For years, I've listened to people talk about moving abroad—whether as a reaction to election results or as part of a dreamy retirement fantasy. Barcelona, Buenos Aires, Bangkok—the destinations sound exotic, and the idea feels liberating.
But something shifted recently. People aren't just talking anymore. They're actually doing it.
Friends of my parents retired overseas. Then some of my own peers made the leap, selling homes, ditching cars, and even pulling teenagers out of high school to start fresh somewhere else. According to CS Global Partners, American expatriation jumped over 102% in early 2025 compared to late 2024. Sure, that's only about 1,285 people in actual numbers, but the trend is unmistakable.
Here's the thing though: saying you want to move abroad and actually doing it are two very different things. I talked to people who've made the move, and they shared the hidden costs nobody warns you about.
Location Matters More Than You Think
Valerie Roseborough knew she wanted to retire abroad after COVID reminded her how connected she'd once felt to the world during her international travels. She tested the waters with a six-month stay in Mexico, but quickly realized it wasn't going to work.
"The infrastructure wasn't going to work for me," she explained. "It's a large country and sort of challenging to move about from state to state and place to place."
Panama turned out to be her perfect match—a major international airport, direct flights to North America, great retiree discounts, and easy travel back to see her kids in the D.C. area.
But here's something she pointed out that most people don't consider: her D.C. location made the whole process smoother because Panama has a consulate right there. She just made an appointment and showed up with her documents. If you're not near a consulate or embassy for your destination country, you'll be dealing with the State Department and handling everything by mail. Plan for extra time and hassle.
The Tax Trap
Rian Chandler-Dovis and her husband fell in love with Cabo San Lucas and decided to make it permanent. Mexico's immigration process turned out to be relatively straightforward, partly because of the country's 16% sales tax that applies to everyone. Even if you're not paying Mexican income tax, you're still contributing significantly through everyday purchases.
But then came the tax complications.
Chandler-Dovis's husband earns income in Mexico while she runs a U.S.-registered business. They pay Mexican income tax, but keeping their Virginia residence created a nightmare scenario. Why? Virginia is what's known as a "sticky state."
Along with California, New Mexico, New York, and South Carolina, Virginia considers you a tax resident even after you've moved to another country. You're expected to keep filing state returns and paying state taxes. And these states don't mess around—they'll hit you with penalties if you try to ghost them just because you've left the country.
The Cost That Isn't Measured in Dollars
Giving up their Virginia residency solved the tax headache for Chandler-Dovis and her husband, but it created another problem: they lost their right to vote in U.S. elections.
"In order to stay registered to vote, you have to have a U.S. address," she explained. "And the law says that if you move out of the country, your voter registration must reflect your last U.S. address."
Think about that for a second. If you're leaving the U.S. for political reasons, you might have to choose between maintaining your right to vote and avoiding a tax nightmare. That's a brutal choice.
What This All Means
Living abroad can absolutely be a dream, an adventure, or a fresh start. But it will never match your expectations exactly, and there will always be hidden costs you didn't see coming.
If you're seriously considering the move, here's what you need to do:
Take a test run like Valerie did. Spending time in a place before committing can reveal deal-breakers you'd never anticipate from vacation visits.
Consider your current location's advantages. Living near the right consulate or embassy can make visa applications infinitely easier.
Get serious about taxes early. Talk to an accountant who specializes in expat taxation. Understand what your home state requires and what your destination country expects. Don't assume you can figure it out later.
Count the non-financial costs. Voting rights, healthcare access, proximity to family, cultural adjustment—these matter just as much as your bank account.
The expat life isn't just for dreamers anymore. It's becoming a genuine option for more Americans. But like any major life decision, it requires clear-eyed planning and a willingness to accept trade-offs you never imagined you'd have to make.