Thinking About Moving Abroad as a US Citizen? Here’s What You Really Need to Know

There’s something powerful about the idea of starting a new chapter overseas.

Maybe it’s the lifestyle.

Maybe it’s lower living costs.

Maybe it’s retirement in Europe.

Maybe it’s simply the feeling that it’s time.

But if you’re a US citizen, moving abroad comes with unique financial and tax considerations that many people underestimate — and getting it wrong can be expensive.

Here’s what you need to be thinking about before you pack your bags.

The US Tax System Follows You

Unlike most countries, the United States taxes based oncitizenship, not residency.

That means:

• You must continue filing US tax returns even if you live abroad
• You may need to file FBAR and FATCA reports
• Foreign pensions and investments can be treated very differently under US rules
• Certain foreign funds can trigger punitive tax treatment (PFIC rules)

Yes, you may qualify for:

• Foreign Earned Income Exclusion (FEIE)
• Foreign Tax Credits
• Double taxation treaties
• But these need careful coordination.

Read Also: Common Investing Questions From Expats

What Happens to Your US Retirement Accounts?

If you have:

• 401(k)
• IRA (Traditional or Roth)
• 403(b)
• Brokerage accounts

You need to consider:

• Can you keep them while living abroad?
• Will your new country tax them differently?
• Should you restructure before leaving?
• How will required minimum distributions (RMDs) work?
• How does currency exchange impact long-term income?

Many expats discover too late that certain moves would have been far more efficientbefore they changed residency.

Currency Risk & Income Planning

If you’ll be living in euros, pounds, or another currency — but your retirement savings are in US dollars — exchange rates matter.

Small fluctuations can significantly impact:

• Property purchases
• Monthly income withdrawals
• Pension transfers
• Investment growth in real terms

Currency planning isn’t speculation — it’s risk management.

Healthcare & Insurance Considerations

Moving abroad means understanding:

• Public vs private healthcare systems
• Whether Medicare works overseas (it generally does not)
• International health insurance requirements
• Long-term care planning
• Estate planning differences

Healthcare access is often a key reason Americans move — but eligibility and structure vary widely by country.

Estate Planning Across Borders

US estate tax rules may still apply.

At the same time, your new country may have:

• Forced heirship rules
• Inheritance tax
• Different beneficiary structures

Without coordinated planning, families can face unexpected complications.

For more indepth information click here

The Right Time to Plan Is Before You Move

The biggest financial mistakes expats make?

They wait until after relocation.

The best outcomes usually happen when planning starts 6–12 months before departure

If you’re seriously considering moving abroad — whether to Europe, Asia, or elsewhere — now is the time to review your financial structure.

Complimentary 121 Financial Review

As a subscriber with Expat Republic you can claim your very own complimentary personal financial review aimed at helping you understand the key stages you need to take on your journey and to ensure it is as tax efficient as possible and protecting your retirement planning and investments.

To book your complimentary review please click here for the click here

SJB US offers investment and financial advisory services through Blacktower Financial Management (US) LLC.

Blacktower Financial Management (US) LLC is registered as an investment adviser with the SEC. Blacktower Financial Management (US) LLC only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Past performance is not indicative of future results. You should not assume that the future performance of any specific investment strategy will be profitable or equal to past performance levels.