After the 2024 U.S. presidential election, U.S. searches for “moving to Europe from USA” skyrocketed. For reasons including a more balanced lifestyle and increased access to affordable healthcare, Americans honed in on a central question: “how can I move to Europe.”
There are several important factors to consider when planning a permanent move to Europe. In the following article, we:
- explain the need for long-term visas,
- discuss how to find employment opportunities,
- invite you to consider potential European citizenship pathways,
- note the potential for cross-border tax and financial planning implications, and more.
Let’s dive in.
How to Move to Europe from the U.S. – Visas
There’s a significant difference between visiting Europe as a tourist and moving there long-term. For Americans, short-term travel to most European countries is relatively straightforward but relocating requires careful planning, particularly when it comes to securing the appropriate visa.
Short-Term Travel: The 90-Day Rule
Under the current Schengen Agreement, U.S. citizens can travel to most European countries within the Schengen Zone for up to 90 days within any 180-day period without a visa. The Schengen Zone includes 29 countries, spanning EU member states and additional nations in the European Economic Area (EEA). Popular relocation destinations such as Germany, Switzerland, Portugal, Spain, and France all fall within this area.
Romania and Bulgaria recently joined the Schengen Zone, expanding its reach to nearly 420 million people. However, while this agreement facilitates short-term travel, it does not grant work or residency rights, meaning Americans looking to stay beyond 90 days will need a visa.
New Travel Authorization Requirements for the UK and Europe
In addition to existing visa requirements, travelers should be aware of upcoming changes affecting short-term visits:
United Kingdom: ETA Requirement (Starting January 8, 2025)
Beginning January 8, 2025, U.S. citizens traveling to the United Kingdom for tourism, business, or short stays will need to obtain an Electronic Travel Authorization (ETA) unless they already have a UK visa, legal residency in the UK or Ireland, or a British or Irish passport. The ETA functions similarly to the U.S. ESTA system, acting as pre-clearance for travel and is part of the UK’s transition to a digital border system. Travelers can check whether they need a UK visa by visiting GOV.UK.
Europe: ETIAS Travel Authorization (Mid-2025 Launch)
By mid-2025, U.S. travelers may be required to apply for European Travel Information and Authorization System (ETIAS) approval before entering 30 European countries. While not a visa, ETIAS will act as a pre-travel security screening system, similar to the UK ETA or the U.S. ESTA. This requirement has been postponed multiple times, so travelers should verify the latest updates on an official EU website before planning their trips.
For Americans looking to move to Europe long-term, understanding these changes is essential. Short-term travel authorizations like ETA or ETIAS do not replace visas for work, study, or residency, meaning individuals planning to relocate must apply for a national visa or residence permit based on their destination and intended activities.
As an American, Moving to Europe Will Require You to Obtain a Long-Term Visa
The exact visa will vary depending on the country and your employment status.
For example, remote workers from the U.S. interested in working remotely from Europe are typically best off finding a country with a digital nomad visa.
If, on the other hand, you’ve been hired for a full-time role in Germany or Switzerland, your immigration pathway will look very different.
Worth Noting
Many EU countries offer fast-tracked migration schemes to allow foreign workers to fill specific skill and labor shortages. Additionally, obtaining dual citizenship or moving for love can also provide you with a visa pathway. If you’re married to a non-U.S. citizen, foreign countries generally allow family reunification for marriage or committed partnerships.
A note on residency status in Europe
It’s critical to understand how your visa governs your ability to work when you move to Europe from the U.S. Review your visa and check with an immigration lawyer as needed to learn how your residency status changes should you leave the employer or be made redundant by your employer.
Obtaining a Work Visa in Europe
The work visa you obtain for full-time employment in Europe will be specific to the country in which you successfully landed a job.
Typically, Americans will require job sponsorship, which means your employer will apply for a work permit on your behalf. There are also specific requirements that vary by country, such as proof of professional experience.
Getting a company to sponsor a work visa for an American is no small task, and competition can be fierce. This is because in order to hire a U.S. citizen, a company in the EU must first prove that they were unable to find someone locally. The Americans who typically have the easiest time finding work in Europe are those with the skill set to fulfill in-demand jobs or with executive-level experience and are the most likely to get sponsored work visas.
The needs of each country vary, so be sure to check out their government websites and learn about which sectors are open or actively looking to fill roles by qualified foreigners.
Obtaining EU citizenship
For some lucky Americans, obtaining a European passport with an EU member state can streamline moving to Europe. Below are some important considerations to bear in mind if you embark on this pathway.
- Not all countries allow Americans to hold dual citizenship: Check the requirements if you have your heart set on achieving this status.
- Learning the language may be a prerequisite: Claiming citizenship often requires a high level of fluency in the official language of your target country.
Banking & Financial Services When Moving to Europe from the USA
Candidly, banking as a U.S. citizen abroad can be a headache. With the exception of some limited financial U.S. institutions like Charles Schwab and International Brokers, most U.S.-based institutions will not work with U.S. taxpayers if they learn you’ve moved out of the country.
Adding to this complication, The IRS can and does monitor American taxpayers who have foreign financial accounts. At a certain threshold, certain US reporting obligations are triggered, such as the Foreign Bank Account Report (FBAR) and additional FATCA reporting (1)
The additional scrutiny and reporting mean that not all foreign banks are receptive to American clients, and it’s not uncommon for Americans to experience difficulty opening a local bank account when they move.
Tread Cautiously
Your current bank, brokerage, or financial institution may limit or discontinue services when you notify them of your address outside of the United States.
At least a year prior to your move, it’s highly advisable to invest in a consultation with a cross-border financial planner specializing in the U.S. and your target country to discuss your plans. This applies particularly if you are:
- A high-net-worth individual or family
- Equity compensation considerations
- A business owner
- Expecting to receive an inheritance while residing abroad
- Moving from a state that makes it challenging to break domicile (e.g., California, New York, Virginia)
- Looking to optimize under a short-term location or planning a more permanent move
There are many misconceptions and lots of misinformation about how to navigate U.S.-based finances and reporting if you reside abroad. But seeking out answers to your questions will help prevent them from becoming headaches down the road.
How Much Does It Cost to Move to Europe?
The cost of moving to Europe will look different for everyone. Generally, those who plan and save up well in advance will be best positioned to take the cost of an international move in stride.
Insurance
While one of the biggest advantages of moving to Europe is increased access to quality healthcare, Americans will need to understand how their move impacts pre-existing U.S. coverage.
Typically, insurance is obligatory to obtain the visa. However, once your resident permit is valid in your target country, it may be possible to cancel your U.S. plan entirely. That said, depending on the length of your stay abroad, you may be able to keep U.S. policies in place.
A key factor here is whether you are moving to Europe as an employee of a company, a retiree, or a self-employed person.
In all cases, you will want to double-check all your current insurance policies, review what you can and want to keep, and research what you need to purchase for your move abroad.
U.S. Taxes and Cross-Border Planning
U.S. citizens and permanent residents (Green Card holders) have mandatory U.S. income tax filing requirements, regardless of where they live and work.
Most countries outside the U.S. operate on residence-based taxation, meaning you will also need to file a foreign tax return.
There are tax treaties between the U.S. and many countries to help alleviate double taxation, but they can be complicated to understand and apply correctly.
Planning is key because many income items will be taxed and treated differently between the U.S. and foreign tax regimes.
If you self-prepare or work with a local U.S. accountant who does not specialize in expats you may unknowingly omit important foreign information filings, underreport income, or overpay taxes. When it comes to cross-border taxation planning and preparation, working with a specialized professional is essential.
Investment Planning
Investment regulations vary widely from country to country. Ensure your investment advisor acts as your fiduciary, meaning they are working in your best interest, not theirs.
Take the time to understand the local tax implications of your portfolio and understand that many foreign investments are taxed and penalized from a U.S. tax perspective. Familiarize yourself with U.S. reporting requirements, such as the Net Investment Income Tax (NIIT).
Additionally, it’s common for U.S. citizens’ U.S.-based retirement accounts to be their biggest investment account.
Connect with an expert in cross-border finances (specializing in your resident country) to understand how your new country categorizes your accounts to avoid a surprise tax bill.
Wrapping Up – Family Considerations
Family considerations are broad when moving to Europe from the USA.
If you’re a U.S. citizen moving to Europe with a U.S. spouse, they may need their own work authorization to obtain employment.
If you are moving abroad with children, you will need to decide between enrolling them in a local school or an international school.
Both options come with a laundry list of pros and cons, each of which will look a little different depending on a family’s specific needs and priorities.
Finally, many Americans moving to Europe pause to consider the potential implications on their extended family. Here are some questions to consider:
- Do you have aging parents? If so, to what degree will your move stress any dependency they have on you?
- Do you have young adult children either in college or just starting their careers? According to a Harris Poll for Bloomberg, roughly 45% of people ages 18-29 are living at home with their families. (2) This suggests that nearly half of American families are having conversations about supporting their grown children in their homes beyond college, which may be an important subject for you to raise with your children if you don’t intend to be around after they graduate.
Final Thoughts on Moving to Europe as an American
Very few situations are as straightforward as they seem when it comes to international moves and cross-border tax and financial planning. Be sure to do your homework and invest the time to carefully research and vet a team of cross-border financial professionals to entrust with questions about immigration and residency status, taxes, and financial planning.
Resources
- The Schengen area explained - Consilium
- Why are so many more young people living with their parents? Gen Z on their struggle to move out - CBS New York
About the Author
Arielle Tucker is a Certified Financial Planner™ and IRS Enrolled Agent. She's spent the last decade living between the US, Germany, and Switzerland. She is passionate about helping other U.S. expats and Americans living abroad achieve their dreams with the right financial and tax planning. Connected Financial Planning offers a complimentary introduction call for individuals and families seeking ongoing, comprehensive planning. You can schedule a call here.