Considerations when moving abroad

AIO Financial – Fee Only Financial Advisors

What to Consider Before Moving Abroad

Moving abroad can be one of the most rewarding experiences of your life. Whether you’re planning to retire, work remotely, or simply enjoy a change of scenery, starting fresh in another country offers a blend of adventure, personal growth, and sometimes even financial relief. But international relocation isn’t as simple as packing a few bags—it’s a complex decision that requires thoughtful research and planning.

Here’s an in-depth guide covering all the major points to consider before making the leap to life abroad.

Visa and Residency Options

Before you can enjoy sunsets in Spain or long walks through a colonial Mexican town, you need legal permission to stay. Immigration rules vary widely between countries, and what seems straightforward at first can turn into a bureaucratic maze.

Common visa types include:

• Retirement Visas: Available in countries like Mexico, Portugal, Panama, and Thailand. Typically require proof of pension or steady passive income, such as Social Security or annuities. These are designed to attract retirees who can contribute to the economy without taking jobs from locals.
• Digital Nomad Visas: Ideal for remote workers earning income from abroad. Countries like Spain, Estonia, and Costa Rica offer these to freelancers, entrepreneurs, and tech workers. Often, you’ll need to show proof of stable income and health insurance.
• Investor Visas: These are aimed at those willing to invest a certain amount of money into real estate, government bonds, or local businesses. In some cases, this leads to permanent residency and even citizenship.
• Family Reunification Visas: These are available if you have immediate family members (spouse, parent, or child) who are already residents or citizens. The process is often smoother but may include additional documentation to prove relationships.

Important considerations:

• How long the visa is valid and whether it can be renewed
• Whether the visa can be changed without leaving the country
• Required documentation, which may need to be translated and apostilled
• Language or integration requirements, such as cultural tests or residency interviews
• Whether the visa offers a pathway to permanent residence or dual citizenship

Pro tip: Begin your paperwork early. Some visas take months to process. Join expat groups on Facebook or Reddit to gather insights and timelines from others who have gone through the process. If your case is complex, consult with an immigration lawyer who understands both your home country and destination laws.

2. Taxes

Many people assume that moving abroad frees them from U.S. tax obligations. That is a costly misconception.

U.S. citizens are taxed on worldwide income. Even if you never set foot in the U.S. during the year, you still need to file a tax return annually.

Tax issues to understand:

• Foreign Earned Income Exclusion (FEIE): If you qualify through the Physical Presence Test or Bona Fide Residency Test, you can exclude up to a certain amount ($120,000+ in recent years) of foreign earned income.
• Foreign Tax Credit: If you pay taxes abroad, you can offset your U.S. tax liability using credits. This is helpful if the foreign tax rate is higher than the U.S. rate.
• Tax Treaties: The U.S. has treaties with many countries to avoid double taxation. These agreements can help you understand how dividends, interest, pensions, and other income types are treated.
• Wealth & Exit Taxes: Some countries, like Spain, tax your global assets annually. Others, like Argentina, tax money entering the country. If you ever renounce U.S. citizenship, there may be an exit tax depending on your net worth.
• Retirement Income: Some countries have favorable tax treatment for pensions and Social Security; others may tax them fully. IRAs and 401(k)s may also be taxed differently depending on local laws.

Tip: Hire a tax advisor who specializes in expat taxation. Make sure they understand both IRS requirements and local tax regulations. Keep meticulous records, use a service like FBAR to report foreign bank accounts, and avoid penalties.

Cost of Living

Lower living costs often attract people abroad, but affordability is relative and requires a thorough comparison of your lifestyle needs.

Make a realistic budget including:

• Housing: Renting might be cheaper, but utilities, deposits, and furnishing a home from scratch can be expensive. Research typical rental contracts, landlord expectations, and hidden costs.
• Groceries & Dining: In many countries, local markets are affordable, but international goods may be costly. Dining out can be a great deal or expensive depending on the location.
• Healthcare: Some countries have low-cost or free healthcare, but expats may not immediately qualify. Private insurance may be required.
• Transportation: Will you rely on buses, metro, or taxis? In some cities, owning a car is impractical; in others, it may be essential.
• Extras: Consider things like visa renewals, document translations, domestic help, language courses, travel back home, and recreation.

Pro tip: Cost-of-living calculators like Numbeo and Expatistan are useful starting points. Supplement them with conversations in expat groups to see actual spending habits and current prices.

Healthcare Access and Quality

Healthcare is a critical concern for many expats, especially retirees or those with medical conditions.

Evaluate the following:

• Availability: How many hospitals and clinics are in your area? Are specialists nearby or only in major cities?
• Language: Are doctors and staff fluent in English? Will you need a translator?
• Cost: Can you pay out-of-pocket for visits, or do you need insurance? What are the costs of medications, dental care, and specialists?
• Quality of Care: Are facilities modern? What are patient outcomes and hospital ratings?
• Emergency Care: How responsive are ambulance services? Are there public vs. private options?

In some places, expats are eligible to join public healthcare after gaining residency. In others, you must carry private international insurance, which can range from $1,000 to $4,000+ annually depending on age and coverage.

Pro tip: Visit healthcare facilities during your scouting trip. Book a basic appointment to get a sense of the system. Ask local expats which doctors they recommend and whether they feel adequately cared for.

Climate

Moving for better weather is one of the top reasons people go abroad, but climate encompasses more than just sunny skies.

Important climate considerations:

• Rainy Seasons: In countries like Costa Rica, rain may fall daily for months. This affects mobility, activities, and property maintenance.
• Humidity: Persistent humidity can cause mold, affect electronics, and make certain health conditions worse.
• Natural Disasters: Earthquakes, hurricanes, floods, wildfires, and volcanic activity may be part of the landscape. Research emergency preparedness.
• Altitude: High elevation cities like Quito or Mexico City have thinner air, which can affect those with heart or respiratory conditions.
• Air Quality: Urban centers may suffer from smog or pollution. This impacts outdoor activities and long-term health.

Pro tip: Spend a few weeks in your target area during its worst season—whether that’s winter, rainy season, or extreme heat. What you learn may surprise you.

City Size and Lifestyle Fit

City size impacts nearly every aspect of your experience abroad.

Larger cities offer:

• More entertainment and shopping
• Access to international schools and universities
• Better infrastructure and internet
• Greater anonymity

Smaller towns offer:

• Lower rent and quieter surroundings
• Close-knit community interactions
• Slower pace and less bureaucracy

Questions to ask yourself:

• Do I want to be part of a bustling expat scene or immerse in a quieter local culture?
• Will I miss conveniences like Uber Eats, English bookstores, or coworking spaces?
• Can I handle cultural or language isolation in a rural area?

Pro tip: Explore multiple cities during your preliminary visits. Stay a few days in each to experience the vibe, noise, traffic, and community feel.

Airport Access

Living abroad often means you’ll want or need to travel back to your home country—or welcome visitors from there. Having access to a well-connected airport can make or break the convenience of your new life.

Key questions to ask:

• How far is the nearest major airport?
• Are there direct flights to and from your home country?
• Are flight options frequent, or limited to a few days per week?
• How much do international flights typically cost from this airport?
• Is the airport accessible by public transportation, or will you need a car or taxi?

A nearby airport means easier travel during emergencies, holidays, or for leisure. If you plan to explore your new region or host guests, being within an hour or two of an international airport is a huge advantage.

Pro tip: Check for budget airlines, flight reliability, seasonal delays, and baggage policies. Use flight search engines like Google Flights or Skyscanner to understand common routes and prices.

Proximity to Support Network

Starting over in a new country can be exhilarating, but also lonely—especially in the early months. While you may gain new friends and contacts over time, it’s essential to think about how you’ll stay connected to your existing network.

Considerations include:

• Time zone differences for video calls and work commitments
• Travel time and cost to visit loved ones
• Whether friends or family are likely to visit you (and what accommodations you’ll need)
• Emotional readiness for separation and isolation

You might be moving away from aging parents, adult children, or close friends. While distance doesn’t erase relationships, it changes how they’re maintained. If your new life abroad feels too disconnected, it can affect your well-being.

Pro tip: Build routines for staying in touch—weekly calls, group chats, or digital game nights. Consider joining expat groups to find community locally.

Language

Even if you’re moving to a city with a large expat population, speaking the local language significantly improves your day-to-day experience. It affects not only your ability to handle bureaucracy, but also your comfort, safety, and ability to integrate.

Why local language skills matter:

• You’ll need to understand rental agreements, utility bills, and legal documents
• Emergency situations may require fast, clear communication
• Friendships and social events often happen in the local language
• Simple daily tasks (e.g., shopping, banking, public transit) become smoother

If you’re moving to a country where you don’t speak the language, consider taking classes before and after you arrive. Many cities offer language exchanges and expat-tailored programs.

Pro tip: Use language learning apps like Duolingo, Babbel, or Pimsleur, but also practice speaking in real situations as often as possible. The goal isn’t perfection—just progress.

Expat Community

Moving abroad can be much easier if there’s a strong expat network already in place. While making local friends is important, expats can help you navigate cultural quirks, provide recommendations, and ease your transition.

Strong expat communities often offer:

• Welcome meetups or orientation groups
• Online forums and social media groups
• Shared interest clubs (hiking, yoga, book clubs, etc.)
• Information on local doctors, lawyers, and service providers
• Emotional support from others who’ve faced similar challenges

However, not all destinations have organized expat networks. Remote areas or smaller towns might require more effort to meet others.

Pro tip: Check platforms like Internations, Meetup, Facebook, or local WhatsApp groups before your move. Look for communities aligned with your age, profession, or lifestyle.

Safety

Feeling safe in your new home affects everything from your sleep to your social life. Safety isn’t just about crime; it also includes health risks, infrastructure, and political stability.

Evaluate multiple dimensions of safety:

• Is petty theft common in tourist areas?
• How do locals and expats feel about walking alone at night?
• Are women, LGBTQ+ individuals, and minorities treated equitably?
• Is the legal system fair and functional?
• What’s the quality of roads, emergency services, and infrastructure?

A city that ranks low in crime stats might still feel unsafe if poorly lit at night or lacking reliable policing. Conversely, a “dangerous” city might feel perfectly safe in specific neighborhoods.

Pro tip: Visit your future neighborhood at different times of day. Use tools like Numbeo for crime reports but trust local perspectives too. Ask expats what they do to stay safe.

Activities and Lifestyle Fit

Affordability and sunshine won’t make you happy if you’re bored or disconnected. It’s important to find a location that supports the life you want to live.

Think about:

• Are there cultural events, galleries, or live music?
• Are you near nature for hiking, biking, or the beach?
• Do locals share your hobbies or interests?
• Are there gyms, sports leagues, or volunteer opportunities?

The ideal location complements your personality and values. If you’re a social butterfly, a quiet village might feel isolating. If you love quiet and solitude, a buzzing city might feel overwhelming.

Pro tip: Look for cities with lifestyle newsletters or online event calendars. Spend time in your chosen destination as a “local tourist” before moving.

Try Renting First

Renting before you buy property is one of the wisest decisions you can make. No matter how much research you do, you won’t truly understand a place until you live there.

Benefits of renting first:

• You can test neighborhoods and commuting patterns
• You’ll understand noise levels, weather quirks, and infrastructure
• You’ll meet locals and learn what’s normal for the area
• You won’t be locked into a long-term commitment if your needs change
• You’ll avoid costly real estate mistakes, scams, or bad deals

Many expats who buy property too soon regret it, finding later that another neighborhood or city would’ve suited them better.

Pro tip: Sign a short-term lease (3 to 12 months), ideally furnished, and give yourself time to explore before purchasing property or signing long-term rental agreements.

Final Thoughts

Relocating abroad is more than a physical move—it’s a mental, emotional, and cultural shift. While it can be one of the most enriching choices you ever make, it’s not without its challenges.

Take your time to:

• Research your top destinations thoroughly
• Visit in person before committing
• Consult with professionals (immigration, tax, legal)
• Build a network early through online and in-person connections
• Embrace flexibility and patience

No two expat journeys are the same. What works for someone else might not suit you. Your ideal destination will balance your financial, social, and emotional needs while supporting the life you want to build.

Done right, moving abroad isn’t just a new chapter—it’s a whole new book filled with learning, connection, and growth.

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