Dear Liz: It has become difficult to find good employment in my field. I\u2019ve been able to find several openings that sound exactly like what I want outside the U.S. <\/p>\n
If I successfully apply for a position in a foreign country, it could mean paying income taxes into both the U.S. system and the foreign country. Not being a citizen of that country may also limit possible future employment opportunities. <\/p>\n
Once employed and resident in that county for the required time, I could apply for citizenship and pay the fee to renounce U.S. citizenship.<\/p>\n
Obviously, this step would come with significant financial implications, including no longer being able to receive Social Security (into which I have paid during my U.S. employment). <\/p>\n
My banking and investment accounts would have to be completely rearranged as well. <\/p>\n
Obviously, a large number of people emigrate and change their citizenship every year, but how does one navigate all this financially?<\/p>\n
Answer: You\u2019ve come to some interesting but likely erroneous conclusions about working abroad.<\/p>\n
Let\u2019s start with taxes. The U.S. tax code has a few provisions designed to help people working abroad avoid double taxation, including the foreign earned income exclusion (which is up to $132,900 in 2026) and the foreign tax credit. You will still be required to file annual tax returns with the IRS reporting your worldwide income, but much if not all of your earnings abroad could avoid U.S. taxes.<\/p>\n
Next, let\u2019s discuss citizenship. About half the countries in the world, including the U.S., allow dual citizenship. If the country where you want to work does not, and you decide to renounce your U.S. citizenship, you still have a right to the Social Security benefits you\u2019ve earned in America.<\/p>\n
Keep in mind, though, that renunciation is considered permanent. If you changed your mind later, you would have to try to get a U.S. visa and go through all the steps to be naturalized, which can be a long process.<\/p>\n
As far as your financial accounts, they can stay as they are as long as you maintain U.S. citizenship. You\u2019ll likely need to set up bank and perhaps other financial accounts in the new country as well. Consider reading \u201cBorderless Living: How to Create Freedom and Financial Security for Americans Abroad\u201d by financial planner Brian Dunhill.<\/p>\n
Liz Weston, Certified Financial Planner, is a personal finance columnist for NerdWallet.<\/a> <\/a>Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the \u201cContact\u201d form at asklizweston.com.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Dear Liz: It has become difficult to find good employment in my field. I\u2019ve been able to find…\n","protected":false},"author":2,"featured_media":482124,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,7770,11013,184,185,11925],"class_list":{"0":"post-482123","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-fire","13":"tag-horizontal","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-religion"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/482123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=482123"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/482123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/482124"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=482123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=482123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=482123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}