Armchair travel was all the rage as the COVID-19 pandemic set in last year — virtual museum and walking tours, Stanley Tucci’s Searching for Italy, virtual reality games and apps. But what if instead of daydreaming about being abroad, you actually picked up and moved there?
The U.S. Department of State estimates that about 9 million U.S. citizens are living abroad. As borders began to close because of COVID-19, some people returned back to the perceived safety of home in the U.S., while for others it was the push they needed to fulfill a lifelong dream.
Step 1: What’s the cost?
Research the cost of living. Maybe you have a place in mind that you’ve always wanted to live, or maybe you’re open to possibilities. Regardless, the first step in any international move should be researching the exchange rate and cost of living. Countries like Portugal, Costa Rica and Malaysia have some of the lowest costs of living, while cities like Zurich and Hong Kong have a reputation for being expensive.
Save up. A good general rule is to have at least six months’ worth of savings before taking the plunge to relocate to a new country. It’s important to budget in extra costs for things like visa application costs, international shipments of goods and plane tickets.
Understand the tax implications. U.S. citizens abroad are subject to income tax, whether they live in Caracas or Charlotte. Many other countries will also require that taxes be paid there, as well. Understanding tax laws, foreign tax credits, exclusions and requirements is a complicated task best understood by consulting an expert.
Step 2: Which documents do you need?
Secure a valid passport. Passports must be valid for at least six months past your expected return. The COVID-19 pandemic has caused significant backups in passport processing times. The State Department currently estimates at least 16 weeks for processing routine passports and 12 weeks for expedited ones. Pro tip: Make copies of your passport, driver’s license and birth certificate; take one with you and leave one with a trusted loved one in the U.S.
Research visa and work permit requirements. Many countries require visas and or work permits. These come in all shapes and sizes, restrictions and lengths of stay. The best way to find out what is required in the country you are looking to move to is to contact the consulate or embassy of that country. Don’t forget to make note of any renewal requirements. For those lucky enough to be relocating with a company, much of this process may be taken care of for you.
Answering for America has become an increasingly delicate experience under Trump 2.0, a dozen U.S. citizens in other countries have told The Associated Press in recent weeks.