Legal and Tax Considerations When Relocating Internationally
For most people, moving overseas is an exciting prospect. Whether they move for work or because they want to experience a lower cost of living, the process usually means more opportunities, too.
However, if you want to move overseas in 2025, it is important to know that each country worldwide has its own immigration rules. These rules govern who can enter a country and stay there. They also guide people on work and taxes.
If you flout the rules, you could either be fined or forced to leave, depending on the country you find yourself in. This is why proper planning of your relocation is essential.
Legal Factors to Consider
Firstly, most countries will require you to have a valid visa. If you plan on working in a specific country, you will likely need a work permit, too. You cannot legally earn money locally if you don’t have one. It is also crucial to check that your visa suits your plans (for instance, work or study). Each type of visa has different fees to pay and steps to follow when you apply.
Residency and Citizenship
Should you want to stay permanently, the country will have defined rules on how long you must live within its borders to qualify for citizenship. For example, some European countries grant permanent residency after only five years. Other places, including the UAE, offer golden visas to investors with very minimal legal stay requirements.
Local Laws and Regulations
No matter which country you choose to live in, you must abide by its laws governing property rights, health insurance, and family law. For instance, in some states, you must purchase health cover within a month of arrival. In others, you must register with the government within a month as a non-citizen. Again, if you ignore these rules, you will likely get caught soon and be deported.
Tax Factors to Consider
There is no escaping tax payments in most countries—most countries tax residents on income earned. When you move to a new country, you automatically become a tax resident if you spend a set number of days there. This often equals 183 days in one calendar year.
A handful of countries use a permanent home or center of vital interests as a measure for tax payments rather than days spent.
Double Taxation and Tax Treaties
Many countries have tax treaties in place to prevent double taxation. This means you can claim tax relief at home for tax paid overseas. The OECD model treaty governs most tax treaties around the world. It is best to check whether the country you want to move to has a treaty with your home country.
As a U.S. citizen, you must report global income to the IRS by April 15 every year, even if you pay tax abroad. According to the Foreign Earned Income Exclusion, you can shelter around $130,000 in 2025.
Tax Exemptions
You may prefer to move to a country with lower taxes. Many countries woo expats this way. For instance, Portugal offers a flat 10% rate on foreign pensions. The UAE does not have personal income tax but charges 5% VAT on goods and services.
Planning Your Move
Always work with a local immigration lawyer and tax advisor to help you plan your move. Keep copies of all the documents you receive or fill out during your application to move. In many countries, you need these copies for at least six years.
When you seek expert advice and keep records of everything, it will be easier to focus on your new beginning and avoid costly mistakes.
Sources
https://etias.com/etias-frequently-asked-questions
https://www.criadv.com/insight/us-citizens-tax-implications-of-moving-abroad/
https://www.morningstar.com/personal-finance/5-tax-issues-consider-when-moving-out-country/
https://strategictaxplanning.net/resources/expat-taxes-2025/
https://www.sabalierlaw.com/blog/tax-considerations-and-strategies-for-expats-in-2025/
https://intasure.com/blog/moving-abroad-a-guide-for-expats/
https://health.mit.edu/my-mit/internationals/understanding-insurance \
https://www.investopedia.com/terms/1/183-day-rule.asp
https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion
https://www.harnesswealth.com/articles/foreign-earned-income-exclusion-feie-guide/
Did you find this article useful?
Subscribe to our newsletter for more!