About 5.5 million Americans live abroad, with 180,000+ relocating in 2025. Setting up expat life involves visa/residency planning, housing, banking, healthcare, taxes, and community building.
12 steps across 2 sections
1. Steps Process
- Choose destination — Research cost of living, visa options, healthcare, language, safety, climate, expat community.
- Secure legal residency — Apply for work visa, digital nomad visa, retirement visa, student visa, or investment visa 6+ months ahead.
- Handle US tasks — Update IRS address, mail forwarding, maintain US bank account, notify Social Security, review estate plan.
- Arrange housing — Rent first year. Use local platforms and expat groups.
- Set up finances — Open local bank, keep US account, use Wise/OFX for transfers.
- Arrange healthcare — Local public system or international health insurance (see topic #804).
- Handle US taxes — File annually. FEIE ($130,000 exclusion 2025), Foreign Tax Credit, FBAR. Hire expat tax specialist.
- Build community — Join expat groups, take language classes, connect locally.
2. Key Details
- FEIE excludes up to $130,000 (2025) of foreign earned income
- FBAR: Report foreign accounts over $10,000 aggregate (topic #794)
- Medicare does not cover abroad — plan independently
- Popular digital nomad visa countries: Portugal, Spain, Croatia, Estonia, Greece, Costa Rica
Common Mistakes
- Not researching visa requirements before moving
- Working remotely on a tourist visa (illegal in most countries)
- Not continuing US tax filings
- Underestimating emotional challenges
Pro Tips
- Keep a US virtual mailbox for banking and government mail
- Consider tax treaty between US and destination
- Rent before buying to test neighborhoods