Wednesday, June 3, 2026

US Expat & Relocation Briefing

Living abroad in 2026

Key developments affecting Americans relocating or already living abroad — including visas, healthcare, taxes, remote work trends, affordability, safety, and quality-of-life shifts.

Americans considering relocation abroad
34%
Digital nomad visas globally
65+
(up from ~50–55 in 2024)
US passport power ranking
#8
(down from #6 in 2019)
Expats citing cost-of-living concerns
72%
Where Americans are Moving
  • Portugal, Spain, Mexico, Costa Rica, and Thailand remain top destinations for US expats and remote workers.
  • Eastern Europe and Latin America continue to attract young professionals seeking lower costs and strong digital infrastructure.
  • Mastercard and Amex travel trend data show a continued growing demand for longer-stay and hybrid work travel patterns.
  • Record outbound migration: An estimated 180,000 US citizens emigrated in 2025, the largest outbound migration in decades. By late 2025, 1 in 5 Americans told Gallup they would like to move abroad permanently, driven by cost of living, healthcare access, and quality of life concerns.
Visas & Residency
  • More than 65 countries now offer digital nomad or remote worker visa pathways.
  • Portugal: Tightened several residency pathways amid housing pressure and political backlash. As of May 2026, Portugal extended the legal residency requirement for citizenship from 5 to 10 years for most non-EU nationals (7 years for EU and CPLP citizens). D8 Digital Nomad Visa holders must also now complete 2 years of residency before sponsoring family members for reunification.
  • Spain: The Golden Visa ended April 3, 2025, closing the real estate investment route to residency. Despite this, Spain continues to actively aim to attract foreign talent and remote workers, pivoting toward the Digital Nomad Visa, Entrepreneur Visa, and Non-Lucrative Visa as primary pathways. Spain's Beckham Law, which offers a flat 24% income tax rate for up to 6 years, has been expanded to include Digital Nomad Visa holders.
Cost of Living Realities
Updated
  • Housing inflation: Lisbon, Mexico City, and Bali continue to experience sharp rental increases tied partly to foreign demand.
  • Healthcare savings: Many Americans abroad report substantially lower healthcare costs than in the US.
  • Currency advantage: Exchange-rate differences have historically benefited Americans earning in dollars while spending abroad, though the USD has weakened against several key currencies in 2025–2026 amid tariff uncertainty and trade tensions, reducing the dollar advantage in some popular expat markets.
Remote work & taxes
  • Tax complexity: US citizens remain subject to worldwide income reporting regardless of residence.
  • Foreign Earned Income Exclusion: Many remote workers qualify for partial exclusion benefits if residency requirements are met.
  • Employer scrutiny: More companies are limiting long-term overseas remote work due to compliance and tax exposure.
Quality of life trends
  • Healthcare access, walkability, and slower-paced lifestyles remain top reasons Americans stay abroad long term.
  • International schools and bilingual education demand continue increasing among American families overseas.
  • Community integration remains one of the strongest predictors of long-term expat satisfaction and mental wellbeing.
Political & safety considerations
  • Anti-tourism and anti-expat sentiment has intensified in parts of Spain, Portugal, and Mexico due to housing pressures. Spain has proposed a 100% property tax on purchases by non-EU residents — including Americans — as part of broader housing market reforms.
  • Americans abroad are increasingly monitoring healthcare system capacity, climate risk, and political stability alongside affordability.
  • US embassy registration and evacuation planning are becoming more common among long-term overseas residents.

Health & relocation alerts

Dengue & mosquito-borne illness

Of most concern for long-term residents in Southeast Asia and Latin America, with rising dengue transmission and rainy season risks.

European heat waves

Southern Europe continues experiencing worsening summer heat events that increasingly affect livability and infrastructure.

Healthcare system strain

Popular expat destinations including Portugal and parts of Spain continue facing healthcare staffing and wait-time pressures.

International banking

US citizens abroad continue reporting difficulty opening foreign investment accounts because of US Foreign Account Tax Compliance Act (FATCA) compliance rules.

Private health insurance

Private international insurance remains a strong consideration in many countries despite lower overall healthcare costs.

Residency documentation

Many countries are increasing proof-of-income requirements for long-term residency renewals.

Climate migration

Climate resilience, water access, and cooling infrastructure are becoming major relocation considerations.

US absentee voting

It is recommended thatAmericans overseas verify Federal Post Card Application and ballot deadlines well before elections.

Returning to the US

Reverse culture shock and re-entry financial costs remain significant challenges for returning expats.

Sources include Mastercard Travel Trendline, Amex Travel Global Trends Report, InterNations, OECD migration data, International Living, Nomad Capitalist reporting, WHO advisories, State Department travel guidance, and global digital nomad visa trackers.