Top Destinations for US Citizens Abroad: Is This the Future?

The Rise of Americans Living Abroad

More Americans are deciding to travel abroad – and stay there. The American State Department predicts that more than 9 million US citizens reside outside of her borders.

But, we expect even more expatriations come 2025.

Whether it’s the excitement of a new country and culture, the urge to explore the globe, or the dream of a better life, people are packing their bags and moving to places that promise freedom and opportunity.

But, where are American citizens looking to relocate? Well, what’s made for a perfect destination in the past won’t necessarily determine their path in the future.

I’ve helped hundreds of high-net-worth individuals and their families ease their life abroad, and one thing is clear: The new wave of American expats are all about options and diversification. Informed by my experience, I’ll explore past destinations and how US citizens will determine the ideal life abroad in the future.

The Current Top Destinations for American Citizens

Overview of Today’s Popular Destinations

Right now, Americans are primarily choosing to move to nearby countries like Mexico and Canada or to American political allies like the United Kingdom, Israel, Germany, Australia, South Korea, Italy, France, and Japan for their life abroad.

With over 1 million American residents, Mexico offers easy travel access, a variety of cities and expat destinations to choose from, an affordable cost of living, a tropical climate, and a familiar yet exotic culture. Plus, Mexico customs has a few temporary and permanent residency paths – whether you’re retired or earning a recurring income.

Many clients of JH Marlin have fallen in love with Mexico’s warmth – both in climate and in its people – and decided to call it home. Coastal types will prefer Baja California, Acapulco, Puerto Vallarta, and Playa del Carmen while those who prefer a city or mountainous region will opt for the well-connected Mexico City, Oaxaca, Guadalajara, San Luis Potosí, or San Miguel de Allende.

Regardless of the destination, many American citizens have found the perfect mix of peace, expat community, and adventure in Mexico.

But, the data reflecting Mexico as the largest destination for American citizens is likely due to the number of Mexican dual nationals returning home to their native country.

Specifically considering that the United Kingdom, Germany, Italy, and France, the European Union can offer many of the first-world comforts Americans are accustomed to in the United States – plus, a shared language as most Europeans are bilingual and much of the continent relies heavily on tourism. For stability, travel access, familiarity, job prospects, a second residence, and even a lower cost of living, Europe can check all the boxes for an American family or individual abroad.

Emerging Destinations for the Next Decade

New Jurisdictions Rising as Top Choices

The graph you just saw is poised to change quite dramatically over the next ten years.

As we look towards the next decade, the following jurisdictions will become particularly attractive for US citizens seeking a life abroad:

Why Are These Countries Poised to Attract US Citizens?

But, what makes these jurisdictions special? Why do I think they’ll start to receive far more interest than the legacy nations mentioned earlier?

Each offers their own unique mixture of benefits like high quality of life, travel proximity, low cost of living, appealing residency and citizenship incentives, luxury amenities and lifestyle, and low or potentially zero taxes.

For instance, Portugal has the most popular golden visa residency program on the globe, which offers residence permit in exchange for investment and one of the fastest tracks to EU citizenship in the whole continent.

Another example – The United Arab Emirates has several routes to residency (with a path to citizenship in rare cases). But, what makes Dubai appealing to many high-net-worth individuals is its zero personal income and zero capital gains tax. Moreover, corporate income tax rates remain below 10% if an entrepreneur were to incorporate their business in the Free Zone.

We’ve worked with several crypto investors from the United States, Canada, and Western Europe to obtain a second residency outside of their high-tax jurisdiction and upgrade their lifestyle in a more tax-friendly, perhaps more tropical destination.

Where the legacy American expat destinations fail, the nations mentioned above excel on the following metrics:

  • Faster paths to residency and citizenship
  • Stronger passports
  • Upgraded lifestyle
  • Lower cost of living
  • More travel access and freedom
  • Better connectivity to desirable cities and hubs
  • Increased investment opportunities
  • Financial privileges and benefits
  • Banking access
  • More affordable and accessible healthcare
  • More competent federal agencies
  • Better educational opportunities for your children

But of course, it’s up to you what your lifestyle needs and goals are. One jurisdiction may provide the ideal tax benefits, citizenship pathway, and entrepreneurial network you need to level up. A destination that fits one investors’ goals may not interest you at all.

Moving abroad is no easy feat. But, our goal is to make this transition easier on you, to save you time and energy researching the 196 options you have, and help you line up the life you were meant to lead – no matter where it is.

How to Settle in a New Country

Life abroad, even if for only a few weeks or months per year, is a big step for US citizens regardless of the location. A new community with potentially a new language, new rules, new culture, and new customs.

It’s like a fresh start.

So, our goal is to help you save time before moving abroad and eliminate your primary concerns. Let’s first talk about housing.

Whether you’re looking for an apartment in Tokyo, a cozy chalet in Germany, or a beachfront villa in Mexico, housing choices vary widely. But, you may first want to check out the area (e.g. school system, safe neighborhood, safety, etc.) before you prepare your life in the new jurisdiction.

For families who may want to spend a significant amount of time in their new destination, this decision is extra important.

We worked with an American couple who were enchanted with the idea of life abroad in Tuscany. But, they had never visited and didn’t have much of an idea about what life is like there apart from photos on Google and second-hand testimonials from friends.

When they visited Tuscany, although they loved the food as they assumed they would, they quickly determined that with a lack of transportation modes available in their remote village, life there wasn’t a great option as they had expected.

Finances Abroad

Of course, financial planning abroad is critical for tax and budget purposes. Because your mileage will vary from others’ experience, you need a plan crafted for your needs.

Americans need to learn and understand …

  • the local banking system,
  • the tax implications of spending significant time and/or managing money there,
  • and details of currency conversions.

Our client, a Canadian business owner, wanted to move to the Netherlands and enroll as a Dutch tax resident but was (rightfully-so) worried about the financial complications of doing so.

We advised him to learn about and prepare for the potential tax obligations had he become a tax resident in the Netherlands. Restarting his search for a jurisdiction that better aligned with his goals, he eventually opted to apply for citizenship in Antigua & Barbuda where he’d potentially pay zero personal income tax and zero capital gains tax, provided he resides in the country and becomes a tax resident.

With proper preparation, American citizens and families can travel abroad with more ease and maximize the experience of living abroad – their goal in the first place.

How Living Abroad Will Evolve Over the Next 10 Years

Remote Work

The first set of jurisdictions we named above represent several nations where US citizens can line up in-person jobs if necessary.

The majority in Canada, the United Kingdom, and Australia speak the same language. Therefore, moving there and finding work or moving there with an established job is relatively the same as it would be back home in the United States.

But, the pandemic and ensuing new world of work have shown us that remote work is here to stay – especially for entrepreneurs and investors who don’t necessarily need face-time with their organizations every day to thrive. And, people have found that they don’t have to stay in one place to maintain or grow in their careers.

That is a fallacy.

Take one trip to Bali or Costa Rica and you’ll see American citizen nomads and expats working from their laptops and earning just as much, if not more, than they did in the United States.

Globalization

Globalization means that English has become the predominant business language across the globe and gives Americans a huge leg-up on the competition: US citizens don’t need to learn a new language in order to travel, move abroad, or work outside the country.

Thanks to the internet, it’s easier than ever before to find the support you need, answers to your questions, and experts to help you relocate abroad seamlessly.

Sovereign Individual Thesis in Practice

As we’ve seen play out in the beginning of the decade, diversification of your assets is critical. Having all your life centralized in one country can be a huge detriment to your risk.

The Sovereign Individual, a book written in 1997, predicted that nation-states would take action to steal power from individuals and give it to governments, in the form of censorship, taxes, and oppressive regulation. Were the authors right?

To minimize your risk and secure your safety in times of heightened geopolitical times, the authors recommended the following:

  • Get several residence permits
  • Hold a couple citizenships
  • Enroll in a few international bank accounts
  • Diversify your income streams
  • Reduce your taxes
  • Learn multiple skills

That way, you reduce your dependence on one single government and their federal agencies and can easily choose to up and move abroad to a jurisdiction that fits your needs whenever you want.

Read the book and learn that travel isn’t just a fun thing to do. Global mobility is an important step toward freedom and sovereignty.

Flag Theory Is Risk Minimization

In 2024, this simple thesis is a reality for many American citizens: Don’t put all your eggs in one basket. 

For those interested in financial independence, reduced taxes, and global travel, life abroad offers a pathway to a life of freedom.

Another American citizen client of ours wanted to make sure he wasn’t overly reliant on the US government and stock market. He now has residency and a second home in Portugal, a bank account in Singapore, and a second citizenship in Malta. This setup gives him the flexibility to live, work, and invest on his own terms – instead of letting one government and his citizenship there dictate his every move.

If things were to go awry in one country, he’d simply move his assets to another. No matter what happens, he has a safe harbor.

Final Thoughts on US Citizens Living Abroad

Living abroad is changing fast. It’s now far more socially acceptable than it was a few decades ago. And, over the next few decades, I expect most American high-net-worth individuals to diversify into other countries and reduce their reliance on the United States and its federal agencies.

The current top destinations, like Mexico and Canada, will continue to be popular. But emerging countries like Singapore and the UAE are attractive options for those seeking more freedom, better tax benefits, and a higher quality of life.

The world is open to those who are willing to take action, and the time to explore those opportunities is now – not when you need them most.

If you’re ready to explore your life abroad, we offer many resources on our website, on YouTube (watch some videos!), on social media (follow us!), and over a conversation with our team. We help our clients save time, find the right investment strategies for their needs, and execute on the residencies or citizenships that fit their goals.

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