How to Leave America
The step-by-step playbook for Americans who've decided to leave. Not "think about leaving" — actually leave. In order.
Moving abroad from the US involves ~47 things nobody tells you until you've already screwed up 12 of them. This page puts them in order. The timeline assumes 6–12 months from decision to departure — rushing it creates tax problems, banking problems, and healthcare gaps that cost more than the move itself.
Phase 1: Research (months 1–2)
Pick your destination
Use real data, not Instagram. Visa requirements, cost of living, healthcare quality, language barrier, and timezone offset matter more than aesthetics. Take the Townleap quiz for a data-driven starting point.
Understand your visa path
Every country has different requirements. Remote workers: look for Digital Nomad Visas (Portugal, Spain, Mexico). Passive income: look for D7-type visas. Employed: you'll need employer sponsorship in most countries.
Talk to a US-expat CPA
Before you leave, not after. They'll advise on FEIE vs. FTC strategy, state tax exit requirements, and timing. A good expat CPA costs $500–$2,000 for the initial consultation — and saves you multiples of that in mistakes avoided.
Research healthcare options
Medicare stops at the border. Know your destination's public system, waiting periods, and private options. Get quotes on expat health insurance before you go.
Phase 2: Prepare (months 3–5)
Apply for your visa
Processing times vary: 2–8 weeks (Mexico), 2–4 months (Portugal, Spain), 4–8 weeks (Canada Express Entry after ITA). Start early. Some visas require apostilled documents, which add 2–4 weeks.
Clean-cut your state tax residency
If you're in NY or CA, this is critical. Sell or terminate your lease. Change your driver's license. Deregister to vote. Move bank accounts. File a part-year return. Keep a dated departure diary — auditors audit departures.
Set up banking infrastructure
Open a Wise account (EUR/GBP IBAN, no address needed). Keep your US bank — Schwab is the expat favorite. Research destination-country banks and gather required documents. Don't close US credit cards — they maintain your credit history.
Get health insurance lined up
Buy expat insurance or travel insurance to cover the gap between departure and local coverage. Get a full physical, dental check, and eye exam before you leave — on your current US insurance.
Declutter and decide what to ship
International shipping runs $3,000–$10,000 for a household. Most expats ship too much. Anything you can rebuy for less than shipping cost should be sold or donated.
Phase 3: Execute (months 6–8)
Move your money (strategically)
Use Wise or OFX, not your bank's wire transfer. Convert enough for deposit + 3 months upfront. Move the rest in 2–4 tranches to reduce FX timing risk. On $200k, Wise saves $3,000–$5,000 vs. bank wires.
Establish residency
Register at your local town hall / council. Get your tax identification number (NIF in Portugal, NIE in Spain, CURP in Mexico). Open a local bank account. These three things unlock everything else.
Register for healthcare
Register at your local health center with your residence card. Wait period for public coverage: 0 (Portugal, Spain with employment) to 3 months (Canada). Use private/expat insurance during the gap.
Set up your tax filing system
You now file in two countries. Hire a US-expat CPA who understands FEIE/FTC and your destination country's tax treaty. Keep meticulous records of days spent in each country — both qualifying tests are day-count sensitive.
Phase 4: Settle (months 9–12+)
Build local credit history
Your FICO dies at the border. Start with a secured card or the Amex Global Card Transfer. Budget 6–12 months before you look 'normal' to a local lender.
Track your Physical Presence Test days
If using the Physical Presence Test for FEIE, you need 330 full days outside the US in any 12-month period. Use a spreadsheet or app. A day you fly through the US (even a layover past midnight) can disqualify that day.
File your first dual-country tax return
Due April 15 (automatic extension to June 15 for expats, further to October 15 on request). File Form 2555 for FEIE. File FBAR by April 15 if foreign accounts exceed $10,000. File Form 8938 if foreign assets exceed thresholds.
Evaluate long-term path
After 1 year: is this home? Do you want to pursue permanent residency? Citizenship? Start the timeline now — most countries require continuous residency, and gaps can reset the clock.
Pick your destination
Country-specific guides with visa paths, tax treatment, and city data
❓ Common Questions
How long does it take to move abroad from the US?▾
Plan for 6–12 months from decision to departure. Visa processing takes 2–6 months depending on the country. State tax severance, banking setup, healthcare transition, and housing each take time. Rushing leads to expensive mistakes — especially on the tax side.
What's the cheapest country for Americans to move to?▾
Mexico has the lowest cost of living among popular US-expat destinations, with Mexico City averaging ~$1,200/mo for a single person. Portugal and Spain are mid-range at $1,500–$2,000/mo. Canada and the UK are comparable to the US in major cities. See our cost-of-living data for exact numbers by city.
Do I need to sell my house before moving abroad?▾
Not necessarily, but there are tax implications either way. Rental income from a US property is US-source income and isn't covered by the FEIE. You'll owe US tax on it (and possibly state tax depending on the state). If you sell within 3 years of moving, you can still use the primary residence exclusion ($250k single / $500k married). After that, the exclusion may not apply.
Can I keep my US bank accounts after moving abroad?▾
Yes, and you should. Most US banks allow you to maintain accounts with a foreign address, though some (like certain credit unions) may close accounts. Charles Schwab is the expat favorite — no foreign transaction fees, global ATM rebates. You'll need a US bank for receiving Social Security, maintaining credit, and managing any US-based income or obligations.
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