Retiring from the United States offers a unique financial advantage. By earning and saving in strong US Dollars (USD) and relocating to a lower cost-of-living destination, you can dramatically accelerate your financial independence. This is the core of geographic arbitrage.
US Expat Tax and Financial Compliance
Relocating abroad does not exempt US citizens from IRS filing requirements. You must understand several key financial rules:
- Citizenship-Based Taxation: The US taxes citizens on global income. However, you can leverage the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credits (FTC) to avoid double taxation.
- FBAR and FATCA: If the total balance of your foreign bank accounts exceeds $10,000 at any point in the year, you must file a Report of Foreign Bank and Financial Accounts (FBAR).
- Medicare Limitations: Medicare does not cover medical treatment outside the United States. Obtaining an international private health insurance plan is highly recommended.
Use the savings calculator below to see how relocating from the US to popular expat destinations changes your retirement target.
Geo-arbitrage Savings Estimator
Target Portfolio Abroad (with 15% Expat Premium):
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Plan Your Expat Retirement
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