US Expat Guide · 2026
Moving from the USA abroad: the 2026 relocation guide
Americans moving to Portugal, Spain or Mexico face three jobs at once: leaving their state tax system cleanly, staying IRS-compliant, and shipping their home across the ocean. Here is the framework, step by step.
The short answer
Leaving the US for good means: (1) close your state residency with evidence, (2) keep filing federal returns and use FEIE or the Foreign Tax Credit, (3) report foreign accounts on FBAR, (4) secure the right residence visa, and (5) ship your goods under Transfer of Residence relief with a complete inventory.
10-step state tax exit checklist
Sticky states look for ties you left behind. Close them in this order.
- Choose your official departure date and document it.
- Sell, rent out or formally vacate your US home; keep the lease or deed papers.
- Surrender your state driver's licence after obtaining a foreign one, where possible.
- Cancel voter registration in your former state.
- Move bank, broker and card mailing addresses away from the former state.
- Close or transfer local memberships, doctors and professional licences.
- File a part-year resident return for your final state tax year.
- Keep evidence of your new foreign residence (residence card, lease, utility bills).
- Set up FBAR / FATCA tracking for every foreign account you open.
- Book a review with a US expat CPA before your first full year abroad.
Portugal vs Spain vs Mexico at a glance
| Country | Common visas | Tax angle | Best for |
|---|---|---|---|
| Portugal | D7 (passive income), D8 (digital nomad) | Progressive income tax; special regimes for qualifying professions | Retirees, remote workers |
| Spain | Non-Lucrative Visa, Digital Nomad Visa | Progressive income tax; Beckham Law regime for eligible new residents | Families, remote employees |
| Mexico | Residente Temporal / Permanente | Tax residency depends on your centre of vital interests | Retirees, near-US lifestyle |
Income thresholds and tax rules change yearly — confirm current figures with the consulate and a qualified US expat CPA.
Shipping your household goods
Most Americans ship in a 20ft or 40ft container. Household goods can usually enter duty-free under Transfer of Residence rules if they are used, owned before the move and backed by a detailed inventory. Plan packing 8–12 weeks before departure.
EE Relo handles the European side: port-of-entry customs, delivery, unpacking and destination services. See international moving, destination services and our free volume calculator.
Get the full 2026 Playbook
7 modules: state tax severance, IRS compliance (FEIE, FTC, FBAR, FATCA), logistics and banking, Portugal, Mexico, Spain and an expat toolkit with customs inventory and lease scripts.
Frequently asked questions
Do I still file US taxes after moving abroad?
Yes. US citizens are taxed on worldwide income wherever they live, so you keep filing a federal return every year. Tools such as the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) usually reduce or remove double taxation, and foreign accounts above the reporting thresholds must be declared on FBAR and, where applicable, FATCA Form 8938.
Can my former US state keep taxing me after I leave?
Some states, such as California, New York and Virginia, can keep treating you as a resident if you leave strong ties behind (home, driver's licence, voter registration, bank addresses). A documented exit checklist that closes those ties is the main protection.
FEIE or Foreign Tax Credit — which is better?
FEIE suits earners in low-tax countries; FTC usually works better in higher-tax countries such as Portugal or Spain, because the tax you pay locally offsets your US liability. Ask a US expat CPA to model both for your situation.
Which residency visas do Americans use for Portugal, Spain and Mexico?
Common routes are Portugal's D7 (passive income) and D8 (digital nomad), Spain's Non-Lucrative Visa and Digital Nomad Visa, and Mexico's Residente Temporal. Each has income or savings requirements that change yearly, so check the consulate's current figures before applying.
Can I ship my household goods duty-free?
Usually yes, under a Transfer of Residence relief: goods must be used, owned for a minimum period and imported within a set window after you register residence. A detailed inventory and the right paperwork at the port of entry are essential.
How long does a container move from the USA to Europe take?
Ocean transit plus customs and delivery typically takes several weeks door to door, depending on the port pair and sailing schedule. Plan your packing date 8–12 weeks before your move.
This guide is general information, not tax or legal advice.