How to Become an Expat: A Guide By Expats, for Expats
Do you dream of beaches abroad? Coffees in foreign cafes? Or maybe affordable rent and a more relaxed life?
Nearly five million Americans live abroad. Between remote work and rising dissatisfaction with life in the US, more people are making the jump than ever before. But becoming an expat isn’t easy. It takes courage, careful financial planning, and a mindset that expects the unexpected.
Greenback Expat Tax Services is run by expats, for expats. Our CPAs live in fourteen time zones. This guide incorporates our experiences living across the world and is your step-by-step roadmap to making the move yourself. Let’s dive in.
Step 1: Commit to the Move
It’s easy to get lost during the research stage. One minute, you’re imagining what life would be like abroad; the next, you’re spiraling into healthcare and tax law comparisons, wondering if you should even bother. That’s why commitment is crucial. Without it, every challenge, visa requirement, or financial hurdle becomes a reason to quit.
This doesn’t mean buying a one-way ticket for tomorrow. Rather, it means setting a clear intention with a realistic timeframe. Here’s how one of Greenback’s writers describes his move:
“I fell in love with Germany during my study abroad. Afterwards, I knew I wanted to move, but that it would be challenging. I needed a job. I needed savings. So when I graduated, I set a goal: move by the end of the year with six months expenses in the bank and remote work that would sustain me.
Nick, Germany
It took 13 months instead of 12, but I did it. There’s a world of difference between ‘I’m thinking of moving’ and ‘I’m moving by the end of the year’. If I wasn’t certain, I definitely would have given up.”
The truth is, you’ll always have reasons to delay. Maybe you’re waiting for a promotion or saving just a little more money. But at some point, you have to decide: I’m doing this.
Step 2: Choose the Right Country
Where you move will come down to what you prioritize and where you can qualify for a visa and legal residency. If you’re young and single, your checklist might be as simple as sunshine, fast Wifi, and decent nightlife. But if you’re moving with a partner or kids, you’ll have a few more requirements to think about: job market, cost of living, and healthcare, to name a few.
If you already have a destination in mind, Greenback has written over fifty detailed country guides. Give that list a look; we’ve probably covered the place you’re considering.
But if not, here’s a brief look at the top five most popular destinations for US expats. There’s wisdom in crowds; these places are good jumping-off points to start your research.
| Country (Greenback Guide Linked) | Estimated Number of US Expats | Cost of Living Index USA = 100 | Is English Common? | Double Taxation Avoidance Treaty? |
| Mexico | 1.2 Million | 60 | No | Yes |
| Canada | 1.0 Million | 90 | Yes | Yes |
| United Kingdom | 0.3 Million | 93 | Yes | Yes |
| Israel | 0.3 Million | 105 | Yes | Yes |
| Germany | 0.2 Million | 80 | Yes | Yes |
“There’s only so much research you can do online. I lived in the Netherlands for three months before making my move permanent, which I was able to do on a basic tourist visa. That gave me the chance to get a feel for everyday life–what is it like grocery shopping? Or doing a daily commute? Is this something I’d get tired of in six months, or two years?”
Beth, Netherlands
Step 3: Research Visas – Which Kind of Expat Are You?
Now that you have a destination in mind, it’s time to consider the legal pathways to residency. Every country has specific rules and requirements, but at a high level, here are the types of expats and the visas they pursue.
The Career Expat – Moving for Work
Most countries are keenly interested in attracting skilled labor. If you have in-demand expertise, such as healthcare, engineering, or a blue-collar trade, looking for work with a local company is a great option. To get a sense of what’s sought after, look into the UK Skilled Worker Visa or Japan’s Highly Skilled Professional Visa. If you work for a multinational company, an intra-company transfer is a viable option.
It’s also possible to move abroad while searching for work. For instance, Germany offers a Job Seeker Visa. This route will often require proof of financial assets; foreign countries prefer not to extend social support to non-citizens.
The Digital Nomad – Work From Anywhere (For a While)
With remote work more common than ever, many countries are introducing digital nomad visas. Spain’s Digital Nomad Visa and Portugal’s D8 Visa are well-known examples. Common requirements are proof of income, health insurance, and meeting financial savings thresholds.
However, the law has been slow to catch up with this type of worker. Nomads often move frequently, rely on short-term tourist visas, and avoid living anywhere long enough to trigger tax residency status.
For freelancers or those with remote-only jobs, becoming a digital nomad is a low barrier to entry and introduction to expat life. Moving frequently allows you to experiment with numerous countries, and this lifestyle faces fewer legal requirements than other forms of expatriation.
The Retiree – Living the Good Life Abroad
Many countries actively encourage retirees to settle down within their borders. By providing proof of stable retirement income or savings, you could spend your sunset years somewhere warm and affordable. Read our guide on the top tax-free retirement countries to learn more.
Step 4: Make a Finance and Banking Plan
Money is one of the biggest factors in a successful expat move. Before you go, make sure you have:
- International banking access: Foreign transaction fees on credit cards, currency conversions, and cross-border bank transfers can get expensive. Before you go, opening a Schwab bank account in the US is worthwhile; they refund international ATM fees. Regardless of where you move, Wise and Revolut are expat-friendly digital banking options. Finally, once you arrive, it’s smart to open a bank account in your country of choice.
- An emergency fund: Aim for three to six months of living expenses in the bank.
- A plan for getting paid: Depending on your work arrangement, ensure your employer supports international payments through PayPal or a local banking institution.
- A plan to build credit history: Foreign countries don’t often accept US credit scores. If you plan to make your move permanent, look into local procedures.
- Consider currency fluctuations: These can work for or against you, so it’s best to hope for the best and plan for the worst. For reference, in the past five years, the USD to EUR exchange rate has ranged from parity ($1 to €1) to as weak as weak as $1.2 to €1.0
“IMMEDIATELY set up a bank account, get a driver’s license, and (if you’re on a work visa) get a taxpayer ID number. Everything else will be a lot easier if you do these things as soon as you get off the plane.”
Joel, Portugal
Step 5: Plan for Healthcare and Insurance
These systems will vary wildly from country to country and are unlikely to be the same as in the US. Before you go, research:
- Local healthcare options: Can you use the public system, or do you need private insurance?
- International health insurance: Plans like Cigna or GeoBlue provide expat-specific coverage.
- Prescriptions and medical access: Learn the local rules, such as how to call 911, and ensure any necessary medications are available. It’s worthwhile to fill any prescriptions before your move so you have plenty of time to familiarize yourself with their system.
“Make sure you have health coverage sorted one way or another, particularly if you’re in a country without good care.”
Sarah, Grenada
Step 6: Expat Tax Planning
This surprises many people, but US taxes don’t disappear when you move. We operate a worldwide tax system, which means all citizens are subject to taxation, regardless of where they live. However, the US has a variety of rules and foreign treaties aimed at eliminating double taxation.
By utilizing the following credits and deductions, Americans can reduce or potentially eliminate their US tax burden altogether:
- Foreign Earned Income Exclusion (FEIE): Money earned from salaries, wages, and self-employment while abroad can be deducted from your US tax obligation.
- Foreign Tax Credit: Taxes paid to foreign countries can be directly credited against US taxes.
- Foreign Housing Exclusion: Housing expenses can be deducted from taxable income.
Tax laws can be a headache. Working with one of our expat tax specialists could save you time and stress and bring you peace of mind, knowing your taxes were done right. Your move isn’t for a while, so bookmark us or sign up for our email list when the time is right.
Step 7: Adjust to Expat Life
There’s a lot we could say here. You’re probably already expecting culture shock, and there’s a good chance Duolingo is already on your phone. But one of the toughest aspects of moving is probably building a social circle in a new city. Here are some tips:
- Expats are exceptionally friendly and helpful to one another. If you meet one, be sure to trade contact info and start working your way through the social network grapevine.
- Nearly every city in the world has a subreddit. Making your first friends could be as simple as writing an “I’m new to town, who wants to grab a drink” post.
- Look for sport—or hobby-based meetups. Common interests are excellent ways to make new friends, regardless of where you live.
“The first rule of travel is that if someone invites you to something, always say yes! Locals know the landscape and can show you around better than Google ever could. Plus, there’s an unwritten social rule with new acquaintances that if you decline an invitation, you’re probably not getting a second one.”
Sandrine, Lebanon
Your Expat Journey Starts Now
You’re already taking the first steps in learning how to become an expat. For those willing to take the leap, the rewards are immense: new cultures, new experiences, and new thrills that are entirely of your own design. But moving abroad is more than an adventure. It takes careful planning, commitment, and no small amount of bravery.
Before you move, be sure that getting your taxes in order is on the list.
Remember to contact Greenback Tax Services for expert US expat tax assistance!
