Planning to move abroad next year? Learn about visa requirements, financial planning, cultural differences, and healthcare considerations. Whether it's for work, study, or a change of scenery, these tips will prepare you for a smooth transition to a new country in 2024.

What to Know Before Moving Abroad in 2024

There are people who have the desire to travel, visiting exotic locations, and perhaps moving to another country. There are those that are perfectly fine staying right where they are and not venturing past the next town. A third group are the armchair travelers who dream of someday going to a place they have never seen and yet it may not yet be the best time to travel because of their other obligations.

Depending on your stage of life, you may find yourself changing from one category to another. Some young people like to backpack in foreign countries. Others enjoy going to school abroad. Many retirees look forward to traveling after their kids have grown.

There is also an emerging group called "digital nomads." This group has professional people who know how to earn a living online or by working remotely. They love to travel and may move to another country for adventure and for better opportunities.

When you leave your home country, You are called an "expat." An expat is a person who lives outside their native country.

There are also tax migrants. Some very wealthy people leave the United States, surrender their citizenship, and take up residence in a country with more favorable income tax treatment.

No matter your circumstances and the reasons why you want to move abroad before you store your things at a self-storage facility (use this convenient locator to find one) and take a flight, here are some FAQs about moving abroad that will help you.

Please note: This is not legal or financial advice. Please consult an attorney and a tax expert for your circumstances. While this information was accurate at the time of this publication, things may change. No warranty is expressed or implied.

Taxes

Here are the FAQs about tax considerations.

What are the tax implications of moving abroad?

As an American citizen, you are taxed on your earnings no matter where you live in the world or where you generated the income. The USA and the East African nation of Eritrea are the only two countries in the world that have this policy.

All other countries only charge income tax (if at all) on earnings made in a person's home country. As an American, moving abroad can trigger tax obligations both in your home country and the new country, potentially resulting in double taxation. It's important to understand the tax benefits and obligations in your new location, such as foreign earned income exclusions and foreign tax credits, to mitigate double taxation.

Can I escape U.S. taxes by moving abroad?

You may want to move abroad to escape U.S. taxes, but you will have to give up your American citizenship to do this and there is a fee to pay of $2,350. Moreover, you can only escape future U.S. taxes because to renounce your U.S. citizenship requires having all tax returns filed and all current taxes paid. If you are wealthy (above $2 million in annual income), you must also pay a fee on gains from worldwide assets.

How will my income be taxed in the new country?

Income taxation in the new country depends on local tax laws, which can vary significantly. It's crucial to research these laws to understand your tax obligations and whether your worldwide income is subject to tax.

Are there tax treaties between my home country and the new country?

Many countries have tax treaties to prevent double taxation and allocate taxing rights between countries. These treaties cover various types of income and provide benefits such as reduced tax rates or exemptions.

Do I need to file taxes in both my home country and the new country?

You may need to file tax returns in both countries. For example, U.S. citizens and resident aliens must file U.S. tax returns regardless of where they live, but they can utilize foreign tax credits and exclusions to avoid double taxation.

Americans who hold over $2,000 equivalent in a foreign financial account need to file a form called a Report of Foreign Bank and Financial Accounts (FBAR) each year.

What deductions or credits are available for expatriates?

Expatriates can often benefit from deductions and credits such as the Foreign Earned Income Exclusion (FEIE), Foreign Housing Exclusion, and Foreign Tax Credit, which help reduce their taxable income and overall tax liability.

Cost of Living

After taxes, the most important considerations are the FAQs about the cost of living abroad.

How does the cost of living in the new country compare to my home country?

The cost of living varies widely by country and city. It's important to compare the costs of essentials like housing, food, transportation, and healthcare to understand the financial implications of your move.

The best way to understand the cost of living is to compare the city where you live to the city you plan to move to abroad using the international cost of living calculator.

Start by entering your monthly salary (take-home pay) after taxes. Then, enter the city where you live and the foreign city to compare.

On the global list of the most expensive countries, the United States is seventh after Monaco (1), Cayman Islands (2), Singapore (3), Switzerland (4), Iceland (5), and Ireland (6).

Canada is 14th, and Mexico is 81st on the list.

Many American expats move to Mexico as retirees because the cost of living is so cheap in comparison, and they like to live in the time zones of North America for business purposes.

What are the average housing costs in the new country?

Housing costs differ significantly between regions. Researching average rental prices and property costs in your new location will help you budget effectively. Housing costs are a big part of what makes the cost of living so high.

How much should I budget for daily expenses like food, transportation, and utilities?

Daily expenses can vary, so it's important to research typical costs for groceries, dining out, public transportation, and utilities in your new country. You can use the cost of living calculator.

Here are some of the most expensive cities in the world.

Learn about the estimated costs of daily items by clicking on the city name.

Are there any hidden costs I should be aware of when moving abroad?

Hidden costs can include visa fees, health insurance, import taxes on personal belongings, and higher prices for imported goods. Excess baggage fees are expensive, and you may be limited by the number of bags you may take with you on a flight. It may be more efficient and less costly to send your things by alternative delivery methods than to take them with you on the plane.

How does the cost of healthcare in the new country compare to my home country?

Healthcare costs vary widely. Some countries offer affordable or even free healthcare, while others can be quite expensive without insurance.

Laws

It is vital you know the laws of the land where you are going.

What are the residency requirements for living in the new country?

Residency requirements differ by country and may include minimum stay periods, financial requirements, and background checks.

Do I need a visa or work permit to move to the new country?

Most countries require a visa or work permit for foreigners. The type and process depend on your purpose of stay and nationality. You may be able to enter on a tourist visa for a certain time and then make an application to extend your visa or change its status.

What are the local laws regarding employment and labor rights?

Employment laws vary and cover aspects like work hours, minimum wage, and worker rights. Research these laws to ensure compliance and understand your rights. Some countries require you to have a worker's visa and have a company that is willing to officially sponsor you when you move there.

If you have special skills such as computer expertise, you may be able to get invited to work in many places. If you only have low-level skills and will take a basic job away from a citizen, expect your job search to be much more difficult and your pay to be low. Working remotely for a U.S. firm while living abroad might be the best solution.

Are there any specific laws or regulations for foreigners in the new country?

Foreigners may face specific regulations regarding property ownership, business operations, and legal residency. Understanding these laws is crucial.

What are the consequences of breaking local laws as an expatriate?

Penalties for breaking local laws can include fines, deportation, or imprisonment. It's essential to understand and adhere to local regulations because some nations impose harsh penalties for things Americans do not think are such terrible offenses.

For example, here are some outrageous laws that have been imposed in some foreign countries. Women could not drive a car in Saudi Arabia until 2018. Gay men in Saudi Arabia can be publicly beaten or stoned to death. Until 2003, chewing gum was banned in Singapore, and those caught doing it in public were fined the equivalent of $1,000. Until 1984, it was illegal to own a dog in Reykjavik, Iceland.

The point is to be careful and check the local laws before you find yourself doing a hard time in an Indonesian prison for smoking marijuana, where there is the death penalty for drug trafficking.

Healthcare

You need to know what will happen if you get sick.

What is the quality of healthcare like in the new country?

Some countries have excellent systems while others may be lacking. Research the healthcare system and facilities in your new location. The quality of healthcare varies significantly across countries. Some countries like France, Canada, Japan, and the U.K. are known for their high-quality, accessible healthcare systems, combining both public and private services to ensure comprehensive coverage and high standards of care.

You may experience long waiting lines and delays in countries that offer universal healthcare for free. The good news is that some of the lower cost countries also have low-cost medical services available.

For example, in Mexico, healthcare is free. However, you may have to wait many hours in line with sick people to get an appointment to see the doctor in the following month. At the same time, you can go to a paid clinic on the same day for a consultation with a doctor at the cost equivalent of US$20. If you have something simple like a sore throat, you can go to the clinic associated with a pharmacy and get a consultation for about $4 equivalent. Sometimes it pays to pay.

Do I need health insurance, and how can I obtain it?

Health insurance is often necessary and can be obtained through local providers or international plans tailored for expatriates. Health insurance requirements depend on the country. In many countries, expats must have private health insurance as a visa condition or to supplement public healthcare services.

Private insurance can be obtained through international insurers or local providers. Some insurance providers require you to fly back to the U.S. for treatment of major conditions.

Are there any vaccinations or health checks required before moving?

Some countries require vaccinations or health checks for entry. Check the specific health requirements of your destination. Vaccinations and health check requirements vary by country and can depend on factors like regional disease prevalence and the local healthcare policy. It's essential to consult travel health advisories and the healthcare guidelines of the destination country before packing up to move there.

How does the healthcare system work in the new country?

Healthcare systems generally include public, private, or hybrid models. Public systems are funded by taxes and provide universal coverage, while private systems require out-of-pocket payments or insurance.

Some countries, like Japan and the U.K., offer both, providing flexibility and comprehensive care. Here is a list of countries that offer free universal healthcare for their citizens and foreigners.

What are the costs associated with healthcare for expatriates?

Healthcare costs for expatriates can vary widely. In countries with public healthcare, costs are often minimal for residents. However, private healthcare or insurance can be expensive, especially in countries where private healthcare is the primary option. It's crucial to budget for these costs and understand what is covered by insurance.

Important Documents

It is wise to bring important documents with you.

What documents do I need to prepare before moving abroad?

Essential documents include your passport, visa, birth certificate, marriage certificate (if applicable), and financial records. It's also recommended to have copies of medical records and educational qualifications.

How can I obtain a visa or residency permit for the new country?

The process for obtaining a visa or residency permit varies by country and may require proof of employment, financial stability, health insurance, and a clean criminal record. Consult the immigration services of the destination country for specific requirements.

What documents are required for setting up a bank account in the new country?

Typically, to open a bank account, you'll need your passport, proof of address, visa or residency permit, and possibly a reference letter from your current bank. Requirements can vary, so check with local banks for specifics.

How do I ensure my personal documents are valid and recognized abroad?

Ensure all personal documents are up-to-date and have any necessary apostilles or legalizations. It may be necessary to translate documents into the local language. Check with the consulate or embassy of the destination country for guidance.

What should I do to transfer important records, like medical and educational documents, to the new country?

Obtain certified copies of all important records and, if required, have them translated and notarized. It is also helpful to have digital backups. Contact the relevant institutions in the new country to understand their requirements for accepting these documents.

Life Hacks

These are things that may make your transition easier.

Do I need to speak a foreign language?

Some countries have many English speakers, and that helps if English is the only language you know. However, if you want to live abroad in a country that has fewer people who speak English, then make an effort to learn the foreign language of the country where you will live. There are plenty of online training courses you can take, which are quite fun if you make a game of it. You can join social clubs of people who speak a foreign language and English to practice with native speakers.

Thanks to artificial intelligence (AI) like OpenAI's Chat4.o and others, there are real-time language translators for your mobile phone, so you can use this until you learn the language.

Can I get married or find a significant other in a foreign country?

Love has no boundaries. Nevertheless, be a bit careful if romance is in the air, especially if you first meet a person online through a dating service or through social media. Romantic frauds are rampant online. Both men and women are impacted. Bad actors can be a "catfish" and pretend they are someone else in an attempt to get money from you.

That being said, you may find that when you are in a different country, it is much easier to meet people that you like because you always have an excuse to ask anyone for directions (why not choose an attractive person to ask?).

Will I lose all my American friends if I move to a new country?

When you move away, you may find some of your friends do not enjoy staying in touch. Invite them to visit. They may not come. That's OK. There are plenty of new people to meet wherever you go.

The sons and daughters of American military personnel who are stationed overseas move with their families, on average, every two to three years to a new assignment. They become skilled at making new friends quickly.

They prefer never to say "goodbye." Instead, they say, "See you later," because, who knows? They may run into their military "brat" friends somewhere down the road.

What about traveling with a disability?

After consulting with your healthcare providers and discussing your travel plan, once you get medical approval to travel with a disability, go ahead and give yourself permission to make your dreams of visiting and perhaps living in another country come true.

Make sure you have a plan to get healthcare while abroad if you need it, and buy travel insurance. Pack a travel health kit with all the medicine and other things you need. Take your medical alert information with you and have a letter from your doctor describing your medical condition and any complications.

Can I get an elective medical or dental procedure in another country?

Yes, this type of travel is very common and is called "medical tourism." If you need some things done that are costly in the U.S., you may benefit from waiting until after your move abroad to get them done, depending on where you are moving.

An elective procedure is one you choose to have, is not an emergency, and is not for something that is life-threatening. Examples are plastic surgery, cataract removal, in-vitro fertilization, dental implants, and many more. Be sure to do your due diligence carefully and check the reputation of the foreign clinic to make sure it provides high-quality care and previous patients are highly satisfied.

The reasons many Americans choose to go abroad for certain medical or dental procedures are that the quality of care is superb in some countries and the prices are significantly less than having the same procedure in the United States.

Ready, Set? Go!

If possible, when considering relocation to another country, we recommend a trial run in your new location to see if you really like it. That's why it is a wise idea to put your things temporarily in storage until you ship them, or you are sure you no longer need them and can sell them or give them as donations to charity.

You may find you absolutely love your new place and never want to return to the U.S. On the other hand, you might get so homesick that you cannot wait to come back to America. It is best to have both options covered. If you are looking for an excellent place to store your things, use the convenient self-storage locator to find a facility nearby.