“Amid rising costs and increased workplace flexibility, more middle-income Americans are exploring living options that were once seen as the exclusive domain of the ultrawealthy: residency abroad.
These aren't the high-cost "golden passports" of Malta or Caribbean nations such as St. Kitts and Nevis or Antigua and Barbuda, financial advisers say. They are long-term residency permits designed for ordinary professionals and others who want to stretch their dollars, lower their taxes or simply live better overseas.
It's "a Plan B," says Andrew Henderson, founder of global advisory firm Nomad Capitalist. "They're buying peace of mind -- the ability to choose where they live, how they're taxed, and what kind of life they build."
Who is going?
While estimates on the number of Americans living abroad vary, the Defense Department's Federal Voting Assistance Program pegged the figure at 4.4 million as of 2022, up 42% since 2010.
David Kuenzi, a director at Wisconsin-based investment adviser Creative Planning International, has seen increased interest firsthand. Before 2015, it was rare for clients to come to him with plans to retire or move abroad. "Now, many do," he says. "The surge in interest. . .has made cross-border wealth management a priority rather than an afterthought."
Kuenzi's firm is fielding calls from teachers, engineers, small-business owners and others who believe their dollars stretch further abroad.
"What began as a trickle of retirees has turned into a full-blown movement -- and it's not just the wealthy," he says. "People call saying, 'I've never thought about leaving America before. I just want to get out -- where should I go?' "
Nor is the trend being fed only by retirees. For many younger Americans, remote work has made living overseas possible long before retirement, Nomad Capitalist's Henderson says.
"During Covid, people realized the U.S. wasn't as free or affordable as they thought," he says. "For others, it's about taxes -- if you're earning an average salary in New York, you're still paying a lot. And then there are those chasing a better lifestyle -- warmer climate, more space, lower costs."
He advises clients to diversify residencies just as they would investments. "If you're wealthy, you buy a few golden visas. If you're middle-income, you collect a couple. . .one in Latin America, one in Europe. It's about options," he says.
What does it cost?
The good news for middle-income Americans: Relocating abroad isn't as expensive as it sounds and you don't have to cut ties with the U.S.
"People ask, 'Do I have to give up my U.S. citizenship?' The truth is, most don't need a passport -- just a residence permit," says Kuenzi. "They don't realize you don't need a $500,000 golden visa. For most Americans, a simple retirement or income-based visa is enough."
In Portugal, for example, the country's "D7 visa doesn't require a huge investment -- just proof of stable income, around $9,000 to $12,000 a year," says Henderson. "It's very Westernized, safe, and still popular among U.S. retirees and remote workers."
In Panama, the Pensionado Visa welcomes retirees with at least $1,000 a month in income. Mexico's Temporary Residency Visa can be obtained with about $4,000 a month in income or around $80,000 in savings.
"These programs let you live comfortably abroad on a modest U.S. salary," Henderson says. "In places like Malaysia or Georgia, real estate is affordable, healthcare reliable, and you can maintain a lifestyle that would cost double or triple back home."
To be sure, there are some costs and hassles. Despite living overseas, for instance, Americans remain subject to U.S. tax reporting, and compliance costs can add up. "If an American moves to Portugal under the D7, they'll file in both countries," says David Lesperance, a U.S. immigration lawyer at Lesperance Associates. "Portugal may take the check, but the U.S. gives the credit" -- meaning that Americans who pay their taxes in Portugal would report that income to the Internal Revenue Service in the U.S. and receive credit for the amount already paid to prevent double taxation.
Still, the cost-of-living advantages can be worthwhile, advisers say. Private healthcare in Portugal costs a fraction of U.S. premiums. Beachfront apartments in Panama rent for under $1,000 a month. Groceries, child care and transport are substantially cheaper in much of Latin America and Eastern Europe.
Kuenzi calls it "geo-arbitrage for the middle class." For many, that means quality of life without financial strain -- a rare equation at home.
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Tanzeel Akhtar is a writer in London. She can be reached at reports@wsj.com.” [1]
1. Investing Monthly (A Special Report) --- The New American Dream: Living for Less Overseas. Akhtar, Tanzeel. Wall Street Journal, Eastern edition; New York, N.Y.. 10 Nov 2025: B5.
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