How Americans Are Moving Abroad in 2026: Best Countries and Pathways

An estimated 4.4 million US citizens live abroad as of 2025, according to the Federal Voting Assistance Program. Americans face unique emigration challenges: the US is one of only two countries (with Eritrea) that taxes citizens on worldwide income regardless of residence, making tax planning — including the Foreign Earned Income Exclusion ($126,500 in 2024) — essential before relocating.

More Americans are renouncing citizenship than at any point since the IRS started publishing numbers. The State Department now has multi-year backlogs for renunciation appointments in several countries. Whether driven by politics, taxes, healthcare costs, or simply wanting a different life, emigration from the US is no longer a fringe decision.

But Americans face a unique set of challenges when moving abroad — starting with the fact that the US is one of only two countries that taxes citizens on worldwide income regardless of where they live.

The US Tax Trap: What Every American Abroad Must Know

Unlike citizens of virtually every other country, Americans living abroad must file US tax returns and potentially pay US taxes on their global income. The Foreign Earned Income Exclusion (FEIE) lets you exclude around USD 126,500 from US taxation, but it doesn't cover investment income, rental income, or Social Security benefits. And if you're earning above that threshold, you're paying taxes to two countries.

FBAR (Foreign Bank Account Report) and FATCA reporting add another layer of complexity. You must report every foreign bank account with a combined balance over USD 10,000. The penalties for non-compliance are severe — up to USD 100,000 or 50% of the account balance per violation.

This isn't a reason not to move. But it does mean you need a tax advisor who specialises in expat tax before you go, not after.

Best Countries for Americans

Portugal (D7 Visa)

Portugal's D7 passive income visa is one of the most accessible routes for Americans. You need to demonstrate roughly €760/month in regular income (pension, investment returns, rental income, or remote work). The cost of living in cities like Porto or Braga is 50–60% lower than most US metros, and the healthcare system consistently ranks above the US in international comparisons.

After five years of legal residency, you're eligible for Portuguese citizenship — which also grants you EU citizenship and the right to live and work in any of 27 EU countries. Processing time is currently 4–8 months.

The Netherlands (DAFT Treaty)

The Dutch American Friendship Treaty (DAFT) is one of the best-kept secrets in American emigration. It lets US citizens start a business in the Netherlands with a deposit of just €4,500. You get a two-year renewable residency permit, and after five years you can apply for permanent residency or citizenship.

The "business" can be freelancing, consulting, or any legitimate self-employment. You don't need to hire Dutch employees or generate a minimum revenue. The catch: you need to demonstrate that your business serves Dutch economic interests, which in practice means having at least some local clients or contributing to the local economy.

Mexico (Temporary Resident Visa)

For Americans who want proximity to home, Mexico's temporary resident visa is straightforward. You need to prove monthly income of around USD 2,800 or savings of USD 47,000. The visa lasts up to four years, and after four years of temporary residency, you can apply for permanent residency.

No language requirement for the visa itself, though practical Spanish makes daily life significantly easier outside tourist zones. Healthcare is affordable — a good private insurance plan runs USD 100–300/month depending on age and coverage.

Panama (Friendly Nations Visa)

Panama's Friendly Nations Visa is designed for citizens of about 200+ countries & territories, including the US. You need to either get a job offer from a Panamanian company, start a business, or deposit USD 5,000 in a Panamanian bank. This gives you immediate permanent residency.

Panama uses the US dollar, has no tax on foreign-sourced income, and has the most developed infrastructure in Central America. It's especially popular with American retirees through the Pensionado programme, which offers substantial discounts on healthcare, transportation, and entertainment for anyone with a pension of at least USD 1,000/month.

Spain (Non-Lucrative Visa)

Spain's non-lucrative visa requires proof of around €28,800/year in income or savings and private health insurance. You cannot work for a Spanish employer on this visa, but you can live in Spain and handle passive income, investments, or work for non-Spanish clients in some cases. After five years, you're eligible for permanent residency, and after ten years, citizenship.

Steps Before You Move

Get an expat tax advisor. This is non-negotiable. The intersection of US and foreign tax law is complex, and mistakes are expensive. Look for CPAs who specialise in Americans abroad.

Don't close your US bank accounts. Many expats maintain a US address (family member's home) and keep at least one US bank account open. Some foreign banks make it difficult for Americans to open accounts due to FATCA compliance requirements.

Research healthcare early. Some countries include public healthcare with residency. Others require private insurance as a visa condition. Understand what your visa type covers before you arrive.

Social Security still works abroad. You can receive Social Security payments in most countries. Medicare, however, does not cover you outside the US — another reason healthcare planning is critical.

US Tax Obligations Abroad: Complete Breakdown

The US is one of only two countries that taxes citizens on worldwide income regardless of where they live (the other is Eritrea). Understanding these obligations is not optional -- the penalties for non-compliance are severe and the IRS actively pursues overseas Americans. Here is every major tax rule that affects Americans abroad.

Critical insight: The FEIE and FTC serve different purposes and can sometimes be used together, but you generally cannot use both on the same dollar of income. A tax advisor specialising in Americans abroad (firms like Greenback Expat Tax Services, Taxes for Expats, or Bright!Tax) typically charges $500–2,000 per year for a standard expat return. This is one expense that pays for itself many times over in avoided mistakes and penalties.

Top Destination Comparison for Americans

Here is a side-by-side comparison of the most popular countries for American expats, covering the factors that matter most: visa access, cost, healthcare quality, and whether the US has a tax treaty with the country.

Social Security and Medicare Abroad

Social Security is one of the biggest financial assets Americans carry abroad -- and one of the most misunderstood. Here is exactly how it works when you leave the US.

Social Security Payments

• You can receive Social Security in most countries. The SSA sends payments to US bank accounts (easiest) or directly to bank accounts in 100+ countries via international direct deposit.
• Restricted countries: Cuba, North Korea, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. If you are in one of these countries, payments are held until you move to an eligible country.
• Taxation of benefits abroad: If your combined income exceeds $25,000 (single) or $32,000 (married), up to 85% of your Social Security benefits become taxable. The FEIE does not apply to Social Security income.
• Totalization agreements: The US has totalization agreements with about 30 countries (including UK, Germany, France, Japan, South Korea, Australia, and others). These agreements let you combine work credits from both countries to qualify for Social Security benefits, and they prevent double taxation of social security contributions.
• Working abroad and credits: If you work for a foreign employer in a country without a totalization agreement, you may not earn US Social Security credits for that period. This can affect your benefit amount at retirement.

Medicare

Medicare does not cover healthcare outside the United States. Period. No exceptions (other than very limited, specific situations involving emergencies near the Canadian or Mexican border on a cruise ship). This means:

• If you are over 65 and move abroad, you need private international health insurance or enrolment in your new country's public healthcare system.
• You can keep paying Medicare Part B premiums ($174.70/month in 2024) to maintain coverage for when you visit the US or if you return permanently. If you cancel and later re-enrol, you face a 10% penalty for each 12-month period you were not enrolled.
• Many expats cancel Part B, save the premiums, and use local healthcare plus a travel medical policy for US visits. This is a personal calculation based on your likelihood of returning.

Banking Challenges: FATCA and Finding Banks That Accept Americans

FATCA (Foreign Account Tax Compliance Act) requires foreign banks to report accounts held by US citizens to the IRS. The compliance burden has led many international banks to simply refuse American customers. This is one of the most frustrating practical realities of American expatriation.

Countries Where Americans Face Banking Difficulties

• France: BNP Paribas and Societe Generale have turned away Americans. Credit Agricole and some online banks (Boursorama) are more accommodating.
• Germany: Deutsche Bank and Commerzbank generally accept Americans. N26 and some neobanks do as well. Sparkasse varies by branch.
• Singapore: Most major banks have restricted or refused US citizens for investment accounts. Basic current accounts are usually available.
• Switzerland: Most Swiss banks charge Americans premium compliance fees ($500–2,000/year) or refuse service entirely for accounts under CHF 500,000.

Banks That Reliably Accept Americans Abroad

• HSBC Expat: Specifically designed for international clients. Accepts Americans. Minimum deposit requirements vary by jurisdiction (Jersey-based, typically $50K+).
• Charles Schwab International: US-based brokerage with checking account that refunds all ATM fees worldwide. Maintain a US address.
• Wise (TransferWise): Multi-currency account available to Americans. Not a full bank but handles international transfers at excellent rates and provides local account details in 10+ currencies.
• Interactive Brokers: For investment accounts, one of the few international brokerages that fully accommodates US citizens.

Practical advice: Keep at least one US bank account (Chase, Schwab, or a credit union) active with a US mailing address. Use Wise for international transfers and local spending. Open a local bank account in your destination country as soon as you have residency documentation -- having both US and local accounts gives you maximum flexibility.

Voting Rights and Citizenship Retention

Moving abroad does not affect your US citizenship or your right to vote. Here is what you need to know.

Voting from Abroad

• You retain full voting rights in federal elections (President, Senate, House) regardless of where you live or how long you have been abroad.
• State and local elections: Varies by state. Most states allow absentee voting for overseas citizens in all elections. A few restrict you to federal-only voting after a certain period abroad.
• How to vote: Register and request your ballot through the Federal Voting Assistance Program (FVAP) website. Submit a Federal Post Card Application (FPCA) to your last US state of residence. Ballots are sent by email, fax, or mail. Submit your completed ballot by your state's deadline.
• No representation without taxation: Despite paying US taxes from abroad, you have no Congressional representative specifically for overseas Americans. Some advocacy groups (Democrats Abroad, Republicans Overseas) provide a voice but no formal Congressional delegation.

Citizenship Retention

US citizenship is permanent until you formally renounce it. Living abroad, even for decades, does not revoke or jeopardise your citizenship. Acquiring foreign citizenship -- including through naturalisation -- does not automatically cause loss of US citizenship. The only way to lose US citizenship is through a voluntary, formal renunciation process at a US embassy or consulate.

Renunciation: The process costs $2,350 (one of the highest renunciation fees globally), requires two in-person interviews at a US consulate, and may trigger an exit tax if your net worth exceeds $2 million or your average annual net income tax for the 5 years preceding renunciation exceeds approximately $190,000. The State Department has a multi-year backlog for renunciation appointments in many countries. It is an irrevocable decision -- you cannot regain US citizenship once renounced except in extremely rare circumstances.