Moving out of the US is one of the most transformative decisions a person can make — and one of the most complex to execute. It’s not just about packing boxes and booking a flight. It involves untangling your financial life, navigating foreign visa systems, managing US tax obligations that follow you across borders, and building an entirely new daily existence from scratch. This guide covers everything you need to know before, during, and after your move.
Why More Americans Are Moving Out of the US
The number of Americans living abroad has been steadily growing. According to a Wall Street Journal report, a rising tide of US citizens are making the leap for reasons ranging from the high cost of living to remote work flexibility and a desire for a slower pace of life. People magazine has also reported that Americans are leaving the US in record numbers, driven by everything from political climate to the appeal of more affordable healthcare systems abroad.
If you’ve been thinking about moving out of the US, you’re far from alone — and the infrastructure for expat life has never been better.
Step 1: Choose Where to Move After Leaving the US
Before you research visa categories or compare tax treaties, you need to pick the right country. This decision will shape every other aspect of your move, so it deserves serious, research-backed thought — not just a gut feeling from a vacation you loved.
Key Factors to Evaluate Before Moving Abroad
- Cost of living vs. your income or savings: A dollar (or euro, or peso) goes very differently depending on where you land.
- Healthcare quality and access: Will you qualify for public healthcare, or will you rely entirely on private insurance?
- Political stability and safety: Check current State Department travel advisories.
- Climate and geography: A place can look beautiful on Instagram and be genuinely unbearable to live in year-round.
- Expat community size: A robust expat network speeds up your adjustment period considerably.
- Language barrier: Do you speak the local language, or are you willing to learn it?
- Proximity to the US: How easy and affordable is it to fly home for family emergencies or holidays?
Popular Destinations for Americans Moving Out of the US
Each destination has its own personality. At Wellbeing Makeover, we’ve covered several of the most popular moves Americans are making — including what it’s actually like to live there, not just visit.
Step 2: Visa and Residency Requirements When Moving Abroad
This is where many people get caught off guard when moving out of the US. Visiting a country as a tourist is simple. Actually living there legally is a different process entirely.
Types of Visas Americans Use When Leaving the US
- Retirement/Passive Income Visas: Countries like Portugal (D7), Italy (Elective Residency), and Panama (Pensionado) offer residency to Americans who can prove a steady income — from a pension, Social Security, investment income, or savings. Income thresholds vary significantly by country.
- Digital Nomad Visas: A growing category. Countries including Costa Rica, Spain, Greece, and Colombia now offer visas specifically for remote workers employed by foreign companies. These are typically granted for one to two years and can often be renewed or converted to longer-term residency.
- Skilled Worker or Employment Visas: If you have a job offer from a company in your target country, this is usually the most straightforward path. The UK’s Skilled Worker visa is a prime example.
- Ancestry or Family Visas: If you have a grandparent or parent who was a citizen of a country like Italy, Ireland, or Germany, you may be eligible for citizenship or long-term residency through descent. This is one of the most valuable and underutilized options for Americans of European heritage.
What You’ll Typically Need to Apply
Most residency visa applications require some combination of the following:
- Valid US passport (with at least 6–12 months of validity remaining)
- Proof of income or sufficient savings (bank statements, pension letters)
- Clean criminal background check (FBI apostille often required)
- Health insurance documentation
- Proof of accommodation in the destination country
- Completed application forms and consular fees
- Medical certificate in some cases
Start this process at least 3–6 months before your intended move date. Consular processing times vary wildly, and delays are common.
Step 3: Manage Your US Financial and Tax Obligations
This is the most overlooked — and most consequential — aspect of moving out of the US. Unlike most countries, the United States taxes its citizens on worldwide income, regardless of where they live. You don’t stop filing US taxes just because you moved to Barcelona or Bangkok.
The Foreign Earned Income Exclusion (FEIE)
If you meet either the bona fide residence test or the physical presence test (being outside the US for at least 330 days in a 12-month period), you may be able to exclude a significant portion of your foreign-earned income from US taxation. As of 2024, this exclusion is indexed annually and covers over $120,000 in earned income.
FBAR and FATCA Reporting
If you hold foreign bank accounts, you are required to report them annually through an FBAR (FinCEN 114) if the combined balance exceeds $10,000 at any point in the year. FATCA (the Foreign Account Tax Compliance Act) imposes additional reporting obligations. Non-compliance carries severe penalties — work with a tax professional who specializes in expat taxation.
Banking Before You Leave
- Open accounts that offer no-fee international ATM withdrawals (Charles Schwab is popular among expats for this reason).
- Keep your US bank accounts active — many foreign services and US subscriptions still require a US account.
- Research whether your destination country allows non-residents to open local bank accounts and what documentation is required.
If you’re moving to the UK, our detailed guide on moving to the UK from the USA covers banking and financial logistics specific to that transition.
Step 4: Healthcare Coverage When Moving Out of the US
Healthcare is a critical and often underestimated part of moving out of the US. The American system — with its employer-tied insurance and complex billing — does not travel with you.
Your Healthcare Options After Moving Abroad
- International health insurance: Companies like Cigna Global, Aetna International, and Allianz Care offer plans designed specifically for expats. These are often your best option in the first year or two before you qualify for local public healthcare systems.
- Local private insurance: In many countries — especially those with lower costs of living — local private health insurance is dramatically cheaper than US plans and often covers comprehensive care.
- Public healthcare systems: Once you establish legal residency, many countries (including most of Western Europe) allow you to register for public healthcare. The quality varies significantly. Research your specific destination carefully.
- Travel insurance for the interim: If you’re between visas or in a transitional period, a robust travel insurance policy (not just travel delay coverage) can bridge the gap.
Step 5: Essential Logistics to Handle Before Moving Abroad
What to Do With Your Property
- If you own a home: Decide whether to sell, rent it out, or keep it vacant. Each option has tax implications — consult an accountant who understands both US tax law and expat finances.
- If you rent: Review your lease terms carefully. Breaking a lease early may involve fees, but your landlord may be willing to negotiate.
Selling Your Vehicle Before Leaving the US
Unless you plan to ship your car (expensive and often impractical), sell it before you leave. Research whether your destination country recognizes your US driver’s license and for how long, and when you’ll need to apply for a local license.
What to Do With Your Belongings
Rather than shipping everything, many experienced expats recommend furnished short-term housing in your destination for the first few months. When moving out of the US, this approach lets you evaluate what you actually need in your new life before committing to international shipping costs. For specific destination packing considerations, our guide on moving to Italy from the USA is a helpful starting point.
Mail and Official Documents
- Set up a virtual mailbox service in the US (services like Traveling Mailbox or PostScan Mail) to receive and digitize your mail.
- Update your address with the IRS, Social Security Administration, and any financial institutions.
- Ensure your US passport has significant time remaining; renew it through a US embassy or consulate abroad if needed.
Step 6: Adjusting to Life After Moving Out of the US
No amount of planning fully prepares you for the reality of building a life in a new country. People who are moving out of the US universally describe a predictable emotional arc: initial excitement, followed by frustration, followed (eventually) by genuine adjustment and belonging.
Culture Shock Is Real When Living Abroad — Plan for It
Culture shock isn’t just about language. It’s the accumulated friction of doing everything slightly differently — banking, grocery shopping, interacting with strangers, navigating bureaucracy. Give yourself a realistic 6–12 month adjustment window before drawing any conclusions about whether your new home is right for you.
Build Your Support Network Early
Join expat Facebook groups, Meetup communities, and local language classes before you arrive. One of the fastest ways to feel at home is to have people to call — whether for practical advice or just for dinner. If you’re moving to a Spanish-speaking country, check out our resource on moving to Mexico from the US for insights on building community in one of America’s most popular expat destinations.
Learn the Local Language When Relocating Abroad
English is widely spoken in many expat hubs, but depending entirely on it limits your social world and your practical independence. Even basic proficiency in the local language earns you genuine goodwill and opens doors that remain closed to monolingual expats. Aim for conversational fluency, not perfection.
FAQ: Moving Out of the US
1
Can I keep my US citizenship if I move abroad permanently?
Yes. Moving abroad does not affect your US citizenship. You only lose citizenship if you formally renounce it, which is a deliberate legal process. Some expats consider renunciation for tax simplification purposes, but it’s irreversible and comes with its own set of exit tax implications.
2
Do I still have to pay US taxes if I live abroad?
Yes, in most cases. The US taxes its citizens on worldwide income regardless of residency. However, mechanisms like the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) can significantly reduce or eliminate double taxation. Working with an expat tax specialist is strongly recommended.
3
How long does it take to get a foreign residency visa?
It varies significantly by country and visa type. Processing times range from a few weeks (some digital nomad visas) to 6–12 months (EU residency permits, citizenship by descent). Start the process early and build buffer time into your timeline.
4
Should I sell my home before moving abroad?
Not necessarily. Many expats rent out their US home to generate income abroad. However, this creates landlord responsibilities and tax complexities. If the property is a significant financial burden or you’re confident in your move, selling may be simpler. Consider consulting a financial advisor before deciding.
5
What’s the easiest country for Americans to move to?
“Easiest” depends on your priorities. Mexico is frequently cited for its proximity, low cost of living, and relatively accessible visa process. Portugal is popular for its quality of life, English-friendly environment, and favorable residency pathways. Panama and Costa Rica are strong contenders for retirees. Research your specific situation — income level, work status, family needs — before choosing based on ease alone.
6
How do I access healthcare after moving abroad?
Most expats use international health insurance for the first year or two, then transition to local private or public coverage once they’ve established residency. Research your specific destination’s healthcare system thoroughly before you arrive, and don’t let your coverage lapse during the transition.
Final Thoughts on Moving Out of the US
Moving out of the US is not a decision to make impulsively — but it’s also not one to overthink into paralysis. With the right research, honest self-assessment, and practical preparation across the financial, legal, and logistical dimensions, it’s an entirely achievable goal. Thousands of Americans do it successfully every year, building richer, more intentional lives in countries they’ve come to genuinely call home.
The key is to treat the move as a project with distinct phases: research, planning, execution, and adjustment. Give each phase the attention it deserves, build a team of professionals (tax advisor, immigration attorney, financial planner) who understand the expat context, and give yourself permission to not have everything figured out before you go.
I’m Salman Khayam, the founder and editor of this blog, with 10 years of professional experience in Architecture, Interior Design, Home Improvement, and Real Estate. I provide expert advice and practical tips on a wide range of topics, including Solar Panel installation, Garage Solutions, Moving tips, as well as Cleaning and Pest Control, helping you create functional, stylish, and sustainable spaces that enhance your daily life.