The start of a new year is the perfect opportunity to set ambitious, long-term goals, and for many, this may involve the desire to live in another country. With the increasing availability of remote work, new visa programs, and tax benefits aimed at attracting digital nomads, investors, and families, there are now more options than ever for those contemplating a move abroad.
Moving abroad is a privilege limited to those with the right passport, leaving many nationalities unable to access this opportunity. For those who have the option to relocate, the decision requires thorough research and planning. Beyond simply daydreaming about living in a new country, moving abroad involves extensive consideration of tax implications, work visas, healthcare, and quality of life comparisons.
The annual Expat Insider survey by InterNations, an expat community with over 5.1 million members, is an especially valuable resource. Conducted for a decade, the survey gathers feedback from nearly 12,000 expats from 177 nationalities in 181 countries and territories. It assesses their satisfaction with various aspects of expat life, including quality of life, ease of settling in, working abroad, personal finance, housing, and language.
Retirees can also find useful information from resources like Live and Invest Overseas, which ranks the top 10 overseas retirement destinations in its annual index. The 2024 index, released in early January, ranks Valencia, Spain as the top destination, followed by Braga, Portugal, and Mazatlán, Mexico.
It is crucial to take into account the effect of your relocation on a new host country, particularly in places experiencing a significant increase in immigration from the United States and other affluent nations, according to Megan Frye. As a relocation consultant and writer who has resided in Mexico City for the past eight years, she advises individuals contemplating a move from the United States to Mexico, which has consistently been ranked among the top five countries in InterNations' annual survey since 2014, to be mindful of the disparities in migration policies between the two countries.
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"I make it a priority to address the issue of gentrification in Mexico with my clients, and encourage them to reflect on their role in this complex situation," says Frye, a native of Michigan. "I believe in the freedom of movement for all people, but there is a clear injustice in how easily US citizens can relocate to Mexico compared to the other way around."
When considering a move abroad to a new country, there are numerous factors to take into account. This list focuses on expat-centric topics such as quality of life, affordability, safety, access to culture, and outdoor activities. We also provide insights into potential downsides to consider, as well as information on how to make the move.
This list has general advice for people making the move from anywhere in the world, but focuses chiefly on US citizens.
Mexico
Consistently ranking as one of the top countries for expat satisfaction, Mexico is home to the striking aluminum-paneled Soumaya Museum, located in Plaza Carso within the Polanco district of Mexico City.
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A longtime retirement destination for Americans, Mexico also has attracted more families and the digital nomad set over the past few years.
Mexico City, the largest in North America with approximately 22 million people in the metropolitan area, has seen a significant increase in population. According to The World Population Review, the capital's population grew by 3% between 2019 and 2023, equating to about 600,000 people. Additionally, the number of Americans applying for or renewing residency visas in Mexico rose from approximately 17,800 to over 30,000 from 2019 to 2022.
Other cities such as Oaxaca, San Miguel de Allende, and Playa del Carmen have also become popular destinations for American expats. Many of them highlight Mexico's lower cost of living and relaxed lifestyle as major attractions.
Pros: Mexico has consistently ranked among the top five countries for expats since 2014 and was ranked first in the 2023 Expat Insider survey by InterNations. The latest results show that expats value the ease of settling in, a vibrant social life, and strong support networks in Mexico. Additionally, the country's affordability and laid-back lifestyle are highly rated.
Cons: Despite its appeal, some Mexican cities with large expat communities are facing resistance from locals due to the recent influx of foreigners, a trend seen in other popular expat destinations around the world.
Mexico also faces a significant issue with high crime rates. According to Mexico's National Institute of Statistics and Geography, homicide rates are nearly four times higher than those in the US. Additionally, data from the Human Rights Watch suggests that an estimated 90% of crimes in Mexico go unreported, indicating that the actual numbers may be even higher.
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Joshua Mellin
Moving to Mexico involves more than just packing a bag and catching a flight. Typically, travelers from countries that do not require a visa, such as the United States, can stay in Mexico for up to 180 days for leisure or business purposes with a valid passport. However, they still need to complete a visitors permit, also known as Forma Migratoria Multiple or FMM, at their point of entry.
The default length of time for entry is no longer set, and the specific number of days permitted is determined by the immigration official processing entry.
Mexico does not provide a digital nomad visa, but individuals interested in a permanent move can explore a Temporary Resident Visa, which permits up to four years in Mexico. Alternatively, retirees can apply for a Permanent Resident Visa.
Portugal
Portugal's Golden Visa program, launched in 2012, has made the country a popular destination for expats. The city of Porto, the second-largest in the nation and located on the beautiful Douro River, is pictured. (Image by Sean Pavone/iStockphoto/Getty Images)
The Golden Visa program introduced by Portugal in 2012 has drastically increased the country's appeal to expats. The program has been incredibly successful, leading other countries to develop their own strategies to draw in foreign investors.
Nevertheless, in the spring of 2023, Portugal made sweeping modifications to the program, ultimately putting an end to the real estate investment component. Additionally, it has also revised its nonhabitual resident regime, as noted by Alex Ingrim, a licensed financial advisor and president of the global wealth management firm Chase Buchanan USA.
"Portugal is experiencing a decrease in interest from immigrants seeking the flexibility of a Golden Visa," Ingrim tells CNN Travel. "It is now less attractive from a tax jurisdiction standpoint, leading to a shift in attention towards other European countries." On the positive side, Portugal offers affordability, a high quality of life, year-round mild weather, and a top-notch healthcare system. According to Numbeo, the cost of living is 35.5% lower than in the United States, making it generally more affordable than most European countries. Additionally, Portugal ranks as the seventh safest country in the world.
Drawbacks: Similar to Mexico and other nations with sizable expatriate populations, there is an increasing opposition to the rising number of foreign residents, particularly Americans, and particularly in Lisbon. Critics argue that the consequent surge in housing costs and property prices has displaced longstanding residents and altered the character of specific neighborhoods.
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Spain
"Navigating the Golden Visa Program Changes"
The Golden Visa program is still active, although the option for real estate investment has been removed. Ingrim emphasizes the importance for Americans considering residency through this program to carefully consider its impact on their financial planning, US tax obligations, and whether it remains the best choice for their future.
Spain offers one of the lowest costs of living in Western Europe. And the outdoor cafe scene in Valencia certainly has appeal.
Spain offers a stunning climate, affordable living costs, and vibrant, culturally-rich cities and towns from the Mediterranean to the Atlantic. It's no surprise that more Americans are excitedly declaring "Viva España!" for their next adventure.
Madrid, Barcelona, Seville, and Bilbao have thriving expat communities, with the coastal city of Valencia also becoming a sought-after destination. Valencia ranked first in InterNations 2022 Quality of Life Index and topped the annual index by Live and Invest Overseas for 2024.
There are many reasons to love Spain, including its modern cities, charming small towns, high-quality universal healthcare, and world-renowned dining and nightlife.
Spain is recognized as one of the most culturally liberal and welcoming countries for LGBTQ+ travelers, according to the International LGBTQ+ Travel Association. In 2005, it was among the first countries to legalize same-sex marriage and it hosts one of the world's largest Pride celebrations, attracting around 1.5 million people annually.
However, English is not commonly spoken outside of major cities, with Catalan being the official language in the northeastern region of Catalonia. Adapting to the Spanish way of life may also pose a challenge for foreigners, as work, dining, and socializing schedules differ from American standards. The workday in Spain usually runs from 9 a.m. to 7 p.m., with a long afternoon siesta when many businesses close. Dinner is typically eaten no earlier than around 8:30 p.m.
Politics in Spain is experiencing a growing level of polarization (and at times, violence), particularly due to the ongoing efforts for independence in the northeastern region of Catalonia.
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Here's how to make the move: Expats have several options for relocating to Spain. Those with enough funds can consider the non-lucrative visa (NLV), which is perfect for retirees and individuals with passive income from the United States. However, it's important to note that earning income in Spain is not permitted with this visa. Spain also provides a digital nomad visa and an entrepreneur visa for those interested in other pathways for relocation.
ââThe Netherlands
The Netherlands ranks as one of the happiest countries in the world, according to Gallup pollsters. Amsterdam and other cities in the Netherlands are ideal for cyclists.
The Netherlands, a nation known for its love of bicycling, ranked fifth in Gallups 2023 World Happiness Report for overall life satisfaction and social and economic wellbeing. It also took the top spot in Numbeos 2023 survey for quality of life.
With over 31,000 US citizens currently residing in the country, the capital city of Amsterdam is particularly favored for its scenic canals, historic architecture, and laid-back atmosphere, attracting a large international community.
Benefits include the world-class cycling infrastructure and strong education system in the Netherlands, which is also known for having more bikes than people. Highly skilled expats can take advantage of the 30% ruling, receiving a tax-free 30% allowance of their gross salary for five years, although there is now a cap on the eligible wages.
The Netherlands is known for being more expensive than some other European countries, especially when it comes to rent. According to data from Statista, rents for unfurnished apartments reached an all-time high in November 2023. However, outside of the main hubs, smaller cities and towns like Haarlem, Delft, Leiden, and Maastricht are notably more affordable.
Additionally, the country has high income taxes, with a tax rate of 49.5% on salaries exceeding â¬73,031 (roughly US $81,135). This significant increase from the 30% tax rate that expats might be used to can be quite a shock and often leads them to start considering their next move after their eligibility ends.
Finally, the winter weather, characterized by dark and rainy conditions that make biking a lot less enjoyable, and constant wind, which explains the abundance of windmills, can be challenging for some to adjust to.
A worker is seen in the tunnel of the North-South subway line in Amsterdam on January 16, 2013. Although the new 'Line 52' was originally set to be completed by 2012, financial and structural issues caused delays. The completion of Line 52 is now anticipated for 2017. This line will provide more direct travel options and connections to Amsterdam Central Station.
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Germany
Germany is seen as being great for families. And visiting historic sites such as city hall at the Marienplatz in Munich will keep your off-hours occupied.
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Germany's status as the largest economy in the European Union, combined with its strong job market, robust welfare system, and rich cultural heritage in cities and towns, make it an attractive destination for foreigners, particularly Americans. Recent national data shows that over 121,000 Americans currently reside in Germany. Berlin, in particular, has a significant English-speaking international community, but other cities like Munich, Frankfurt, and Stuttgart also boast strong expat communities.
Additionally, Germany is an ideal choice for families, offering universal healthcare and social benefits such as a monthly "children money" stipend, highly subsidized childcare, and generous parental leave.
Compared to other European countries, the freelancer visa in Germany is relatively easy to obtain, according to Arielle Tucker, a certified financial planner based in Switzerland, as reported by CNN Travel. She points out that US citizens have an advantage over some non-EU countries, as they can apply for a Freelance Visa in Germany without needing an entry visa.
However, there are some drawbacks. Germany lacks certain conveniences that many Americans are used to, such as 24-hour grocery stores and drive-through pharmacies. Most stores are closed on Sundays, with the exception of restaurants and bakeries. The country's bureaucracy can also be frustrating, relying on official paperwork delivered through mail for many government processes.
The rising popularity among foreigners has led to a housing shortage in large cities, particularly in Berlin, making finding accommodation one of the most stressful aspects of relocating. Additionally, English is not commonly spoken beyond major cities.
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Singapore
Navigating the Process: The skilled worker visa in Germany offers a six-month period for qualified individuals with a degree or certificate to seek work in their field of expertise. The self-employment visa process is also relatively uncomplicated.
Singapore is expensive and hot -- but offers great job prospects and food. Here, people take a stroll along the marina bay.
Andriy Kravchenko/Alamy Stock Photo
Singapore has received high praise from many foreigners, ranking third on the InterNations Expat Essentials Index in 2022. It is widely recognized as one of the best countries to live and work in, with a strong job market, exceptional education and healthcare, and one of the world's top transportation systems.
Advantages: Singapore is a leading financial and investment center in Asia, offering great job opportunities and economic security. Food lovers will enjoy its vibrant dining landscape, including bustling night markets and Michelin-starred restaurants. Travel enthusiasts can benefit from convenient access to Changi Airport, one of the world's most acclaimed aviation hubs.
Disadvantages: Singapore is known for its high cost of living, and individuals may struggle to adapt to its hot, humid climate. Additionally, the distance from the United States may pose challenges for those wishing to visit home.
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To relocate, Singapore lacks a digital nomad visa, however, individuals with job prospects can seek an Employment Pass. Entrepreneurs keen on launching a business in Singapore can apply for an Entre Pass.
Costa Rica
Costa Rica's natural beauty is a big selling point. Even in a world of beauty, it's hard to beat the likes of Arenal Volcano National Park.
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Costa Rica's rich natural beauty, tropical weather, and reasonable cost of living have always attracted expatriates seeking their own piece of "pura vida," the national motto and way of life. The country has been a favored destination for Americans, offering an outstanding healthcare system and a reputation as one of the most environmentally sustainable nations. The locals also embrace healthy living, with activities like year-round surfing and daily yoga on the beach.
Furthermore, Costa Rica provides attractive tax incentives for foreign nationals. According to David Lesperance, founder of Lesperance & Associates, a tax and immigration advisement firm, "Costa Rica only taxes income earned in the country, which means that non-Costa Rican pensions, investments, or employment income do not incur an additional Costa Rican tax burden," as reported by CNN Travel.
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Drawbacks of doing business in Costa Rica include the influence of the relaxed lifestyle on punctuality, commonly known as "Tico Time." Creature comforts may also be lacking compared to what Americans are used to, such as the need to dispose of toilet paper in bins rather than flushing it down the toilet in older buildings. Furthermore, Costa Rica's geographic location along the Ring of Fire means it is prone to earthquakes, tsunamis, and volcanic activity, with six active volcanoes within its borders.
Tax considerations are important for expats in Costa Rica due to the absence of a tax treaty with the United States. This can make claims on US tax returns for foreign tax credits or foreign earned income more complex. Additionally, remote workers may consider taking advantage of Costa Rica's new digital nomad visa, which allows them to stay in the country for up to a year with the possibility of extending for an additional year.
Panama
Panama offers a Golden Visa scheme that offers residency to investors. Panama City, the capital, boasts a modern skyline and amenities.
Sebastien Lecocq/Alamy Stock Photo
Often referred to as the Miami of Central America, Panama is a leading financial and business center that connects North and South America. In recent years, it has attracted a growing number of Americans, extending beyond just retirees.
According to Lesperance, there has been a significant increase in relocation among high-net-worth individuals with Hispanic roots, as well as professionals in the financial industry who are moving to Panama in large numbers. This trend is particularly noticeable as Miami continues to become more congested and costly.
Advantages: Panama offers year-round warm weather, diverse urban centers like Panama City and laid-back beach communities, and convenient access to both North and South America, making it an ideal choice for frequent travelers. A major benefit of Panama's Golden Visa program is the opportunity for permanent residency without the obligation to live in the country. To maintain permanent resident status, individuals must visit Panama at least once every two years.
Disadvantages: The cost of obtaining residency in Panama surged from $300,000 to $500,000 in 2023.
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Panama presents a range of investment opportunities that provide permanent residency and a route to Panamanian citizenship within five years. One such program is the Panama Qualified Investment Immigration (PQII), also referred to as the Panama Golden Visa. The program, requiring a minimum investment of $500,000 (previously $300,000 until October 2022), allows investors to qualify through real estate purchases, bank deposits, or investing in funds, which must be held for five years.
Italy
Panama also offers a retirement visa program. However, Lesperance points out that while the retirement route theoretically leads to Panamanian citizenship after five years, "in practice it is not simple. Therefore, the benefits of the PQII pathway compared to the cost of a retirement visa are uncertain."
Picturesque cities such as Venice (above) and the gorgeous countryside are part of the allure of Italy.
The romantic notion of living abroad is deeply embedded in the culture of many countries, making it difficult to find a more universally appealing option. Investment schemes like the one euro homes have further expanded the opportunities for expats to fulfill their dreams of la dolce vita in small towns.
Advantages: Italy offers access to some of the world's most popular tourist cities, beautiful countryside, and immersion in a culture that values family, food, and wine. Italian lifestyle is highly appealing. Moreover, Italy boasts a good healthcare system, and expats generally find Italians to be friendly and welcoming.
Disadvantages: However, job prospects in Italy are not as abundant as in other European countries. Outside major cities, English is not widely spoken, and legal processes such as purchasing a home may require the assistance of an attorney. Additionally, Italy is notorious for its slow and bureaucratic government processes.
Polignano a Mare, Italy - October 1st, 2018: Scenic view of Lama Monachile Cala Porto beach in Polignano a Mare, province Bari, region Puglia, Sauthern Italy
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France
Here's how to make the move: If you're an American planning to stay in Italy for more than three months, you'll need to obtain an entrance visa from an Italian consulate before your arrival. Italy offers visa options such as a long or short-term self-employment visa, known as "lavoro autonomo," and a start-up visa.
France offers residents numerous social benefits along with memorable opportunities such as cycling down the Champs-Elysees in Paris on car-free days.
Living in France may not be exactly like the glamorous "Emily in Paris" show, but there are still plenty of reasons to embrace it: universal healthcare, a strong emphasis on work-life balance (remember those protests over the retirement age?), and some of the most iconic food and fashion scenes in the world.
France offers a range of social programs and benefits for residents, including universal health care, economic stability, and numerous public holidays. In addition to a high quality of life, the country also has favorable tax treaties with the US, making it an attractive option for US expats. Even though the cost of living can be high, the 35-hour work week and various social benefits make it an appealing place to live.
Tucker points out that income and social taxes in France can be as high as 45%, with high-income individuals possibly facing an additional 3% surcharge on part of their income. Beyond major cities like Paris, Lyon, and Strasbourg, a lack of proficiency in French can pose a significant hurdle.
Life-altering acquisition: In 2014, Ellen and Joseph, an American couple with a long-time desire to reside in France, stumbled upon a dilapidated small house in the charming village of Lonlay l'Abbaye in Normandy on the internet. Despite not having seen it in person, they made the decision to buy it.
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To stay in France for more than three months, individuals must apply for a long-term visa. France does not provide a visa specifically for digital nomads, so those planning to work or study will need to obtain a long-stay visa. The Carte de Séjour Residence Permit in France has different categories, each with its own set of conditions and limitations.