Relocating abroad is an exciting new life chapter, but for high net worth Americans, it also introduces new layers of financial complexity. You’ll need to plan for international tax obligations, including understanding the US and local implications of US and overseas investments. You’ll also have to update your estate plans, depending on the rules in your new country of residence. In this article, we provide a comprehensive overview of the essential financial steps and considerations for high net worth Americans preparing to live overseas. Whether you’re seeking a retirement adventure, pursuing global business ventures or tax optimization opportunities, or seeking a change in lifestyle, good advice and careful planning are the keys to protecting and growing your wealth and ensuring a smooth financial transition.
1. Create a new international financial plan
Before you move, create a new financial plan in partnership with a cross-border specialist advisor who is familiar with the tax and regulatory environments in both the US and the country you’re moving to. As part of the plan, you should audit your asset base, including cash, real estate, equities, and alternatives to understand any new implications from your move abroad.
If you plan to fund your life abroad from income from investments, it may make sense to diversify into income-paying foreign holdings abroad in the same currency that you’ll be living in. This helps avoid regular currency transfer fees.
You’ll also need to find a bank in your new country of residence. A cross-border financial advisor should be able to recommend one that serves your needs. Note also that many US banks and brokerage firms restrict trading or freeze or close your account if you move abroad. Contact the firms where you have financial accounts in the US before you move to confirm their policies and consider switching to firms that are happy to work with expats in the country where you’ll be living before you move. Two US brokerage firms that are normally happy to work with expats are Charles Schwab and Interactive Brokers, but there may be limitations on investment products or new accounts depending which country you’re moving to.
Key steps to include in your plan
- Audit all your assets thoroughly to check possible cross-border implications and whether they make sense in the context of your new financial plan.
- Confirm US brokerage policies for non-residents
- Choose banks and brokerage firms with strong international services
- Diversify into multiple currencies
- Research international currency brokers for easy and efficient transfer and conversion options
- Maintain liquidity for emergencies
It’s important to work with investment and tax advisors who specialize in working with high net worth Americans living abroad and who understand the nuances of cross border tax and investing, as well as estate and succession planning to support your long-term goals, prosperity and security. Your financial plan must withstand global black swan events and stress tests, not just IRS audits.
2. Understand US tax obligations abroad
Your obligations to file US taxes to the IRS don’t stop just because you live overseas. As a US citizen, you must file annual tax returns and report foreign financial accounts every year. Ignoring these rules leads to hefty penalties. Note you may also have local tax obligations in the country where you live.
Key compliance areas include FATCA (the Foreign Account Tax Compliance Act), which requires disclosing foreign assets, and FBAR filings to report your foreign accounts to FinCEN.
Additionally, be aware of complex rules around investing in foreign ETFs and mutual funds, which the IRS refers to as Passive Foreign Investment Companies (PFICs), and which can result in unexpected tax liabilities if not properly managed.
Hire a cross-border tax expert. Proper guidance is your best defence.
3. Optimize your global tax residency and tax-friendly destinations
Most countries use the 183-day rule to determine tax residency, based on time spent, business activities, or family ties. Some countries only tax income generated in the country, others worldwide income. Other countries, such as Dubai, Saudi Arabia, and some Caribbean countries, have no income taxes.
Inheritance and wealth taxes differ as well. Some countries have none, while others have strict rules that may force you to leave a percentage of your estate to certain relations or may tax you annually on your assets, not only on income.
Tax treaties between the US and many countries help prevent double taxation, or may allow you to claim tax credits to offset the tax liability in one country with taxes paid in the other.
Choose destinations that balance tax benefits with stability and transparency. Portugal, Monaco, Switzerland, Singapore, and Malta top the list. Use cross-border tax advisors to navigate complex laws.
Many countries offer special expat tax regimes for wealthy newcomers, including Switzerland, Italy, and Greece (as of 2025).
4. Explore residency and citizenship by investment programs
For high net worth Americans, acquiring legal status in a second country is not just about relocation; it’s a tool for global mobility, asset protection, access to new markets, or to have a ‘plan B’.
Residency-by-investment (often called a Golden Visa) and citizenship-by-investment programs offer structured legal pathways for individuals who contribute to a country’s economy through real estate, capital transfers, or business development. These programs provide either residency rights or full citizenship, depending on the jurisdiction and level of investment.
Strategic advantages:
- Increased mobility: Many programs offer visa-free access to key regions such as the EU or the Schengen Area.
- Wealth planning: Some jurisdictions offer tax advantages or asset protection benefits.
- Family inclusion: Most programs extend benefits to spouses and children.
- Diversification: A legal foothold in another country can mitigate geopolitical or economic risk.
- Low residency thresholds: Many programs require minimal physical presence, offering flexibility while reducing the risk of triggering unwanted tax residency.
5. Invest in international real estate
Purchasing real estate abroad can offer capital appreciation, portfolio diversification, and a home or rental income. In some countries, investing in real estate can also provide pathways to residency or citizenship. Some countries also allow real estate purchases within their residency by investment programs.
Always work with local legal experts to understand property laws and foreign ownership rules. Your US estate plan usually won’t apply to assets held abroad, so planning for inheritance and asset protection in multiple countries is essential.
6. Protect your wealth with proper structures
Before relocating assets, structure them. Moving money without planning can trigger taxes, compliance issues, or legal exposure.
This might mean creating tailored vehicles to manage risk and optimize tax efficiency. Options include:
- Offshore holding companies: Useful for consolidating global assets, shielding identity, and simplifying succession planning. Common in BVI, Cayman, or Luxembourg.
- Foreign grantor trusts: Ideal for US citizens or residents looking to retain control while deferring or minimizing tax exposure.
- Life insurance wrappers: These investment-linked insurance products can grow wealth tax-deferred and are recognized in many jurisdictions.
These structures aren’t about secrecy, they’re about transparency, legal safety, and strategic tax positioning. Note however that legal structures will trigger additional US reporting, and are often expensive to set up and maintain. Note also that many countries don’t recognize the tax advantages of trusts.
7. Align your legacy plan with global laws
A US estate plan doesn’t always travel well. Many countries don’t recognize US-style trusts, wills, or powers of attorney. If you own assets or reside abroad, your plan must comply with local laws, or risk being partially invalidated.
Forced heirship rules in jurisdictions like France, Italy, or the Middle East can override your intentions.
- Use multi-jurisdictional wills that comply with local inheritance rules.
- Move assets into cross-border structures like offshore trusts or holding companies.
- Name heirs who can legally inherit under both US and host country laws.
- Review philanthropic vehicles. Offshore foundations or donor-advised funds with global reach can help ensure that your charitable intent is honored.
A global life requires a global plan
Going global as a high-net-worth American can enhance both your lifestyle and finances. You’ll also need to think about a global health insurance plan. Without a new financial plan however, you risk overpaying both US and foreign taxes, US accounts being frozen, and missing out on new opportunities. Seek advice from cross-border financial and tax advisors as far in advance as possible to maximize the opportunity and minimize risks and downsides.
If you have any questions about financial planning as an American living abroad, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
