How to become an expat: A complete step-by-step guide to moving abroad

Whether you crave a career leap, a lower cost of living, or golden-years sunshine, thousands of your fellow citizens are making the leap to become an expat abroad.

This guide to relocating gives you every practical and emotional tool you need – from choosing a visa to filing your first foreign tax return – so you can be an expat with confidence.

Understand what it means to become an expat

Before you pack a single box, you need crystal-clear definitions, mostly of who qualifies as an expat vs. immigrant or digital nomad.

An expatriate (often shortened to expat) is any US citizen who establishes residence outside the United States for work, study, retirement, or lifestyle reasons while retaining ties to home. Immigrants aim for permanent citizenship; digital nomads bounce between countries every few months on short-stay or remote-worker permits.

Whether you're chasing a promotion, cutting costs, or simply craving something new, there are countless reasons Americans choose to move abroad. Here are the most common motivations that inspire people to become an expat:

1. Career acceleration – overseas postings can fast-track promotions and global pay.
2. Work–life balance – many destinations offer shorter workweeks and longer vacations.
3. Financial advantage – shifting to a nation with 20–40% lower costs stretches savings.
4. Cultural immersion – language learning, food, history, and new friendships.
5. Retirement comfort – warmer climates and affordable private healthcare.

Defining your “why” keeps you motivated when the paperwork pile feels endless.

Choose the right expat path for you

Your purpose determines your paperwork. Every successful story starts with clarity on objectives and timelines.

Career expat

Ideal for professionals building international careers, career expats are often sent abroad by multinational firms or hired directly by foreign employers. This path offers structured contracts, relocation packages, and the chance to gain global experience.

Common visa types include intracompany transfer permits, local employment visas, and talent-based immigration programs.

Digital nomad

Perfect for remote employees, freelancers, and founders who work abroad online.

• Visa types: Generally called digital nomad visas, like the Spain Digital Nomad Visa, Portugal D8, Greece Remote Worker Permit, Japan Nomad Visa (2024), or the Destination Thailand Visa.
• Always confirm whether local taxes apply or if your earnings remain foreign-sourced.

Student expat

Great for degree seekers and exchange students, student expats typically relocate for a semester, a year, or an entire degree program. You’ll need to apply for a destination-specific student residence permit, which usually requires proof of admission and sufficient funds.

Many countries also limit how many hours students can work during term time. Be sure to ask your university about local job restrictions and mandatory health-insurance coverage.

Retiree expat

Tailored for Americans drawing Social Security or pension income.

Visa types include Mexico Temporary Resident, Costa Rica Pensionado, Panama Friendly Nations, and many more, depending on the country you choose to retire in. Always check if your destination taxes foreign retirement income.

Taxes for Expats has covered many country-specific retirement guides that give you the essential details, including handling your taxes, so you can relax while we handle the IRS for you.

Short-term vs. long-term relocation

How long do you really plan to stay abroad, and are your logistics aligned with that timeline? Draft a one-page plan listing goals, income streams, and preferred visas – it becomes your decision north star.

• Short term ( 2 years): Ideal for trying out a location without major commitments. Opt for furnished rentals, carry-on-friendly belongings, and avoid large shipments unless absolutely necessary.
• Long term (2 years+): If you're planting roots, consider buying property (where legal), enrolling in intensive language courses, and building local financial ties like investments or pensions.

NOTE! You can always check our country-specific guides to buying property as an American abroad.

Comparing the best countries for students, retirees, and career expats

Where you choose to live affects everything – from your cost of living and tax obligations to your chances of visa approval. So why focus on comparing Spain, Portugal, Mexico, and Japan below?

Our analysis shows these four countries consistently top US expat wish lists thanks to:

• well-defined visa pathways for retirees, students, and professionals
• varied tax systems (flat, territorial, or worldwide) that suit different financial profiles
• robust Numbeo data for accurate, year-on-year comparisons

(Data derived from Numbeo and other official sources)

NOTE! Tax rules vary widely – Spain (up to 47%, 24% Beckham cap), Portugal (13–48%, 20% NHR 2.0), Mexico (1–35%, remote work taxed locally), and Japan (up to 45%, partial 5-year window) all treat US expats differently. Treaties cover all except Mexico’s Social Security, where dual FICA can still apply.

You can always find more details in our specific tax guides for each country to ensure you have the right information before you move.

How to use this table

• Students: Spain and Portugal have the lowest cash-on-hand hurdles; Japan compensates with world-class safety and schools.
• Retirees: Spain offers EU residency for €2 400 / mo; Mexico grants permanent status for those with a solid pension; Portugal’s D7 remains the bargain.
• Career builders: If you can secure a €40 k contract, Spain’s HQP fast-tracks you; Portugal’s D3 lets skilled talent in at just 1.5 times its minimum wage.

Match these hard numbers to your own budget, risk tolerance, and timeline – then take the next steps to becoming an expat with your eyes wide open.

Once you’ve narrowed down your goals, use reliable tools to compare destinations based on cost, safety, lifestyle, and visa ease.

1. Numbeo & Expatistan provide real-time, crowd-sourced data on rent, groceries, healthcare, and overall affordability across thousands of cities.
2. Nomad List ranks cities based on digital-nomad criteria like Wi-Fi speed, walkability, nightlife, and friendliness.
3. CitizenRemote and official immigration sites give accurate, up-to-date information on visa types, income thresholds, and application timelines.

If possible, slow travel your top two countries for a month each; it’s the fastest way to spot deal-breakers.

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Take care of legal and practical requirements first

Paperwork first, paradise second. Preparing early can save you weeks of delays – and with a notarised US power of attorney, someone back home can handle urgent paperwork while you chase sunsets. Below are some of the practical steps to take first:

Step 1: Check your passport’s expiration date and renew it if it’s within 12 months of expiry.

Step 2: Research visa requirements and begin collecting key documents, like apostilled birth certificates and FBI background checks.

Step 3: Choose an international health insurance plan; compare IMG, Cigna Global, and SafetyWing to find the right balance of cost and coverage.

Step 4: Be aware of local registration rules – many EU countries require you to register your address at the local town hall within 30 days.

Step 5: Review driver’s license requirements and get an International Driving Permit (IDP); Japan also requires a certified JAF translation.

Step 6: Open multi-currency accounts such as Wise or Revolut, and maintain a US-based emergency savings account.

Step 7: Set up mobile service with an e-SIM before you arrive, and research utility deposit policies in your destination.

Organize your finances

Smart financial planning is the backbone of a successful expat life – don’t let overlooked costs sabotage your experience. At least, check for the below:

• Estimate cost of living – add a 20% buffer above online averages.
• Emergency fund – three to six months’ expenses in an accessible US-dollar account.
• International bank accounts – HSBC Premier and Charles Schwab reimburse global ATM fees.
• Currency strategy – use forward contracts or FX apps to lock rates on large transfers.
• Track your spending daily for the first 30 days – the real cost of your new life only shows up once you’re living it.

Track these items carefully, and you’ll have a smoother financial transition abroad.

Secure housing and move strategically

A roof over your head is step one; feeling at home is step two, and when it comes to that, there are four major things you need to consider.

1. Renting – Flexible and often furnished; expect a 13-month security deposit plus, in some markets, an extra one-month agency fee. Always review the inventory list and double-check whether utilities are included in the advertised rent.
2. Buying – Can unlock residency perks (Portugal’s Golden Visa fund option starts around €280,000), but closing costs run 610% of the purchase price. Hire a bilingual notary or lawyer and confirm that foreign ownership is permitted before you sign.
3. Short-term accommodation – Airbnb, Flatio, Blueground, and NomadRental are ideal for a one-month test run; expect to pay 10 - 20% above local rents and insist on all bills included plus reliable Wi-Fi.
4. Long-term rentals via local agents – Search portals like Idealista (Spain), Imovirtual (Portugal), Inmuebles24 (Mexico), and Suumo (Japan). Agent commissions are usually 50 - 100% of one month’s rent; listings are in the local language, so use a translator and request a written inventory and meter readings before moving in.

Which is better? Shipping or selling belongings

Ship sentimental items via sea freight if the weight exceeds 200 lbs. Sell bulky furniture; buy region-compatible appliances abroad. Ensure you pack only the essentials like dual-voltage electronics, scanned copies of key documents, travel-size medical kit. Ship fewer things than you think – almost every country sells forks, towels, and coffee makers.

Learn the local language and culture

Fluency opens doors that money can’t. Locals forgive grammar mistakes but always respect efforts to speak their language.

• Spaced-repetition apps (Duolingo, Memrise) for 15-minute daily drills.
• Language exchanges – trade English conversation for local slang over coffee.
• Immersion courses – four-week intensive programs jump-start confidence.
• Cultural fluency – study non-verbal cues, work-hour norms, and national holidays to avoid faux pas.

Build your expat community abroad: they will be your closest family

People, not places, determine whether you stay. Studies show that being part of an engaged community can reduce culture shock by as much as 33%. Aim to meet at least one new person each week – small connections snowball into a meaningful support network.

You can build yours through expat platforms like InterNations, Facebook groups, and Reddit city subs, as well as through professional networks, coworking hubs, or volunteering in roles like teaching English or serving meals.

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Understand your tax obligations as an expat

You can leave the country, but the IRS still sends postcards. Even overseas, Uncle Sam expects a check-in. Here’s what US citizens living abroad need to know about their filing duties.

US expats must file by 15 June (16 June in 2025). Taxes are due by 15 April to avoid interest – even if you file later. The final extension deadline is 15 October, but any taxes owed are still due in April. You can use our free tax extension service if you need additional time.

Your US obligations

• Foreign Earned Income Exclusion (FEIE) – US $130,000 for tax year 2025; qualify via physical-presence or bona-fide-residence tests.
• Foreign Tax Credit (FTC) – offsets foreign income taxes dollar-for-dollar.
• FBAR & FATCA – file FinCEN 114 if foreign-bank balances exceed US $10,000; Form 8938 for higher thresholds.

Your new country obligations

Understand tax-residency thresholds (often the 183-day rule) and whether your income is territorial, flat-taxed, or fully worldwide. Check for double-taxation agreements – the US has 68 income-tax treaties that prevent double hits.

Don’t let IRS worries stop you

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