abroad and Republicans Overseas both run voter assistance programs that can help with the logistics.

Loneliness is the silent expat killer. Not literally — but it's the number one reason people move back within the first year. Your social infrastructure back home took decades to build. Abroad, you're starting from zero.

The good news: expat communities are some of the friendliest groups you'll ever encounter, because everyone in them remembers being the new person.

Where to find your people:

• InterNations — The largest expat network, with organized events in most major cities. Free to join, though premium membership ($6/month) unlocks more features. Great for the first few months when you know literally nobody.
• Meetup.com — Works abroad just like at home. Search for English-speaking groups, hobby groups, or professional meetups in your city.
• Facebook Groups — Search "Americans in [City]" or "Expats in [City]." These groups are goldmines for practical advice (which plumber speaks English, where to find Thanksgiving turkey, how to navigate bureaucracy).
• Coworking spaces — If you work remotely, joining a coworking space is one of the fastest ways to build a professional and social network. WeWork exists globally, but local coworking spaces often have stronger communities.
• Language classes — Even if everyone in your new city speaks English, taking local language classes puts you in a room full of other newcomers. It's a bonding experience.
• Sports and hobby clubs — Join a local running group, yoga studio, climbing gym, or whatever you're into. Shared activities transcend language barriers.

The language question: You can get by with English in many countries, especially in Northern Europe, major tourist cities, and Southeast Asian hubs. But "getting by" isn't the same as "building a life." Even reaching basic conversational ability in the local language transforms your experience. You go from being a permanent tourist to being someone who lives here.

Start learning before you move. Duolingo is fine for basics, but add italki (affordable 1-on-1 tutoring) and real-world practice. Aim for B1 level (intermediate) within your first year. It's the inflection point where daily life stops being an obstacle course.

We've covered the logistics. Now let's talk about the thing no spreadsheet can capture.

The first three months are a honeymoon. Everything is new, everything is exciting. The way they make coffee here! The architecture! The pace of life! You'll text friends back home constantly about how you should have done this years ago.

Months three through six are the dip. The novelty wears off. The bureaucracy grinds you down. You're tired of not understanding the mail. You miss your friends' birthday dinners. You miss driving. You miss Target. You feel like an outsider in ways you didn't anticipate, and the loneliness hits harder than expected.

This is normal. This is so normal that psychologists have a name for it — the U-curve of cultural adjustment. Almost every expat goes through it.

What helps:

• Maintain routines. Keep your gym schedule, your morning coffee ritual, your Sunday calls with family. Routines are anchors.
• Don't compare constantly. "Back home, this would never happen" is a thought that will eat you alive. Your new country isn't better or worse — it's different. The faster you accept that, the faster you adapt.
• Build one genuine friendship. Not a drinking buddy, not a networking contact — one real friend in your new city. It changes everything.
• Give yourself permission to miss home without it meaning you made the wrong choice. These feelings coexist: loving your new life AND missing your old one.
• Have an "escape fund." Keep enough money to fly home on short notice. Knowing you can leave makes it easier to stay.

Reverse culture shock is real. When you visit home after a year abroad, you'll feel weirdly out of place. The portions are too big. The small talk is different. Your friends' problems seem parochial. You've changed in ways that are hard to explain to people who haven't done it. This is also normal.

The one-year mark is when it clicks for most people. The city starts to feel like yours. You have favorite spots that aren't in any guidebook. You dream in the local language sometimes. The bureaucracy still annoys you, but you know how to navigate it. You stop converting every price to dollars.

This is when you realize you didn't just move to a new country. You built a new life.

Here's everything in one place. Start working through this list 6 months before your move date.

Documents & Legal (6 months out):

• Renew your passport if it expires within 2 years
• Get apostilled copies of birth certificate, marriage certificate, diplomas, and any professional licenses
• Request 10+ certified copies of your birth certificate (you'll need them for various applications)
• Get an international driver's license (AAA offices, $20)
• Assemble complete medical and dental records
• Get a power of attorney notarized for someone you trust in the US
• Start your visa application

Financial (4 months out):

• Open a Charles Schwab checking account (or equivalent no-foreign-fee account)
• Set up a Wise account and verify it
• Notify your banks and credit card companies of your move
• Find an expat-specialized CPA and have an initial consultation
• Set up mail forwarding (US Global Mail or Traveling Mailbox are popular expat options, ~$10-20/month)
• Review and update beneficiaries on all accounts

Healthcare (3 months out):

• Research health insurance options in your destination
• Get a full physical, dental cleaning, and eye exam
• Stock up on 90 days of all prescriptions with a doctor's letter
• Get any recommended vaccinations for your destination
• Request copies of all medical records, vaccination history, and prescription details

Logistics (2 months out):

• Decide what to ship, sell, donate, and store
• Get shipping quotes from at least 3 international movers
• Start selling furniture and items you won't bring
• Set up a VPN subscription (ExpressVPN or NordVPN — essential for accessing US streaming, banking, and tax sites from abroad)
• Download offline maps for your destination city
• Notify the IRS of your address change (Form 8822)

Final Weeks:

• Cancel or downgrade US subscriptions you won't use
• Take photos of all important documents and store them in cloud backup
• Exchange some local currency for arrival (enough for a taxi and first meal)
• Download translation apps (Google Translate with offline language packs)
• Share your new contact information with everyone who needs it
• Breathe. You've prepared well. The rest you'll figure out as you go.

Moving abroad is a bet on yourself. It's uncomfortable and bureaucratic and occasionally lonely. It is also, for most people who commit to it, the single most expansive thing they ever do. Your world gets bigger in ways you can't anticipate until you're in it.

You're not running away from something. You're running toward a life with more room in it.

We built Escape to make the practical part easier — finding the right home in the right place at the right price. The rest is up to you. And you're more ready than you think.