How to Choose a Country for Relocation as an American
For American citizens, relocating abroad is one of the most financially consequential decisions you can make. The US taxes its citizens on their worldwide income wherever they live, so your relocation decision is not just about where you want to live — it is about how your income, assets, investments, and Social Security will be treated by two tax systems at once.
The decision framework has five dimensions: (1) tax efficiency — what is the total tax burden across US and local taxes?; (2) visa access — what kind of legal status can you obtain, and does it provide a path to permanence?; (3) cost of living — what does your lifestyle actually cost in this location?; (4) healthcare access — can you get quality care, and what does it cost?; and (5) Social Security portability — will your benefits be paid there, and will your years of work count?
Use our Geographic Arbitrage Calculator to compare up to 3 countries side by side against your current spending, and our Expat Tax Estimator to model the FEIE vs FTC decision before you move.
Totalization Agreements Explained
The United States has bilateral Social Security totalization agreements with 31 countries (SSA). These agreements serve two functions:
- Avoid paying into two systems. Without an agreement, you may have to pay Social Security contributions to both the US and your host country on the same earnings.
- Combine work credits. If you do not have enough credits in either country for a benefit, credits from both can be combined to qualify.
Use our SS International Portability Checker to check whether Social Security is payable in your destination and whether an agreement exists. SSA cannot send payments to Cuba and North Korea under Treasury rules, and restricts payments to Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan (SSA Publication 05-10137). For most other countries, benefits are paid.
Cost of Living vs Quality of Life Tradeoffs
On Numbeo’s 2024 Cost of Living Plus Rent index, the destinations in this table run from 25% (India) to 141% (Switzerland) of the US level. A national figure hides large differences between cities, and the index is crowd-sourced, not an official statistic. Consider also:
- Housing quality varies. The same rent buys very different homes in different cities; compare like with like.
- Services and imports price differently. Local food, transport and services are often much cheaper than in the US, while electronics, cars and imported goods can cost the same or more.
Healthcare Access for American Expats
Medicare usually does not cover health care outside the US, with narrow exceptions (Medicare.gov). This means:
- Before 65: You need local public coverage, where you qualify for it as a resident, or private international health insurance. Read the exclusions carefully, particularly for pre-existing conditions and medical evacuation.
- After 65: Some expat retirees keep Medicare Part A and drop Part B while abroad. Re-enrolling in Part B later can mean a late enrollment penalty, so plan carefully.
The Visa Spectrum: From Tourist to Citizen
Most Americans begin as visitors and then move through a sequence of immigration statuses. The rules, durations and income tests differ by country; check the official immigration site of each country you are considering:
- Visitor. Short stays, no work, no path to residency.
- Digital nomad / remote work visa. Legal residence while working remotely for employers or clients outside the country, in the countries that offer one.
- Temporary residence. Usually requires proof of income or savings, health insurance and a clean criminal record.
- Permanent residence and citizenship. After a period of legal residence set by each country; whether you can keep US citizenship alongside another depends on the other country’s rules.
Country-by-Country Spotlight
Figures below are from each government’s own immigration or tax source, with the date we read them (14 October 2026). They change often; confirm them before you apply.
Portugal
Portugal sets its income tests from the national minimum wage: €920 a month in 2026 (vistos.mne.gov.pt). The residency visa for retirees and people living on passive income needs means of subsistence of at least that amount for the main applicant, plus 50% for a second adult and 30% for each child. The digital nomad route needs average monthly income over the last three months of at least four times the minimum wage: €3,680. Portugal has a totalization agreement with the US (SSA), and Numbeo’s 2024 index puts its cost of living at 61% of the US. Use our Expat Tax Estimator to model the tax side.
Thailand
The O-A long-stay visa needs a bank deposit of at least THB 800,000 held for the last three months, a monthly income of at least THB 65,000, or a deposit plus income totalling THB 800,000 a year; a bank statement must come with a guarantee letter from the bank (Royal Thai Embassy, Washington DC). The Revenue Department taxes residents (more than 180 days in a calendar year) on foreign income they bring into Thailand. There is no totalization agreement (SSA). Numbeo’s 2024 index puts Thailand at 42% of the US.
Mexico
Mexican consulates set the income or savings test for temporary residence and publish it in US dollars; it differs by consulate and year. For 2026 the consulate in Las Vegas asks for a monthly income of at least $4,630 over the last six months, or an average monthly balance of at least $78,025 over the last twelve months. Mexico has no totalization agreement with the US, but Social Security is payable there (SSA), and there is a US-Mexico income tax treaty (IRS). Numbeo’s 2024 index puts Mexico at 52% of the US.
United Arab Emirates
“The UAE does not levy income tax on individuals” (u.ae) — but US citizens still owe US tax on all their income. The Foreign Earned Income Exclusion covers up to $132,900 of earned income for 2026, so the UAE’s zero rate matters most for income above that and for investment income. There is no totalization agreement (SSA). Numbeo’s 2024 index puts the UAE at 88% of the US.
Malaysia
The Malaysia My Second Home (MM2H) programme has four categories. Silver, Gold and Platinum need a fixed deposit of USD 150,000, USD 500,000 or USD 1,000,000 and the purchase of a home costing at least RM600,000, RM1,000,000 or RM2,000,000, from a minimum age of 25; a separate Special Economic Zone category has lower deposits (mm2h.gov.my, updated 10 February 2026). The programme lists no income requirement, and states that participants pay no tax on foreign funds or income. There is no totalization agreement (SSA). Numbeo’s 2024 index puts Malaysia at 33% of the US.
Spain
Spain ended its residence visas for investors, the “golden visa”, on 3 April 2025; visas already granted keep their validity (La Moncloa). Spain has a totalization agreement with the US (SSA). Numbeo’s 2024 index puts Spain at 62% of the US.
Puerto Rico
A US territory — no visa, no passport, full US constitutional rights. The Act 60 Individual Investor incentive taxes post-move gains at 4% for decrees applied for from 2027 (until 2055), or 0% until 2035 if applied for by 31 December 2026, and export services income at a flat 4%. Pre-move unrealized gains are still taxed at federal rates when realized. Decree holders must also donate at least $10,000 a year to Puerto Rico nonprofits and file an annual compliance report. The break-even analysis is critical: Act 60 only pays off if you have substantial post-move capital gains to shelter. Use our Puerto Rico Act 60 Tax Estimator to calculate your specific break-even.
Tools to Help You Plan Your Move
- Geographic Arbitrage Calculator — Compare up to 3 countries against your current spending
- Expat Tax Estimator — Model FEIE vs FTC for your destination country
- Digital Nomad Tax Residency Estimator — Track 183-day rules across multiple countries
- Puerto Rico Act 60 Tax Estimator — Calculate break-even for Act 60 incentives
- FBAR/FATCA Obligation Checker — Check if your foreign accounts trigger reporting requirements
- SS International Portability Checker — Verify Social Security portability and WEP status
- International Tax Awareness Hub — Scenario-based guide to your US tax obligations abroad
Frequently Asked Questions
Which countries have the lowest tax for American expats?
The UAE does not levy income tax on individuals (u.ae), but US citizens still owe US tax on their worldwide income. Puerto Rico Act 60 taxes post-move capital gains at 4% for decrees applied for from 2027 (0% if applied for by 31 December 2026). Use the Expat Tax Estimator to see the US side.
What is a totalization agreement and why does it matter?
A bilateral US agreement that stops you paying into two Social Security systems on the same earnings and lets you combine work credits from both countries to qualify for benefits. The US has 31 such agreements (SSA) — check our SS Portability Checker for your destination.
Can I use Medicare while living abroad?
Usually not. Medicare usually does not cover health care outside the US, with narrow exceptions (Medicare.gov). Plan for local coverage or private international health insurance while you live abroad.
Which countries offer digital nomad visas?
Several do, with different income tests and tax rules. Portugal’s, for example, needs average monthly income of at least four times the Portuguese minimum wage (€3,680 in 2026, vistos.mne.gov.pt). Check each country’s official immigration site.
How do I compare cost of living between countries?
Use our Geographic Arbitrage Calculator. COL varies by city within countries. Apply your actual budget line-by-line (housing, food, transport, healthcare) using local multipliers for the specific city, not the national average.