I retired in the No. 1 country Americans want to move to the most—don’t believe these 3 biggest lies

Ten years ago, my wife, daughter and I relocated from the Washington, DC area to Lisbon, Portugal. Living here has been one of the best experiences of our lives, so we’re not surprised that it’s the country Americans want to move to the most.

But once we arrived, we soon learned that some of our expectations before the move were unrealistic. For example, we thought we could fully integrate simply by mastering the language and making a lot of Portuguese friends. Ten years later, we still feel just as culturally “American” as we did when we first landed.

Now that we’ve fully settled in, our friends back home often ask about what living and retiring abroad is really like. Here are the top three myths about leaving the U.S.:

“Laid-back” and “low-stress” aren’t necessarily the same things, especially if you’re used to efficiency and attentive customer service.

It may take minutes to open a bank account in the U.S., but it could take weeks or longer for an American expat to do it in a country like Portugal, where banks require significant documentation and review periods before opening an account. 

And if you’re worried about American politics, moving abroad won’t stop the news cycle. In fact, without the reassuring familiarity of being “home,” moving abroad might make you even more stressed.

So if your motivation for relocating overseas is to leave your worries behind, you may become disillusioned with life in a foreign country. But if your goal is to pursue excitement, novelty and the great unknown, then you’ll have an easier time overcoming the unwelcome surprises that exist in even the most laid-back countries. 

The cost of living in a country like Portugal might be lower than comparable lifestyles in the U.S., but Americans often face extra administrative steps when they live abroad that can result in added costs.

For example, you may need to hire both a U.S. accountant for your U.S. income taxes, plus a local accountant to file your taxes for your country of residence.

Depending on which country you move to, you should consider the volatile nature of currency exchange rates. For example, the euro rose from about $1.03 early this year to nearly $1.14 today, so most things that my family buys in Portugal now cost us over 10% more than they did a few months ago. 

Most importantly, don’t overlook the value of your time. A medical prescription in Portugal might cost a fifth of what it costs in the U.S., but can take five times longer to fill.

If one of your goals for moving abroad is to lower your living expenses, I suggest doing three things:

1. Create a budget of your current spending.
2. Create a projected budget for your ideal life abroad. This way, you can compare costs and see whether (and where) you can save money by moving abroad.
3. The costs of things are never fixed. Ask yourself: Are some costs more or less likely to change over time? If so, how would those changes impact your projected cost savings?    

In Lisbon, there’s a huge number of expat-focused group activities. There are co-working spaces that cater to expat communities and language schools. But as welcoming and friendly as Portugal tends to be, you may struggle to make new connections if you’re based in more rural parts of the country. 

So how can you meet new friends and colleagues? If you’re traveling with school-age children, does the school organize parent activities? Do you have hobbies you can pursue in a group setting, especially groups that meet regularly so you’ll start to see the same faces over and over again?

Also important: What about your “helper” network? If you face a sudden need to take a return trip to the U.S., for example, who will care for your pets while you’re gone? If you get into an accident, who will notify your family back home if you’re unable to do so? 

My best advice is to have a written contingency plan, complete with names and phone numbers for who will stand in for you if necessary. It’s okay if there are blanks in your contingency plan — you can fill those in as you develop new relationships in your new country. 

As for the one belief about moving abroad that actually is true? “You’ll love living near the ocean on a glorious, sunny day.” A picture tells a thousand words.

Alex Trias is a retired attorney. He and his wife and daughter have been living in Portugal since 2015. He writers about tax planning, investing, early retirement and expat living on Substack.

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