Since the November election, more and more Americans are thinking about leaving the U.S. A recent survey found that 17% of Americans plan to move overseas within the next five years, with another 5% actively working on their relocation right now.
If you have dual citizenship or roots in another country, the pull to move abroad may be even stronger.
But before you book a one-way ticket 🏝️ and start living your best expat life, there’s a catch: Moving abroad doesn’t mean leaving U.S. taxes, estate laws, or financial obligations behind. In fact, without the right planning, you could end up making some costly mistakes.
Here’s what you need to know before you go.
- Moving Abroad Doesn’t Mean Saying Goodbye to U.S. Income Taxes
Unlike most countries, the U.S. taxes its citizens no matter where they live. So even if you move to a tax-friendly paradise, Uncle Sam still expects you to file a U.S. tax return—and possibly pay taxes on your worldwide income.
And it’s not just U.S. citizens who have to worry. If you’re a green card holder, you’re still subject to U.S. taxes until you officially give up your green card. But before you even think about renouncing, keep reading—there are some big financial consequences you need to consider.
- Estate Plans Don’t Easily Cross Borders
Estate planning laws vary wildly across the globe, and many countries won’t recognize your U.S. will or trust the way you intended. Some countries (including attractive destinations like France, Spain, and Italy 🇫🇷🇪🇸🇮🇹) have forced heirship laws, which means your assets could automatically go to specific relatives—whether you like it or not.
Even worse, you could get hit with double taxation—where both the U.S. and your new country of residence tax your estate. And if you own assets in multiple countries, probate can turn into a bureaucratic nightmare. 😰
Bottom line: If you’re moving abroad, your estate plan needs an overhaul. ✅✍️
- You Might Still Owe U.S. Estate Taxes
U.S. citizens and permanent residents are generally subject to US estate tax on their worldwide assets. Right now, the federal estate tax exemption is a historically high $13.99 million per person (as of 2025), but that could change in the next few years.
If you’re a green card holder, you’re in the same boat—your worldwide assets are still subject to U.S. estate tax. If you give up your green card (or if it is revoked), your U.S. estate tax exposure may actually go up! (See below.)
- Moving Could Put Your Green Card – and Your Finances – at Risk
Many green card holders assume they can live abroad indefinitely and keep their U.S. residency. Not true. ❌If you spend too much time outside the U.S., Customs and Border Protection (CBP) can determine that you’ve abandoned your residency—even if that was never your intention.
🔹 To avoid this, you should:
✅ Apply for a Reentry Permit 📄 if you plan to be outside the U.S. for an extended period.
✅ Keep filing your U.S. tax returns (failure to do so can be used as evidence that you abandoned your residency) and don’t claim treaty residency.
✅ Maintain U.S. ties—like keeping a U.S. address, bank accounts, and a valid driver’s license.
If your green card is revoked, you could also face unexpected tax consequences, including immediate taxation of unrealized capital gains under the exit tax rules.
Final Thoughts: Plan Before You Go
Moving abroad can be an exciting new chapter—but without the right planning, it can also lead to unexpected tax bills, estate complications, and financial headaches. 🤯
If you’re thinking about an international move, let’s talk. We can help you:
✅ Update your estate plan so it still works overseas
✅ Minimize U.S. and foreign tax liabilities
✅ Avoid costly mistakes with property, trusts, and inheritances
Book a Call today so you can enjoy your next adventure without worrying about your estate and tax situation.
