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.
Hi Robert, thank you so much for sharing this information and thank you @Readbannedbooks for asking!!
€3-€3500 a YEAR is AMAZING! I was paying over 3x that per MONTH in the US! Energy costs fluctuate here too. But I changed from the main carrier to a different one last year and my bill dropped by 30%!!!! I couldn't do that in the US, it was PG&E or bust. And every year they turned off all our power for a WEEK, in October, when it was cold and we had no say or choice and they did it only to cover their a$$es. Talk about third world tactics! That would NEVER happen here!
I also think that's incredibly reasonable for telecommunications! My wifi alone in the US was $130 a month. My phone was also $130/month until I switched to "Visible" (best move ever). Here my telecommunications is about €70 total for my phone (unlimited), my wifi (also 500mbps) and my TV subs (Prime and Netflix).
And yes housing is still very affordable in Spain, especially in Galicia whereas they've become unaffordable here in Portugal :( just in the past 2 years.
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!!!
It's weird to me that ppl think Italy is expensive. Perhaps it is in heavily touristed places? I tend not to go to places that Americans go in Italy, so everywhere I've been is so inexpensive compared to the US.
Yeah, I'm sure they're in the heavily touristed places, like Venice but then again, Venice is still much less expensive than San Francisco! The last time I was there I looked for rentals and was surprised that they were affordable. Highish, but still less than what I was paying in SF. I found Parma and Padua quite affordable but Cinque Terre was a different beast. So I agree, it depends on where you're going. The Amalfi Coast or Abruzzo? Ahhhhh Italy!!!! 🥰🥰🥰🥰
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.
That’s a lot of moving around! I mean, I’ve moved to Europe over 20 years ago and originally was with a job, which means I had a residency permit. And now I’m a citizen.
Although you can’t technically scuttle around in the Schengen area… You have to actually leave the Shingen area. I understand the rules are the most you can stay in Schengen is 90 days every six months. And then you have to leave, and then you need to come back.
And I know this was I had a friend who was married to an American, the American was an independent owner want to move here, and he would travel back-and-forth. So then he finally made it through the hurdle to apply for his residency permit, and they took out his passport and counted days is how many days he was in Schengen. He was in for 88, and he had to leave the country in an emergency because otherwise his residency application would’ve been screwed.
As for the tax implication, honestly, the tax implications, not the biggest problem. And yes, depending on what changes to the tax code happens, you will end up paying. That’s happened to me many times.
The issue is banking discrimination as an American. You cannot access the same mortgages, you cannot access the same investment vehicles, you cannot access a lot of financial tools because of the passport.
However, when I read your tips and tricks above, it’s about how to live abroad without establishing a permanent residency. And that’s a really hard life to live because there’s a lot of moving around. Sure you won’t get caught up in the net of the US tax issue, because you’re not gonna be earning enough, and obviously the banking discrimination doesn’t really mean anything to someone who has nomad.
And for those of us who are truly resident of the countries we live in, and have American passports? This has been a pardon, my French fucking nightmare. It is so difficult it cuts money out of your everyday budget, between taxes and accountants, and the banking discrimination we get… Including the inability to deduct any 401(k) or Social Security taxes we pay in our local countries From our US tax? It’s bullshit. We can’t save for retirement, and at times is hard to put food on the table. I had to hire a broker to buy a house… He went to 27 different banks and only two would except my nationality. For double the interest rate.
Finally, after 10 years in the making, there is a bill now that will be in the House In Senate to allow Americans to choose either a residency based tax scheme, people like me who live abroad like truly abroad with a residency permit… Or citizen base tax. And the nomads will have to do the citizen base tax because you can’t claim residency anywhere.
And I’ve been waiting for over a decade for this. And if it doesn’t go through, I will rescind my US nationality. I can’t continue like this.
So, in summary I was referring to if you want to stay in a country.
the nomadic life is for some people, but not for everyone
Hi, yes I do offer tips and tricks w/out establishing perm residency as some people do want to do that. I have a friend who's done the SShuffel for 10 years and loves it. And yes it's 90 days in out of every 180, but it's not as difficult or daunting as it may seem; depending on what type of person you are of course. There are even apps to help. I'm sorry to hear about your friend's husband!
I have residency in Portugal so I'm doing things differently.
Re: banking discrimination, I think it depends on where you are. I haven't had that problem here at all. I have a bank account and can access the financial tools available. I'm not sure where you were that you had problems.
Many people I know have purchased homes without issue.
I purchased a car. It took 15 minutes with zero negotiation whereas in the states it took me 5-7 hours each time and they ended up jacking up the price $10,000. Here, they lowered it.
I think the rules are a little different when your permanent resident. The banking discrimination ends up you having to pay a higher interest rate. And you cannot access local products, like investment vehicles that are similar to what would be a 401(k) or an IRA in the US.
We ex-pats have been fighting this for over 10 years.
We also are not able to get certain jobs in the financial industry either too much risk as all banks must report to the United States all information on US account holders
I assume you are still using you American bank account? Because from what I can tell, you are unable to open an account in the country you are residing without some sort of residency or visa. (the golden visas are all going away.)
Hi Jonelle, I do have a bank account in the US but I have many US expat friends here who don't. You can indeed open an account without residing in a country or having any kind of visa. In Portugal you just have to get your NIF which is easy enough and you can do it from the US and even open your account in Portugal from the US. I recommend using https://bordr.com -- I did all of this from the US before having anything here (no visa, etc.) and without ever stepping foot in Portugal once in my life. I'm sure you can do this with other countries too I just don't know the process but you can google it!
This is the kind of stuff I'll be consulting with you on when I get a bit more into the process. My being retired with social security income is what I'm hoping to depend on. And thinking if I find the trick into how to extend my stays that will be huge. I'm older, so if I have to move around a bit it won't be an issue. I'm not sure of the final destination so even packing up and moving between countries while deciding will be a big help!
My own personal approach to life is that it’s not where you are but who you’re with. I recently moved back to NYC from a new post-retirement life I was building in the Bay Area in order to be close to my grown kids as they are starting families. Being part of their lives has been the best choice I have ever made.
Each person sets their own priorities in life, of course, but articles like this seem to address only the perspective of those without children or grandchildren or who are not interested in playing much of a role in their lives. It seems odd how people extoll the virtues of living in foreign countries whose natives themselves place much value on being part of close-knit extended families. I certainly would save a lot of money by living in some other country but, to me, I would be poorer for it.
Hello and thank you for your comment. I partly agree with "it's not where you are but who you're with" though that does not work 100% for me as I'm they type of person who has to love where I am. And as for who I'm with, I don't have family (not for lack of trying) so I have a found family and I've found a much more loving and accepting community overseas than I found in the US.
Of course every person sets their own priorities in life and this article (and articles like mine) are based on our (the author's) personal experiences. Again, I don't have a family, and had to make/find one, which I did.
I have quite a few full time digital nomad and expat friends from the US who live overseas and they have kids and grandkids. They visit them often and the most amazing thing, and maybe something you haven't considered, is their kids and grandkids get to experience other cultures and travel and constantly broaden their horizons. These experiences make people grow in unimaginable ways.
I'm a little surprised that someone, like yourself, who is happy to be living in the US and has no interest in moving would read my article but hopefully you do so to broaden your perspective as well. :)
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 :(
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.
Hi again, I just had a wonderful conversation with an Egyptian woman about this (due to your comment) and she gave me a different perspective. She thinks there are several problems. 1. there's not not enough work in many countries. 2. immigrants are being hired to work for less.
I have a real life example of #2 and I will add a third issue which of course is that salaries need to increase.
Real life example: I knew of an aging person who was wealthy in the US. They wanted to stay and die in their home but needed a full-time caretaker. At the end he needed 4 live-in caretakers. He didn't want to pay an American salary so he hired immigrants from the Philippines and paid them each $1,000 a week to take care of him. For full time live-in caretaking 24/7, this is not a lot of money. If he hired an American, it probably would have cost him $4,000 a week instead of $4,000 a month (per person). I knew this man personally (and very well) and I knew his caretakers very well. While he was alive, they sent the money they earned back to their families. After he died, they moved back to the Philippines where they were now considered "rich" and bought houses and drove up the prices and cost of living in their country and community.
Again, I don't know what the solution is but I do know that this is a systemic problem that probably won't go away.
I think one solution could be for people to live in sustainable communities together, grow their own food, and use solar for energy. But how likely is that for the masses?
Hi, you're absolutely right and I had this same talk last night with a Portuguese friend here. First I have to say that all the people I know who have moved to Cambodia are not bringing in large sums of money and they're not earning American wages. Same with me in Portugal. I'm currently earning €6 an hour, whereas in the US I earned $250 an hour. I do know of people here (in Portugal) that are rich and have purchased $$$$ houses and flaunt their money and it pisses me off to no end.
But it really is a double-edged sword and it does feel like colonizing, you're right. I wish I knew the solution because the hard truth is that the poor (me and many people I'm friends with) in the US are being pushed out. I got priced out of my home state and country. As I just responded in another comment, the problem is higher up, with the rich/poor disparity. When I was growing up, a middle class still existed in the US, it no longer does. The rich are getting richer and the poor are just trying to survive. The middle class are now the poor.
As for moving elsewhere and bringing money, this too is a complicated issue. I've been told by friends in Cambodia that the Khmer say in one way it's very good because expats are helping. I've been told that here by more than a few Portuguese people as well. So there seems to be a fine line. Don't be too rich, don't throw your US money around?!
But I have to say that the exact same thing is happening in the US. People in California that inherited houses from their parents is one example. Their parents bought their houses for $25 or $50K and then when the kids inherited them, they were worth 3-5M. The kids sold, moved to another state, bought the most expensive house there for 1M and retired. I've heard this story a hundred times. In Seattle, in Portland, etc. The tech boom... another example. Kids made millions... Another example: in SF a slew of very wealthy Chinese came and purchased real estate. It drove up the cost of living there.
So, I guess what I'm saying is that I don't think the main problem is with you or me, I think it's with the rich. But what's the solution?
Hi! It IS complicated!! Last night a Portuguese friend said the same thing a Ukrainian friend said to me today: from their perspective here (and elsewhere) is that the locals are buying up housing and turning them into airbnbs or hostels or renting them at a higher cost to immigrants that have more money. This is super contributing to the housing crises and high prices. Housing costs have doubled in 2 years and I was told that's from doubling 2 years before that. So basically a one bedroom was $300 a month (on average) to rent 4 years ago and it's now $1200+. Since the Portuguese salary is $900 a month, people can't afford housing here.
Please, bear in mind that the 870 € salary is the «minimum wage» (2025). The average PT wage rose to €1602 in 2024 (O salário médio total em Portugal subiu para 1602 euros em 2024.) And only 21% of all workers get the minimum wage (Cerca de 21% dos trabalhadores recebe o salário mínimo nacional.), all other receive more. So, apart from a great resourcefulness of the PT people when it comes to earn money, get (welfare) assistance, find a second jobs or get paid in undeclared ways, I would say that: yes, wages (comparing to Europe, EU and many other countries) are low; yes, younger, qualified generations emmigrate for money reasons, and yes, property owners (both PT and foreign) all try to make the highest amount of money with their own properties - especially renting/selling to (rich) foreigners. Two more (important) things on housing: 1 - 73,2% of PT families own the house they live in (73,2% das famílias portuguesas são proprietárias de imóveis), which is a huge % of all houses available. Many have a 2nd home (17% dos Portugueses são proprietários de uma segunda habitação), and 2 - You wouldn't believe the quantity of houses bought/sold that never reach the public estate market - it's is done among neighbours, acquaintances, friends, and other types of contacts.
We would love to relocate to Europe, but the issue is accessing our money. With the current political climate in the United States, we don’t feel leaving our money in a US bank is safe. And unfortunately, trying to open a bank account in another country is extremely complicated.
Hi Jonelle, getting a bank account in Portugal is relatively easy and you don’t have to live here to get one or fund it!! I see that @Aesthetic Nomads responded as well with a lot of great information!!
I think that you can open an bank account everywhere in the EU once you are officially registered in a EU country. It's part of the intra-community free transfer of goods, services, and people.
The process of opening a bank account may differ from country to country. Germany is probably rather laborious. Scandinavia is easy. If you want to avoid a lot of hassle, there's always the neobanks. I would recommend N26 (German) as a bank. For transfers between the US and Europe, use Wise.
If you're talking about substantial amounts of money ($M), Luxemburg and Swiss banks will bend over backwards...
Indeed there's a bit of an issue with democracy in the US 🤔. But strangely enough, a lot of people we talk to in the internationally business community are actually quite bullish about Trump economically, also in Europe. They would like someone in Europe to shake things up a bit as well, create growth, and reassure that people who work get rewarded.
IMO the tax issue is the one you should be looking at. Marginal tax rates of up to 57% (BE) combined with sales tax of up to 27% (HU) is not exactly what you are used to in the US. That's the European side. I hear from quite a few Americans friends that they need to be very careful to avoid the IRS slapping US taxes on top of this.
Hi Reinhilde and Hans, thank you so much for all this fantastic information!!! You are a wealth of knowledge!!!
This is great about banking in Europe! I also added it's relatively easy to open an account in Portugal as well.
I can't keep my mouth shut re: trump so please forgive me... He is completely devastating the economy. People who say otherwise are misinformed. The only people who are (and will) benefit economically from his policies are the billionaires. Prices have risen drastically already (in just one month) because of his inane tariffs: https://www.reuters.com/markets/us/us-consumer-prices-increase-more-than-expected-january-2025-02-12/
Taxes are indeed an issue, and taxes in the US are based on your income bracket. The first time Trump took office my taxes skyrocketed as he raised the brackets for the middle class. It's a major reason why I was forced out of the US. Suddenly I was paying significantly more but earning the same amount. In California if you add the cost of income tax + state tax + sales tax, most people are paying 50% of their income to taxes. I was.
But you're saying that in Europe we pay 84% of our income in taxes? 57% + 27%. I don't see how people could possibly survive. I'm definitely not paying that in Europe but I'm also not familiar with the tax systems outside of Portugal. Taxes are higher here than in the US, yes--they're about 27% plus social security. But there's no state tax. And I assume you're referring to VAT as sales tax?
And if people are parking their money here but not living here, do taxes apply? Surely the billionaires have a way around this!
Anyway, it's a complicated issue for sure but I still believe it's doable!
Tax is a very complex matter in Europe, but indeed, in the worst case scenario, you pay deep into 70% taxes if you add VAT (sales tax) onto the top level of your income taxes.
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!
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!
I also moved from the USA to Costa Rica in 2000. At that time I built a nice house in the mountains with a beautiful view. It cost $60,000 with 5,000 meters of property. I also moved my small business here and have never had better workers.
But now costs are rising due in part to the influx of expats from the USA. My house now is worth about $500,000. So for anyone moving here it will be more expensive although there are less costly places in the country but like anything else the best places go first. Material and food costs have risen substantially.
Once you become a resident you are eligible for the national health care system and the cost is very cheap. I was treated for lymphoma here at zero cost and zero paperwork. It would have been $300,000 or more in the USA with tons of paperwork and worry about out of pocket costs and being out of network (what the hell is that all about?).
All products from the USA, including cars are expensive, usually about 50% more.
So it's not mecca but Costa Rica offers a superior lifestyle. I can drive from my house in the highest point in the country to the beach in 1 1/2 hours.
Hi Chris! Thank you so much for sharing your experiences of living in CR! 2000 was a great time to move there! When I was researching a CR move in the mid-2000's people were already complaining about the rising costs.
Sadly it's happening everywhere, especially in the US. People who inherited homes from their parents for example. The parents bought a home in San Jose for 30-50K, 20 years ago. The kids sell it for 3-5M, then move to Oregon or Washington or elsewhere, and purchase the most expensive house they can find for 1M, driving up the costs for everyone else who has lived there for their entire lives.
I've seen it happen quickly in Portugal. When I moved here, only 2 years ago, someone could buy a 2 bedroom apartment for $100K in Porto and now they're selling for over $300K. It's heartbreaking tbh. I am absolutely not telling people to move here because of the massive rise in prices for the Portuguese. It's not fair.
But as I always complain... it's not fair that I was out-priced and pushed out of my home state and country either.
I wish it wasn't true but it is. I watched as a lot of uber rich immigrants moved into SF and purchased all the expensive housing, driving up the prices. As the dot com bubble out-priced the rest of the citizens. As the uber rich Americans keep getting richer and pay no taxes and the middle class was abolished and my taxes doubled.
But healthcare is a huge priority, especially as we age and I love hearing that you were able to get treated for lymphoma for no cost or paperwork there!!
Some things here (in Portugal) are pricier too than they are in the US; as cars are there. But as you also said, you can't beat the lifestyle either!!
I wish I knew of a solution that worked for everyone, but I just don't. :(
I agree but when I mention this, people tell me that by not bringing even more humans into the world, the world economy will collapse. Is it really lose/lose?
That’s loser talk. We need to find a better economic model much like the Scandinavian countries (who are also the happiest). Our problem is that the ultra-rich have transferred $50 trillion from the middle class to them since 1980. We have the ability to work less and enjoy life more.
EXACTLY!!! I agree. And yes the Scandinavian countries are the happiest and they are richer too, so that's a great example though my friend in Finland reminded me last week "yes but it's cold as F" LOL
I love living in my favorite state-Colorado (grew up here) HOWEVER, I've lived abroad and the cost is significantly less and America is STRESSFUL compared to living in other Western countries. To a degree that is shocking. People are so used to it that they are unable to hear what people are saying when we share critiques of the country. Looking forward to the following posts.
Hi Michelle! Thank you so much for your comment!!! I LOVE Colorado!!! I would live in Durango if I moved there :) But yes you're right, America is stressful!!! So much so!!! In Portugal (and Spain and many other countries), work is a byproduct, not anyones main goal or priority. Here people say "calma, let's take a coffee" and stop working.
And yes, some people have a hard time looking at the flaws of their country, absolutely!
Thank you so much for following along and I look forward to hearing more of your thoughts!!
Durango is lovely. I think the other thing about Colorado is that it has been ranked as the #1 state for work/life balance. Making it hard to move anywhere else in the US (I’ve visited 46 states) So, if I’m able to go hiking, camping and live a pretty nice life and STILL find American stressful AF…it’s stressful. But, you’re talking to a lot of people who have no context for living or visiting abroad because US policy is designed in a way to keep us from travel. That comment is for another post on another day.
Ahhh very good points Michelle!! And I love that you've visited 46 states and still prefer Colorado the most! BUT--the US is just stressful, you're right, no matter how we cut it :( I think finding life/work balance in the US is very challenging. You also made a great point about talking to people who have no experience (or context) when it comes to living abroad. Though I have to add, that while I was well traveled before I moved to Europe, I hadn't lived abroad either but it was in my mind (and heart) because my sister lived in Paris for 20 years. I wish more people could experience how amazing life can be outside of the US!!!
Hi, Kimberly, I agree. I left Los Angeles in 2020 at the tail-end of the pandemic when the first European country opened back up. It was Spain on July 1st, 2020. I’m luck enough that, as a screenwriter, I work mostly online. I’ve had the best seafood in places like the South of France, Spain and Portugal. I went back to LA a year and a half ago to renew my passport (I ordered the double-sized one). I was staying at a hotel at the Santa Monica pier and went to a popular seafood restaurant. It was expensive and the food was nowhere as good or as fresh as Europe. I try to tell people in the U.S. how cheap it is in Europe. And how carefree the lifestyle is. I’m currently on Crete. Since it’s off season, I rented a studio apartment two blocks from the beach for $600 a month. When I decided to stay a second month, my landlady gave it to me for $350 for the month. In a few weeks, I plan to go back to Budva, Montenegro for three months and then spend the summer in Marseille. I fell in love with France and will probably eventually get residence there. I could never go back to living in America.
Hi Carlton!!! Thank you soooo much for your comment!!!! I LOVE Crete!!! Are you in Heraklion or Chania? That's a great price for an apartment, even before the almost 50% discount, WOWOWWWW. I was there last May and even then it was incredibly reasonable. I think Crete is extremely underrated.
Yes I agree re: the food in the states vs. the food in Europe. And you're right, people in the States don't really understand the quality and price differences. Although there is a lot of food I can't get in Portugal (like Ethiopian specifically) and I do miss that.
Oooo I'd love to hear what you think of Budva!! Montenegro is high on my list. I am super looking forward to the time when I can finally travel full-time again!
Marseille, that's great to hear! My sister lives in France and does not have good things to say about Marseille but she's looking close to that area for her permanent place. I think she's done with cities after living in Paris for 20 years.
France is wonderful!!!
So it sounds like you're currently doing the Schengen Shuffle, is that correct?
I'm so glad to hear you're done with America. I mean... in one way it's heartbreaking because there is a lot of beauty there but... well, the rest doesn't need to be said.
I’m 15 minutes outside of Heraklion. I was in Montenegro. I spent last September in Tivat snorkeling for a month. Then in October, after all the tourists left, I went to Budva for a month. I would have stayed longer, but my Mac was having problems and they don’t have Apple stores. So I went to Manchester.
When I was in Quarteira, Portugal, they seemed to have different types of food. They just didn’t have fast food franchises (which I loved). I don’t know about Ethiopian.
Marseille is a little earthy. But I love it. I also love Paris. But their traffic is ridiculous. Your sister would probably like the smaller areas, right outside of Marseille.
Yup, Schengen shuffle. Although, I have a potential script sale getting close in LA. If that goes through, I would probably get residency in France. I want to base a production company there.
Yeah, people I know in LA are always stressed. I was when I lived there. Bills, bills, bills.
Now I’ve adopted the European lifestyle. Except, when I’m sitting in a cafe or pub I’m on my laptop doing work.
Carlton, first of all, break a leg on your script sale! That's awesome :) I worked as a TV producer, director, writer for 15 years and have my undergraduate degree in screenwriting. My sister worked in the film industry in Paris doing ADR and her husband is an amazing sound producer who worked with Tarantino. It's a crazy industry, that's for sure. But I have my fingers, toes and eyes crossed for your script sale!
15 minutes outside of Heraklion sounds perfect. Did you rent a car? I've heard, especially for long term living that a car is essential on Crete but those roads!! Yikes.
Your travel adventures sound wonderful. Montenegro is high on my list as are other places in the Balkans. I want to see if I can drive there from here and stay for 6 months at some point. In another few years I qualify for my EU passport.
There may not have been fast food franchises in Quarteira but there are many in Porto and Lisbon :( And I have quite a few friends here (Portuguese and Brazilian) who love them :(
My sister decided on a town near Séte which is close to Montpellier. But it's not Séte. I forget the exact name now. I am looking forward to her move!
I hope you can get your residency in France. I know that for some, the Schengen Shuffle can take a toll but I know someone who did it for 10 years. She too is buying property in France now but recently got her Italian passport.
I'm so happy to hear you've adopted the European lifestyle now! I still struggle at time after living abroad for 2.5 years, especially being an LA native but I'm getting there :)
Oh I see you're planning on Budva again next. I will bookmark that on the map as I don't know much about it.
Do you stay in airbnbs or do something else for rental properties?
Thanks, Kimberly. It's just a little indie action film. But the director's a friend of mine and has the connections to the companies and talent (he already has an interested company and the actor he's going to talk to about starring in it is someone he has worked with many times). I just want a reason to go to Thailand.
That's amazing about your sister and her husband being in the industry Tarantino has made some interesting films.
I have a film that I want to direct in France. It's an arthouse horror film about possession and addiction, set in London, but I want to film mostly in France (much of it takes place in an underground bomb shelter). I'm going to do investigation regarding what I would need to shoot in France. The script is out to investors now. The budget will be tiny. Which is what I want. Once you get over a certain budget level, it becomes about chasing actors. I want it to be very experimental. So if they have some tips on filming in France, I'd love to hear them. I plan to start a production company there as well.
Two years ago I spent Christmas time in Sanary-sur-Mer, France. It was so festive and beautiful. I'll get around to posting some photos.
I love Europe. As a Black person (with some Native blood), I've never once feared running into the wrong cop here. Even in Romania and the UK.
I'm booking my flights tomorrow for Budva. I usually start out in Airbnbs. But when you stay for three months like I do, after the first month I can usually make different deals. I do want to try some of the other types of rental services.
Anyway, in addition to my fiction, I'll be posting about my misadventures. I've had some strange ones.
An indie action film sounds AMAZING! I am a big fan of both indie films AND action films! And it's to be shot in Thailand, YES!
Yes, it's a small world (the film world!). I don't know anything about shooting in France but I can put you in contact with my sister!! I'm sure that her and her husband would also be interested in the production company you want to start there.
I also understand a bit about big-budget movies as I did study film and my actual undergrad degree is in film production and screenwriting. I always wanted to shoot indies but it was back in the day of film and working with 16mm, LOL so it was prohibitively expensive.
I don't know where Sanary-sur-Mer is but I love the name! I'm going to look it up after I finish this comment to you :)
It's very helpful hearing your experience of traveling in Europe as a Black person. I have a couple of clients (I'm helping people move abroad atm) who are Black and they've asked this question. I obviously can't speak to any personal experiences in this area but have traveling Black and Brown friends who I can talk to. It's obviously a very important topic, especially for people coming from the US where there is so much hate and inherent racism.
Awesome about the recommendations. I don’t really like Airbnb for many reasons. I just booked my place in Budva this morning. But I will definitely look at these alternates. Thanks, Kimberly.
Most people out here don’t realize I’m American. Then once they’ve seen me in a cafe for a few weeks writing everyday, they’ll start talking to me and suddenly go, “Wait, you’re American?” For any of the people of color you are helping who are interested in moving to Europe I can tell them there is way less racism than in America.
I also don’t exude that entitled I’m an American attitude. I’ve seen other Americans out in Europe acting that way. I also stay away from tourists areas.
A lot of Black people are moving to Portugal. It’s a great place. Originally, that’s where I was thinking. Then I fell in love with French women—actually the French zest for life in general. But also French women.
That’s where the location is currently set. And I know there are financial incentives for producers to shoot in Thailand. So that was one of the reasons I set it there.
I would love to connect with them. When I was in Paris, a professor there went with me to the Military Archives, where I made copies of Josephine Baker’s work as a spy for the French Resistance during WWII. Later I tracked down a 1947 out-of-print manuscript about her exploits, written by her spy handler. I plan to write a stage play about her experiences during the war this summer when I’m in France. I need the manuscript translated. Unless I’m filming, that’s how I plan to spend the summer. I want it to have the feel of Casablanca (one of my favorite films, which was originally a play).
Big budget movies need big stars. But even in indie films if they’re in the low millions (2 to 5) you have to chase names for the distributors. My budget will be a fraction of that. I’m not chasing names. Just good actors.
As an American who has lived in Scotland for 45 years, I agree with everything you've written. And I adore Portugal. Is interesting that Americans who visited me 20 years ago used to remark on the high prices in Scotland, especially of food. Now they remark on how cheap things are. I wrote a somewhat similar piece here: https://gerarddegroot.substack.com/p/american-exodus?r=53ymjv
Hi Gerard!!! Thank you much for your comment and sharing your article, I re-stacked it and subscribed to you!!! ☺️ Scotland!!!! I have yet to visit but I hear wonderful things, though a Portuguese friend who lived there complained of the cold. But you're right, while inflation is rising at an exponential rate (not really, an exaggeration but...) other places that were deemed unaffordable in the past like Scotland, England and France (well maybe not London LOL) are becoming more affordable. Though still not Scandinavia... 😳
Thanks so much. No, we're a long way from Scandinavia being affordable. We have a house in Catalonia, so we get a lot of exposure to the affordable delights of the Iberian peninsula. I adore Portugal. Will be visiting the area around Evora later this year.
Oh that's awesome about having a place in Catalonia (to escape the cold in Scotland when you need to)!! I haven't been to Evora yet, I'd love to know what you think!!! It's on my list :)
I haven't been to the Alentejo for years but have very fond memories. When I went about 40 years ago there were still donkey carts on the highways. I suppose that's changed but the whole area had a lovely rural quality.
Left during Trump I (after 30 years in TN) and never looked back! Moved home to the UK and love the opportunity of vacationing in Europe and the British Isles. If not for family, id never set foot in US again - considering giving up Citizenship, but might cause too many issues in the current climate, besides I begrudge a dime going to this regime!
Hi Nichola, I'm so happy to hear that you were able to leave!!! If your original home is in the UK, giving up your US citizenship makes more sense. I don't have another citizenship at the moment and there's a lot of travel privilege with a US passport. I think with a UK passport too? I would consider it too though, after I get my Portuguese passport.
As you probably already know, renouncing is expensive and gets more so as you get older and accumulate wealth. I wish I'd done it thirty years ago. If I did it now I'd have to give up a large chunk of the money I've saved for retirement.
Yes, there's a wealth tax if you renounce, a certain percentage of your net wealth. Though I think there might be a threshold under which you don't get taxed. So, it's best to do it when you're young and not yet filthy rich! 😉
If you want to renounce your U.S. citizenship, you may be subject to an exit tax (officially called the "Mark-to-Market Tax") under the U.S. Internal Revenue Code (IRC) Section 877A. This tax applies to individuals who meet certain thresholds. Here's the breakdown of how it works and the minimums that determine whether you owe:
1. Exit Tax Overview
The exit tax is essentially a tax on the "deemed sale" of all your worldwide assets as if you had sold them on the day before you renounce your citizenship. Any unrealized gains over a certain threshold are subject to U.S. capital gains tax.
2. Who Is Subject to the Exit Tax?
You're considered a "covered expatriate" and subject to the exit tax if ANY of the following apply:
Net Worth Test:
Your total net worth is $2 million or more on the date of expatriation.
Average Annual Tax Liability Test:
Your average annual U.S. federal income tax liability over the last five years exceeds $190,000 (for 2023; this amount is adjusted annually for inflation).
Compliance Test:
You fail to certify on IRS Form 8854 that you have been tax compliant for the five years prior to renouncing.
3. Wealth Tax (Exit Tax) Calculation
If you are a covered expatriate, the IRS considers you to have sold all your worldwide assets at their fair market value on the day before expatriation.
The tax applies to any unrealized gains above a $821,000 exclusion (for 2023; this amount adjusts for inflation each year).
Example:
Your worldwide assets have unrealized gains of $1,500,000.
Subtract the exclusion of $821,000.
Taxable gains = $1,500,000 - $821,000 = $679,000.
Apply the applicable long-term capital gains tax rate (e.g., 20%) on the $679,000.
4. How to Avoid the Exit Tax
You won’t be subject to the exit tax if you do not meet any of the "covered expatriate" criteria listed above. For example:
If your net worth is less than $2 million, and
If your average annual tax liability over the last 5 years is below $190,000 (in 2023), and
If you are fully tax compliant for the past 5 years.
In other words, the minimum net worth to avoid the exit tax is less than $2 million, provided you also meet the other tests.
5. Special Exceptions
Some individuals are exempt from the "covered expatriate" rules, such as:
Dual Citizens at Birth: If you were a dual citizen at birth and meet specific residency and compliance criteria, you may avoid the exit tax.
Minors: If you renounce before turning 18½ and meet certain residency requirements.
6. Key Documents
Form 8854: This form must be filed to determine whether you're a "covered expatriate" and to calculate any exit tax owed.
Form DS-4079: Used during the renunciation process to determine your citizenship status.
Conclusion
To avoid the exit tax, ensure your net worth is below $2 million, your average annual tax liability is under $190,000, and you comply with all tax filing obligations for the last 5 years. If you exceed the thresholds, carefully calculate the potential exit tax with professional advice, as the consequences can be significant.
Travelled fulltime for 3 years 60 countries later, having lived in 5 of them, I still chose to return to the US to ground for a couple years. Everywhere has its challenges, most people should live in other countries for the experience and reference point, not just Americans.
Wow! That sounds like fast-travel, yes? 60 countries in 3 years!!?? I agree that every place has its challenges and yes, I also agree that people should experience other countries :) thank you so much for your comment!!!
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.
Hi Robert, thank you so much for sharing this information and thank you @Readbannedbooks for asking!!
€3-€3500 a YEAR is AMAZING! I was paying over 3x that per MONTH in the US! Energy costs fluctuate here too. But I changed from the main carrier to a different one last year and my bill dropped by 30%!!!! I couldn't do that in the US, it was PG&E or bust. And every year they turned off all our power for a WEEK, in October, when it was cold and we had no say or choice and they did it only to cover their a$$es. Talk about third world tactics! That would NEVER happen here!
I also think that's incredibly reasonable for telecommunications! My wifi alone in the US was $130 a month. My phone was also $130/month until I switched to "Visible" (best move ever). Here my telecommunications is about €70 total for my phone (unlimited), my wifi (also 500mbps) and my TV subs (Prime and Netflix).
And yes housing is still very affordable in Spain, especially in Galicia whereas they've become unaffordable here in Portugal :( just in the past 2 years.
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!!!
It's weird to me that ppl think Italy is expensive. Perhaps it is in heavily touristed places? I tend not to go to places that Americans go in Italy, so everywhere I've been is so inexpensive compared to the US.
Yeah, I'm sure they're in the heavily touristed places, like Venice but then again, Venice is still much less expensive than San Francisco! The last time I was there I looked for rentals and was surprised that they were affordable. Highish, but still less than what I was paying in SF. I found Parma and Padua quite affordable but Cinque Terre was a different beast. So I agree, it depends on where you're going. The Amalfi Coast or Abruzzo? Ahhhhh Italy!!!! 🥰🥰🥰🥰
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.
That’s a lot of moving around! I mean, I’ve moved to Europe over 20 years ago and originally was with a job, which means I had a residency permit. And now I’m a citizen.
Although you can’t technically scuttle around in the Schengen area… You have to actually leave the Shingen area. I understand the rules are the most you can stay in Schengen is 90 days every six months. And then you have to leave, and then you need to come back.
And I know this was I had a friend who was married to an American, the American was an independent owner want to move here, and he would travel back-and-forth. So then he finally made it through the hurdle to apply for his residency permit, and they took out his passport and counted days is how many days he was in Schengen. He was in for 88, and he had to leave the country in an emergency because otherwise his residency application would’ve been screwed.
As for the tax implication, honestly, the tax implications, not the biggest problem. And yes, depending on what changes to the tax code happens, you will end up paying. That’s happened to me many times.
The issue is banking discrimination as an American. You cannot access the same mortgages, you cannot access the same investment vehicles, you cannot access a lot of financial tools because of the passport.
However, when I read your tips and tricks above, it’s about how to live abroad without establishing a permanent residency. And that’s a really hard life to live because there’s a lot of moving around. Sure you won’t get caught up in the net of the US tax issue, because you’re not gonna be earning enough, and obviously the banking discrimination doesn’t really mean anything to someone who has nomad.
And for those of us who are truly resident of the countries we live in, and have American passports? This has been a pardon, my French fucking nightmare. It is so difficult it cuts money out of your everyday budget, between taxes and accountants, and the banking discrimination we get… Including the inability to deduct any 401(k) or Social Security taxes we pay in our local countries From our US tax? It’s bullshit. We can’t save for retirement, and at times is hard to put food on the table. I had to hire a broker to buy a house… He went to 27 different banks and only two would except my nationality. For double the interest rate.
Finally, after 10 years in the making, there is a bill now that will be in the House In Senate to allow Americans to choose either a residency based tax scheme, people like me who live abroad like truly abroad with a residency permit… Or citizen base tax. And the nomads will have to do the citizen base tax because you can’t claim residency anywhere.
And I’ve been waiting for over a decade for this. And if it doesn’t go through, I will rescind my US nationality. I can’t continue like this.
So, in summary I was referring to if you want to stay in a country.
the nomadic life is for some people, but not for everyone
Especially if you have a family!
Hi, yes I do offer tips and tricks w/out establishing perm residency as some people do want to do that. I have a friend who's done the SShuffel for 10 years and loves it. And yes it's 90 days in out of every 180, but it's not as difficult or daunting as it may seem; depending on what type of person you are of course. There are even apps to help. I'm sorry to hear about your friend's husband!
I have residency in Portugal so I'm doing things differently.
Re: banking discrimination, I think it depends on where you are. I haven't had that problem here at all. I have a bank account and can access the financial tools available. I'm not sure where you were that you had problems.
Many people I know have purchased homes without issue.
I purchased a car. It took 15 minutes with zero negotiation whereas in the states it took me 5-7 hours each time and they ended up jacking up the price $10,000. Here, they lowered it.
I think the rules are a little different when your permanent resident. The banking discrimination ends up you having to pay a higher interest rate. And you cannot access local products, like investment vehicles that are similar to what would be a 401(k) or an IRA in the US.
We ex-pats have been fighting this for over 10 years.
We also are not able to get certain jobs in the financial industry either too much risk as all banks must report to the United States all information on US account holders
Oh I didn't understand "investment vehicles" and thought you meant cars used as investments!
I'm sorry for all the issues you've had to face. Hopefully it's better for you than the alternative of staying in the US.
I left the US over three decades ago intentionally. Haven’t been visited since 2010.
I assume you are still using you American bank account? Because from what I can tell, you are unable to open an account in the country you are residing without some sort of residency or visa. (the golden visas are all going away.)
Hi Jonelle, I do have a bank account in the US but I have many US expat friends here who don't. You can indeed open an account without residing in a country or having any kind of visa. In Portugal you just have to get your NIF which is easy enough and you can do it from the US and even open your account in Portugal from the US. I recommend using https://bordr.com -- I did all of this from the US before having anything here (no visa, etc.) and without ever stepping foot in Portugal once in my life. I'm sure you can do this with other countries too I just don't know the process but you can google it!
This is the kind of stuff I'll be consulting with you on when I get a bit more into the process. My being retired with social security income is what I'm hoping to depend on. And thinking if I find the trick into how to extend my stays that will be huge. I'm older, so if I have to move around a bit it won't be an issue. I'm not sure of the final destination so even packing up and moving between countries while deciding will be a big help!
Hi Patti! I'm glad to help. I'm super excited to hear you're even considering it!!!
My own personal approach to life is that it’s not where you are but who you’re with. I recently moved back to NYC from a new post-retirement life I was building in the Bay Area in order to be close to my grown kids as they are starting families. Being part of their lives has been the best choice I have ever made.
Each person sets their own priorities in life, of course, but articles like this seem to address only the perspective of those without children or grandchildren or who are not interested in playing much of a role in their lives. It seems odd how people extoll the virtues of living in foreign countries whose natives themselves place much value on being part of close-knit extended families. I certainly would save a lot of money by living in some other country but, to me, I would be poorer for it.
Hello and thank you for your comment. I partly agree with "it's not where you are but who you're with" though that does not work 100% for me as I'm they type of person who has to love where I am. And as for who I'm with, I don't have family (not for lack of trying) so I have a found family and I've found a much more loving and accepting community overseas than I found in the US.
Of course every person sets their own priorities in life and this article (and articles like mine) are based on our (the author's) personal experiences. Again, I don't have a family, and had to make/find one, which I did.
I have quite a few full time digital nomad and expat friends from the US who live overseas and they have kids and grandkids. They visit them often and the most amazing thing, and maybe something you haven't considered, is their kids and grandkids get to experience other cultures and travel and constantly broaden their horizons. These experiences make people grow in unimaginable ways.
I'm a little surprised that someone, like yourself, who is happy to be living in the US and has no interest in moving would read my article but hopefully you do so to broaden your perspective as well. :)
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! ;)
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.
Hi again, I just had a wonderful conversation with an Egyptian woman about this (due to your comment) and she gave me a different perspective. She thinks there are several problems. 1. there's not not enough work in many countries. 2. immigrants are being hired to work for less.
I have a real life example of #2 and I will add a third issue which of course is that salaries need to increase.
Real life example: I knew of an aging person who was wealthy in the US. They wanted to stay and die in their home but needed a full-time caretaker. At the end he needed 4 live-in caretakers. He didn't want to pay an American salary so he hired immigrants from the Philippines and paid them each $1,000 a week to take care of him. For full time live-in caretaking 24/7, this is not a lot of money. If he hired an American, it probably would have cost him $4,000 a week instead of $4,000 a month (per person). I knew this man personally (and very well) and I knew his caretakers very well. While he was alive, they sent the money they earned back to their families. After he died, they moved back to the Philippines where they were now considered "rich" and bought houses and drove up the prices and cost of living in their country and community.
Again, I don't know what the solution is but I do know that this is a systemic problem that probably won't go away.
I think one solution could be for people to live in sustainable communities together, grow their own food, and use solar for energy. But how likely is that for the masses?
Hi, you're absolutely right and I had this same talk last night with a Portuguese friend here. First I have to say that all the people I know who have moved to Cambodia are not bringing in large sums of money and they're not earning American wages. Same with me in Portugal. I'm currently earning €6 an hour, whereas in the US I earned $250 an hour. I do know of people here (in Portugal) that are rich and have purchased $$$$ houses and flaunt their money and it pisses me off to no end.
But it really is a double-edged sword and it does feel like colonizing, you're right. I wish I knew the solution because the hard truth is that the poor (me and many people I'm friends with) in the US are being pushed out. I got priced out of my home state and country. As I just responded in another comment, the problem is higher up, with the rich/poor disparity. When I was growing up, a middle class still existed in the US, it no longer does. The rich are getting richer and the poor are just trying to survive. The middle class are now the poor.
As for moving elsewhere and bringing money, this too is a complicated issue. I've been told by friends in Cambodia that the Khmer say in one way it's very good because expats are helping. I've been told that here by more than a few Portuguese people as well. So there seems to be a fine line. Don't be too rich, don't throw your US money around?!
But I have to say that the exact same thing is happening in the US. People in California that inherited houses from their parents is one example. Their parents bought their houses for $25 or $50K and then when the kids inherited them, they were worth 3-5M. The kids sold, moved to another state, bought the most expensive house there for 1M and retired. I've heard this story a hundred times. In Seattle, in Portland, etc. The tech boom... another example. Kids made millions... Another example: in SF a slew of very wealthy Chinese came and purchased real estate. It drove up the cost of living there.
So, I guess what I'm saying is that I don't think the main problem is with you or me, I think it's with the rich. But what's the solution?
Yes! Thank you for addressing this! It’s so complicated and I really appreciate your perspective.
Hi! It IS complicated!! Last night a Portuguese friend said the same thing a Ukrainian friend said to me today: from their perspective here (and elsewhere) is that the locals are buying up housing and turning them into airbnbs or hostels or renting them at a higher cost to immigrants that have more money. This is super contributing to the housing crises and high prices. Housing costs have doubled in 2 years and I was told that's from doubling 2 years before that. So basically a one bedroom was $300 a month (on average) to rent 4 years ago and it's now $1200+. Since the Portuguese salary is $900 a month, people can't afford housing here.
Please, bear in mind that the 870 € salary is the «minimum wage» (2025). The average PT wage rose to €1602 in 2024 (O salário médio total em Portugal subiu para 1602 euros em 2024.) And only 21% of all workers get the minimum wage (Cerca de 21% dos trabalhadores recebe o salário mínimo nacional.), all other receive more. So, apart from a great resourcefulness of the PT people when it comes to earn money, get (welfare) assistance, find a second jobs or get paid in undeclared ways, I would say that: yes, wages (comparing to Europe, EU and many other countries) are low; yes, younger, qualified generations emmigrate for money reasons, and yes, property owners (both PT and foreign) all try to make the highest amount of money with their own properties - especially renting/selling to (rich) foreigners. Two more (important) things on housing: 1 - 73,2% of PT families own the house they live in (73,2% das famílias portuguesas são proprietárias de imóveis), which is a huge % of all houses available. Many have a 2nd home (17% dos Portugueses são proprietários de uma segunda habitação), and 2 - You wouldn't believe the quantity of houses bought/sold that never reach the public estate market - it's is done among neighbours, acquaintances, friends, and other types of contacts.
We would love to relocate to Europe, but the issue is accessing our money. With the current political climate in the United States, we don’t feel leaving our money in a US bank is safe. And unfortunately, trying to open a bank account in another country is extremely complicated.
Hi Jonelle, getting a bank account in Portugal is relatively easy and you don’t have to live here to get one or fund it!! I see that @Aesthetic Nomads responded as well with a lot of great information!!
I think that you can open an bank account everywhere in the EU once you are officially registered in a EU country. It's part of the intra-community free transfer of goods, services, and people.
The process of opening a bank account may differ from country to country. Germany is probably rather laborious. Scandinavia is easy. If you want to avoid a lot of hassle, there's always the neobanks. I would recommend N26 (German) as a bank. For transfers between the US and Europe, use Wise.
If you're talking about substantial amounts of money ($M), Luxemburg and Swiss banks will bend over backwards...
Indeed there's a bit of an issue with democracy in the US 🤔. But strangely enough, a lot of people we talk to in the internationally business community are actually quite bullish about Trump economically, also in Europe. They would like someone in Europe to shake things up a bit as well, create growth, and reassure that people who work get rewarded.
IMO the tax issue is the one you should be looking at. Marginal tax rates of up to 57% (BE) combined with sales tax of up to 27% (HU) is not exactly what you are used to in the US. That's the European side. I hear from quite a few Americans friends that they need to be very careful to avoid the IRS slapping US taxes on top of this.
Maybe this helps.
Hi Reinhilde and Hans, thank you so much for all this fantastic information!!! You are a wealth of knowledge!!!
This is great about banking in Europe! I also added it's relatively easy to open an account in Portugal as well.
I can't keep my mouth shut re: trump so please forgive me... He is completely devastating the economy. People who say otherwise are misinformed. The only people who are (and will) benefit economically from his policies are the billionaires. Prices have risen drastically already (in just one month) because of his inane tariffs: https://www.reuters.com/markets/us/us-consumer-prices-increase-more-than-expected-january-2025-02-12/
Taxes are indeed an issue, and taxes in the US are based on your income bracket. The first time Trump took office my taxes skyrocketed as he raised the brackets for the middle class. It's a major reason why I was forced out of the US. Suddenly I was paying significantly more but earning the same amount. In California if you add the cost of income tax + state tax + sales tax, most people are paying 50% of their income to taxes. I was.
But you're saying that in Europe we pay 84% of our income in taxes? 57% + 27%. I don't see how people could possibly survive. I'm definitely not paying that in Europe but I'm also not familiar with the tax systems outside of Portugal. Taxes are higher here than in the US, yes--they're about 27% plus social security. But there's no state tax. And I assume you're referring to VAT as sales tax?
And if people are parking their money here but not living here, do taxes apply? Surely the billionaires have a way around this!
Anyway, it's a complicated issue for sure but I still believe it's doable!
Thank you again for all your valuable input!
Tax is a very complex matter in Europe, but indeed, in the worst case scenario, you pay deep into 70% taxes if you add VAT (sales tax) onto the top level of your income taxes.
Here's a good table of tax rates in Europe https://en.wikipedia.org/wiki/Tax_rates_in_Europe
Yes taxes are very complicated! Thank you so much for the link!!!!
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!
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!
💯 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 also moved from the USA to Costa Rica in 2000. At that time I built a nice house in the mountains with a beautiful view. It cost $60,000 with 5,000 meters of property. I also moved my small business here and have never had better workers.
But now costs are rising due in part to the influx of expats from the USA. My house now is worth about $500,000. So for anyone moving here it will be more expensive although there are less costly places in the country but like anything else the best places go first. Material and food costs have risen substantially.
Once you become a resident you are eligible for the national health care system and the cost is very cheap. I was treated for lymphoma here at zero cost and zero paperwork. It would have been $300,000 or more in the USA with tons of paperwork and worry about out of pocket costs and being out of network (what the hell is that all about?).
All products from the USA, including cars are expensive, usually about 50% more.
So it's not mecca but Costa Rica offers a superior lifestyle. I can drive from my house in the highest point in the country to the beach in 1 1/2 hours.
Hi Chris! Thank you so much for sharing your experiences of living in CR! 2000 was a great time to move there! When I was researching a CR move in the mid-2000's people were already complaining about the rising costs.
Sadly it's happening everywhere, especially in the US. People who inherited homes from their parents for example. The parents bought a home in San Jose for 30-50K, 20 years ago. The kids sell it for 3-5M, then move to Oregon or Washington or elsewhere, and purchase the most expensive house they can find for 1M, driving up the costs for everyone else who has lived there for their entire lives.
I've seen it happen quickly in Portugal. When I moved here, only 2 years ago, someone could buy a 2 bedroom apartment for $100K in Porto and now they're selling for over $300K. It's heartbreaking tbh. I am absolutely not telling people to move here because of the massive rise in prices for the Portuguese. It's not fair.
But as I always complain... it's not fair that I was out-priced and pushed out of my home state and country either.
I wish it wasn't true but it is. I watched as a lot of uber rich immigrants moved into SF and purchased all the expensive housing, driving up the prices. As the dot com bubble out-priced the rest of the citizens. As the uber rich Americans keep getting richer and pay no taxes and the middle class was abolished and my taxes doubled.
But healthcare is a huge priority, especially as we age and I love hearing that you were able to get treated for lymphoma for no cost or paperwork there!!
Some things here (in Portugal) are pricier too than they are in the US; as cars are there. But as you also said, you can't beat the lifestyle either!!
I wish I knew of a solution that worked for everyone, but I just don't. :(
Bottom line- too many people in the world.
I agree but when I mention this, people tell me that by not bringing even more humans into the world, the world economy will collapse. Is it really lose/lose?
That’s loser talk. We need to find a better economic model much like the Scandinavian countries (who are also the happiest). Our problem is that the ultra-rich have transferred $50 trillion from the middle class to them since 1980. We have the ability to work less and enjoy life more.
EXACTLY!!! I agree. And yes the Scandinavian countries are the happiest and they are richer too, so that's a great example though my friend in Finland reminded me last week "yes but it's cold as F" LOL
I love living in my favorite state-Colorado (grew up here) HOWEVER, I've lived abroad and the cost is significantly less and America is STRESSFUL compared to living in other Western countries. To a degree that is shocking. People are so used to it that they are unable to hear what people are saying when we share critiques of the country. Looking forward to the following posts.
Hi Michelle! Thank you so much for your comment!!! I LOVE Colorado!!! I would live in Durango if I moved there :) But yes you're right, America is stressful!!! So much so!!! In Portugal (and Spain and many other countries), work is a byproduct, not anyones main goal or priority. Here people say "calma, let's take a coffee" and stop working.
And yes, some people have a hard time looking at the flaws of their country, absolutely!
Thank you so much for following along and I look forward to hearing more of your thoughts!!
Durango is lovely. I think the other thing about Colorado is that it has been ranked as the #1 state for work/life balance. Making it hard to move anywhere else in the US (I’ve visited 46 states) So, if I’m able to go hiking, camping and live a pretty nice life and STILL find American stressful AF…it’s stressful. But, you’re talking to a lot of people who have no context for living or visiting abroad because US policy is designed in a way to keep us from travel. That comment is for another post on another day.
Ahhh very good points Michelle!! And I love that you've visited 46 states and still prefer Colorado the most! BUT--the US is just stressful, you're right, no matter how we cut it :( I think finding life/work balance in the US is very challenging. You also made a great point about talking to people who have no experience (or context) when it comes to living abroad. Though I have to add, that while I was well traveled before I moved to Europe, I hadn't lived abroad either but it was in my mind (and heart) because my sister lived in Paris for 20 years. I wish more people could experience how amazing life can be outside of the US!!!
I studied at the Sorbonne LOL! Paris is so nice to live in.
Oh wow! My sister studied there too!! Yeah, I love Paris as well but my sister did not. She's moving to the south of France now :)
Hi, Kimberly, I agree. I left Los Angeles in 2020 at the tail-end of the pandemic when the first European country opened back up. It was Spain on July 1st, 2020. I’m luck enough that, as a screenwriter, I work mostly online. I’ve had the best seafood in places like the South of France, Spain and Portugal. I went back to LA a year and a half ago to renew my passport (I ordered the double-sized one). I was staying at a hotel at the Santa Monica pier and went to a popular seafood restaurant. It was expensive and the food was nowhere as good or as fresh as Europe. I try to tell people in the U.S. how cheap it is in Europe. And how carefree the lifestyle is. I’m currently on Crete. Since it’s off season, I rented a studio apartment two blocks from the beach for $600 a month. When I decided to stay a second month, my landlady gave it to me for $350 for the month. In a few weeks, I plan to go back to Budva, Montenegro for three months and then spend the summer in Marseille. I fell in love with France and will probably eventually get residence there. I could never go back to living in America.
Hi Carlton!!! Thank you soooo much for your comment!!!! I LOVE Crete!!! Are you in Heraklion or Chania? That's a great price for an apartment, even before the almost 50% discount, WOWOWWWW. I was there last May and even then it was incredibly reasonable. I think Crete is extremely underrated.
Yes I agree re: the food in the states vs. the food in Europe. And you're right, people in the States don't really understand the quality and price differences. Although there is a lot of food I can't get in Portugal (like Ethiopian specifically) and I do miss that.
Oooo I'd love to hear what you think of Budva!! Montenegro is high on my list. I am super looking forward to the time when I can finally travel full-time again!
Marseille, that's great to hear! My sister lives in France and does not have good things to say about Marseille but she's looking close to that area for her permanent place. I think she's done with cities after living in Paris for 20 years.
France is wonderful!!!
So it sounds like you're currently doing the Schengen Shuffle, is that correct?
I'm so glad to hear you're done with America. I mean... in one way it's heartbreaking because there is a lot of beauty there but... well, the rest doesn't need to be said.
I’m 15 minutes outside of Heraklion. I was in Montenegro. I spent last September in Tivat snorkeling for a month. Then in October, after all the tourists left, I went to Budva for a month. I would have stayed longer, but my Mac was having problems and they don’t have Apple stores. So I went to Manchester.
When I was in Quarteira, Portugal, they seemed to have different types of food. They just didn’t have fast food franchises (which I loved). I don’t know about Ethiopian.
Marseille is a little earthy. But I love it. I also love Paris. But their traffic is ridiculous. Your sister would probably like the smaller areas, right outside of Marseille.
Yup, Schengen shuffle. Although, I have a potential script sale getting close in LA. If that goes through, I would probably get residency in France. I want to base a production company there.
Yeah, people I know in LA are always stressed. I was when I lived there. Bills, bills, bills.
Now I’ve adopted the European lifestyle. Except, when I’m sitting in a cafe or pub I’m on my laptop doing work.
Carlton, first of all, break a leg on your script sale! That's awesome :) I worked as a TV producer, director, writer for 15 years and have my undergraduate degree in screenwriting. My sister worked in the film industry in Paris doing ADR and her husband is an amazing sound producer who worked with Tarantino. It's a crazy industry, that's for sure. But I have my fingers, toes and eyes crossed for your script sale!
15 minutes outside of Heraklion sounds perfect. Did you rent a car? I've heard, especially for long term living that a car is essential on Crete but those roads!! Yikes.
Your travel adventures sound wonderful. Montenegro is high on my list as are other places in the Balkans. I want to see if I can drive there from here and stay for 6 months at some point. In another few years I qualify for my EU passport.
There may not have been fast food franchises in Quarteira but there are many in Porto and Lisbon :( And I have quite a few friends here (Portuguese and Brazilian) who love them :(
My sister decided on a town near Séte which is close to Montpellier. But it's not Séte. I forget the exact name now. I am looking forward to her move!
I hope you can get your residency in France. I know that for some, the Schengen Shuffle can take a toll but I know someone who did it for 10 years. She too is buying property in France now but recently got her Italian passport.
I'm so happy to hear you've adopted the European lifestyle now! I still struggle at time after living abroad for 2.5 years, especially being an LA native but I'm getting there :)
Oh I see you're planning on Budva again next. I will bookmark that on the map as I don't know much about it.
Do you stay in airbnbs or do something else for rental properties?
I'm excited for adventures!!!
Thanks, Kimberly. It's just a little indie action film. But the director's a friend of mine and has the connections to the companies and talent (he already has an interested company and the actor he's going to talk to about starring in it is someone he has worked with many times). I just want a reason to go to Thailand.
That's amazing about your sister and her husband being in the industry Tarantino has made some interesting films.
I have a film that I want to direct in France. It's an arthouse horror film about possession and addiction, set in London, but I want to film mostly in France (much of it takes place in an underground bomb shelter). I'm going to do investigation regarding what I would need to shoot in France. The script is out to investors now. The budget will be tiny. Which is what I want. Once you get over a certain budget level, it becomes about chasing actors. I want it to be very experimental. So if they have some tips on filming in France, I'd love to hear them. I plan to start a production company there as well.
Two years ago I spent Christmas time in Sanary-sur-Mer, France. It was so festive and beautiful. I'll get around to posting some photos.
I love Europe. As a Black person (with some Native blood), I've never once feared running into the wrong cop here. Even in Romania and the UK.
I'm booking my flights tomorrow for Budva. I usually start out in Airbnbs. But when you stay for three months like I do, after the first month I can usually make different deals. I do want to try some of the other types of rental services.
Anyway, in addition to my fiction, I'll be posting about my misadventures. I've had some strange ones.
Hi Carlton!
An indie action film sounds AMAZING! I am a big fan of both indie films AND action films! And it's to be shot in Thailand, YES!
Yes, it's a small world (the film world!). I don't know anything about shooting in France but I can put you in contact with my sister!! I'm sure that her and her husband would also be interested in the production company you want to start there.
I also understand a bit about big-budget movies as I did study film and my actual undergrad degree is in film production and screenwriting. I always wanted to shoot indies but it was back in the day of film and working with 16mm, LOL so it was prohibitively expensive.
I don't know where Sanary-sur-Mer is but I love the name! I'm going to look it up after I finish this comment to you :)
It's very helpful hearing your experience of traveling in Europe as a Black person. I have a couple of clients (I'm helping people move abroad atm) who are Black and they've asked this question. I obviously can't speak to any personal experiences in this area but have traveling Black and Brown friends who I can talk to. It's obviously a very important topic, especially for people coming from the US where there is so much hate and inherent racism.
Thank you for sharing a little of your booking process. I wanted to recommend my friend Nora's post for booking alternatives to airbnb: https://www.theprofessionalhobo.com/how-to-book-monthly-digital-nomad-accommodation-alternatives-to-airbnb/?fbclid=IwAR08-2T75jIjFsWhuG0Ogaxyk6IwKQs8_p8AmbQ9dDLUEJz_E2l-s705JOk_aem_AcJBA2vAIruajtA9eAtGPs5bjznqVZ47KBa10zdxoEuCMXn9hC9jZW-dpqLeT8ijU5Q
And also Chris at RemoteBase, a free newsletter with airbnb deals.
I look forward to reading about your misadventures!!
I love the name Professional Hobo. I call myself a hobo.
Why does the name Nora Dunn sound familiar? I have to work on my screenplay now. But I will definitely look at her site further.
Awesome about the recommendations. I don’t really like Airbnb for many reasons. I just booked my place in Budva this morning. But I will definitely look at these alternates. Thanks, Kimberly.
Sanary is beautiful at Christmas time.
Most people out here don’t realize I’m American. Then once they’ve seen me in a cafe for a few weeks writing everyday, they’ll start talking to me and suddenly go, “Wait, you’re American?” For any of the people of color you are helping who are interested in moving to Europe I can tell them there is way less racism than in America.
I also don’t exude that entitled I’m an American attitude. I’ve seen other Americans out in Europe acting that way. I also stay away from tourists areas.
A lot of Black people are moving to Portugal. It’s a great place. Originally, that’s where I was thinking. Then I fell in love with French women—actually the French zest for life in general. But also French women.
That’s where the location is currently set. And I know there are financial incentives for producers to shoot in Thailand. So that was one of the reasons I set it there.
I would love to connect with them. When I was in Paris, a professor there went with me to the Military Archives, where I made copies of Josephine Baker’s work as a spy for the French Resistance during WWII. Later I tracked down a 1947 out-of-print manuscript about her exploits, written by her spy handler. I plan to write a stage play about her experiences during the war this summer when I’m in France. I need the manuscript translated. Unless I’m filming, that’s how I plan to spend the summer. I want it to have the feel of Casablanca (one of my favorite films, which was originally a play).
Big budget movies need big stars. But even in indie films if they’re in the low millions (2 to 5) you have to chase names for the distributors. My budget will be a fraction of that. I’m not chasing names. Just good actors.
Thanks, Kimberly. I was hoping they would be ready to move forward before I left Crete. That’s a lot of flying, even for me 😂
As an American who has lived in Scotland for 45 years, I agree with everything you've written. And I adore Portugal. Is interesting that Americans who visited me 20 years ago used to remark on the high prices in Scotland, especially of food. Now they remark on how cheap things are. I wrote a somewhat similar piece here: https://gerarddegroot.substack.com/p/american-exodus?r=53ymjv
Ohhh I just started actually reading your article, I'm SO SORRY to hear what happened to your niece!!!! I hope she heals soon!!!!
Hi Gerard!!! Thank you much for your comment and sharing your article, I re-stacked it and subscribed to you!!! ☺️ Scotland!!!! I have yet to visit but I hear wonderful things, though a Portuguese friend who lived there complained of the cold. But you're right, while inflation is rising at an exponential rate (not really, an exaggeration but...) other places that were deemed unaffordable in the past like Scotland, England and France (well maybe not London LOL) are becoming more affordable. Though still not Scandinavia... 😳
Thanks so much. No, we're a long way from Scandinavia being affordable. We have a house in Catalonia, so we get a lot of exposure to the affordable delights of the Iberian peninsula. I adore Portugal. Will be visiting the area around Evora later this year.
Oh that's awesome about having a place in Catalonia (to escape the cold in Scotland when you need to)!! I haven't been to Evora yet, I'd love to know what you think!!! It's on my list :)
I haven't been to the Alentejo for years but have very fond memories. When I went about 40 years ago there were still donkey carts on the highways. I suppose that's changed but the whole area had a lovely rural quality.
No donkey carts now!!!!
Left during Trump I (after 30 years in TN) and never looked back! Moved home to the UK and love the opportunity of vacationing in Europe and the British Isles. If not for family, id never set foot in US again - considering giving up Citizenship, but might cause too many issues in the current climate, besides I begrudge a dime going to this regime!
Hi Nichola, I'm so happy to hear that you were able to leave!!! If your original home is in the UK, giving up your US citizenship makes more sense. I don't have another citizenship at the moment and there's a lot of travel privilege with a US passport. I think with a UK passport too? I would consider it too though, after I get my Portuguese passport.
As you probably already know, renouncing is expensive and gets more so as you get older and accumulate wealth. I wish I'd done it thirty years ago. If I did it now I'd have to give up a large chunk of the money I've saved for retirement.
I did not know this Gerard, I haven't looked into it at all. Wow, they really don't make it easy :(
Yes, there's a wealth tax if you renounce, a certain percentage of your net wealth. Though I think there might be a threshold under which you don't get taxed. So, it's best to do it when you're young and not yet filthy rich! 😉
Oh FFS!!! That's ridiculous!!! Though, I wouldn't mind being filthy rich!!! 😅
ChatGPT says:
If you want to renounce your U.S. citizenship, you may be subject to an exit tax (officially called the "Mark-to-Market Tax") under the U.S. Internal Revenue Code (IRC) Section 877A. This tax applies to individuals who meet certain thresholds. Here's the breakdown of how it works and the minimums that determine whether you owe:
1. Exit Tax Overview
The exit tax is essentially a tax on the "deemed sale" of all your worldwide assets as if you had sold them on the day before you renounce your citizenship. Any unrealized gains over a certain threshold are subject to U.S. capital gains tax.
2. Who Is Subject to the Exit Tax?
You're considered a "covered expatriate" and subject to the exit tax if ANY of the following apply:
Net Worth Test:
Your total net worth is $2 million or more on the date of expatriation.
Average Annual Tax Liability Test:
Your average annual U.S. federal income tax liability over the last five years exceeds $190,000 (for 2023; this amount is adjusted annually for inflation).
Compliance Test:
You fail to certify on IRS Form 8854 that you have been tax compliant for the five years prior to renouncing.
3. Wealth Tax (Exit Tax) Calculation
If you are a covered expatriate, the IRS considers you to have sold all your worldwide assets at their fair market value on the day before expatriation.
The tax applies to any unrealized gains above a $821,000 exclusion (for 2023; this amount adjusts for inflation each year).
Example:
Your worldwide assets have unrealized gains of $1,500,000.
Subtract the exclusion of $821,000.
Taxable gains = $1,500,000 - $821,000 = $679,000.
Apply the applicable long-term capital gains tax rate (e.g., 20%) on the $679,000.
4. How to Avoid the Exit Tax
You won’t be subject to the exit tax if you do not meet any of the "covered expatriate" criteria listed above. For example:
If your net worth is less than $2 million, and
If your average annual tax liability over the last 5 years is below $190,000 (in 2023), and
If you are fully tax compliant for the past 5 years.
In other words, the minimum net worth to avoid the exit tax is less than $2 million, provided you also meet the other tests.
5. Special Exceptions
Some individuals are exempt from the "covered expatriate" rules, such as:
Dual Citizens at Birth: If you were a dual citizen at birth and meet specific residency and compliance criteria, you may avoid the exit tax.
Minors: If you renounce before turning 18½ and meet certain residency requirements.
6. Key Documents
Form 8854: This form must be filed to determine whether you're a "covered expatriate" and to calculate any exit tax owed.
Form DS-4079: Used during the renunciation process to determine your citizenship status.
Conclusion
To avoid the exit tax, ensure your net worth is below $2 million, your average annual tax liability is under $190,000, and you comply with all tax filing obligations for the last 5 years. If you exceed the thresholds, carefully calculate the potential exit tax with professional advice, as the consequences can be significant.
I wish more people would talk about what they DO that allows them to go to these places. Visas are a thing.
Hi Bekah, I talk about visas and so do others :) Here's my visa resource page: https://expatonabudget.com/visas/
Travelled fulltime for 3 years 60 countries later, having lived in 5 of them, I still chose to return to the US to ground for a couple years. Everywhere has its challenges, most people should live in other countries for the experience and reference point, not just Americans.
Wow! That sounds like fast-travel, yes? 60 countries in 3 years!!?? I agree that every place has its challenges and yes, I also agree that people should experience other countries :) thank you so much for your comment!!!
Not not all 60 in 3 but in total, yes :) Grateful for the exchange. Loved Lisbon also.
That's wonderful!!! Yes Lisbon is a very special city :)