5 Simple Steps to Retire Abroad: Complete 2025 Guide

This simple 5-step checklist has saved hundreds of our expat clients from expensive, irreversible mistakes. Most expats forget the small stuff like tax residency, immigration strategy, or even what to do with their US mail – which only adds to the anxiety of starting a new life abroad. This video solves that. 

I’m James Nuveen, and I’ve personally lived in 15 countries, invested in several, and gotten residency in a few. We help Americans retire overseas. 

If YOU want to retire earlier and live better abroad, start with Step 1 – Clarifying Your Situation and Goals.

Step 1: Clarify Your Situation and Goals

Why? Why are you considering this big life decision? This is not a philosophical question. It’s the first question we ask every client because no two expats are the same.

Some of our clients are trying to escape the US tax code (which is near impossible, spoiler alert). Others want peace of mind, lower healthcare costs, better food, less politics. Some just want to stretch their retirement income: Turn a $3,000 monthly budget in the US into savings, beachfront sunsets, and more walkable neighborhoods.

But, unless you get crystal clear on your why, the rest of this process falls apart.

Do you want low taxes? Try Panama or Greece. Want culture and family-friendly living? Look into Spain or Portugal. Want fast internet, tropical vibes, safety, and no snow? Welcome to Southeast Asia. Your “why” determines your “where.”

That’s why every Freedom Consult starts here. We reverse-engineer your ideal life, then trace the path backwards from there.

Retiring abroad without clarity makes for a crappy plan abroad. A lot of expats come to us after they’d run from something – instead of toward something – and need help fixing it. 

Step 2: Choose the Right Country and Residency Program

Here’s the truth most international relocation guides won’t tell you: Just because you LIKE a country, does NOT mean that country has the ideal immigration or investment path for you.

For example: Italy’s Elective Residency Visa is great for retirees. But if your income isn’t high enough, you won’t qualify. Many of our expat clients dream of living in the French riviera. But unless your income is predominantly retirement distributions and a pension, you’ll pay up to 50% tax. Oof…

This is why identifying the country and the ideal immigration path for YOUR circumstances matters more than what your neighbors did. All your situations are different. There’s no one-size-fits-all here.

The Freedom Files breaks this into two parts:

1. Which countries fit your budget, lifestyle, and goals for your life abroad?
2. Which legal pathways in that country can make that fleeting dream a permanent reality?

That could be:

• Portugal’s D7 or D8 visa

• Panama’s Pensionado program
• Mexico’s Economic Solvency visa
• Thailand’s Privilege Visa
• Or the 7% flat-tax regime coupled with the Financially Independent Persons Visa in Greece

Our goal is to help you understand your options so you can make a wise choice. This step is all about alignment. Your circumstances + your goals + yes, their rules.

Nail this, and your future abroad gets a whole lot simpler. Next, let’s make it official.

Step 3: Apply for the Residency or Citizenship Program

Tourist visas are great – for tourists. But you’re not moving abroad to be a temporary tourist. You’re doing it to build a new life, to live out your dreams.

And that means applying for residency or citizenship (or a few programs if your goal is diversification).

This is where most “digital nomads” and long-stay travelers differ. The former get stuck in border runs, visa extensions, or worse – permanent immigration record notes.

Your goal is stability and permanence. Residency or citizenship in a country gives you access to:

• Local healthcare systems
• Bank accounts
• Long-term rentals
• Legal protections
• Tax incentives in some cases

For example, let’s look at Portugal. While they have a spectrum of different immigration pathways, including the D7 Retirement Visa, the D8 Digital Nomad Visa, and Golden Visa, one or several may not fit your circumstances and goals abroad. The D7 Visa requires proof (not an investment, just proof) of just $1000 a month in income. But you must stay in the country at least 6 months which makes you a tax resident in Portugal and subject to punishing tax rates of up to 50%. The golden visa requires a donation of €250,000 or an investment of €500,000 in the country AND only requires you visit the country 7 days a year to keep the visa valid. No required tax residency. Efficient path to citizenship in just 5 years. Ultimate flexibility.

As you can see, in each country, you have a range of options. It’s up to us to help you identify the ideal one based on your goals.

So how do you obtain residency? Well, each country’s process varies wildly. Some countries require proof of income. Others want a lease or property title in the event you purchase a home. Most ask for FBI background checks, notarized documents, apostilles. Some event require an investment in a local business or funds to obtain status in the country.

That’s why we exist. The Freedom Files has helped hundreds of Americans get approved for residency and citizenship in over 25 countries across 4 continents.

You don’t have to figure this out alone. In fact, don’t try. This is how so many expats lose their shirts, get scammed, or run into tax or legal troubles in TWO countries, not one. Trust me – We’ve seen it too many times not to mention.

Okay, so up to this point, you’ve …

• Established your goals
• Identified the right country or countries for you
• Found and applied for the right immigration path for your goals

Now, it’s almost time to move! But before you sell your stuff and pack your bags, don’t skip this step.

Step 4: Optimize Your Life at Home

Let’s say you’re from California. You move to Portugal. But you forget to change your state residency. Guess what? California will continue taxing you, even if you don’t spend any time there.

Happens all the time. This is why Step 2 is all about cleanup BEFORE you leave.

You want to legally sever your tax ties at home before you leave.

• Change your state residency to a no-income-tax state like Florida, Texas, South Dakota, or Tennessee.
• Cancel unnecessary bills and subscriptions.
• Set up mail forwarding.
• Add international access to your US bank accounts.
• Give someone you trust power of attorney.

And if you’re getting close to Social Security or Medicare age or already have access to each? Make sure you understand how those benefits work if you live overseas. For example, you can still access your Social Security income no matter where you live. But Medicare does NOT work abroad. 

This is where a lot of retiree expats fumble. In focusing on the country they’re moving TO, they forget to handle the country they’re moving FROM. 

So, once your house is in order – literally and figuratively – it’s time to ditch it, of course.

Step 5: Make the Move

Here’s the exciting part: You’re approved. The visa is in your passport. The plane ticket is booked.

But before you cheers with champagne at the gate, you need to land in your new home wisely.

That means:

• Setting up a local bank account if you so desire – or you could continue using American services provided they work abroad and don’t charge you an arm and a leg for international transactions 
• Buying or renting a property (often required for your visa application and renewal)
• Choosing an international or local healthcare plan in your new country
• Understanding cost-of-living in your new country (groceries, cars, goods, travel, etc)
• Getting connected to community, language, and legal support on the ground

If you’ve done the first four steps right, this part should be FUN. You’re not just “moving.” You’re setting the foundation for a completely new lifestyle and phase of your time on this planet.

The hard stuff? Behind you. The good stuff? All in front of you. 

Let’s recap the 5 steps to retire abroad the smart way:

1. Get clear on your goals and circumstances
2. Choose a country and visa that fits you
3. Apply for the right program and not relying on a limited tourist visa
4. Optimize your situation back home (taxes, mail, finances, etc)
5. Make the move and set yourself up for a life well lived overseas

If you’re ready to make this dream your reality, understand that it doesn’t have to be as complicated as most have made it out to be. We are here to help. Click below to book a Freedom Consult and let’s map this out together.

If you’re not quite ready to move abroad, check out this video on how to plan for and apply the $22,000 tax credit called the Foreign Earned Income Exclusion to your future tax return. Check it out right here.