Mike Wallace, CEO at Greenback Expat Tax Services, has extensive experience in finance, operations, and strategic leadership. Mike has worked in numerous C-Level roles, including at large financial institutions. Mike holds a Master's in Business Administration (MBA) from the University of Chicago's Booth School of Business.
Allen Pfeister
MBA, CPA
Allen Pfeister is a Partner at Tax Uncomplicated, collaborating with Greenback Expat Tax Services and Klemsen Consulting. Allen holds an MBA from the University of New Orleans and a BS in Accounting and Finance from Louisiana State University.
Updated on March 26, 2026
11 minute read
Wallace, M. (2026, March 26). How Do I Become an Expat?. GreenbackTaxServices.com. Retrieved , from https://www.greenbacktaxservices.com/blog/become-an-expat/
An estimated 5.4 million Americans live outside the United States as expats, and that number is growing every year. Becoming an expat takes three to six months of preparation, a valid passport, a visa or residency permit for your destination country, and enough savings to cover at least three months of living expenses.
The process breaks down into seven steps: deciding to go, choosing where to go, securing a visa, setting up your finances, arranging healthcare, planning for U.S. taxes, and adjusting to life abroad. Most people who struggle with the transition did not fail at any single step. They skipped the planning and tried to figure it out after they landed.
Here is the step-by-step roadmap, informed by the real experiences of expats who have been through it. For a detailed pre-departure tax and planning checklist, see our Moving Abroad Checklist.
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Step 1: Decide to Go (and Set a Date)
The difference between people who move abroad and people who talk about it is a deadline.
Research is important, but it can also become a trap. One day, you are comparing the cost of living in Lisbon and Mexico City; the next, you are down a rabbit hole about Dutch visa categories and Thai retirement requirements. Without a clear commitment, every new piece of information becomes a reason to delay.
Set a target date. It does not need to be exact, but it needs to be real: “I am moving by September” is fundamentally different from “I would love to live abroad someday.” Build backward from that date and give yourself three to six months for preparation.
“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. It took 13 months instead of 12, but I did it.”
Nick, Germany
Step 2: Choose the Right Country
Where you move depends on what you need: visa accessibility, cost of living, language, healthcare quality, safety, and whether the country has a tax treaty with the U.S. (which helps prevent double taxation).
If you already have a destination in mind, check our country tax guides for over 50 countries. If you are still deciding, here are the most popular destinations for American expats:
If possible, visit your target country on a tourist visa for two to four weeks before committing. This lets you experience daily life: grocery shopping, commuting, and the pace of the neighborhood. Online research only goes so far.
“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.”
Beth, Netherlands
Step 3: Figure Out Your Visa
Every country has different rules, but most expat visa pathways fall into a few categories:
Work Visas (Employer-Sponsored)
If you have in-demand skills (tech, healthcare, engineering, education, skilled trades), applying for jobs with local employers who will sponsor your work visa is one of the most straightforward paths. Multinational companies also offer intra-company transfers. If you are open to searching for work after arriving, some countries offer job seeker visas (Germany’s Job Seeker Visa is a well-known example).
Digital Nomad Visas (Remote Workers)
More than 50 countries now offer digital nomad visas for remote workers. Popular options include Spain’s Digital Nomad Visa and Portugal’s D8 Visa. Common requirements are proof of remote income (typically $2,000 to $3,500 per month), health insurance, and a clean criminal record. These visas usually last one to two years and are renewable.
Retirement Visas
Many countries actively recruit retirees by offering residency in exchange for proof of stable retirement income or savings. Moving to countries like Portugal, Mexico, Panama, and Costa Rica provides access to well-established retirement visa programs. See our guide on tax-friendly retirement destinations.
Golden Visas and Investment Visas
Some countries offer residency in exchange for a qualifying investment (real estate, government bonds, or business creation). Portugal, Spain, and Malta are common options for Americans. These programs typically require $250,000 to $500,000 or more in qualifying investments.
Student Visas
Enrolling in a foreign university or language program is another path. Student visas are often easier to obtain and can serve as a stepping stone to longer-term residency.
Citizenship by Descent
If you have parents or grandparents from countries like Ireland, Italy, Poland, or Germany, you may already qualify for citizenship or a simplified residency path. This is worth researching before pursuing other visa types.
Step 4: Set Up Your Finances and Banking
Money is where most new expats hit friction. Here is what to have in place before you leave:
Emergency fund: Aim for three to six months of living expenses in accessible savings. Unexpected costs (visa fees, security deposits, healthcare enrollment) add up fast in the first few months.
U.S. bank account: Keep a U.S. bank account open. You will need it for IRS tax refund direct deposits (the IRS does not deposit into foreign accounts), student loan payments, U.S. subscriptions, and maintaining a financial presence in the U.S. Accounts like Charles Schwab Investor Checking charge no foreign transaction fees and refund ATM fees worldwide.
Local bank account: Open one as soon as you arrive. You will need it for rent, utilities, and daily expenses. Bring your passport, proof of local address, and be prepared to provide a W-9 for FATCA compliance.
Currency management: Platforms like Wise offer mid-market exchange rates and multi-currency accounts, which can save you hundreds per year compared to traditional bank conversions.
Credit history: Your U.S. credit score does not transfer. If you plan to rent or borrow abroad, research how to build a local credit history in your destination country.
“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: Arrange Healthcare and Insurance
Healthcare systems vary dramatically from country to country. Before you leave:
Research the local system: Many countries (the UK, Canada, Germany, France, Spain, and Australia) offer public healthcare to residents. Find out if you are eligible and what the enrollment process looks like. In some countries, you must have private insurance for your visa application, even if public healthcare is available after enrollment.
Get international health insurance: For the transition period (and in countries without strong public systems), international health insurance from providers like Cigna Global, Allianz Care, or GeoBlue provides coverage across borders.
Fill prescriptions before you go: Ensure any medications you take are available in your destination country and fill enough to cover you for the first few months while you find a local doctor and pharmacy.
Know the emergency number: It is not 911 everywhere. In the EU, it is 112. In the UK, it is 999. In Japan, it is 119 (ambulance) and 110 (police). Save these before you land.
Step 6: Plan for U.S. Taxes Before You Leave
This is the step most new expats skip, and it causes the most problems later. The U.S. is one of only two countries in the world that taxes citizens on their worldwide income, regardless of where they live. You must continue filing a U.S. federal tax return every year you are abroad.
The good news: the U.S. tax code has protections designed to prevent double taxation. Most expats owe little or nothing after applying these:
Foreign Earned Income Exclusion (FEIE): Exclude up to $130,000 of foreign earned income (2025 tax year) from U.S. federal taxes. You must meet either the Physical Presence Test (330 days abroad in a 12-month period) or the Bona Fide Residence Test.
Foreign Tax Credit (FTC): A dollar-for-dollar credit for income taxes paid to your host country. If you live in a high-tax country (UK, Germany, France, Australia), the FTC often eliminates your U.S. tax liability entirely.
Foreign Housing Exclusion: Deduct qualifying housing expenses (rent, utilities) above a base amount from your taxable income.
Understand your first-year filing: Your first year abroad is often the most complicated because you may have income from both the U.S. and your host country, and you need to qualify for the FEIE by meeting one of the two tests.
Know your reporting obligations: If you open foreign bank accounts with a combined value of $10,000 or more, you must file an FBAR. Higher thresholds may trigger FATCA (Form 8938) reporting.
Bookmark Greenback: You do not need to file taxes until the following year, but when the time comes, working with an expat tax specialist can save you time, money, and stress. Our team focuses exclusively on Americans abroad.
Moving Abroad as a U.S. Citizen?
See how Greenback helps Americans moving overseas prepare for U.S. tax obligations and stay compliant from day one.
The logistics of moving are the easy part. The harder part is building a life.
Expect culture shock: It comes in waves. The first few weeks feel exciting and new. Around month two or three, small frustrations accumulate: bureaucracy that makes no sense, social norms you keep getting wrong, and missing people from home. This is normal, and it passes.
Build a social circle intentionally: Expat communities are open and welcoming. Nearly every major city has expat Facebook groups, Reddit communities, InterNations meetups, and hobby-based clubs. Say yes to every invitation in the first few months.
Learn the language: Even basic conversational skills dramatically improve your daily experience and open doors with locals. Language schools, Duolingo, and local cultural institutes (Goethe-Institut, Alliance Francaise, Instituto Cervantes) are all accessible starting points.
Be patient with yourself: Building a life abroad takes 6 to 12 months before it starts to feel like home. Give yourself permission to feel lost, frustrated, and homesick. Every expat goes through it.
“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.”
Sandrine, Lebanon
Frequently Asked Questions
How much money do I need to become an expat?
Plan for at least three to six months of living expenses in savings, plus visa fees, flights, a security deposit on housing, and initial setup costs (local SIM card, transportation, furnishing). For affordable destinations like Mexico, Portugal, or Thailand, $10,000 to $15,000 is a reasonable starting point. For expensive cities like London, Zurich, or Singapore, plan for $20,000 to $30,000+. The biggest variable is housing: securing an apartment abroad often requires two to three months’ rent upfront.
Can I become an expat without a job lined up?
Yes, depending on the visa. Digital nomad visas require proof of remote income but not a local job. Retirement visas require savings or pension income. Some countries offer job-seeker visas that let you enter and legally search for work (Germany’s is one of the best-known). Tourist visas (typically 90 days) give you time to explore, but you cannot work legally on a tourist visa in most countries.
What is the easiest country to move to as an American?
Countries with straightforward visa programs for Americans include Mexico (easy temporary residency), Portugal (D7 and digital nomad visas), Costa Rica (retirement-friendly), and Canada (if you have in-demand skills or family ties). “Easiest” depends on your situation: work visa availability, language, cost of living, and proximity to the U.S. all matter.
Do I need to give up my U.S. citizenship to become an expat?
No. Being an expat simply means living outside your home country. You remain a U.S. citizen with full rights, including the right to vote, hold a U.S. passport, and return at any time. Renouncing citizenship is a separate, permanent decision that most expats never make. The vast majority of Americans abroad keep their citizenship indefinitely.
What is the difference between an expat and an immigrant?
An expat (expatriate) is someone living outside their home country, often with the intention of eventually returning or maintaining strong ties to it. An immigrant is someone who relocates permanently and typically pursues citizenship in the new country. In practice, the line is blurry. Many people start as expats and decide to stay permanently. From a U.S. tax perspective, it does not matter which label you use: if you are a U.S. citizen, you file U.S. taxes regardless.
How long does it take to become an expat?
From decision to departure, most people need three to six months. The biggest time factors are visa processing (which can take weeks to months depending on the country and visa type), saving enough money, and tying up loose ends at home (lease, job, storage, mail forwarding). Some digital nomads with remote income and minimal possessions have done it in as little as four weeks. Corporate transfers with employer support can happen even faster.
What are the biggest mistakes first-time expats make?
The most common mistakes are: not researching visa requirements early enough (leading to rushed or rejected applications), not setting up U.S. and local banking before arriving, underestimating how long it takes to feel settled (six to twelve months is normal), not learning any of the local language, and not planning for U.S. tax obligations before leaving. Most of these are preventable with three to six months of preparation.
Can I become an expat if I have a family?
Yes. Millions of American families live abroad. The planning is more complex (schools, spousal visas, pediatric healthcare, larger housing), but the same visa pathways apply. Many work visas include dependent permits for spouses and children. International schools are available in most major cities, though they can be expensive. Some expat families choose countries specifically for the quality of free or low-cost public education (Germany, the Netherlands, and France). The key is researching family-specific logistics for your destination before committing.
Your Expat Journey Starts Now
Becoming an expat is one of the most rewarding decisions you can make. It takes planning, commitment, and a willingness to be uncomfortable for a while. But the payoff is a life you designed on your own terms: new cultures, new perspectives, and experiences you cannot get any other way.
Greenback’s CPAs and Enrolled Agents help you prepare for expat taxes and stay compliant from your first year abroad.
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This article is for informational purposes only and does not constitute legal, tax, or immigration advice. Visa requirements, tax laws, and country-specific regulations change frequently. Consult qualified professionals for advice specific to your situation.
