Home - Residency by investment - 9 Million Americans Have Moved Offshore: 5 Myths They’ve Dispelled So You Can Too

9 Million Americans Have Moved Offshore: 5 Myths They’ve Dispelled So You Can Too

Table of Contents

9 Million Americans Have Moved Offshore

Does the American Dream require living in America?

Over the last decade, Harvey Law Group has helped hundreds of Americans minimize their risk and move offshore. They’re happier, healthier, and feel more free abroad than at home in their native country.

In reality, moving abroad could mean a major reduction in tax, increased safety and security for your family, more affordable and better healthcare, and a higher quality of life. However, we still encounter many Americans who cling to untrue myths about life overseas.

Let’s bust five of the biggest myths about living overseas. I’ll shed light below on why living abroad may be the best decision you’ll ever make.

Myth 1 — “Moving Abroad Won’t Reduce Your Tax”

I hear this all the time: “Moving abroad does nothing for my tax burden because of the US’s citizenship-based taxation system.”

The United States is one of just a few countries that taxes its citizens no matter where they reside across the globe, no matter if they spend any time in the country. Plus, Foreign Account Tax Compliance Act (FATCA) and Report of Foreign Bank and Financial Accounts (FBAR) require US citizens and offshore banks to report back transactions, bank account funds, and other finance data to the Internal Revenue Service (IRS).

That doesn’t mean, however, that you can’t reduce your tax by living abroad and banking offshore.

Former President Trump has hinted toward ending citizenship-based taxation and moving the current taxation system toward a residency-based system. If he were to become president again and pass legislation to end this tax policy, you would be liable to file and pay taxes only if you make the United States your tax residency.

Even if this new policy does not become law of the land, Americans have options when it comes to tax optimization while they live abroad and bank offshore.

Tax Credits Available to Those Living Outside the Nation

Whether they own their own company, are an employee of their own business, or have a W2 job, US citizens have at their disposal a few creative tax planning tools if they live abroad. With options like the Foreign Earned Income Exclusion (FEIE), Foreign Housing Credit, foreign trusts, and double tax agreements, it is possible to reduce or even eliminate much of your tax liability.

For instance, the FEIE allows you to exclude a portion of your income (currently $126,500 per person or $253,000 if filing jointly in 2025) from US tax if you meet one of the following requirements:

  • You spend at least 330 full days during any consecutive 12-month period in a foreign country(ies).
  • You are a bona fide resident of a foreign country(ies) for a period that includes an entire tax year.

The Foreign Housing Credit can further help offset the cost of living abroad. Trusts in offshore accounts allow US citizens to eliminate their ownership of liquid assets but still exercise a certain amount of control over them.

The United States and IRS have double tax agreements with 66 other nations. These treaties mean that each dollar on which offshore investors are taxed will not be taxed twice in America and/or in their country of tax residency abroad.

Finally, owning a foreign company or companies may open up new possibilities for families to reduce their tax liability at home and abroad. Just as in the United States, owning a business in an ideal setup can be effective in optimizing your tax liability.

You can benefit from these exclusions and tax credits and opening offshore accounts and leveraging favorable local tax laws in another country. As you may imagine, this tax optimization strategy requires smart, careful offshore financial planning.

If you’ve been considering a move overseas, take the time to understand the potential tax benefits that come with it. It’s not all negative. With the right planning, an offshore lifestyle can offer the right investor significant opportunities to save on taxes.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Myth 2 — “Life Outside the US Is Too Dangerous”

Another common belief is that living outside the States means exposing yourself to more risk and less safe environments.

After all, isn’t the US the beacon of safety and stability? Not necessarily. 

And the last few years have shown us that this certainly isn’t the case. In each of America’s four largest states, homicide rates have increased in the last five years.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

The reality is that many nations are safer than certain parts of the United States. For instance, the European Union has far lower crime rates compared to average American cities.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Countries like Japan, Hong Kong, Singapore, and South Korea are also renowned for their safety and low crime rates. Even parts of Latin America, such as Uruguay, Costa Rica, and Argentina, are safer than most believe, especially for expats who prepare wisely and reside in more protected communities.

No wonder these countries have seen a precipitous increase in American expats choosing to reside in their nation.

American Cities Have Imploded

Since 2020, American urban areas have declined significantly, making some cities like San Francisco and Philadelphia feel like drug-filled warzones. Compare this environment to places like Portugal or Japan, where violent crime and drug abuse is rare, and you might realize that a move abroad could actually make your life more secure.

Living in a foreign country doesn’t have to mean living in fear. Most clients we’ve helped obtain residency or citizenship overseas or simply immigrate abroad have been shocked at how tranquil life in another country can be.

Depending on where you reside in America, the US may not be the safest place on Earth. The planet is chock-full of safe destinations where you can live peacefully and happily.

Myth 3 — “The American Healthcare System Is Earth’s Best”

While many Americans admit that healthcare in the US is expensive and inefficient, there’s still a widespread belief that it’s the best in the world. I don’t argue with this.

The idea, however, that high cost equals high quality does not always hold true.

The American Diet

As proven by recent studies and science around the American food supply, big pharma and big agriculture may not have US citizens’ best interests in mind. Funds aren’t allocated to help Americans lead healthier lives. Every day, more Americans wake up to the fact that these incentives aren’t aligned.

Take a trip to Italy and eat all the gluten-filled bread and pasta you can. Most note that you don’t feel as inflamed as you would if you ate the “same food” in the United States. There’s a reason for this.

Many of the chemicals we use in our agriculture and processing systems are banned in European Union member states like Ireland.

Offshore Healthcare and Medical Tourism

Many other countries offer competitive, high quality healthcare that may be far more affordable. France, Spain, and Germany have higher-ranked healthcare systems than that of the US by the World Health Organization, despite Americans’ and the federal government’s high expenditure on healthcare.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Even countries in Latin America, such as Costa Rica and Panama, provide private healthcare options that are significantly cheaper and often just as good as what you’d find back home. This is another reason why so many Americans visit these countries for medical tourism – for a more affordable and efficient procedure than in their home country.

For example, take the cost of common procedures. In the US, the average cost of an MRI is around US$1,100. In Japan, the same procedure costs about US$150. In Mexico, a doctor’s consultation may cost you US$50 or less – and they may come directly to your home to perform it!

The more Americans I talk to, the more I realize that the affordability and accessibility of healthcare abroad can be a game-changer for them. If you’re open to moving overseas, you could access high quality healthcare at a fraction of the cost, allowing you to dedicate those finances to more travel, fine dining, or whatever you please.

Before counting out a life abroad, understand how your health, among other things, may improve offshore.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Myth 4 — “Language Barriers Make Moving Offshore Too Difficult”

English has become the global business world’s default language. Because English is taught in almost every school and company worldwide, lingual barriers are no longer as much of a concern for Americans abroad as they used to be.

The idea of not being able to communicate effectively can seem like a tremendous obstacle. But, English is more widely spoken than you might think. The world now contains 1.4 billion English speakers. So, your knowledge of English may actually be more of a benefit abroad than a hindrance.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Especially in urban and tourist areas outside the US, English proficiency is high. Even in countries where English isn’t the official tongue, Americans can still get by or learn the local vocabulary in a matter of months.

Tech and AI Break Down Language Barriers

Technology has made it easy to overcome language barriers. Apps like Google Translate, language learning tools like Duolingo, and real-time voice translation platforms have made communication in a foreign land far less daunting.

Nevertheless, learning a few basic phrases in another language can go a long way in enriching your experience abroad, helping you navigate your new lifestyle (like finding a local apartment or passing through customs), and making you feel at home in your new destination.

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

Myth 5 — “A Life Overseas Is Isolating and Lonely”

Americans I talk to often think that living abroad means ditching their entire social network, friends, and family. 

This is far from the truth. It’s all about priorities.

During the pandemic, we saw a huge migration from high-tax US states like California and New York to low-tax states such as Texas and Florida. This pattern shows that Americans are willing to make significant lifestyle changes for a better quality of life and lower tax.

But why stop at the American South? Don’t let slightly more complex transportation get in the way of you living your ideal life offshore.

Every year, more US citizens are considering the slightly larger leap to the Caribbean, Latin America, or Southern Europe, where tax rates may be even more favorable and where their quality of life may see a huge uptick. Still, they’re within a single flight of their friends and family. 

Upon arriving in their new destination, they’re often surprised as to how many Americans are already there.

Offshore Life Is a More Connected Life

I see it time and time again. Especially in communities full of foreign expats like Mexico’s Riviera Maya, Portugal’s Algarve, or Bali in Indonesia, Americans can integrate quickly into the local culture to make new friends, meet other families on the same trajectory as they are, and share their worldview with people who can empathize with it.

In 2024, it’s easy to stay connected with your loved ones through video calls and social media. Additionally, I hear often that Americans’ disconnection from their social circle back home is actually healthy.

Moving offshore can be the complete opposite of isolation. Instead, it can be an opportunity to expand your social circle and create a larger, more successful network. That’s just the point.

Who knows what might result from a larger network. A new job? A new investment? A new support system?

9 Million Americans Have Moved Offshore: 5 Myths They'Ve Dispelled So You Can Too

So, I’m Interested!

The myths surrounding offshore tax, safety, healthcare, language barriers, and social isolation are just that: Myths.

Sure, you could invest in a fund; get a golden visa; move your small business, holding company, or set of established companies offshore; open a bank account; move your money offshore; open an office; and start life completely anew in a foreign land.

But, you also don’t have to take all those extra steps. If you work remotely or are retired, the extra leap to the Cayman Islands – instead of Florida – isn’t as scary as it may seem.

Start with just one destination and one month abroad each year. Ease your way into a more diversified, less risky life. Reduce your dependence on one single government and continue working your way toward a fully internationalized life.

This is your ticket to freedom on your terms. 

Want help to start and prepare your life in another country? Contact Harvey Law Group here. With licensed lawyers in more than 20 offices worldwide, we have the global reach and expertise you need to create a holistic global mobility plan.

Our attorneys can provide legal immigration support and help you apply for and obtain the correct visa, residency, or citizenship for your needs. We can’t wait to support you and help you save time in the search for a better lifestyle – in your home country and offshore.

ABOUT THE AUTHOR

Picture of Jean-François Harvey

Jean-François Harvey

Jean-François Harvey is recognized internationally as an expert in immigration law, and he brings a wealth of experience in providing comprehensive immigration law services to corporations and high net worth individuals.

Read the full bio

Table of Contents

Article Form Right Side

Request a price breakdown
and eligibility evaluation

Contact us

With over 30 years of immigration experience, each of Harvey Law Group’s lawyers carefully studies each client’s needs, resources and determines the immigration solution that best aligns with our client’s vision and values.

General Form Bottom