I’ll be honest with you: when I first started researching how to move abroad, I thought I had it figured out pretty quickly. I’d read the articles, watched the YouTube videos, joined the Facebook groups. I felt prepared.
Then I actually tried to do it — and ran out of money before I even got started.
That was 2018. Since then I’ve lived in the Netherlands, Colombia, Vietnam, and Thailand. I’ve navigated visa processes, tax obligations, banking systems, and bureaucratic nightmares across four different countries. And the single most important thing I’ve learned — the thing I wish someone had told me before I started — is this:
Visas, taxes, banking, residency registration — none of it works the way you expect it to. Every country has its own rules, its own quirks, its own order of operations. The American who gets tripped up isn’t usually the one who didn’t do enough research. It’s the one who assumed they understood how things worked based on how things work back home.
That said — moving abroad as an American is absolutely possible. I’ve done it multiple times. Hundreds of people I’ve worked with have done it. And according to State Department estimates, roughly 9 million Americans already live abroad permanently. Here’s what you actually need to think about.
Is Moving Abroad Actually Realistic for You?
Before you start Googling visa options and cost of living spreadsheets, the most important question to answer is whether a move is actually viable for your specific situation. The people who struggle most with an international move are the ones who fall in love with the idea before they’ve stress-tested it against their actual life.
Here are the four questions that actually matter:
How do you earn money?
Remote employee, freelancer, self-employed, or living off investments and rental income — each has different implications for which visa options are available to you.
What are your financial obligations?
Student loans, child support, a mortgage — these don’t disappear when you move. Factor them into your real cost picture.
What’s your timeline?
Six months or three years? That changes everything about how you should be preparing right now.
What’s your risk tolerance?
Some people can figure it out as they go. Others need a full plan first. Neither is wrong — but knowing which one you are matters.
There’s no universal answer to whether moving abroad is realistic for you. That’s exactly why I offer one-on-one exit strategy calls — because a generic checklist can’t replace an honest conversation about your specific situation.
What Are Your Options for Living Abroad Legally?
Yes, you need a visa for long-term legal residence. The good news is there are more options available to Americans than most people realize.
Digital Nomad / Remote Worker Visas
Dozens of countries now have structured programs for remote workers. Portugal, Costa Rica, and Croatia are popular options — most require proof of minimum income and health insurance.
Entrepreneur / Freelance Visas
If you’re self-employed, several countries have pathways specifically for you. The Netherlands’ DAFT visa — which I used myself — allows Americans to set up as self-employed with no local job offer required.
Retirement / Passive Income Visas
If you have passive income from investments, rentals, or retirement funds, several countries offer residency based on demonstrating minimum monthly income. Panama, Portugal, and Mexico are popular choices.
Long-Stay Tourist Visas
Some countries allow 90–180 day stays without much paperwork. This works short-term but isn’t a sustainable long-term solution and can create tax residency complications.
Can You Actually Afford to Do This?
Moving abroad doesn’t automatically mean living cheaply. Yes, places like Colombia, Vietnam, and Thailand offer a significantly lower cost of living than most U.S. cities — I’ve lived comfortably in Medellín on a fraction of what I’d spend in an American city. But a lower cost of living doesn’t fix an income problem. It just changes the numbers.
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Minimum income requirements
Many visa programs require you to demonstrate a minimum monthly income — often between $1,500 and $3,500. This is a legal requirement for the visa, not just about affording rent.
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Income type matters more than income amount
How you earn affects which visas you qualify for, what your tax obligations look like, and whether your income is even legal to bring into certain countries.
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Currency risk
Earning in dollars and spending in local currency works in your favor when the dollar is strong. But that can change. Build a financial buffer.
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Banking access
Getting access to local banking as a foreign resident can be surprisingly difficult in some countries. Factor this into your plan early — don’t leave it until after you arrive.
If income location-independence is the piece you haven’t figured out yet, Remote Income School is a free community for people building location-independent income from scratch.
What Happens to Your U.S. Taxes When You Move Abroad?
This is the question that trips up more Americans than any other. Here’s the fundamental thing most people don’t realize: the U.S. taxes its citizens based on citizenship, not residency. Even if you move abroad full-time, you’re still required to file U.S. taxes every year. Most countries only tax residents — if you leave, you stop being subject to their tax system. The U.S. is one of only two countries in the world that taxes based on citizenship. The other is Eritrea.
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You still file every year
Regardless of where you live or whether you owe anything, you must file a U.S. tax return annually.
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You may qualify for the FEIE
The Foreign Earned Income Exclusion lets qualifying Americans exclude a significant portion of their foreign-earned income from U.S. federal taxation — the threshold is adjusted annually for inflation and is currently over $130,000.
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You may owe taxes in your new country too
Depending on where you live and for how long, you may become a tax resident of that country as well — potentially filing in two countries and navigating tax treaties.
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FBAR and FATCA reporting
Foreign bank accounts above certain thresholds must be reported to the U.S. government. Missing these filings can result in significant penalties.
I’m not a tax professional and this isn’t tax advice. This is one area where working with a tax professional who specializes in American expats is strongly worth it before you make any moves.
The One Thing Most Americans Get Wrong
The biggest mistake I see Americans make when moving abroad isn’t a logistical one. It’s an assumption one. They assume that because they understand how something works — visa applications, tax filing, business registration, banking — they understand how it works everywhere. They apply American logic to foreign systems. And foreign systems don’t care about American logic.
When I moved to the Netherlands, I had to completely relearn how to set up a business entity. In Vietnam, something as basic as paying for things day-to-day was completely different from anything I’d experienced — cash and QR codes are king in ways that can catch you off guard, and opening a bank account as a foreigner is far from straightforward. You need a real plan before you arrive, not after.
That mindset is more valuable than any checklist.
You’ve done the research. Now let’s figure out your actual next step.
If you’ve read this far, you’re serious about this — and you deserve a real conversation about your specific situation, not more generic advice. In an Exit Strategy Call, we’ll go through exactly where you stand, which paths make sense for you, and what to do first.
Ready to stop researching and start planning?
One 45-minute conversation will do more for your exit plan than months of Googling.
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