American Expat: Escape Plan for Life Abroad in 2025

Since the pandemic, the number of American expats has exploded.

Americans have started exploring their options not only to retire abroad but also to live and work in other countries. Why?

And it’s not just politics. Those from the left, those from the right, those from the center – Many are fed up with the high cost of living, rampant inflation, political polarization, rapid deterioration of big cities, mass migration, and the general direction of the country. They seek greener pastures.

But for many, the idea of becoming an American expat and forgoing life in their home country is foreign, pun intended. From health care to personal safety concerns, many Americans are hesitant to make the leap.

To clear up some misconceptions and help you make a wise decision about moving abroad, consider this article to be your ultimate guide to expatriation. Whether you’re seeking a better work-life balance, lower taxes, or increased freedom, read on.

Why Are Americans Planning Their Escape?

Let’s start by addressing the reasons behind the American exodus. The decision to move abroad is not sudden for most people, but a gradual realization that their quality of life has eroded.

Cost of living has increased while wages have stagnated. Inflation reached a fever pitch at 9.1% in 2022, the highest rise in more than 40 years.

The United States has spent trillions of taxpayer funds on overseas wars they haven’t won while large cities struggle with simultaneous drug, homeless, violent crime, and migration crises.

In the past five years, American citizens and skilled workers have fled in droves to cosmopolitan hubs like Mexico City, off-the-grid cultures like Costa Rica, and regions like Southeast Asia with incredibly friendly locals, a popular culture, and affordable healthcare.

Moreover, the proliferation of digital nomad visas has encouraged remote workers and those under self-employment to travel the world, minimize their taxes, and enjoy a higher quality of life.

So, in summary, there are plenty of push and pull factors for an American citizen to both leave their home country and explore other countries.

But the question remains – Where are Americans going? Let’s explore some American expat top destinations and potential best countries for you.

Where Are Americans Expats Going?

Of course, American expats can travel around the world, living off of a tourist visa in each country their passport and visa-free access allows. But, there are consequences of living like a transient nomad for long stretches.

If an American expat wants a solid home, job opportunities, the social benefits of living in a single place, and a Plan B, they should consider investing time or money in a country to lock in permanent residence or even citizenship.

Here are four popular programs and the best countries that are drawing in American citizens looking to escape the United States.

Portugal Golden Visa

Portugal’s golden visa is one of the most popular investment programs in the world among American expats. JH Marlin has helped several high-net-worth individuals realize their dreams of living abroad in Portugal.

To qualify for the golden visa, applicants must invest at least €250,000 in arts or culture promotion or €500,000 in Portuguese investment funds. Then, after spending on average seven days a year in the country, renewing the visa a couple times, and holding the residence permit for five years, applicants can apply to become either a permanent resident or a full citizen of Portugal, making this pathway one of the fastest routes to citizenship in the European Union and an attractive choice for those who want residency rights across the 27-member settlement bloc.

The Portuguese passport is also one of the world’s strongest in terms of visa-free access.

Where in Portugal do our clients choose to live? The bustling capital of Lisbon, the more relaxed port city of Porto, or a tropical lifestyle in Madeira or the Canary Islands, which both offer attractive tax incentives. To their surprise, the cost of living in Portugal is one of the lowest in Europe.

For example, American citizens can enjoy excellent medical care at just a fraction of the cost compared to the U.S.

As one of the hottest destinations for American expats, Portugal offers a thriving international community and networking events that make integration easy. Additionally, Portugal is known for its world-renowned culinary and wine scene. Take some cooking classes while you’re here and enjoy some great food.

It’s no wonder many American expats, digital nomads, and retirees are flocking to Portugal.

With one of the busiest international airports, Lisbon makes for a fantastic base city with a growing expat population, plenty of cultural activities and history, and a connected world for business and travel.

Greece Golden Visa

Another European country to top our list is Greece, a popular choice for American expats seeking a slow, luxurious Mediterranean lifestyle. Known for its stunning natural beauty and low cost of living like Portugal, Greece can offer an escape from the high costs and stresses of living in the United States.

With an investment of €250,000 in qualifying local startups or businesses, in real estate purchase and conversion (from commercial to residential), or in real estate renovation, an American expat can become an immediate permanent resident and, potentially, a citizen of Greece via their golden visa program.

An American expat has other investment options as well: They may choose to buy Greek bonds for €500,000 or invest in real estate in Greece’s largest city Athens or other popular areas for €800,000.

Despite the language barrier and requirement to learn Greek (better get started on those language courses!), the golden visa does offer investors a route to citizenship. After seven years of uninterrupted residence (and tax residence) in the country, you’re eligible to apply for Greek citizenship. Moreover, you must prove ties with Greek society and pass a citizenship exam.

Greece offers several tax benefits that may be attractive to the right profiles. The Lump-Sum Tax Regime for investors offers those with foreign income to pay €100,000 per year without the need for a tax return. And, for non-domiciled retired residents of Greece, foreign-sourced pensions are subject to only a 7% tax.

Greece has become a hotspot for many expats, with many U.S. citizens finding comfort in the relaxed pace of life, eco-tourism, famous shopping scene, and rich ancient history. Athens and Thessaloniki, the two largest cities, have a growing number of co-working spaces and expat meetups, where Americans can meet fellow expats.

The appeal here isn’t just the weather and scenery — Greece also offers tax advantages that can make living in the Balkans even more attractive, particularly for retirees and those looking for affordable living with access to universal healthcare.

Malta Residency by Investment

Southwest of Italy and east of Tunisia in North Africa, Malta is a small European island destination that offers American expats the chance to relocate to a Mediterranean paradise – or at least secure their second citizenship.

Malta’s longstanding residency and citizenship by investment programs are especially popular for high-net-worth individuals and wealthy investors. As an EU member state, Malta offers its citizens a whole range of benefits, including access to European markets, residency rights across the bloc, excellent healthcare, and top-tier international schools.

If you’re an investor or entrepreneur, Malta’s proximity to mainland Europe and favourable tax system (flat tax rate of 15% on any foreign source income remitted to Malta) make it an ideal hub for launching business ventures. Plus, English is widely spoken in Malta, which would largely diminish effects of a culture shock for an American expat.

Malta’s residency program requires a property purchase of at least €300,000 or a lease value of at least €10,000 monthly. Applicants must also maintain €150,000 of bond assets for at least five years. While they’re approved relatively quickly for temporary residence, applicants may receive their permanent residence permit in a few months.

And, after five years of residence on the island, American expats can potentially convert this residence permit to citizenship on naturalization basis, however, in practice this can take about ten years

Malta’s Citizenship by Investment

One of the biggest draws for an American expat considering Malta is its strong, Tier-A passport. With visa-free travel to almost 180 countries around the world, the Maltese passport is a highly sought-after travel document.

Malta’s direct citizenship by investment program requires both a real estate purchase of €700,000 (or a full year’s lease for at least €16,000 annually) and a government donation starting at €600,000.

As a member of the European Union, Malta has a lengthy and secure due diligence process. Partnering with a reputable law firm like JH Marlin ensures compliance with the citizenship application process and eligibility criteria. Check out this case study of Eric Schmidt, founder of Google, American expat, and holder of Cypriot citizenship by investment (which once was a similar program to Malta’s).

Caribbean Citizenship by Investment

For those seeking a faster, more accessible, and more tropical route to second citizenship, the Caribbean is an ideal choice. The Caribbean Five (Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia) is a group of five countries in the region who all offer citizenship by investment for US$200,000 to US$300,000 with strong passports and extensive visa-free travel.

American expats’ appeal of the Caribbean is clear. Where do we even begin?

Year-round sunshine
Relaxed island life
Some of the best eco-tourism experiences in the world
Plan B in the form of second citizenship
Similar time zones (one hour ahead of New York City and Toronto)
Fast access to North America through two international airports
Tax optimization benefits (no personal income tax return in St. Kitts & Nevis or Antigua & Barbuda)

But beyond the natural beauty the Caribbean offers, the Caribbean also offers favorable tax conditions. Most of these countries have no capital gains tax, no wealth tax, and a relatively low cost of living. Additionally, due to their longstanding, trusted programs and booming expat populations, community events among investors and entrepreneurs on each island are common.

For American expats looking to protect their wealth, the Caribbean’s citizenship by investment programs are some of the best countries for a fast, cost-effective solution.

Considerations for American Expats Abroad

While moving abroad sounds enticing, there are key considerations Americans must keep in mind before making the leap.

Citizenship-Based Taxation

As an American citizen, even if you move abroad, you are still required to file U.S. tax returns and possibly pay taxes on your global income. The United States is just one of a handful of countries in the world that practices citizenship-based taxation, not residency-based taxation.

So, yes, even if an American expat spends all of their time outside of American borders, they still owe Uncle Sam, especially if their income is sourced from the United States.

However, the good news is that many countries, such as Portugal, Greece, and Malta, have double tax agreements with the U.S. that help prevent double taxation, meaning your U.S. hard-earned dollar won’t be taxed in the United States and Portugal if you’ve become a tax resident there.

The United States also offers tax incentives for foreign-based American expats like the Foreign Earned Income Exclusion (FEIE) or the Foreign Housing Exclusion (FHE), which can reduce your tax burden significantly if you qualify.

Program Timelines and Logistics

Moving abroad is not an overnight process, especially if you’re planning on securing residency or citizenship through an investment program. Typical timelines for each program don’t account for application backlogs, so be patient and plan accordingly.

As prompted by an immigration lawyer like JH Marlin, complete all necessary paperwork and requirements as soon as you can. This will help you avoid delays in the process and get your desired result as fast as possible.

Bank Accounts, Health Insurance, and Income Abroad

Most citizenship and residency by investment programs will require American expats to set up a local bank account in order to convert their dollars to the local currency. But, this is not always the case.

If an American expat is to live in an other country, it might be wise to open a bank account regardless. Having access to a local bank may be more convenient for a local life. This will allow you to manage your finances easily, especially if you receive income from different sources.

Of course, take into account local tax laws, so you don’t incur any extra tax liability you’re not already accounting for.

In terms of healthcare, American expats can consider expat health insurance if their next country doesn’t provide universal healthcare. Although an American expat may be accustomed to excellent treatment in their home country and have valid concerns about healthcare abroad, each foreign country named above can offer a world-renowned healthcare system as well.

Safety

Each jurisdiction in this article – Portugal, Greece, Malta, Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, and St. Lucia – have a stamp of approval from the U.S. State department, meaning they recommend you practice normal precautions while there.

Living abroad for the first time comes with its challenges.

But many of the American expats we talk to on a daily basis are shocked by how safe their new jurisdiction is. If you plan to reside where you invest, you may want to considertesting life in that country before you commit to living there on a full time basis. We do help many clients who have never been to a particular country before and want the option to move there in the future.

The allure of becoming an American expat is stronger than ever. With many dissatisfied with the direction of their home country, more and more expats reach out to us every day who want to explore career opportunities, lifestyles, and work culture outside of their borders.

JH Marlin can help you achieve a life abroad (the good life) in whatever jurisdiction you and your family prefer. Whether you’re considering Portugal, Greece, Malta, or the Caribbean Five, there are plenty of options for optimizing your lifestyle, potentially reducing your tax bill, and securing a Plan B in your new country. Contact us here.