When the Brownings, a family from San Francisco, decided to retire at 39, they moved to Portugal to take advantage of the lower cost of living to start a new life abroad. They documented their move and transition to a new life in Portugal on their Youtube channel.
For many, moving abroad offers the chance to reinvent themselves, escape the grind, or provide their families with richer experiences and opportunities. From the cosmopolitan streets of Singapore to the sunny beaches of Costa Rica, the allure of living abroad is undeniable. However, it’s not without its challenges—navigating visa requirements, understanding foreign tax laws, and adapting to new cultural norms can be daunting. Without preparation, the dream can quickly become overwhelming.
Here’s your comprehensive guide to starting fresh in a new country, so you can plan your move and thrive in your new life overseas.
Why Move Abroad?
Moving abroad offers an unparalleled opportunity to broaden your horizons, immerse yourself in diverse cultures, and potentially learn a new language. For many, relocating also brings a healthier work-life balance. In countries like Denmark and New Zealand, shorter workweeks and generous vacation policies allow expatriates to enjoy life outside work. A recent survey found that 75% of expatriates reported increased life satisfaction, attributing it to better work-life integration and cultural experiences.
Moving abroad can also offer significant financial benefits. Programs like the U.S. Foreign Earned Income Exclusion (FEIE) allow expatriates to exclude up to $120,000 of foreign income from federal taxes, easing financial burdens. Additionally, cost-of-living comparisons reveal substantial savings in destinations like Thailand or Vietnam, where rent and daily expenses can be up to 60% lower than in major U.S. cities like New York or San Francisco. For instance, according to Numbeo, a professional in Bangkok can enjoy a comfortable lifestyle on $2,000 per month compared to over $5,000 in the U.S.
Families moving abroad often benefit from access to top-tier international schools offering bilingual or multilingual education, fostering global perspectives in children. Countries like Singapore and Switzerland are renowned for high-quality educational institutions that prepare students for global opportunities. Additionally, family-friendly policies and flexible work environments in countries like Sweden make it easier to balance careers and parenting.
Choosing Your Destination
Factors to Consider
When choosing a destination, language and cultural compatibility play a significant role. English-speaking countries or those with a high level of English proficiency, like Singapore or the Netherlands, may ease the transition. Evaluate the local job market to ensure opportunities in your industry: for example, Germany is renowned for its engineering sector, while Thailand is a hotspot for teaching English and tourism-related jobs.
Additionally, compare cost of living with expected salaries—destinations like Portugal offer affordable housing and amenities compared to cities in the U.S. Finally, understand visa and residency requirements; countries like Spain provide easy access to residence permits through programs like the Non-Lucrative Visa.
Emerging Expat Trends
Remote working hubs are rising, with Bali and Estonia at the forefront. Countries now offer digital nomad visas to attract mobile professionals, allowing extended stays without traditional work permits. Estonia’s e-Residency program, for instance, is ideal for digital entrepreneurs.
Navigating the Logistics
Visa and Legal Requirements
Understanding visa options is a critical first step. For work-related relocations, countries like Germany or Canada offer work visas tailored to skilled professionals, often requiring proof of employment and qualifications. For digital nomads, programs like Portugal’s Digital Nomad Visa allow remote workers to reside for extended periods. Residency visas vary by duration; short-term visas are ideal for temporary stays, while long-term visas may require income proof or investment. Within our individual country pages, we have more information on visa requirements by country.
Financial Preparations
Setting up a local bank account simplifies financial transactions, such as paying rent or utilities. To avoid currency exchange fees, consider using multi-currency accounts or apps like Wise. Tax compliance is essential; Americans must report income to the IRS, even when living abroad, under FATCA (Foreign Account Tax Compliance Act).
Healthcare and Insurance
Healthcare systems differ globally. In countries like the U.K., public healthcare is often free for residents, while private insurance is crucial in others like Thailand. Some visas require you to show proof you’ve taken out private health insurance. For an instant free quote, visit our partner’s site here.
Education for Families
For families, finding schools is a priority. International schools often offer bilingual programs and a globally recognized curriculum, while local schools provide deeper cultural integration.
Navigating Legal Challenges
Understanding the legal landscape of your host country is crucial. In many countries, for example, land ownership by foreigners is restricted. Thailand prohibits direct ownership of land by non-citizens, though long-term leases or purchasing property through a Thai company are common alternatives. Conversely, Portugal and Mexico allow foreigners to own property outright, though certain areas may have additional regulations.
Employment laws also differ widely and may affect your job security and rights as an expat worker. Germany, for instance, has robust protections for employees, including mandatory contracts and strict termination rules, while countries like the UAE operate under less employee-centric systems.
Long-term visa holders may eventually qualify for permanent residency or citizenship. In Spain, for example, non-EU residents can apply for permanent residency after five years of continuous residence, while in Canada, expats can transition from work permits to permanent residency through programs like Express Entry.
Remote Work Considerations
Reliable internet is non-negotiable for remote workers. While many popular expat destinations offer excellent connectivity, it’s not universal. Singapore, for example, boasts some of the fastest and most reliable internet speeds globally, while rural areas in Thailand or Costa Rica may experience occasional outages. Research local internet providers and verify service quality before committing to a location.
Balancing time zones is another critical factor for remote workers collaborating with U.S.- or Europe-based teams. Countries in Latin America, like Mexico or Costa Rica, align more closely with U.S. working hours, making them attractive for professionals with heavy client interaction. For expats in Europe or Asia, apps like World Time Buddy can help schedule meetings effectively.
Many expat-friendly cities cater to remote professionals with co-working spaces and strong digital nomad communities. Bali, Lisbon, and Chiang Mai are renowned hubs offering affordable, well-equipped spaces designed for productivity. These spaces also provide networking opportunities and a sense of community.
Safety and Security Abroad
Before moving, investigate the safety profile of your destination. Resources like Numbeo or government travel advisories provide data on crime rates, common scams, and local safety tips. For families, low-crime neighborhoods with robust community infrastructure, like gated communities in Costa Rica or Singapore’s family-friendly districts, are ideal. Solo travelers should be particularly vigilant about pickpocketing in tourist-heavy areas and avoid poorly lit or isolated spaces at night.
Familiarize yourself with local emergency numbers. For example, 112 is the emergency line across the European Union, while 911 works in Mexico. Research nearby hospitals, clinics, and pharmacies and identify English-speaking doctors if necessary. Many embassies provide expats with lists of trusted healthcare providers and legal services.
As well as health insurance, consider additional policies for personal property, such as theft protection for laptops or cameras, as well as travel security insurance for trip cancellations or disruptions.
Managing Long-Term Finances
Relocating abroad introduces unique financial considerations that significantly impact retirement savings, investments, and inheritance planning. Properly managing long-term finances is essential for maintaining financial stability and ensuring future security. For example, even while living abroad, American expatriates can maintain and contribute to U.S.-based retirement accounts like IRAs or 401(k)s.
Estate Planning for Expats
Living abroad complicates estate planning, especially when dealing with differing inheritance laws between your home country and your host country. Some countries enforce forced heirship laws, which dictate how assets are distributed upon death, potentially conflicting with wills written in your home country. To ensure your estate plan aligns with both jurisdictions, consider drafting an international will or consulting an estate attorney experienced in cross-border inheritance issues.
Exchange rates
Exchange rates can significantly impact the value of savings, income, and withdrawals when living abroad. To mitigate this, expats can use multi-currency accounts, monitor exchange rates through tools like XE, or consider hedging strategies such as holding savings in both their home currency and local currency.
Investments
If you hold investments in your home country you’ll need to investigate if you can continue to hold them. For example, many U.S.-based investment accounts impose restrictions on non-resident clients.
Diversifying with local assets, such as real estate or regional funds, can hedge against exchange risks and provide exposure to the host country’s economy. However, this requires understanding local markets and tax implications.
Building a Support System
Making Connections
Establishing a network of friends is vital for settling into your new home. Meeting fellow expats provides shared experiences and practical advice, while connecting with locals helps integrate into the community. Platforms like Meetup and Internations host events for expatriates, ranging from social gatherings to professional networking opportunities. Additionally, online forums such as local Facebook groups offer a space to ask questions and find like-minded individuals.
Adapting to Local Culture
Overcoming culture shock is a gradual process. Immerse yourself in local customs by observing traditions, joining community activities, and trying regional cuisines. Learning the language, even at a conversational level, builds confidence and fosters deeper connections. Apps like Duolingo or attending local language classes can be invaluable.
Maintaining Ties Back Home
Staying connected with family and friends provides emotional stability, and is easier than ever thanks to tools like Zoom and WhatsApp.
Making the Move Smooth
Preparing for Departure
Before moving, decide whether to sell or rent out your home. Renting can provide a steady income stream while maintaining a base to return to. Packing smartly is key—focus on essentials, sentimental items, and things hard to replace abroad, like specialty electronics or documents. Furniture and bulky items are often better sold or stored. You can get five free removals quotes from our partners here.
First Months Abroad
Securing housing is a priority upon arrival. Research short-term rentals, which provide flexibility while you search for permanent accommodation. Platforms like Airbnb or local housing groups can help. Administrative tasks such as registering for a local ID, setting up utilities, and obtaining a driver’s license should be tackled early.
Budgeting and Finances
Budget for initial expenses like airfare, temporary housing, and deposits on rentals. Financial apps like Mint or creating a spreadsheet can help track expenses and manage cash flow in your new currency.
Tips for Thriving Abroad
Living abroad is a unique opportunity to step out of your comfort zone and embrace the unfamiliar: cultivate an open mindset and try native cuisines, attend festivals, and participate in community events. Even mundane experiences like grocery shopping can become exciting when seen as part of the adventure.
Never stop learning about your host country. Understanding local history, customs, and traditions not only enriches your experience but also fosters mutual respect with locals. Exploring diverse perspectives through books, cultural exchanges, or guided tours can offer new insights and connections.
Once you’ve found your footing, consider giving back to the community. Join expat networks to mentor newcomers or participate in local volunteer initiatives. Supporting others creates a sense of belonging and strengthens your ties to the area.
Moving abroad isn’t just about changing your address—it’s about discovering a new way of life. The benefits are immense: broader horizons, better work-life balance, financial opportunities, and world-class education for families. While the challenges can feel daunting, the rewards of personal growth and a global perspective are unmatched.