Moving abroad from the US is a major life decision. For American expats, choosing the right destination can make the transition smoother and more cost-effective. Some countries in 2026 continue to stand out for their accessible residency programs, tax-friendly policies, affordable cost of living, and quality of life.
Here’s a guide for Americans considering relocating abroad and what you need to know about each country.
KEY Summary: US Citizens Moving Abroad in 2026
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Mexico, Portugal, Costa Rica, Panama, Spain, Thailand, Ecuador, New Zealand, Italy, and Germany are the top countries for US expats in 2026, offering accessible visas, affordable cost of living, and high quality of life.
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Visa options for Americans include retirement/pension visas, digital nomad or remote work visas, investor visas, and self-employment visas, with each country having specific income, savings, or investment requirements.
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US expats must continue to file federal taxes and comply with FBAR and FATCA reporting, even in countries that tax only local income. Countries like Portugal, Spain, Germany tax worldwide income, while Panama, Costa Rica, and Thailand mainly tax domestic income.
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Planning ahead by reviewing visa requirements, local tax obligations, and US tax compliance helps prevent penalties, back taxes, and ensures a smooth transition when moving abroad.
1. Mexico
Mexico remains one of the easiest countries for US expats to move to in 2026. Its proximity to the US, similar time zones, and large American expat community make the transition seamless. The cost of living is generally lower than in the US, and popular destinations include Mexico City, Playa del Carmen, and Puerto Vallarta.
Visa Options in Mexico
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Temporary Resident Visa: Stay 180 days to 4 years. Requires proof of sufficient income or savings.
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Permanent Resident Visa: Often granted after 4 years on a temporary visa or via family connections. Ideal for retirees.
Tax Considerations for US Expats moving to Mexico:
Mexican residents are taxed on worldwide income, with rates up to 35%. The US–Mexico tax treaty helps avoid double taxation, but American expats must still file US expat taxes.
2. Portugal
Portugal continues to attract American expats in 2026 due to its mild climate, English-friendly population, and safety. Lisbon, Porto, and the Algarve region are especially popular for retirees and remote workers.
Visa Options in Portugal
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D7 Visa: For retirees and individuals with passive income (pensions, rental, or investments).
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Digital Nomad Visa: Designed for Americans with remote jobs or freelance income.
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Golden Visa: Phased out for real estate; limited options for investments remain.
Tax Considerations for US Expats moving to Portugal:
Portugal’s Non-Habitual Resident (NHR) program is no longer available for new applicants. Standard Portuguese tax rates apply, up to 48% on worldwide income. American expats must still file US federal taxes and comply with FBAR and FATCA reporting for foreign bank accounts and financial assets.
3. Costa Rica
Costa Rica remains a top choice for American expats seeking a stable democracy, quality healthcare, and eco-friendly living. Cities like San José, Escazú, and Tamarindo attract retirees and lifestyle seekers.
Visa Options in Costa Rica
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Pensionado Visa: Requires a monthly pension of $1,000 or more.
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Rentista Visa: Proof of $2,500 monthly income or a $60,000 deposit in a Costa Rican bank.
Tax Considerations for US Expats moving to Costa Rica:
Costa Rica only taxes income earned within the country, so foreign-sourced income, like pensions or investment income, is not taxed by the Costa Rican government. Americans still need to file their US tax returns and may benefit from foreign tax credits or exclusions if they have local income sources. Costa Rica also has no capital gains tax on foreign income, making it attractive for investors.
5. Panama
Panama remains a top choice for American expats in 2026, thanks to its US-dollar economy, modern infrastructure, tropical climate, and retiree-friendly environment. Popular areas include Panama City, Boquete, and Coronado, attracting retirees, remote workers, and lifestyle movers.
Visa Options in Panama
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Pensionado Program: For retirees receiving at least $1,000/month in pension income. Offers benefits like discounts on healthcare, utilities, and entertainment.
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Friendly Nations Visa: Provides residency for US citizens and other eligible nationalities. Applicants must establish economic or professional ties, such as employment, business incorporation, or property ownership.
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Investor Visa: For Americans making qualifying investments in Panamanian real estate, businesses, or government-approved projects. Investment thresholds vary by program.
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Self-Sponsored / Reforestation & Green Initiatives Visa: Panama now offers visas for individuals contributing to environmental projects or sustainable development initiatives, including eco-investments.
Tax Considerations for US Expats moving to Panama:
Panama employs a territorial tax system, taxing only income earned in-country. Foreign income, pensions, and investments are generally not taxed, which benefits retirees and remote workers.
However, American expats must still file US expat taxes with the IRS and report foreign accounts via FBAR/FATCA. Foreign pensions, dividends, and investments are not taxed locally, making Panama attractive for retirees and remote workers.
5. Spain
Spain remains a highly attractive destination for American expats in 2026, offering a rich cultural experience, Mediterranean climate, and vibrant lifestyle. Popular regions include Madrid, Barcelona, Valencia, and the Costa del Sol, which appeal to retirees, remote workers, and culture seekers alike.
Visa Options in Spain
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Non-Lucrative Visa: Ideal for retirees or Americans with passive income who do not plan to work in Spain. Requires proof of sufficient financial resources and health insurance.
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Entrepreneur / Self-Employment Visa: For Americans planning to start a business in Spain. Applicants must submit a detailed business plan and prove financial viability.
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Student Visa: For Americans pursuing studies at a Spanish university or language program, allowing part-time work under certain conditions.
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Digital Nomad / Remote Work Visa: Spain recently launched visas for remote workers employed by foreign companies, providing residency without local employment.
Tax Considerations for US Expats moving to Spain:
US expats starting a business or owning a corporation in Spain are subject to Spanish corporate and personal income taxes, with progressive rates on worldwide income up to 47%.
Americans must file US federal taxes, comply with FBAR and FATCA reporting for foreign accounts, and file Form 5471 if they own or control a Spanish corporation. The US–Spain tax treaty and foreign tax credits (FTC) can help reduce double taxation on business profits, dividends, or salary.
6. Thailand
Thailand is a popular choice for American expats seeking low-cost living, warm weather, and vibrant culture. Popular cities include Bangkok, Chiang Mai, and Phuket.
Visa Options in Thailand
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Retirement Visa (O-A / O-X): For Americans 50+ meeting income or savings requirements.
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Long-Term Resident (LTR) Visa: 10-year visa for retirees, remote workers, high-net-worth individuals, and professionals.
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Business / Work Visa: For Americans employed by Thai companies or starting a local business.
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Elite Residency / Investor Visa: Special programs offering long-term residency for significant investments or membership in the Thailand Elite program.
Tax Considerations for US Expats moving to Thailand:
Thailand taxes only income earned within its borders, which is favorable for retirees with foreign income. However, US tax obligations remain for American expats. Those with income or ties in their home state may also need to file US state taxes, depending on residency rules. Thailand has no US tax treaty, so double taxation relief may be limited.
Additionally, Thailand does not have a tax treaty with the US, so double taxation relief might not be as comprehensive. Thailand’s territorial tax system benefits those earning income abroad.
7. Ecuador
Ecuador continues to attract American expats with its low cost of living, US-dollar economy, and mild climate. Popular areas include Quito, Cuenca, and Guayaquil.
Visa Options in Ecuador
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Pensioner Visa: Requires proof of stable pension income (typically $800/month).
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Investor Visa: For Americans investing in Ecuadorian businesses or real estate.
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Professional / Work Visa: For Americans employed locally or remotely with Ecuadorian company sponsorship.
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Retiree / Permanent Residency Visa: Streamlined pathway for long-term residents with financial stability.
Tax Considerations for US Expats moving to Ecuador:
Ecuador taxes worldwide income for residents, but pension income is largely exempt. US expats must file US taxes and may claim foreign tax credits to reduce double taxation.
8. New Zealand
New Zealand attracts American expats seeking safety, quality of life, and stunning landscapes. Popular regions include Auckland, Wellington, and Queenstown.
Visa Options in New Zealand
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Skilled Migrant Visa: For Americans with in-demand work experience or qualifications.
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Investor / Business Visa: For Americans making qualifying financial investments or starting a business.
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Working Holiday Visa: For Americans under 30 wanting short-term work and travel experience.
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Essential Skills / Work Visa: For Americans offered jobs in sectors facing labor shortages.
Tax Considerations for US Expats moving to New Zealand:
New Zealand taxes residents on worldwide income, but new residents may qualify for a four-year exemption on foreign income. US expats must still file US federal taxes and report foreign accounts on their FBAR and FATCA. FEIE or FTC can offset US taxes on New Zealand income, including salary, rental, and dividends.
However, the US and New Zealand do not have a totalization agreement, so Social Security contributions may be required in both countries for Americans working there.
Avoid Tax Surprises Abroad
Learn how to stay compliant with US federal, state, FBAR, and FATCA reporting while living overseas. Get personalized advice for your move and ensure your taxes are in order before moving to a new country.
9. Italy
Italy has long captured the imaginations of Americans with its rich history, incredible cuisine, and beautiful landscapes. Cities like Rome, Florence, and Milan are cultural hubs, while regions like Tuscany and Sicily attract those seeking a more relaxed, countryside lifestyle. Italy also boasts a large English-speaking expat community, which makes it easier for newcomers to integrate.
Visa Options in Italy
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Elective Residency Visa: For retirees or financially independent Americans.
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Self-Employment Visa: For freelancers, consultants, or entrepreneurs starting a business.
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Investor Visa: For Americans making significant investments in Italian companies or government-approved projects.
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Student Visa: For Americans pursuing academic or language programs.
Tax Considerations for US Expats moving to Italy:
Italy taxes worldwide income, but offers incentives such as a flat €100,000 tax for high-net-worth individuals or reduced rates for new residents relocating to southern regions. US expats benefit from the US–Italy tax treaty and must still file US taxes.
10. Germany
Germany remains a strong choice for American expats in 2026, offering a robust economy, modern infrastructure, and excellent healthcare. Popular cities include Berlin, Munich, and Frankfurt.
Visa Options in Germany
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Job Seeker Visa: Germany offers a six-month visa for qualified professionals to search for employment within the country. Once you secure a job, Americans can transition to a work visa and later apply for permanent residency. This visa is ideal for skilled workers exploring career opportunities in Germany.
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Freelancer Visa (Freiberufler): Berlin and other major cities are popular hubs for freelancers. The Freelancer Visa allows self-employed Americans, digital nomads, and creative professionals to live and work in Germany. Applicants must show potential clients, a viable business plan, and sufficient funds to support themselves.
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EU Blue Card: The EU Blue Card is designed for highly skilled workers with a recognized degree and a job offer in Germany. Valid for four years, it provides a fast track to residency and permanent residency after 33 months, or 21 months for those who reach B1 level German proficiency. This visa is ideal for professionals seeking long-term employment and stability in Germany.
Tax Considerations for US Expats moving to Germany:
Germany taxes worldwide income, with rates up to 45%. The US–Germany tax treaty, Foreign Earned Income Exclusion, and foreign tax credits help Americans reduce double taxation while living abroad.
2026 Country Comparison for US Expats: Visas, Taxes, and Cost of Living
This 2026 comparison table helps American expats quickly evaluate the easiest countries to move to based on visa accessibility, tax friendliness, and cost of living. Use this guide to make informed decisions about relocation, retirement, or starting a business abroad.
| Country | Visa Difficulty | Tax Friendliness | Cost of Living | Best For US Expats |
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| Mexico | Easy | Moderate | Low | Retirees, digital nomads |
| Portugal | Moderate | Moderate | Moderate | Retirees, remote workers |
| Costa Rica | Easy | High | Low | Retirees, lifestyle movers |
| Panama | Easy | High | Low-Moderate | Retirees, remote workers |
| Spain | Moderate | Low-Moderate | Moderate | Retirees, culture seekers |
| Thailand | Moderate | Moderate | Low | Retirees, expats on a budget |
| Ecuador | Easy | Moderate | Low | Retirees, lifestyle movers |
| New Zealand | Moderate | Moderate | High | Skilled workers, lifestyle movers |
| Italy | Moderate | Moderate | High | Retirees, cultural expats |
| Germany | Moderate | Low-Moderate | High | Professionals, freelancers |
Moving abroad as a US expat in 2026 can be an exciting and rewarding experience, whether you’re seeking a lower cost of living, new career opportunities, or a retiree-friendly lifestyle. However, many Americans overlook an important aspect of living overseas: you still need to file your US taxes, even if you live and earn income abroad. Failing to do so can result in penalties or accumulating back taxes over time.
Before making the move, consider your visa options, local tax obligations, and how your US tax filings (including FBAR, FATCA, and possibly Form 5471 for business owners) will be affected.
