Moving Abroad for the Next 4 Years? Here’s What It’ll Really Cost You

Feeling the urge to pack up and leave the U.S.? The current political climate has some Americans thinking about starting fresh somewhere else. But, it’s not just politics pushing people to consider this change.

Some might want to live somewhere else because they seek a better quality of life, a more affordable place to live, or want to experience new cultures. However, the financial considerations can quickly add up.

Do your research and make a budget to ensure you can afford a move–including housing costs, insurance costs, and taxes–and are logistically prepared to access funds and work remotely. Here is a practical guide to the financial ins and outs of international relocation.

Choosing the Right Country

When choosing a country to relocate to, the practical aspects of daily life should influence your decision. Researching the cost of living, healthcare systems, and visa requirements for different countries is a great place to start. 

Next, think about your work situation; if you plan to work remotely for a U.S. company, you’ll need a country with reliable internet infrastructure and a time zone that allows you to maintain reasonable working hours with American colleagues.

Some countries have well-established expatriate communities that can help ease your transition. However, what works perfectly for one person might not suit another. The best country for you will depend entirely on your unique circumstances, preferences, and goals.

Researching Visa Options

Digital nomad visas have become increasingly popular, with many countries offering this route to remote workers and passive income earners. Some countries—including Greece, Portugal, Hungary, Spain, and Malta—offer investment-based residency programs for Americans with significant capital. 

Countries eager to attract American retirees with stable pensions or investment income offer retirement visas. Panama’s Pensionado Visa is particularly popular, requiring an income or pension of just $1,000 per month. Mexico’s Temporary Resident visa for retirees asks for proof of regular income or substantial savings, while Thailand’s retirement visa requires financial proof and a minimum age requirement (50 years of age and older).

Several countries offer citizenship or residency based on heritage for those with ancestral connections. Italy’s “Jure Sanguinis” program allows Americans with Italian ancestors to claim citizenship, while Ireland extends similar rights to those with Irish grandparents.

Work visas remain an option, but they are often more challenging. Some countries have skills shortage lists, making obtaining work visas in specific professions easier. For instance, Australia’s Skilled Migration program and New Zealand’s Essential Skills Work Visa target specific occupations.

Logistics of Making Money and Taxes

Working remotely for a U.S. company offers one of the most stable paths for Americans moving abroad. Many people negotiate remote arrangements with their current employers. Aside from letting you keep your American salary while living abroad, this approach has significant advantages: You maintain a familiar work culture and avoid local employment complications. 

Digital entrepreneurship has become increasingly popular among those moving abroad. Many expats combine multiple digital income streams—for example, mixing content creation, online courses, and consulting work. 

Local business opportunities can be surprisingly accessible in some countries. Popular ventures among American expats include opening restaurants, cafes, or tourism-related businesses in expat-friendly destinations. 

Investment income provides another avenue, particularly for those moving to lower-cost countries. Rental income from U.S. properties, dividend-paying stocks, or other passive income sources can stretch much further in countries with a lower cost of living. 

Don’t Forget the Basic Necessities: Housing and Healthcare

Extended-stay hotels, Airbnb monthly rentals, or short-term furnished apartments give you time to explore different neighborhoods and understand local housing markets. 

For long-term rentals, local real estate agents can be invaluable—especially in countries where English isn’t widely spoken. However, commission structures vary widely by country; in some countries, you might pay up to three months’ rent as a commission. 

Remember, housing costs and availability can vary dramatically by season in many destinations. 

Private international health insurance is often the most comprehensive solution for Americans living abroad. These plans typically provide worldwide coverage (including U.S. coverage if needed), but premiums can range from $200 to $600 monthly for healthy adults. These plans often include evacuation coverage and allow you to see English-speaking doctors.

Local private health insurance is often a more affordable alternative to international plans. These local plans often provide better value than international insurance but may have more limited coverage areas, and some private insurers might exclude pre-existing conditions or charge higher premiums. You may also want to verify that your specific medications are available and legal in your target country.

Most importantly, don’t forget to factor healthcare costs into your overall relocation budget.

The Bottom Line

Considering all the small things before moving out of the U.S. for the next four years is important. It’s easy to take certain aspects of our daily life for granted in America—until you have to recreate them in a different country. Choosing a destination country is the fun part; researching tax implications, visa requirements, healthcare access, and other factors that influence the cost of living might require months of planning. For many people, this effort is worth it to experience a better quality of life, new cultural experiences, and a lower cost of living.