Choosing a Location

The decision to move and live abroad as a US citizen requires a great deal of time and planning.  First and foremost, there are the decisions on what country you will live in, when you will depart, and how long you intend to live there.  In choosing a country to reside in, you should consider any work restrictions if you are not retired and school requirements for any family members. A pre-relocation trip to the area is advisable to assess the cost of living and housing options.

Assembling the Necessary Documents

Financial Considerations

Now it is time to think about how you will manage your finances while living abroad.  Do your credit cards and debit cards assess foreign transaction fees?  What kind of exchange rate do they give you on purchases?  Will you be able to open a local bank account as a US citizen? Because of US reporting regulations, many foreign banks choose not to accept US citizens as clients.  There are some global banks (e.g., HSBC and Schwab Bank) that will allow US citizens to bank while living abroad.  Additionally, the US State Dept Credit Union will also allow overseas US citizens to open accounts with them.

You also need to consider how your US accounts are managed while you reside in a foreign country.  Some custodians will not work with clients who reside in a foreign country.  Therefore, it may be necessary to retain a US mailing address or name a US-based representative for your accounts while you are abroad.

An insurance review is critical to determine if your coverage for life, long-term care, disability, and personal property is still valid while you reside in a foreign country.  Some coverages may need to be dropped, and new coverages may need to be obtained.  Depending on the part of the world you plan to reside in, travel insurance and evacuation insurance coverages may be advisable.

Settling Your US Affairs

Next, you must consider how to handle all your US-based assets that you will not be taking with you.  If you own a home, will you be selling it, renting it, or letting it sit unoccupied?  If you are not selling it, you should consider hiring a property manager to handle utility bills, insurance, and maintenance of the property, as well as tenants if you are renting the property.  If you rent your home, when does the lease expire; can you end the lease early; or can you sublease the property?

Other questions to consider:

If you own vehicles that will not be going with you, do you sell them or put them in storage? Do you keep your US cell phone plan?  How do you want to receive your US mail while living abroad? Should you cancel or suspend your subscriptions and memberships while abroad?

Health Care

One of the biggest questions about living abroad is how to access health care services in the country.  If private insurance is needed to access foreign health care, there are some insurance agencies that specialize in foreign health care coverage.

You should consider making appointments with your US-based providers prior to your departure so your medical records and prescriptions are all up to date.

Living Arrangements

Now that you have decided on a location, a pre-move trip to the area is recommended to plan for your arrival.  Finding housing, signing a lease, and establishing an address to which you can ship your possessions is an important first step.  You also need to consider your transportation options. Will you be buying or leasing a car, or relying on public transportation?  Finally, you will need to make arrangements for the local cell phone service and utilities.  Local cell phone service can be necessary to access essential public services. Handling all of these prior to your move will allow your move to be less stressful once you start your foreign residency.

Moving, Storing, and Selling Possessions

Once you have made all the arrangements for living abroad, it is now time to actually move.  Your possessions will need to be separated into four categories: going with you, going into storage, going to new homes, or going to the landfill.

For the items you will be taking with you, you will want to contract with an international moving company.  They will handle the packaging and shipping of your items along with moving everything through customs. They will also know which items will be prohibited from entering the country.

For items you plan on storing, you will need to contract for a proper storage facility.  Will these possessions require a climate-controlled facility, or special care for long-term storage.

For items you plan to sell, many items you can sell on your own, but there may be special items that would require hiring an agent to handle (seasonal items or real estate, for example).

Conclusion

The decision to move to a different country takes a great deal of planning, but if you take the proper steps to prepare for it, and engage with the proper professionals to assist you, it can be a rewarding experience in your journey through life.