One of the most frequent questions I hear from Sovereign Society members concerns moving abroad and making a new home in another country. They ask: How do I do it? When should I do it? What should I look for in a new country? Who should I contact? Or even further: Should I expatriate once I move?

Now I know from experience that many of the individuals who talk about moving abroad rarely follow through with these ambitions. But honestly, I believe that’s because many individuals have no idea how to pursue their dreams. So if you’re interested in setting up your residence abroad or securing a second citizenship,here a few suggestions of where to start.

Decide if This Is Really What You Want
The first step is a big one: Admit to yourself that you want to live abroad. Once you’ve made up your mind, it’s much easier to carry on with the details that follow.

Next step: What exactly are you looking for in your new home? Do you want to live in a country that can reduce your taxes? Are you looking for bargain real estate? Do you want to move somewhere where you’ll find other American and foreign expatriates? Are you a beach person or mountain person? Would you rather live in a quiet countryside, at the heart of a major cultural center or in a large city?

Create Your Own Blueprint of an Ideal New Home
Make a list of your personal priorities and preferences. Determine what’s most important to you. For example, are you looking for a low cost of living, cultural diversions, medical care or warm weather?

Once you have your preferences down on paper, do a little research. Which places match your tastes? Then narrow down your list of possible paradises to two or three places, and spend some time in each one. You may have formed a mental picture of what a foreign place may be like, but unless you’ve “been there, done that,” you may be in for a surprise when you see it firsthand.

After you have seen your two or three choices, cut your list down to one country. This is important: Plan an extended stay in that country during the least agreeable time of year (the tropical rainy season, the hot summer or the cold months). While you’re there, tour the country and get a complete picture of what it’s really like. It helps if you speak the local language, or at least get an interpreter to accompany you. It’s true that English is becoming the universal language, but more so in some places than others.

Visit the country, meet other expats already living there and contact local real estate agents to inspect properties for sale. (Always get references and be very careful of land titles. In some countries titles are tenuous at best and you don’t want any legal problems.)

You Have to Think about Taxes
Once you have your country picked out, you need to consider your tax situation. Otherwise, it’s very possible you could face harsh taxes even before you leave the United States. Fortunately, you can avoid these extra taxes by consulting the right professionals.

First, speak to an international tax planner or attorney in your home country. Check new tax obligations in your chosen country. Places such as Panama or Belize impose no taxes except on local income. Switzerland is willing to negotiate with wealthy foreigners seeking residence for a set annual taxes that may be much lower.

Let Us Be Your Guide On Your Journey Abroad
There are many Sovereign Society publications that can give you a wealth of information about living offshore. Included in the list are The Passport Book, Where to Stash Your Cash, Panama Money Secrets, Swiss Money Secrets and The Offshore Advantage Book. You can find them on our webpage at www.sovereignsociety.com/catalog/.

If you’re a U.S. person, determine your obligations owed to the IRS. (Americans owe taxes annually no matter where they live in the world or where they earn income.) You also should consult a tax expert, usually an attorney, in the country you’re considering who, importantly, is experienced working with foreign residents. Again, get references and always ask questions when you have doubts about something. The best places are countries that have “territorial taxation” — meaning they tax only income earned within the country’s borders and not income earned offshore.

Consult a residency expert, usually a local attorney, in the country of your choice. Ask the expert which visa or residency permit is most advantageous for you. Immigration laws change constantly and you need to know exactly what you’re eligible for as a foreign resident.
While you’re there, open a local bank account in your new country. In some countries this will require an introduction to the bank by your local lawyer and a reference letter from your home country bank. They usually won’t take “walk ins.”

Choose Your Moving Day!
Once you have picked your destination, set a date for your move. Decide whether to ship household goods or buy new ones when you arrive. The type of visa you obtain may or may not allow for tax-free importation of personal belongings, like your car or boat, but consider the hassle factor of such shipment.

These days moving companies can deliver a “pod” to your door. Pods are storage units that look just like the space on the back of a moving truck (only without the truck). You fill it up, and they deliver your belongings anywhere in the world. My son and daughter in law recently moved from Cape Town, South Africa to Atlanta, and had no problems with a “pod” move — door to door — of their furniture and property.

Well before your move, set up a portable global office or mail drop in your home country for reliable and efficient mail forwarding, email, international phone calls, bill paying, and the like.
There are numerous services that provide a permanent address with forwarding capacity. Make sure your local bank account is in good order, especially if you regularly receive direct deposits from official agencies.

Living in a foreign country does not make an American ineligible for Social Security or government and retirement payments, but direct deposit to an American bank account is preferred.

Rent, Don’t Buy at First
In my experience, I’ve found it’s better to rent your first home abroad. Spend at least six months living in your new rented home before you commit fully to buying your own home. In some countries, such as Panama, the government gives a 20-year real estate tax moratorium on new buildings and some existing housing.

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