Living Abroad: How to Choose the Best Countries
The Lure for Americans to Move Overseas
The number of Americans living abroad has
steadily grown over the past decade as more people have become
interested in exploring another language and culture or finding
an overseas job. According to the Association
of Americans Resident Overseas, there are over 8.7 million Americans
(excluding military) living overseas as of 2016. While some people are transferred to an
overseas post by their employer or have a job offer abroad, for
the rest of us it is not always an easy task to figure out which
country to choose. We have created this realistic guide on options to live overseas in order to help you find
the most appropriate location for you, with plenty of resources to explore the pros and cons of your possibilities.
Choose Your Goals For Moving Abroad
Before choosing a country you should first ask yourself just what are the goals and expectations you have for your overseas experience. Are you interested in employment, retirement, university study, a long-term language course, volunteer work, or a starting point for more extensive regional travel? Would you like to immerse yourself in the local culture, or settle abroad and open a business?
- If an overseas job is your main objective, research where your job skills are most in demand and then obtain information about employment opportunities in the destination country.
- If you are a student, contact an exchange program either sponsored by your university or offered through a reputable student exchange organization and find out which countries are offered for study abroad. If you wish to immerse yourself in the country, learn the local language, and make connections, living with a family in a home stay is a good choice while a student. Often your student visa is a great opportunity to work openly or "under the table" in order to either live frugally or obtain extra spending money.
- If you have time on your hands, but little money set aside, volunteer work with selected programs such as Volunteers for Peace or WWOOF is another option.
For a successful stay abroad it is highly preferable to match your destination with your personal interests and professional or educational goals:
- Costa Rica may be a peaceful retirement location with a large U.S. expatriate community, but if you want to combine Spanish study with experiencing indigenous culture in more affordable locations, you would be better off going to Ecuador, Belize, Guatemala, or many parts of Mexico.
- If you seek overseas employment and expect the same quality of life as in U.S. cities, you might be happier in a more industrialized nation than in a developing country. Many who seek to live in relative comfort manage to be transferred by multinational companies
- If you are adventurous, you can just travel abroad around the world and look for informal work without a work permit. Many college graduates obtain a TEFL certificate, since learning English is still a huge priority in so many parts of the world, and many will hire you and sometimes even provide work permits or provide advice for long-term stays. This option has become a bit more difficult in recent years though, because many developed countries have been flooded with illegal immigrants and have started to crack down on illegal workers, and some less developed countries are under pressure to limit any long-term workers.
- If you are seeking a place to retire, consider the cost of living relative to your savings and other factors covered in our column on retirement overseas.
Money Matters and Considerations Abroad
Regardless of whether your plan is to study, volunteer or work abroad, the economic condition of your destination country is an important consideration. When I first went to Brazil as an exchange student the Brazilian government kept the new local currency stronger than the U.S. dollar, which greatly reduces purchasing power and affects the entire year in the country. Financial factors should not be your only consideration, but they should certainly not be ignored. As the U.S. dollar fluctuated against some currencies in recent years, a larger number of prospective expatriates are looking for new ways to make their money last and have a sense of security. This often means seeking out an affordable destination, especially for those who may not be living on a large income, such as retirees who may be relying on savings, social security, and pensions.
When researching the economies of different countries, keep in mind that the exchange rate is not in itself an indicator of the purchasing power of the U.S. dollar. Currency exchange rates are subject to market demands and government policies, but you should really be most concerned about the cost of living primarily. A better indicator of how much your U.S. dollars or your overseas salary can buy in your country of interest is to research the cost of accommodation at your destination. Our sidebar at the end of the article lists resources to help you compare in detail the cost of living of different countries and cities.
Unless you transfer overseas through your employer—which is a very common and often desirable occurrence when working for multinational companies with multiple country branches—your income abroad will most likely not be as high as in the U.S. When I lived in Lisbon one of my house-mates was a student from Italy. He was looking for part-time work during the school year, but the pay was so low that he finally gave up on the idea. In Rio de Janeiro, on the other hand, several peers worked as part-time English teachers because the pay was high by local standards. In New Zealand I worked in horticulture earning a relatively low wage, but the cost of living in the countryside was also very low, and I was able to open a savings account and put money aside every month.
High inflation is another factor to weigh. When used to low inflation in North America, living in a country where prices go up every day can be a challenge.
The Political Climate in Your New Home Country
In addition to economics, you should also evaluate the political climate in your country of interest. Anti-American and anti-Western sentiment can impact your stay abroad (such has almost never been the case in my many travels), so you should do some research before making a final decision. Developing countries may have unstable or even collapsing governments, which fail to provide basic services to its citizens and are unable to guarantee the rule of law. Living in a socially, economically, and politically stable country will make your stay overseas much easier and more enjoyable. Keep in mind that the mainstream media at home often exaggerates dangers abroad for its own purposes. Most citizens around the world are able to separate the perceived external politics of your country of origin with your own individual personality. You will likely be treated with utmost hospitality provided you follow the "Golden Rule" of travel and living abroad, which we call responsible travel or just plain respect for your hosts in a host country.
Choosing the Exotic or the Familiar?
To narrow your choice of countries it is useful to consider the countries that already interest you, or where you have enjoyed a vacation. Try to travel the world, or desired regions, extensively enough to know which countries just have the right feel for you. Ideally, you will desire to live in a destination offering the intangible sense that it is where you belong, a place you can call home, and where you will be happy long-term. The intangible can sometimes outweigh the tangible pros and cons, and through the power of will, you can often find a way to live in a location if you so desire. Having friends or family abroad may be another reason for you to favor one country over another. You might even be interested in searching for your roots in order to live in the country of your ancestors. In this way, you are already somewhat familiar with the culture, language, and people.
On the other hand, some of us are captivated by exotic and unfamiliar locations. What first attracted me to living abroad were tropical locales such as the South Pacific Islands and the Amazon. But soon after arrival, I realized that living in countries so vastly different from my own had a price; the heat, the climate, exotic diseases, foreign foods, and a very different way of life made adjustment difficult. Unless you have travel experience in unfamiliar cultures, it might be a good idea to choose a country with a culture that is not so drastically different from your own, and where climate, food, and local customs do not pose a significant challenge.
Many European countries share some cultural traits with North America, and moving to Europe is not nearly as challenging as moving to Japan, for example. Do your homework and read as much as possible about your future destination. Take a language course before you go if you can. Having some idea of the local language will make your adjustment so much easier, and you will be able to make local friends more quickly without relying on expats.
Distance to your home country can be another important factor when you select a new living destination. Moving to Mexico from North America is much cheaper than, let's say, moving to Argentina, especially if you are shipping household belongings. Proximity to your home country may also be important if you need to return home on a regular basis in order to tend to business or visit family. Traveling long distances is more expensive, more exhausting, and more time-consuming. However, in the case of the situation in Mexico, for example, you also have to weigh in important safety concerns, as the country's drug cartel war continues unabated. No foreign destination is absolutely safe, and it is important to get the details about the exact location(s) of Mexico's drug war and find out if your preferred destination has an acceptably low rate of violent crime and lies outside major drug trafficking routes.
Popular Countries for U.S. Expats
Through researching country-specific information for TransitionsAbroad.com’s Living Abroad section, it became clear that there are about a dozen countries especially well suited for American expatriates. My list is based on the considerations mentioned in this article and on the countries' overall popularity among Americans. We have also taken into account factors such as how accessible the local culture is for foreigners and whether the locals are friendly and welcoming toward Americans and citizens of Western countries.
For the update of our top choices, we
have also taken into consideration how the global economic
downturn and its consequences have affected countries
around the world to this day. Most countries that have been
popular with American expatriates for many years are experiencing
high unemployment, especially in Europe, which makes it
a lot more difficult for Americans to find a job and obtain
a work permit. Given the economics and
high unemployment in many countries, our shortlist focuses
on countries that are not only beautiful destinations and
friendly to the U.S. but are also affordable and have a job
or business opportunities for expatriates looking for a
new permanent or part-time home abroad.
Nevertheless, we do not make cost a primary consideration, as there are experts in low-cost living abroad who cover this subject well, and have a different take on what we think constitutes a great destination to be a long-term expat. We are not big on profiting upon the poverty of others or deals found due to a weak currency unless the money goes directly back to the local community.
In the spirit of balance, since no
long-term destination is perfect in every way, we have listed
our pros and cons of ten countries in alphabetical order.
Of course there are other countries not listed here (note
the absence of many Scandinavian countries that figure
high on many lists for potential expatriates, as well as
the many "cheap" living
destinations which we believe can have other political,
ethical, and other lifestyle drawbacks) that may offer you
equal or greater appeal.
In the end,
your new home country should just "feel
right" to you, in our view. Cheap is good,
but we believe that thinking only in terms of budget does not necessarily justify a move to a destination unless your options are limited.
(We encourage your comments at the end of the column should you have your own country recommendations based upon personal experience and comparison):
Pros: Similar culture as North America; English-speaking; popular with students; great travel destination; very friendly people; opportunities for students; highly skilled professionals, retirees, and business investors; working holiday visa for young Americans; close to beautiful and increasingly popular and long idealized land of New Zealand.
Cons: Quite a distance from the U.S.; high cost of living; expensive air travel; popular immigrant destination for skilled workers from all over Asia who compete for selective jobs.
Pros: Great cultural experience due to the ethnic diversity and generally very friendly people; a huge economy; opportunities for students, English teachers, professionals, and retirees.
Cons: Few Brazilians speak good English, and Portuguese is quite a bit more difficult to learn than Spanish; no longer as affordable; quite far from the U.S. for visits to relatives. Recent instability politically and economically due to financial mismanagement, much related to the recent World Cup and Olympics. Poverty and violence in big cities.
Pros: Extremely affordable and welcoming destination for location-independent workers, English teachers, and foreign retirees; pleasant climate; rapidly growing economy; great natural beauty and attractions.
distant from U.S. with few cheap flights. Growing infrastructure.
Pros: Close to the U.S.; sizable expatriate community for a small country; popular with students, entrepreneurs, retirees; low cost of living; great destination for those interested eco-tourism and general outdoor lovers.
Cons: Much higher
costs than neighboring countries, such as Mexico. Some
destinations may be too Americanized for some expats, though many who travel and live in the country
say that finding authenticity and traditional culture
is still not an issue. Nearby Nicaragua and Belize are less expensive options.
Pros: A beautiful and relatively inexpensive country featuring cathedrals from all periods, pristine countryside which many locals enjoy via bikes and walks, centrally located to visit most of Europe by car, safe, great beer, a large expat population, lively and open-minded locals.
Cons: Difficult to get permission to work, as with most EU countries. Some xenopobia, as with much of Europe, is sadly setting in.
Pros: A classic destination for American expats and students historically and even currently, even if very expensive, especially Paris; great cultural wealth and lifestyle; opportunities for students, artists seeking inspiration, retirees, and entrepreneurs.
Cons: Difficult for non-Europeans to get a residency permit; lengthy bureaucratic procedures to establish a business; strict financial and professional requirements for the self-employed and entrepreneurs; high cost of living for retirees on a pension in U.S. dollars in cities such as Paris and Nice. Paris is top 10 in terms of cost of living.
Pros: Another classic and favorite destination for many Americans; a large expatriate community; great culture and history; extremely hospitable people; great destination for students. Real estate prices currently low due to continued 2008 economic ripples.
Cons: Few employment or business opportunities for foreigners; lengthy bureaucratic procedures to establish residency.
Pros: Close to the U.S.; rich culture, wonderful food, history, friendly people, beautiful land; great for students, retirees, and entrepreneurs; relatively inexpensive. Over 1,000,000 American and other Western foreigners in the country should you seek out the companionship of fellow expats.
Cons: Safety concerns
in some locations due to ongoing violent conflict between
drug cartels, though often greatly exaggerated due to the preponderance in specific areas. A bit of chaos is part of life.
Pros: Uses the U.S. dollar as currency; English is more widely spoken than elsewhere in Central America; well-developed expat community and infrastructure; relatively close to U.S. with many direct flights; pleasant climate, diverse tropical ecosystem; great destination for entrepreneurs, especially in the tourism sector, as well as for the many retirees who now reside there.
perhaps not quite as interesting as other countries in the
region, some say subjectively, though the countryside offers great ecological diversity.
Pros: Affordable and welcoming destination for foreign retirees and entrepreneurs; basic English is widely spoken; pleasant climate; great natural beauty, cultural traditions and attractions. Beautiful locations from cultural centers like Chiang Mai to the islands. A favorite first stop for youth traveling in Asia, as well. Friendy visa conditions.
distant from U.S. with few cheap flights;
fewer opportunities for students than many other
countries apart from teaching English as a graduate. A bit crowded with expats in some parts.
Taking the First Steps for Your Move
Once you have figured out where to go, you can move on to the next step. Contact the consulate or embassy and find out how easy it is to get the appropriate visa for your country of interest. There are different procedures to obtain the appropriate visa or residency permit, but a large number of countries allow foreigners to visit between three and six months without a special visa and do not require visas for volunteer work or language courses. For university study, business, and employment, however, you have to apply for a visa for most countries. Find out what the requirements are and how long it takes for a visa to be processed so you can plan your departure accordingly.
The resources below will help to give you an idea of how your country of interest compares to others in important areas such as cost of living, health, human rights, economic and political stability, and more.
Resources to Compare the Quality of Life in Countries and Cities Abroad
Note: UBS, The Economist, Forbes, Internations, the World Economic Forum, and others all have worldwide cost of living comparisons and "best of" lists available in changing locations on their respective sites.
of Americans Resident Overseas has as a mission to
"create and maintain ties among American citizens located
in and/or residents of countries other than the United
States, with no regard for their political preferences
or party affiliations." The site offers much useful information,
advice, and resources.
Numbeo is the world's largest database of user-contributed data on costs of living worldwide, with a report on the quality of living by country and even city, with the option to make comparisons in the currency of your choice.
Expatistan is a free collaborative database allowing you to compare the cost of living in cities around the world.
HSBC Expat Explorer Survey — How countries compare is the work of a huge global bank that provides survey results on its website based on answers by over 20,000 people, and emphasizes finances but also measures quality of life by country. The website allows country comparisons and provides tax guides for those living abroad.
World Happiness Report is updated yearly by "leading experts across fields — economics, psychology, survey analysis, national statistics, health, public policy and more — describe how measurements of well-being can be used effectively to assess the progress of nations."
Very detailed World Health Organization reports reveal comparative living standards.
Heritage Foundation: Index of Economic Freedom by Country
Human Development Index, United Nations Development Program (UNDP)
Human Rights Report, Amnesty International
Corruption Perceptions Index published by Transparency International
For an amusing and pleasantly ironic read that is pertinent to the topic of choosing a destination to live abroad, try The Geography of Bliss: One Grump's Search for the Happiest Places in the World, by prolific author and journalist Eric Weiner.
Browse the TransitionsAbroad.com website for much more information on working, studying and living abroad.
Joys and Challenges of Living Abroad
On my extensive travels worldwide, I have met many American expatriates, and they all had very different reasons for living abroad. I met U.S. retirees in Mexico pursuing their interest in art in picturesque colonial towns; I met English teachers in Europe and South America who use their teaching skills to travel the world and live in different countries, and I met entrepreneurs and business people eager to settle in a new country and start a business. What unites them all is the desire to experience different cultures and expand their horizons—to learn and to enrich their lives with new experiences.
But as much as these experiences are enriching and inspiring, expatriates still face many challenges during their time abroad, from an adjustment to a foreign culture to the language barrier, bureaucratic hurdles, moving logistics, visa requirements, and much more. Although the adjustment to an unfamiliar culture is an inevitable part of living in a foreign country, there are many ways to make the transition easier. Most importantly, we need to be well informed and prepared to successfully live abroad. Information is key to a smooth adjustment to another country and culture. It is essential to familiarize yourself with your host country before you go. Read about the history, economy, and culture so you know what to expect. Get background information, learn the language, talk to someone who has been there, and visit expatriate websites, discussion forums, and the many new social media sites where expatriates exchange all kinds of information about living in a foreign country.
We encourage you to visit our
sections devoted to Living
Abroad and Living
Abroad by Country. You will find a plethora of information
helpful both for current expatriates as well as those planning
to move and live abroad.