I think the bigger issue that most people failed to think about is how do you get a residency permit.
You can’t just rock up to Europe (or anywhere) and go hey I want to live here. You have to have a job, you need to have your residency permit sponsored by the company you work for and it’s linked to your company. So if you quit your job, you can’t stay.
Or you do family reunification if you marry a local citizen, and all countries have different requirements for that and summer extremely difficult
And then you have the taxation issue, reporting requirements, and the associated banking discrimination in your host country if you’re American citizen
Hi, thank you again for your comments! While I am NO EXPERT at all, I know a bit about visas.
1. You don't need to have a residency visa to live in Europe. You can do the Schengen Shuffle. I know an American woman who's done this for 17 years straight with no visas, ever.
2. There are more offers to get 1 year visas now than ever before. I have an American friend who lived in Albania for a year this way.
3. Both Portugal and Spain offer passive income visas. France offers a retirement visa (many other countries do as well). Of course you have to be retired or have passive income to qualify for these. I moved to Portugal without an "official" job. I had enough passive income to qualify ($1000 US a month) and when that income dried up, I started working remotely.
4. There are places you can live where you can keep extending your visa indefinitely (depending on your countries passport) not in Europe but in Costa Rica and Cambodia for example. I have several friends who have lived in Cambodia for years and every year they pay a small fee to extend their visas for another year.
5. Many people are now able to get a second passport depending on their family history (AKA: citizen by descent or ancestry based citizenship). I have several American born friends who now have passports from Ireland and Italy.
Tax Issues: You can report in the US but if you're earning while living overseas you qualify for FEIE -- foreign earned income exclusion and don't have to pay taxes in the US. It's true that the US and Eritrea are the only two countries that require you to file yearly income tax returns if you remain a citizen but no longer live there. However.... you may not have to pay. For example: I earn royalties for the 20 books I have published on Amazon and I earn from teaching English on platform. Amazon is not a Portuguese company, and the platform where I teach is also a US company. But since I have my residency here, I don't have to pay taxes for those in the US. Taxes are complicated and I always recommend speaking to an accountant to get all the up-to-date information. But, it's nothing that's insurmountable.
I loved this perspective! I lived abroad in China for almost a decade and was shocked at what I have (and continue to pay) in the US. I think if someone can move it's a wonderful privilege and adventure :)
Thank you so much Sarah! I spent a bit of time in China (nothing close to a decade) and loved it! I am really trying to help people move abroad on a budget; it's possible! I hope you loved your time in China and I hate hearing about the crazy overpriced everything in the US :(
I don’t think there’s anything that we talk about more in Italy than marveling at how little we are paying for things that are vastly higher quality than what you get in the United States.
Right!!!?? But it's also kind of an "unknown secret", yes?! People living in the US don't actually realize how true this is and I think a lot don't want to believe it either. I mean, Italy is "known" for being expensive and most people don't understand how much better quality most (not all) items are here. But that's okay because those who want to move here, will do so regardless and then they'll be pleasantly surprised in so many ways!!!
We're almost neighbours, living just outside Pontevedra, but made the move from N. California almost 30 years before you did. When we moved (initially to France) it seemed that prices were more or less equivalent.
We moved to Galicia in 2018, bought and renovated our 140m2/1500sq ft house for cash. Before the post-covid inflation, our total housing costs - property taxes, energy including central heating, water and sewage - were €2500. PER YEAR! Higher now mainly because of higher energy costs but still affordable.
Eating out is more expensive here than Portugal but still affordable. 30€/head will get you 2 courses of good quality, with wine. In the summer we had an amazing meal with some extraordinary shellfish and top local wines which came to €65/head.
We have a small business and pay the minimum (forfait) into Spanish social security which is €300/month. This includes health care, unemployment (which we'll never use but still...) and if I work for 15 years here (until 66) I'll get the minimum Spanish pension, currently..... 300€/month. We are both covered for health care and when I broke 8 ribs a few years back and spent a week in hospital (including 2 nights in ICU) the only thing I paid for were pain killers after I came home.
Yeah, not thinking about moving back to the 'States, ever.
Hi Robert! I LOVE GALICIA! My sweetie lives there!!! I've actually been thinking about moving there... in 4 more years after I get my passport here, or at least spending more time there :)
Wow, €2500 a year for your housing costs is incredible! My family and friends pay much more than that in property taxes alone in the US. WOW, central heating...!!! I miss that here BUT I'm saving some money and getting adapted to cold/er weather so that's a plus.
Yeah my partner told me that restaurant prices have increased a lot there, even in the past 4 months :(
He did mention how great the healthcare is there too and how it even covers visitors--for free! That's amazing how well they took care of you with the broken ribs! It's a little different here as I do have private healthcare but it's still crazy inexpensive compared to the US!
And starting next year I'll also be paying into social security here, which both terrifies and excites me! It's a little scary because it's not cheap but it's exciting because I'll be able to claim it later as well :)
Thank you so much for your thorough comment and all the information you provided!
In some ways I'm sad the US has "deserted" and let down its citizens but I'm also happy it pushed us to leave because the quality of life is just so much better here!!
Probably 3-3500€/year. We have not calculated it exactly. Energy was the big increase but has actually fallen back in 2024 (but still higher than before covid). I'll have to check insurance. I suspect it's gone up more than we realise.
Telecommunications has also gone up greatly and that was not included in my original calculation. Now it would add 100€/month (2 mobiles/unlimited, fibre optic 500mbps, lots of TV including Max, Netflix, Apple, Disney, Prime, + others.
Being able to buy and renovate for cash helps a lot; no loan, no rent. Houses are significantly cheaper here than in France (where we lived before) or many areas in the US.
I had similar reasons and a similar experience moving overseas. Being able to live a middle class lifestyle without working myself into the ground was li liberating. I became a much less stressed person and life generally became so much more interesting. Every day involved learning something new.
There are reasons to stay in expensive countries. If you want certain careers or education or health care, wealthy developed countries have resources that others don’t.
But I don’t think that’s reason enough to spend a lifetime there.
I agree and have to add that I have MUCH better healthcare now, in an inexpensive country than I ever had in the most expensive state in the US.
But yes, there will always be some things we have to give up and other things we will gain :) In the end we each have to decide what we're willing to live with and without!
We live in Brussels for about half of the year and live/work somewhere in the world for most of the rest. We've spent 3 months living in Florida and Manhattan and have indeed noticed the high cost of living, even when the EUR was strong against the dollar earlier this year.
Europe may be cheap(er) in the Balkans and Albania, and in some areas in Portugal, Spain, and Greece. But moving from the buzz of LA, SF, NY, Miami, or many other US cities to any of these countries or areas is a culture shock. And a big step back in your (material) standard of living, offset by your wellbeing...
I am sure that there are people that can handle that. I am sure that there are people that are looking to escape today's America—a country we absolutely love (to visit, that is, not to live...).
But if you want to make the jump and settle in Extremadura, the Peloponnesos, or the Albanian Riviera, please make sure that you can keep your USA job working remotely, or have sufficient funds in the bank to keep you afloat. Because, even if you find a job locally, it won't cover your cost of living.
And if you're moving to the wealthier parts of Europe like North Italy, Austria, Switzerland, Scandinavia, and the main cities in Germany, Belgium, Holland and France, you'll find the cost of living only moderately below that in the USA, while net disposable income is below that of the USA.
European GDP per person is lagging 35% behind the US and the gap is growing. Yearly productivity growth in the US is 50% higher than Europe. Unfortunately, we're not going in the right direction...
So ideally, please come to Europe to invest in a business to grow the economy. Otherwise, come for the lifestyle.
Hi, thank you for your thorough comment and suggestions! Super helpful :) AND YES, we do hope to see more people here!! I love that :) Brussels is not cheap for sure but I hear it's gorgeous and can't wait to visit!!
I do want to say that I have many friends who travel full time and know of others who live in the less expensive areas in Europe (myself included) who don't have US jobs.
It's what I'm trying to help people with. You don't need as much as most people think to live abroad well. I know of one woman who lives super well on $500 a month in Cambodia.
There are many remote jobs where you can definitely make that amount without needing a US job. There are also other ways, like woofing, etc. where people can exchange working for room and board.
It's important to me, to let people know that they can do this if they really want to. It may not look a certain way and it may stretch their adaptability and comfort, but it's 100% possible on much less money than most people realize.
Inflation happens and yes, it will cost more to live in the future, but not as much as it costs in the US or the UK, etc. And there are ways to mitigate this as well. Farming for instance... I have a friend here in Portugal who has a small farm and grows a lot of her food. Chickens = eggs. Solar = energy. There are so many ways but as a species, we're going to have to adapt.
What is the average monthly income of a Cambodian citizen? I have a hard time thinking about Americans/Europeans bringing in large sums of money into poor countries and driving up the cost of housing for the citizens. It’s a double-edged sword for me and feels a bit like colonizing. Isn’t it stacking the deck when you are making American salaries/pensions or working online while employing the common man at a fraction of an American type wage? Isn’t this the same as what’s happening in the housing crisis in America? Just some issues I ponder when thinking about moving abroad.
It's only when we compare different realities that we discover what's out there and that there may be easier ways to simply live life without the conditioning of your environment. The whole mentality of 'that's how it's always been like' can be challenged. Experiencing life in another country really broadens your horizons!
Those itemized costs really pop out—60 bucks for a car wash! I miss that affordable cuisine in Portugal. Even here in relatively expensive Austria, life is about half the cost of the US, especially groceries. And we have easy access to even cheaper lands like the Balkans, Hungary, and Czechia.
Thank you for your comment Joshua! I realize that $60 was a ridiculous price for the car wash and if I had been willing to drive and sit in traffic, I could have gotten one for less but at the time I was working 2 full-time jobs and living in the most expensive county in Northern California.
Yeah, the food here in Portugal really is great and affordable. The food in Spain was affordable too but in the past 3 months it's increased a lot!!!
I love hearing that Austria is still half the cost of the US as I've heard it was pricey there and haven't visited yet. And yes, you're in a great location to reach all those cool places!!!
I love how amazing and different every country in Europe is!!!
I live very cheaply in the U.S., but health insurance is the kicker.
Here in central Illinois, you can still buy a house for less than $100K. My area is safe, quiet, walkable and close to bars, restaurants and services. It's the damn medical costs that are killing us.
That's awesome that you can live for so little in central IL, though personally I wouldn't even be able to afford $100k for a house.
But the healthcare crisis is very real and that's what my next article, coming out this week, is about! I paid $1500 a month for the lowest tier of insurance in the US and $80 co-pays to see a doctor. I didn't receive any preventative treatment and had to cry and beg for an MRI, which I was denied anyway. MRI's (as an example) cost several thousand in the US. Here they're anywhere from €10 to €100 tops and all you have to do to get one is ask!
I had two surgeries here, with overnight hospital stays in a private room that was nicer than a hotel room for €200. I get free preventative healthcare and they run tests (EVERY YEAR) that I've never even heard of because they will only run them for the very rich in the US. And the list goes on...
I wouldn't feel safe aging out in the US but that's me. We all have to do what feels right for us! :)
Thanks, I'll probably never leave Canada except for some long stays in retirement but it's still interesting.
My question is how cheap is it for locals? It sounds like you can take the same or similar income from California to Portugal but if you had to earn a living in Portugal would it be so affordable? Can your hairdresser or the people washing your car live comfortably or are they as stressed financially as you were in California?
Hi Chris! If I was Canadian, I'd definitely live in Canada!
I don't earn a US income, I don't have a job there. I work remotely and currently earn an equivalent salary to the Portuguese, so yes, it's still 1,000 times more affordable for me here. I wouldn't be able to buy food in the US for what I earn here (let alone pay rent and bills or have any semblance of healthcare)...
The Portuguese have a very different attitude about work and money. They care more about celebrating life than "praying to the almighty dollar" as I was taught to do in the US. I was raised to believe that money was more important than family, friends, playing, free time, mental health, you name it... So in answer to your question, nope, the Portuguese that I know (and I have quite a few local friends here and my partner is Spanish, living in Spain) are not stressed financially at all. As a matter of fact, one of my closest friends bought a condo here on her salary working in a shoe store for minimum wage... :)
That’s different from what I hear from my Portuguese friends. A lot of them are struggling. May them have had to leave Portugal to work like an example in Switzerland just to send money back home.
Many people I know lost their businesses in the 2008 financial crisis. Many had their savings wiped out. I see many Portuguese middle-aged women, working as house cleaners in their late 50s and early mid 60s just trying to put a little bit of money away to go back to Portugal in order to retire
Both things can be true (some people are thriving and others are struggling):
1. I would ask where your friends live. Are they in Lisbon or the Algarve? I know of many rich Americans and British living in the Algarve, buying and selling million dollar homes. The cost of most things are higher there because of it and from the influx of expats to the area: rent, groceries, restaurants are all significantly more expensive than they are here in Porto.
I have a good American expat friend in Lagos but she lives on a budget and works full time. And she's in her late 60's.
As for Lisbon: it's expensive to live there, no doubt about it. But... there are ways. Living in Almada instead for example.
Have I seen prices increase since I moved here in 2022, absolutely!!! Will they continue, I believe so. It's one of the many reasons I do not promote people moving to Portugal. If I knew then what I know now, I would never have moved here. But... I'm really glad I did because of all the wonderful aspects.
2. Lifestyle inflation: The more you earn, the more you spend. It's human nature. :( I was guilty of this in the US, it's a hard one to resist especially if you're not aware of it.
I'm so sorry to hear about people losing their businesses in the 2008 financial crisis. I also have many friends who also lost everything in the US in 2008 (houses, businesses, savings) and many who lost their businesses in 2020. I wish it didn't happen but it does. The economy is ever changing and we can't predict the future.
As for working as house cleaners: I think housekeeping is a viable job. I'm in my late 50's, one year from 60 and I still work full-time. I know of many women in the US in their 70's who work as house cleaners. Many people I know can never afford to retire, no matter their "job". I'm one of those people. I also know of one woman working here in Portugal as a house cleaner and she's making over twice as much money as I make per hour, plus she's so booked, she can't take on new clients. There's always more than one story. And while we have to be realistic, it helps tremendously to remain positive and find solutions. Housecleaning is one solution and it's not a bad job, I've done it too :)
Thanks, buying a home on shoe store wages is the Al Bundy dream. Housing in Canada has gotten so expensive that would not be possible now. We bought 20 years ago and just paid off our house so we were lucky to time it when we did.
I know several Canadians that want to leave but no matter where you are some people will feel there’s a better place for them.
I found the opposite to be true (for me anyway) and was absolutely surprised about this.
When I traveled the US for a year I thought maybe I'd find one place I could live but instead I discovered that I could live ANYWHERE!!! I still feel that way about Europe and even about Canada (or the few places I've explored there).
I believe there are different types of mindset and it's more than having a fixed mindset or a growth mindset. It's also more than being an optimist or a pessimist though I can speak from the experience of an optimist that optimism helps A LOT in life. I think it has to do with tolerance and adaptability.
I know lot of folks who bought houses back when they were affordable as well and even one who calls it her "golden handcuff" because it kept her from moving out of her state and living her dream in her dream city. But I think it's just another excuse.
You either sell your house, make a profit and move or stay. But just because people decide to stay, it doesn't mean they're unhappy either.
I think the "conundrum" for the grass is always greener people may lie in: some people are unhappy no matter where they go.
I could discuss philosophical issues until the cows come home (and I'm obviously a lover of idioms as well) LOL.
Thanks for your comments! :) Discussions and other people's perspectives are fun!!!
Right!!!??? I'm pretty sure wine is cheaper than bottled water here in Portugal and also in Spain.
My dad pays $$$$ for a corkage fee when he goes to restaurants in the US. And the corkage fee is more expensive than an expensive bottle of wine!! LMAO.
I actually don't drink and in the US when I split the bill with friends, I get pissy about splitting the price of their alcohol but here, I don't care at all and never mention it because it's so minimal!
I originally planned to move to Chiang Mai in 2019, met someone during holidays in Bali (she’s northern Italian (Dolomites) we fell in love over covid, moved to Mexico July 2020 and now finishing up her citizenship while all whilst living in Hawaii.
We’ve already known living in the states is manic, prices aren’t and will not decrease - and why would it?
My 🎥 business is based in Vegas (where we are no prepping for a project) and deeply missed Trader Joe’s which is the only fair priced market game in town 😅
All this to say that although living in Hawaii is amazing and the community we’ve built is warm/loving, we’re counting down the days when her process is finalized and we’re able to leave - I just cannot see ourselves raising a child here.
Wow, that sounds amazing! 1. how you met your sweetie in Bali 2. that she's Italian 3. that you moved to Mexico together and 4. that you're currently living in Hawaii! I love Hawaii but yes it's quite pricey and there's no Trader Joe's?! AHHHHH!!! Makes sense though.
It sounds like you have many wonderful options though and a great plan for her citizenship! Where will you go after Hawaii?
I did!. I traveled throughout the US for an entire year first, living in my van. Unfortunately healthcare (or lack of) is the same throughout the US + the high cost of living + a value system I don’t share among other things. It’s truly a gorgeous country but it’s no longer for me. I have some favorite states though. What are yours?
Yes, the healthcare system is more than ripe for change! I’ve lived abroad for 20+ years at this point but regularly visit and still feel connected to the states where I’ve lived (Louisiana, Texas, New York, Michigan) and care deeply for the country as a whole.
Where do you live (abroad)? I completely understand your sentiment. I care for the US as well, but can love a country and still not want to live there because it no longer supports the lifestyle or values that I personally hold dear. I love Louisiana too, I've spent a lot of time there and while I've spent a lot of time in Texas too and have close friends there, I don't like the weather. NY YES. I've never been to Michigan!!! My favorites are: Colorado, Washington State, Oregon, Arizona and New Mexico :) But there isn't a state I've visited that I didn't like.
💯 Couldn't agree more - things are so overpriced in big cities in the US (and the quality is usually mediocre)
Thank you for commend Claudia!!!
Yeah I agree for the most part :( Although food in LA and SF is pretty darn good but still not worth the price. I really miss Trader Joe's though!
I think the bigger issue that most people failed to think about is how do you get a residency permit.
You can’t just rock up to Europe (or anywhere) and go hey I want to live here. You have to have a job, you need to have your residency permit sponsored by the company you work for and it’s linked to your company. So if you quit your job, you can’t stay.
Or you do family reunification if you marry a local citizen, and all countries have different requirements for that and summer extremely difficult
And then you have the taxation issue, reporting requirements, and the associated banking discrimination in your host country if you’re American citizen
Hi, thank you again for your comments! While I am NO EXPERT at all, I know a bit about visas.
1. You don't need to have a residency visa to live in Europe. You can do the Schengen Shuffle. I know an American woman who's done this for 17 years straight with no visas, ever.
2. There are more offers to get 1 year visas now than ever before. I have an American friend who lived in Albania for a year this way.
3. Both Portugal and Spain offer passive income visas. France offers a retirement visa (many other countries do as well). Of course you have to be retired or have passive income to qualify for these. I moved to Portugal without an "official" job. I had enough passive income to qualify ($1000 US a month) and when that income dried up, I started working remotely.
4. There are places you can live where you can keep extending your visa indefinitely (depending on your countries passport) not in Europe but in Costa Rica and Cambodia for example. I have several friends who have lived in Cambodia for years and every year they pay a small fee to extend their visas for another year.
5. Many people are now able to get a second passport depending on their family history (AKA: citizen by descent or ancestry based citizenship). I have several American born friends who now have passports from Ireland and Italy.
Tax Issues: You can report in the US but if you're earning while living overseas you qualify for FEIE -- foreign earned income exclusion and don't have to pay taxes in the US. It's true that the US and Eritrea are the only two countries that require you to file yearly income tax returns if you remain a citizen but no longer live there. However.... you may not have to pay. For example: I earn royalties for the 20 books I have published on Amazon and I earn from teaching English on platform. Amazon is not a Portuguese company, and the platform where I teach is also a US company. But since I have my residency here, I don't have to pay taxes for those in the US. Taxes are complicated and I always recommend speaking to an accountant to get all the up-to-date information. But, it's nothing that's insurmountable.
I loved this perspective! I lived abroad in China for almost a decade and was shocked at what I have (and continue to pay) in the US. I think if someone can move it's a wonderful privilege and adventure :)
Thank you so much Sarah! I spent a bit of time in China (nothing close to a decade) and loved it! I am really trying to help people move abroad on a budget; it's possible! I hope you loved your time in China and I hate hearing about the crazy overpriced everything in the US :(
Hey, me too. We are a somewhat rare breed.
YES! But we're getting less rare! ;)
I don’t think there’s anything that we talk about more in Italy than marveling at how little we are paying for things that are vastly higher quality than what you get in the United States.
Right!!!?? But it's also kind of an "unknown secret", yes?! People living in the US don't actually realize how true this is and I think a lot don't want to believe it either. I mean, Italy is "known" for being expensive and most people don't understand how much better quality most (not all) items are here. But that's okay because those who want to move here, will do so regardless and then they'll be pleasantly surprised in so many ways!!!
We're almost neighbours, living just outside Pontevedra, but made the move from N. California almost 30 years before you did. When we moved (initially to France) it seemed that prices were more or less equivalent.
We moved to Galicia in 2018, bought and renovated our 140m2/1500sq ft house for cash. Before the post-covid inflation, our total housing costs - property taxes, energy including central heating, water and sewage - were €2500. PER YEAR! Higher now mainly because of higher energy costs but still affordable.
Eating out is more expensive here than Portugal but still affordable. 30€/head will get you 2 courses of good quality, with wine. In the summer we had an amazing meal with some extraordinary shellfish and top local wines which came to €65/head.
We have a small business and pay the minimum (forfait) into Spanish social security which is €300/month. This includes health care, unemployment (which we'll never use but still...) and if I work for 15 years here (until 66) I'll get the minimum Spanish pension, currently..... 300€/month. We are both covered for health care and when I broke 8 ribs a few years back and spent a week in hospital (including 2 nights in ICU) the only thing I paid for were pain killers after I came home.
Yeah, not thinking about moving back to the 'States, ever.
Hi Robert! I LOVE GALICIA! My sweetie lives there!!! I've actually been thinking about moving there... in 4 more years after I get my passport here, or at least spending more time there :)
Wow, €2500 a year for your housing costs is incredible! My family and friends pay much more than that in property taxes alone in the US. WOW, central heating...!!! I miss that here BUT I'm saving some money and getting adapted to cold/er weather so that's a plus.
Yeah my partner told me that restaurant prices have increased a lot there, even in the past 4 months :(
He did mention how great the healthcare is there too and how it even covers visitors--for free! That's amazing how well they took care of you with the broken ribs! It's a little different here as I do have private healthcare but it's still crazy inexpensive compared to the US!
And starting next year I'll also be paying into social security here, which both terrifies and excites me! It's a little scary because it's not cheap but it's exciting because I'll be able to claim it later as well :)
Thank you so much for your thorough comment and all the information you provided!
In some ways I'm sad the US has "deserted" and let down its citizens but I'm also happy it pushed us to leave because the quality of life is just so much better here!!
What are you paying now? Pre-Covid is irrelevant at this point.
Probably 3-3500€/year. We have not calculated it exactly. Energy was the big increase but has actually fallen back in 2024 (but still higher than before covid). I'll have to check insurance. I suspect it's gone up more than we realise.
Telecommunications has also gone up greatly and that was not included in my original calculation. Now it would add 100€/month (2 mobiles/unlimited, fibre optic 500mbps, lots of TV including Max, Netflix, Apple, Disney, Prime, + others.
Being able to buy and renovate for cash helps a lot; no loan, no rent. Houses are significantly cheaper here than in France (where we lived before) or many areas in the US.
I had similar reasons and a similar experience moving overseas. Being able to live a middle class lifestyle without working myself into the ground was li liberating. I became a much less stressed person and life generally became so much more interesting. Every day involved learning something new.
There are reasons to stay in expensive countries. If you want certain careers or education or health care, wealthy developed countries have resources that others don’t.
But I don’t think that’s reason enough to spend a lifetime there.
Thank you so much for your commend Liya!
I agree and have to add that I have MUCH better healthcare now, in an inexpensive country than I ever had in the most expensive state in the US.
But yes, there will always be some things we have to give up and other things we will gain :) In the end we each have to decide what we're willing to live with and without!
We live in Brussels for about half of the year and live/work somewhere in the world for most of the rest. We've spent 3 months living in Florida and Manhattan and have indeed noticed the high cost of living, even when the EUR was strong against the dollar earlier this year.
Europe may be cheap(er) in the Balkans and Albania, and in some areas in Portugal, Spain, and Greece. But moving from the buzz of LA, SF, NY, Miami, or many other US cities to any of these countries or areas is a culture shock. And a big step back in your (material) standard of living, offset by your wellbeing...
I am sure that there are people that can handle that. I am sure that there are people that are looking to escape today's America—a country we absolutely love (to visit, that is, not to live...).
But if you want to make the jump and settle in Extremadura, the Peloponnesos, or the Albanian Riviera, please make sure that you can keep your USA job working remotely, or have sufficient funds in the bank to keep you afloat. Because, even if you find a job locally, it won't cover your cost of living.
And if you're moving to the wealthier parts of Europe like North Italy, Austria, Switzerland, Scandinavia, and the main cities in Germany, Belgium, Holland and France, you'll find the cost of living only moderately below that in the USA, while net disposable income is below that of the USA.
European GDP per person is lagging 35% behind the US and the gap is growing. Yearly productivity growth in the US is 50% higher than Europe. Unfortunately, we're not going in the right direction...
So ideally, please come to Europe to invest in a business to grow the economy. Otherwise, come for the lifestyle.
But we do hope to see you here!
Hi, thank you for your thorough comment and suggestions! Super helpful :) AND YES, we do hope to see more people here!! I love that :) Brussels is not cheap for sure but I hear it's gorgeous and can't wait to visit!!
I do want to say that I have many friends who travel full time and know of others who live in the less expensive areas in Europe (myself included) who don't have US jobs.
It's what I'm trying to help people with. You don't need as much as most people think to live abroad well. I know of one woman who lives super well on $500 a month in Cambodia.
There are many remote jobs where you can definitely make that amount without needing a US job. There are also other ways, like woofing, etc. where people can exchange working for room and board.
It's important to me, to let people know that they can do this if they really want to. It may not look a certain way and it may stretch their adaptability and comfort, but it's 100% possible on much less money than most people realize.
Inflation happens and yes, it will cost more to live in the future, but not as much as it costs in the US or the UK, etc. And there are ways to mitigate this as well. Farming for instance... I have a friend here in Portugal who has a small farm and grows a lot of her food. Chickens = eggs. Solar = energy. There are so many ways but as a species, we're going to have to adapt.
What is the average monthly income of a Cambodian citizen? I have a hard time thinking about Americans/Europeans bringing in large sums of money into poor countries and driving up the cost of housing for the citizens. It’s a double-edged sword for me and feels a bit like colonizing. Isn’t it stacking the deck when you are making American salaries/pensions or working online while employing the common man at a fraction of an American type wage? Isn’t this the same as what’s happening in the housing crisis in America? Just some issues I ponder when thinking about moving abroad.
It's only when we compare different realities that we discover what's out there and that there may be easier ways to simply live life without the conditioning of your environment. The whole mentality of 'that's how it's always been like' can be challenged. Experiencing life in another country really broadens your horizons!
YES! Perfectly said! It really does help to be exposed to travel and culture during one's formative years but not a must.
Paola - this is so well put! Wanting to know if there was another way to live was one of my biggest drivers for leaving my home country.
To me it's a lifelong quest - what's out there? Is there such a thing as an "ideal country"? 😊
Oooo-great questions!
Those itemized costs really pop out—60 bucks for a car wash! I miss that affordable cuisine in Portugal. Even here in relatively expensive Austria, life is about half the cost of the US, especially groceries. And we have easy access to even cheaper lands like the Balkans, Hungary, and Czechia.
Thank you for your comment Joshua! I realize that $60 was a ridiculous price for the car wash and if I had been willing to drive and sit in traffic, I could have gotten one for less but at the time I was working 2 full-time jobs and living in the most expensive county in Northern California.
Yeah, the food here in Portugal really is great and affordable. The food in Spain was affordable too but in the past 3 months it's increased a lot!!!
I love hearing that Austria is still half the cost of the US as I've heard it was pricey there and haven't visited yet. And yes, you're in a great location to reach all those cool places!!!
I love how amazing and different every country in Europe is!!!
I live very cheaply in the U.S., but health insurance is the kicker.
Here in central Illinois, you can still buy a house for less than $100K. My area is safe, quiet, walkable and close to bars, restaurants and services. It's the damn medical costs that are killing us.
That's awesome that you can live for so little in central IL, though personally I wouldn't even be able to afford $100k for a house.
But the healthcare crisis is very real and that's what my next article, coming out this week, is about! I paid $1500 a month for the lowest tier of insurance in the US and $80 co-pays to see a doctor. I didn't receive any preventative treatment and had to cry and beg for an MRI, which I was denied anyway. MRI's (as an example) cost several thousand in the US. Here they're anywhere from €10 to €100 tops and all you have to do to get one is ask!
I had two surgeries here, with overnight hospital stays in a private room that was nicer than a hotel room for €200. I get free preventative healthcare and they run tests (EVERY YEAR) that I've never even heard of because they will only run them for the very rich in the US. And the list goes on...
I wouldn't feel safe aging out in the US but that's me. We all have to do what feels right for us! :)
Thanks, I'll probably never leave Canada except for some long stays in retirement but it's still interesting.
My question is how cheap is it for locals? It sounds like you can take the same or similar income from California to Portugal but if you had to earn a living in Portugal would it be so affordable? Can your hairdresser or the people washing your car live comfortably or are they as stressed financially as you were in California?
Hi Chris! If I was Canadian, I'd definitely live in Canada!
I don't earn a US income, I don't have a job there. I work remotely and currently earn an equivalent salary to the Portuguese, so yes, it's still 1,000 times more affordable for me here. I wouldn't be able to buy food in the US for what I earn here (let alone pay rent and bills or have any semblance of healthcare)...
The Portuguese have a very different attitude about work and money. They care more about celebrating life than "praying to the almighty dollar" as I was taught to do in the US. I was raised to believe that money was more important than family, friends, playing, free time, mental health, you name it... So in answer to your question, nope, the Portuguese that I know (and I have quite a few local friends here and my partner is Spanish, living in Spain) are not stressed financially at all. As a matter of fact, one of my closest friends bought a condo here on her salary working in a shoe store for minimum wage... :)
That’s different from what I hear from my Portuguese friends. A lot of them are struggling. May them have had to leave Portugal to work like an example in Switzerland just to send money back home.
Many people I know lost their businesses in the 2008 financial crisis. Many had their savings wiped out. I see many Portuguese middle-aged women, working as house cleaners in their late 50s and early mid 60s just trying to put a little bit of money away to go back to Portugal in order to retire
Hi and than you so much for your comments!!!!!!
Both things can be true (some people are thriving and others are struggling):
1. I would ask where your friends live. Are they in Lisbon or the Algarve? I know of many rich Americans and British living in the Algarve, buying and selling million dollar homes. The cost of most things are higher there because of it and from the influx of expats to the area: rent, groceries, restaurants are all significantly more expensive than they are here in Porto.
I have a good American expat friend in Lagos but she lives on a budget and works full time. And she's in her late 60's.
As for Lisbon: it's expensive to live there, no doubt about it. But... there are ways. Living in Almada instead for example.
Have I seen prices increase since I moved here in 2022, absolutely!!! Will they continue, I believe so. It's one of the many reasons I do not promote people moving to Portugal. If I knew then what I know now, I would never have moved here. But... I'm really glad I did because of all the wonderful aspects.
2. Lifestyle inflation: The more you earn, the more you spend. It's human nature. :( I was guilty of this in the US, it's a hard one to resist especially if you're not aware of it.
I'm so sorry to hear about people losing their businesses in the 2008 financial crisis. I also have many friends who also lost everything in the US in 2008 (houses, businesses, savings) and many who lost their businesses in 2020. I wish it didn't happen but it does. The economy is ever changing and we can't predict the future.
As for working as house cleaners: I think housekeeping is a viable job. I'm in my late 50's, one year from 60 and I still work full-time. I know of many women in the US in their 70's who work as house cleaners. Many people I know can never afford to retire, no matter their "job". I'm one of those people. I also know of one woman working here in Portugal as a house cleaner and she's making over twice as much money as I make per hour, plus she's so booked, she can't take on new clients. There's always more than one story. And while we have to be realistic, it helps tremendously to remain positive and find solutions. Housecleaning is one solution and it's not a bad job, I've done it too :)
Thanks, buying a home on shoe store wages is the Al Bundy dream. Housing in Canada has gotten so expensive that would not be possible now. We bought 20 years ago and just paid off our house so we were lucky to time it when we did.
I know several Canadians that want to leave but no matter where you are some people will feel there’s a better place for them.
Ah yes, the "grass is always greener" conundrum.
I found the opposite to be true (for me anyway) and was absolutely surprised about this.
When I traveled the US for a year I thought maybe I'd find one place I could live but instead I discovered that I could live ANYWHERE!!! I still feel that way about Europe and even about Canada (or the few places I've explored there).
I believe there are different types of mindset and it's more than having a fixed mindset or a growth mindset. It's also more than being an optimist or a pessimist though I can speak from the experience of an optimist that optimism helps A LOT in life. I think it has to do with tolerance and adaptability.
I know lot of folks who bought houses back when they were affordable as well and even one who calls it her "golden handcuff" because it kept her from moving out of her state and living her dream in her dream city. But I think it's just another excuse.
You either sell your house, make a profit and move or stay. But just because people decide to stay, it doesn't mean they're unhappy either.
I think the "conundrum" for the grass is always greener people may lie in: some people are unhappy no matter where they go.
I could discuss philosophical issues until the cows come home (and I'm obviously a lover of idioms as well) LOL.
Thanks for your comments! :) Discussions and other people's perspectives are fun!!!
Whenever I return to the US to visit my parents it boggles my mind how much a glass of wine costs at a restaurant
Right!!!??? I'm pretty sure wine is cheaper than bottled water here in Portugal and also in Spain.
My dad pays $$$$ for a corkage fee when he goes to restaurants in the US. And the corkage fee is more expensive than an expensive bottle of wine!! LMAO.
I actually don't drink and in the US when I split the bill with friends, I get pissy about splitting the price of their alcohol but here, I don't care at all and never mention it because it's so minimal!
This is such an awesome service! Can’t wait to dig in, thank you!!!
YAY! I hope I can help :)
I originally planned to move to Chiang Mai in 2019, met someone during holidays in Bali (she’s northern Italian (Dolomites) we fell in love over covid, moved to Mexico July 2020 and now finishing up her citizenship while all whilst living in Hawaii.
We’ve already known living in the states is manic, prices aren’t and will not decrease - and why would it?
My 🎥 business is based in Vegas (where we are no prepping for a project) and deeply missed Trader Joe’s which is the only fair priced market game in town 😅
All this to say that although living in Hawaii is amazing and the community we’ve built is warm/loving, we’re counting down the days when her process is finalized and we’re able to leave - I just cannot see ourselves raising a child here.
Wow, that sounds amazing! 1. how you met your sweetie in Bali 2. that she's Italian 3. that you moved to Mexico together and 4. that you're currently living in Hawaii! I love Hawaii but yes it's quite pricey and there's no Trader Joe's?! AHHHHH!!! Makes sense though.
It sounds like you have many wonderful options though and a great plan for her citizenship! Where will you go after Hawaii?
I find this all fascinating and can’t wait to read the upcoming deep dives! - Living in Italy since 2010
Thank you so much! That's awesome that you're in Italy and have been there since 2010, it's such a magical country!!!!! I subscribed to you :)
Thank you Kimberly! I subscribed to you too! 🤩
YAY! Thank you so much!
Did you ever consider moving to another state vs leaving the country?
I did!. I traveled throughout the US for an entire year first, living in my van. Unfortunately healthcare (or lack of) is the same throughout the US + the high cost of living + a value system I don’t share among other things. It’s truly a gorgeous country but it’s no longer for me. I have some favorite states though. What are yours?
Yes, the healthcare system is more than ripe for change! I’ve lived abroad for 20+ years at this point but regularly visit and still feel connected to the states where I’ve lived (Louisiana, Texas, New York, Michigan) and care deeply for the country as a whole.
Where do you live (abroad)? I completely understand your sentiment. I care for the US as well, but can love a country and still not want to live there because it no longer supports the lifestyle or values that I personally hold dear. I love Louisiana too, I've spent a lot of time there and while I've spent a lot of time in Texas too and have close friends there, I don't like the weather. NY YES. I've never been to Michigan!!! My favorites are: Colorado, Washington State, Oregon, Arizona and New Mexico :) But there isn't a state I've visited that I didn't like.