Editor's note: This guest post was originally published in 2013. Costs, visa options, banking realities, and expat conditions have all changed substantially. This updated version reflects the situation as of 2024–2025.
I am an American who has been living on the other side of the planet for several years, and I am very happy here. It is not perfect — nowhere is — but the authorities leave me largely alone, my cost of living is manageable, and I live with considerably less stress than I did in the United States. As long as I keep current with the local government's visa requirements and comply with the long reach of the IRS, no one bothers me much.
I left. And I have no plans to return.
Most aware Americans now recognise that the version of comfortable middle-class life that their parents achieved — the appreciating home, the reliable retirement fund, the sense that things would broadly get easier — is no longer automatic. Many are considering an exit. If you have decided — or are seriously considering — a life outside the US, your first task is to work out a realistic plan.
Will Leaving the US Actually Help?
If severe economic disruption were to hit the United States, its effects would be felt globally. But some countries would fare considerably better than others. Most Western European countries are closely linked to the US economy and would likely face comparable pressures. By contrast, many smaller countries in Latin America, Southeast Asia, and the Pacific have more localised economies and would be less directly exposed to the fallout from a major US financial shock.
In Chiang Mai, where I have been based, food is abundant and inexpensive — the climate supports year-round agriculture — and housing costs are low by almost any international standard. An American expat here with modest savings and a practical mindset can live comfortably on an income that would represent poverty in most US cities. This is not a theoretical assertion: tens of thousands of Western expats have done exactly this, and the infrastructure that supports them — from English-language medical care to reliable internet — has improved substantially since 2013.
The Financial Realities: What Things Actually Cost
This is where most pre-2015 expat guides have dated the most dramatically. Cost of living in Southeast Asia has risen meaningfully over the past decade, and the figures circulating in older guides are no longer accurate.
A comfortable life in Chiang Mai today costs approximately $1,500–$2,500 per month for a single person, or somewhat more for a couple. This assumes decent accommodation (a good one-bedroom apartment near Nimman Road runs 12,000–20,000 THB per month), regular restaurant meals including a mix of local and Western food, transport costs (a monthly Grab budget plus the occasional day trip), health insurance, utilities, and a modest entertainment budget.
Living more locally — eating Thai food at local restaurants, renting accommodation further from expat hubs, using public transport — can reduce this to $1,000–$1,500 per month. Living at the other end of the expat spectrum, in a serviced apartment with Western comforts and frequent travel, can easily reach $3,000–$4,000 per month. The range is wide because lifestyle choices drive costs more than the underlying price level of the country.
Thailand is no longer as dramatically cheap as it was in the early 2010s. Prices for Western food, imported goods, and accommodation in popular expat areas have risen substantially. The exchange rate has fluctuated. The cost advantage over living in a US city remains significant, but it is not as stark as the 2013 figures suggested, and prospective expats should adjust their expectations accordingly.
The Visa Landscape Has Changed Dramatically
One of the most significant structural changes for expats since 2013 has been the proliferation of digital nomad visas across Southeast Asia and beyond. Several countries now offer long-stay visa options specifically designed for remote workers and location-independent professionals:
- Thailand's LTR (Long-Term Resident) Visa: Introduced in 2022, this allows qualifying individuals — including remote workers with incomes of at least $80,000 USD per year — to obtain a 10-year stay permit with a streamlined visa process and a flat 17% personal income tax rate on Thai-sourced income.
- Malaysia's DE Rantau Nomad Pass: Malaysia launched its digital nomad visa in 2022, offering 12-month stays (renewable for a further 12 months) for remote workers earning at least $24,000 USD annually.
- Indonesia's Second Home Visa: A 5 or 10-year stay permit for foreign nationals with demonstrated financial capacity — a major development for Bali-based expats.
- Portugal's Digital Nomad Visa: Has attracted significant numbers of American expats seeking EU access and a European lifestyle.
- Georgia, Albania, and Croatia have also introduced options that are popular with Americans.
Malaysia's My Second Home (MM2H) programme — long a popular option for long-term expats — underwent significant eligibility changes in 2021 that raised income and deposit requirements substantially. The programme remains active but is now positioned toward higher net-worth applicants than it was a decade ago. Anyone who researched MM2H before 2021 should verify current requirements carefully, as the programme's terms differ substantially from what was available in 2013.
The US Tax Obligation: Nothing Has Changed
This is the single most important legal point any American abroad must understand — and unlike visa options or cost of living, this has not changed: the United States taxes its citizens on their worldwide income, regardless of where they live. This is one of only two countries in the world that operates citizenship-based taxation; the other is Eritrea.
The practical implication: as a US citizen living abroad, you are required to file a US tax return every year, report all foreign bank accounts (FBAR/FinCEN 114) if aggregate balances exceed $10,000 at any point during the year, and comply with FATCA reporting requirements for foreign financial assets above certain thresholds. Failure to comply carries severe penalties, and the IRS's enforcement of these rules has intensified significantly since FATCA came into full effect in 2014.
Most Americans abroad optimise their position through the Foreign Earned Income Exclusion (FEIE) — which allows you to exclude a set amount of foreign-earned income from US tax (the 2024 figure is $126,500) — and the Foreign Tax Credit. The interaction between these provisions, local tax treaties, and FATCA can be complex. A US-qualified tax professional who specialises in expatriate taxation is not a luxury; it is a necessity.
Banking has become a significant practical challenge. FATCA has made many foreign banks reluctant to take on US citizen clients, as the compliance burden of reporting to the IRS is considerable. Americans abroad frequently find it difficult to open bank accounts in their country of residence. Maintaining at least one well-funded US bank account (ideally at a bank with international reach, such as Charles Schwab, which refunds ATM fees globally) is advisable before departing. Fintech alternatives — Wise, Revolut, and others — have helped fill some of the gap, though they are not without their own limitations for US persons.
Healthcare Abroad
Healthcare quality and cost vary enormously by destination. In Thailand, private hospital care in major cities — Bangkok Hospital, Bumrungrad in Bangkok, Chiang Mai Ram in Chiang Mai — is genuinely excellent by international standards, at a fraction of what comparable care costs in the US. International health insurance with global coverage is widely available and, for most expats under 55, affordable. Policies from insurers such as Cigna Global, AXA, or Pacific Cross run from $1,500 to $4,000 per year depending on age, coverage level, and whether the US is included as a covered territory.
In more remote or less developed destinations, the calculus is different. Proximity to quality medical care — particularly for emergencies and serious illness — must be a serious factor in choosing where to settle. For older expats or those with ongoing medical needs, this consideration often narrows the field of viable destinations considerably.
Where to Go
The best destination depends on what you are leaving for and what you are moving toward. Southeast Asia — Thailand, Vietnam, Malaysia, and Indonesia — offers the most developed infrastructure for Western expats: established communities, good international schools if you have children, efficient healthcare, and a high quality of life at a cost advantage over most Western countries. Latin America — Mexico, Colombia, Ecuador, Panama, and Uruguay in particular — offers closer proximity to the US, cultural familiarity, and in some cases favourable residency terms. Portugal, Georgia, and Malta have emerged as popular European options, particularly since Portugal's non-habitual resident tax regime attracted considerable attention (though NHR has now changed in character).
The most important advice: visit before you commit. Spend at least two to three months in any destination before deciding to relocate. A place that is magical on holiday may feel very different after six months of daily life. The expats who are happiest abroad are those who chose their destination deliberately — who understood what they were gaining and what they were giving up — not those who simply fled.
Note: Visa rules, tax treaties, banking regulations, healthcare systems, and expat conditions change regularly. Verify current requirements with the relevant embassy and consult qualified legal and financial advisers before making any permanent relocation decision. The information above reflects conditions as understood in 2024–2025 and may have changed.