Everybody wants to move to Portugal these days, as discussed in our companion story. It can be done but here are some important details, provided by the State Department, IRS and others.
To legally leave the U.S. behind, U.S. citizens don’t need permission to leave, but fully severing ties or relocating long-term involves a combination of logistical, legal, financial, and citizenship-related steps. Here's a detailed breakdown:
✈️ Leaving the U.S.: Basic Requirements
✅ You Can Leave Freely
U.S. citizens have the right to leave the country without needing exit visas.
A valid U.S. passport is required for international travel.
Make sure your passport is valid for at least 6 months beyond your planned stay in another country.
🌍 Moving Abroad: Residency and Immigration
To legally live in another country, you must comply with that country’s immigration laws.
Common Visa/Residency Options:
Retirement visas (Portugal, Panama, Costa Rica, etc.)
Work visas (sponsored by a company)
Digital nomad visas
Investment or entrepreneur visas
Marriage/family reunification
Permanent residency (eventually citizenship)
🔍 Research your destination country’s visa and residency rules carefully. Some, like Portugal’s D7 or Spain’s non-lucrative visa, are popular with Americans.
💰 Taxes and Financial Obligations
1. U.S. Taxes Still Apply
U.S. citizens are taxed on worldwide income, even if they live abroad.
Must file IRS taxes annually (Form 1040 + FBAR/FACTA if applicable).
Possible tax credits:
Foreign Earned Income Exclusion (FEIE)
Foreign Tax Credit
You may also owe state taxes unless you clearly sever ties with your state of residence.
The IRS has more information on its website.
2. Banking & Retirement
Inform your banks, financial institutions, and Social Security Administration of your new address.
Some investment accounts and banks may restrict service if you live abroad long-term.
📬 Mail, Voting, and State Residency
Set up a virtual mailbox or mail forwarding service.
You can vote absentee in federal elections.
Consider establishing residency in a state with no income tax (like Florida or Texas) before leaving if tax concerns apply.
🩺 Healthcare
Medicare does not cover you outside the U.S.
Buy expat health insurance or join your destination country's healthcare system if eligible.
🧾 Renouncing U.S. Citizenship (Optional, but Serious)
If your goal is to completely sever all ties, including tax obligations, you can renounce U.S. citizenship, but this is:
Permanent and irreversible
Requires a second citizenship (you cannot be stateless)
Involves a $2,350 fee
Must be done at a U.S. embassy or consulate
Triggers potential Exit Tax for wealthy individuals
May affect future travel rights to the U.S.
Most expats do not renounce but instead live abroad indefinitely while retaining U.S. citizenship.
📋 Checklist Before You Go
Valid U.S. passport
Long-term visa/residency in destination country
Notify IRS and Social Security Administration
International health insurance
Foreign bank accounts and currency access
Update estate plans for international context
Store or sell property, cars, and close unnecessary accounts
Summary:
Leaving the U.S. is easy—staying gone legally and sustainably requires planning. You’ll need to arrange residency abroad, comply with tax obligations, maintain health coverage, and possibly manage U.S. financial ties. Renouncing citizenship is possible, but it’s a complex and final step that most Americans living abroad choose to avoid.