The desire to move out of the US is strong. The execution is a different story.
According to the latest Gallup poll, about 1 in 5 would like to leave the US and settle permanently in another country. This desire is bubbling to the surface at the moment, and people who would never have considered it before are starting to ask questions.
A big part of the equation is figuring out how to stay for an extended period of time (legally).
The desire is from both foreign nationals and US citizens.
I’m going to address different ways you can make this happen, depending on your immigration status.
This is not a detailed plan; it’s just the first step if you are thinking about it.
There are literally a million and one things you need to consider, and take care of, especially with respect to your finances and taxes, so consider this to be merely a starting point.
In fact, each section warrants a couple of posts to address the process, considerations, challenges, and related topics.
Tax Matters To Keep In Mind
There are a few things (that count for everything) that will cause you a lot of trouble financially and emotionally if you ignore them.
The US taxes you on worldwide income – regardless of your location.
Once you become a permanent US tax resident (Citizen, Green Card Holder), you’ll stay a US tax holder, unless you expatriate (renounce) or officially give up the green card.
Other countries have their own taxation procedures, which you’ll want to understand if you are going to be a resident there.
Your immigration residency status is not your tax residency status
Foreign Nationals On Work Visas – Leaving The US
You need to stay prepared to move out of the US in a hurry, for example, if you lose your job and don’t have other options. There are three categories of countries you can move to.
Your home country,
Another country where you have citizenship or permanent residence.
A third country – where none of the above applies – calls for specialized country-specific help.
If considering leaving permanently, spend some time ensuring your financial and tax affairs are in order.
You won’t be able to come back to the US, unless you get another visa – a very unpredictable process at the moment.
I suspect you have a ton of questions on what to do with your financial assets, where to start, what to leave behind, taxation concerns, etc. To answer these questions, we’ve put together a 52-page checklist to guide you through the process, including specific timelines.
The Complete U.S. Departure Checklist for Foreign Nationals On Work Visas
Green Card Holders Moving Outside The US
Things start to get complicated very quickly. The green card means “Permanent Residence” in the US.
You can move out of the US and return to your home country or any other country where you have residence or other citizenship, but keep in mind that an absence of more than 6 months raises many questions at the entry point and may result in you being denied re-entry.
Being able to move to another country unrelated to your citizenship will depend on the relationship between that country and your primary citizenship.
This is similar to what happens during travel: you rely on your primary citizenship, although a small number of countries may allow you to travel visa-free with a green card.
Be careful not to let your green card expire while you are outside the US – it will cause serious issues with immigration, even though the IRS still expects you to file your taxes on your worldwide income.
Talk to an immigration attorney if considering this move.
US Citizens Moving Out Of The US
About 160 countries are visa-free for US passport holders or will give you a visa at the point of entry
You can stay for between 21 and 90 days. The perfect time frame to check out a country.
For anybody considering the move, this needs to be your first step. Get on a plane, visit your target country for a month or more, before you decide on the next steps (assuming you haven’t been there before). A prior one-week visit is not enough.
If you plan to move permanently or for an extended period, there are different options available to you.
The following are a few ideas for moving to another country – you need a way to legally stay in that country and support yourself.
Digital Nomad Visa – Live Your Best Life Outside The US
You work remotely in a foreign country for a period of time (typically 6 months to 5 years),
This is a good site to start your research for the perfect digital nomad visa, figure out which countries are eligible, how long the visa is valid, how long it takes to apply, income requirements, etc.
You must have a remote job or be self-employed. Be prepared for the hustle of sorting out all the details, including travel, housing, local taxes (in the country you are moving to), health insurance, banking, language, and everything it takes to start in a new country.
A small number of them may lead to permanent residency, which is a plus for anyone interested in living outside the US for a long time.
For those who are adventurous, it’s a good option, but it does require a good amount of planning.
Some examples of countries with digital nomad visas include Thailand, Estonia, South Africa, Spain, and Namibia.
Retirement Visas
If you are a certain age and have a certain amount of passive income per month, some countries are willing to grant you a retirement visa to live there.
Each country has specific requirements – like age (a few countries will go down as low as 35 years), although most are on the higher side, 55 +, income ( most over $1200 per month), insurance, application process, etc.
The visas don’t allow you to work and have specific residency requirements. Some of them may lead to permanent residency and ultimately a second passport.
Retiring in another country sounds like a lot of fun, but there are human considerations, besides the cost of living, taxes, finances, etc., like being away from your family and having to start in a new community.
Some examples include Portugal, Mexico, Mauritius, and Panama.
Residency By Investment
This is a great option if you have the financial resources to invest in another country. The investment can be in real estate or another part of the economy (such as the credit market, private ventures, etc.).
Some examples include Panama, New Zealand, and the UAE.
Every one of them has different requirements – the amount, the type of investments, residency requirements, etc. And yes, they can lead to a second passport.
Residency By Marriage
If your spouse has another citizenship, they may be able to obtain residency for you in their home country. I’ve seen the process for some countries, and it takes months and tons of paperwork. Be prepared to be patient.
Talent Visas
Like the US, which allows talented foreign nationals to enter, other countries offer talent visas to people with exceptional talent in fields such as the arts and technology.
The UK, Hong Kong, and Australia are examples of countries with talent visa programs.
Overseas Employment / Overseas Volunteer Work
This ranges from company transfers (equivalent of L1 visas in the US), teaching English, government jobs, international organizations, au pairs, etc
It also includes non-profit/charitable organizations like “Doctors without Borders.”
Some of them are very temporary, especially with the non-profits, but some can be long-term.
If you look hard enough, it’s possible to find these jobs, but it’s a process to get them, figure out their requirements, and make the move.
Citizenship By Descent/Ancestry
Over 50 countries allow you to apply for citizenship if you can prove a bloodline relationship with a citizen, typically a grandparent, great-grandparent, parent, or another relative.
The requirements and timelines vary by country, and they take time. But if approved, it’s an easy way to get another citizenship. Many European countries, like Ireland and Italy, offer citizenship.
In Africa, more and more countries are offering citizenship to those of African descent. Some of the requirements are pretty easy, ranging from a simple desire (Ghana’s Right of abode) to DNA evidence (Sierra Leone)
Final Caution
Keep in mind, though, that if you are considering citizenship in a country that does not allow dual citizenship, it could become an issue, and you may have to limit it to the residency level.
And back to the start, the desire is strong, but it will take a lot of effort, a lot of decisions to make the move. As I posted a while back, your why needs to be strong enough to withstand bumps (which you will).
Have you considered any of the above options?
How Elgon Financial Advisors Can Help You With Your Move
The desire to leave or to be prepared to leave in a hurry is real. But you don’t want to leave before you get all your financial affairs in order. To help you prepare for this, we are now offering a one-time Exit Plan, customized to your situation.
What works for your friend next to you is most likely not going to work for you. If you are considering leaving the US or building long-term wealth in the US, we’d be very happy to walk this journey with you.
As a fee-only Fiduciary advisor, our interests are aligned with yours, and everything we do is geared towards your interests.
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6 Things to Do
When Starting A Job on H-1B Visa
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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, investment advisory services, or legal advice. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Jane Mepham and all rights are reserved. Read the full disclaimer here.
