Considerations for Americans Who Want to Move to Europe
Relocating to Europe for retirement or just because could be more complicated than you might think. Here are a few things to think about.


Editor’s note: There are many reasons why an American may seek to relocate to Europe, chief among them retirement, work opportunities or simply a better work-life balance. This is the first article of a four-part series in which we’ll discuss key financial considerations Americans should keep in mind when considering a move to Europe and zoom in on three countries in particular: France, Italy and Portugal.
Americans are moving to Europe in ever-increasing numbers, often because they believe that a better balance between work and lifestyle may be available in European countries. But many Americans who take up residence in Europe often find the transition to be more complex than they anticipated. While the issues can be complicated and differ significantly depending on the country, here are some things to keep in mind if you’re considering a move to Europe when you retire.
A U.S. citizen with a dream of retiring in France may know that Americans are allowed to spend up to 90 days in the Schengen area. However, U.S. retirees wanting to live in Europe long-term require a visa, and all long-term visa options have some sort of minimum income requirements.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For example, Americans who retire in France typically apply for a long-stay visitor visa. An important component of the application involves providing proof of sufficient financial resources that meet or exceed France’s minimum wage, known as the SMIC. This amount is 1,398.69 euros after taxes (net), or about $1,500.
The maximum amount of time you will be granted for your first application is one year, at which point you may apply to renew your visa. From the beginning, a consultation with an immigration lawyer might be the best way to make sure visa requirements are properly met, particularly if you plan to reside in France for several years.
Living abroad is different than visiting abroad
It’s important to remember that living somewhere as a foreign resident is very different from visiting as a tourist.
Americans should consider which countries they would feel most comfortable living in. Night owls may feel right at home in Spain, where the culture involves eating and socializing late into the evenings, while morning people may appreciate the rigorous bustle of Italy’s fashion and business center, Milan.
Can you continue to use your U.S. driver’s license?
One significant difference between traveling and living somewhere involves your driver’s license. Many U.S. licenses may be valid for only a certain period. In some places, such as France, most long-term residents have up to one year to exchange their U.S. license for a French one, but only if they hold a valid license from a qualifying state.
This problem can vary according to where you plan to live. Living in a small, bucolic family home in the Tuscan countryside has vastly different implications for driving than living in an apartment in the center of Paris or Barcelona.
Moreover, if your driver’s license is not recognized, you will need to invest time and money to acquire a new one.
Cost of living and financial planning
Figuring out the cost of living in a new country can be more complex than one may expect. An online tool such Numbeo can help, but broadly speaking, the cost of living in Europe is lower than in the U.S. Moreover, while major cities such as Paris and Milan are unsurprisingly expensive, it’s worth considering how the introduction and evolution of tax regimes may impact the cost of living. For example, the Portuguese government sunset its Non-Habitual Residence (NHR) Scheme at the end of 2023 in a first step toward addressing the housing crisis in Lisbon and Porto caused by an influx of wealthy foreigners who qualified for this special tax regime. While Portugal remains an attractive country to live in for many reasons, the affordability of its major cities is no longer definitively one of them, and the financial planning calculus for prospective U.S. immigrants to Portugal has changed dramatically.
Also, it is important for Americans to consider the long-term implications that moving abroad may have on their financial assets. For instance, U.S. investment products may be treated differently abroad. The value of an American’s asset base in Europe will depend on three critical factors:
- Whether your new country has a double taxation agreement with the U.S.
- How the details of that agreement affect your particular assets
- Whether you intend to live in one or multiple European countries
Evaluate tax circumstances
Several countries have positioned themselves as favorable destinations for certain foreigners via visas that offer long-term residency and (in some cases) citizenship pathways.
For example, in 2022 and 2023, Valencia and Malaga were recognized by foreigners as the best cities to live abroad, causing some Americans to think seriously about moving to Spain. But the country lacks a lot of supportive tax infrastructure for retirees; Americans living in Spain could face taxes as high as 47%, and certain retirees could trigger the Spanish wealth tax.
However, Italy offers a 7% tax rate for people who draw a foreign pension and want to live in southern Italy. In France, the double taxation agreement enables ongoing financial planning via familiar retirement vehicles, such as Roth IRAs and traditional IRAs.
Timing your move abroad
Those who move abroad often do so to reconnect with or re-establish priorities that may have been lost in the U.S. Whether you plan to move to a major European city or a quaint village, however, the best time to begin planning is typically at least two years in advance. This timeframe allows you to research your target country, connect with experts who can support you with all the logistics of your move and ultimately create a financially sustainable roadmap to live out your golden years in comfort and ease.
In the next article, we’ll look in-depth at the specific considerations Americans must bear in mind when evaluating a potential move to France.
Related Content
- Considering Purchasing and Renting a Property in Italy?
- Want to Retire Abroad? Five Things to Know About Your Money
- Five Things I Wish I’d Known Before I Retired
- The Five Stages of Retirement (and How to Skip Three of Them)
- Six Financial Actions to Take the Year Before Retirement
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over 10 years of experience working in European wealth management firms and family offices, Alex has significant expertise in cross-border financial planning, investment management, and macroeconomic analysis. He enjoys speaking with clients and explaining our investment philosophy while helping them understand the implications of various geopolitical events on their portfolios. Alex graduated with distinction from Grenoble Ecole de Management with a master’s degree in International Business after initially completing a bachelor’s degree in English at Simon Fraser University.
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity Stake
ESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market Today
The iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should Have
Every adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
I'm a Financial Professional: Here's My Investing Playbook for Political Uncertainty
For successful long-term investing in a politically charged environment, investors should focus on economic data, have a diversified portfolio and resist reacting to daily headlines.
-
The Truth About the Dark Side of Rooftop Solar Panels
Rampant bankruptcies in the solar panel industry have left many consumers with systems that don't work and no way to get them fixed. Worse, they're being hounded to keep paying despite not receiving what they were promised. What can they do?
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
Here are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's Guide
When the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting Tips
You're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a Portfolio
Exchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term Care
Planning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.