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

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 in 2024 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 in 2026

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 50 countries, 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.