Americans Moving Abroad: 8 Things Nobody Tells You

Every expat blog shows you the sunsets, the outdoor cafes, and the “I work two hours a day from paradise” lifestyle. What they do not show you is the afternoon you spent at a foreign bank being told they cannot open an account for American citizens, the panic when you realize your US credit score has effectively vanished, or the strange grief of feeling like a foreigner in your own country when you visit home for the holidays.

Moving abroad is genuinely wonderful for most people who do it. The surveys consistently show that expats are happier, healthier, and more financially secure than they were in the US. But the transition comes with a set of hidden challenges that blindside even well-prepared movers. These are the things nobody warns you about — not because they are secret, but because they are unglamorous and do not make for good Instagram content.

This is the honest version. If you are considering a move, our guide to leaving the US covers the practical planning. This article covers the reality.

Banking Is a Nightmare

This hits everyone first and hardest. The Foreign Account Tax Compliance Act (FATCA) requires foreign banks to report accounts held by US citizens to the IRS. The compliance cost is significant enough that many foreign banks have simply stopped accepting American customers. You will walk into a bank in your new country, hand over your passport, and be politely (or not so politely) told that they do not serve Americans.

On the US side, many domestic banks will close your account when they discover you have moved overseas. Chase, Wells Fargo, and Bank of America are the most commonly cited offenders. Your account works fine for months, then one day you get a letter saying your account will be closed in 30 days. If you are unlucky, you find out when your card gets declined at a grocery store abroad.

The solution exists but requires advance planning: open a Charles Schwab checking account (unlimited worldwide ATM refunds, no foreign transaction fees) and a Wise multi-currency account before you leave. These two accounts handle 90% of your banking needs abroad. See our complete expat banking guide for the full breakdown.

You Still Have to File US Taxes

This surprises a shocking number of Americans. The US is one of only two countries that taxes citizens on worldwide income regardless of where they live. Moving to Portugal does not free you from the IRS. You will file a US federal tax return every year for the rest of your life (or until you renounce citizenship, which is a drastic step with its own consequences).

The good news: the Foreign Earned Income Exclusion (FEIE) lets you exclude up to $126,500 of earned income from US tax, and the Foreign Tax Credit (FTC) prevents double taxation by crediting foreign taxes against your US liability. Most expats earning under the FEIE threshold end up owing zero federal income tax. But you still have to file. And you may also need to file FBAR (foreign bank account reports) and FATCA (Form 8938) if your foreign accounts exceed certain thresholds. For a detailed comparison of your tax strategy options, see our FEIE vs. Foreign Tax Credit guide.

Budget $500–$2,000 per year for an expat-specialized CPA if your situation is anything beyond straightforward W-2 income. This is not an area where you want to wing it.

Your US Credit Score Disappears

Your 780 FICO score that took a decade to build? It does not transfer. Credit scores are country-specific systems, and when you move abroad, you start from zero in the local credit system. This affects your ability to rent an apartment, get a phone contract, finance a car, or obtain a credit card in your new country.

Meanwhile, your US credit score gradually erodes if you close your US credit cards or stop using them. The accounts go dormant, your average age of accounts stops growing, and utilization ratios get distorted. If you ever return to the US, you may find your credit score has dropped 100+ points from inactivity.

The workaround: keep at least one or two US credit cards active with small recurring charges (a subscription, for example) and autopay. This maintains your US credit history at minimal effort. For building credit abroad, expect to start with a secured credit card or a basic bank account and work your way up, just like you did in your early twenties. Some countries (UK, Canada, Australia) have easier paths for building credit as a newcomer. Others (Germany, Japan) have systems so different from the US model that the concept barely applies.

Social Security Still Works (Mostly)

If you have worked in the US long enough to qualify for Social Security (generally 10 years or 40 quarters of coverage), your benefits are payable in most countries. The Social Security Administration can deposit your monthly benefit directly into a US bank account, and you withdraw it from abroad using your Schwab or Wise card.

There are a few exceptions. Benefits can be withheld if you live in Cuba, North Korea, or a handful of other countries. And if you are not a US citizen but earned US Social Security credits, payment rules are more complex and depend on your country of citizenship and any totalization agreements in place.

Totalization agreements are bilateral treaties that allow you to combine work credits from two countries to qualify for benefits in either one. The US has agreements with about 30 countries. If you work in Germany for 5 years and the US for 8 years, the totalization agreement lets you combine those 13 years to meet the 10-year threshold for US benefits.

Voting from Abroad

Here is something that is surprisingly easy but widely misunderstood: you can vote in US elections from anywhere in the world. The Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) guarantees your right to vote in federal elections by absentee ballot. You register through the Federal Post Card Application (FPCA), which you can submit online through your last state of residence.

The process is straightforward. Submit your FPCA early in the election year. Your state sends you a ballot (by mail or electronically, depending on the state). You fill it out and return it by the deadline. Some states accept email or fax returns for overseas voters. The whole process takes less time than standing in line at a US polling station.

You vote in the state where you last resided. This means your vote counts in local, state, and federal elections for that jurisdiction. Organizations like Vote From Abroad and the Federal Voting Assistance Program provide state-by-state guidance and deadline reminders.

Healthcare Is Probably Better (and Cheaper)

This is the hidden challenge that turns out to be a hidden benefit. American healthcare is exceptional at the high end — the best hospitals in the world are in the US. But the average American experience of healthcare — high premiums, high deductibles, surprise bills, fights with insurance companies, and fear of financial ruin from a medical emergency — is genuinely worse than what most developed countries offer.

In Portugal, a private insurance plan costs $100–$200 per month and covers essentially everything with minimal copays. In Thailand, a dental crown costs $200 instead of $1,200. In Germany, the public healthcare system covers everything from routine checkups to major surgery with no surprise billing. In Japan, you pay 30% of costs with a cap that ensures no one goes bankrupt from medical bills.

The adjustment is not the quality of care — it is the system. You will need to learn how your new country's healthcare works, which doctors speak English, what the pharmacy norms are (many countries dispense medications that require a prescription in the US over the counter), and how emergency services function. Our cost of living comparison includes healthcare cost data for 95 countries.

The Reverse Culture Shock Is Real

Everyone talks about culture shock when you arrive abroad. Nobody prepares you for the reverse: the disorientation of visiting the US after living elsewhere. The portions at restaurants seem absurdly large. The cars seem absurdly large. The medical bills seem absurdly large. You notice things you never noticed before — the lack of public transit, the absence of walkable neighborhoods, the pervasive advertising, the casual intensity of political discourse.

This is not anti-American sentiment. It is the natural result of having a comparison point. Once you have lived somewhere with universal healthcare, walkable cities, and four weeks of mandatory vacation, the American default no longer feels like the only way to do things. It feels like one option among many — an option with genuine strengths but also glaring gaps you could not see when it was all you knew.

Reverse culture shock peaks around 12–18 months abroad and becomes most intense during holiday visits home. It mellows over time as you integrate your two perspectives. Many long-term expats describe reaching a point where they feel like they belong to both places and neither place — a bittersweet but enriching state of perpetual in-between.

The Expat Tax on Friendships

This is the one that gets people emotionally. Your close friends in the US will be supportive and excited at first. They will follow your adventures on social media. They will talk about visiting. But over time, the daily rhythm of friendship — the spontaneous dinners, the weekend hangouts, the “I am in your neighborhood, want to grab coffee?” moments — disappears. You are no longer part of the fabric of their daily life, and they are no longer part of yours.

Time zones make it worse. When you are winding down for dinner in Europe, your friends on the US East Coast are still at work. When you wake up in Asia, they are asleep. The window for real-time conversation shrinks, and the relationship slowly shifts from active friendship to fond memory punctuated by occasional catch-up calls.

The friends who survive the distance are the ones where both sides make it intentional. Scheduled monthly video calls, shared online activities (gaming, book clubs, fantasy sports), and visits in both directions keep the connection alive. But it requires effort that was never necessary when you lived in the same city. Accept that some friendships will fade. Focus your energy on the ones that matter most and invest in building new friendships in your new home.

Is It Worth It?

Despite everything above — the banking headaches, the tax complexity, the lost credit score, the friendship distance — the vast majority of American expats say yes, it is worth it. Surveys from InterNations and other expat organizations consistently show that Americans abroad report higher satisfaction with their quality of life, healthcare access, work-life balance, and financial security than Americans at home.

The challenges are real but temporary. Banking gets sorted within the first few months. Tax filing becomes routine after the first year. Credit rebuilds over time. And you build new friendships in a community of people who have all made the same leap, which creates a bond that forms faster and deeper than most friendships at home.

The honest assessment: moving abroad is harder than the blogs suggest and more rewarding than the skeptics claim. It is not for everyone, and it does not solve problems that are internal rather than environmental. But for people who feel genuinely pulled toward a different way of living, the hidden challenges are the price of admission to a life that most Americans do not realize is available to them.

If you are ready to start exploring, our country matching quiz helps you find destinations that match your priorities based on real data. For the practical step-by-step guide, see how to leave the US step by step. And for a comprehensive checklist of everything you need to handle before departure, our moving abroad checklist covers every detail.