Dear Liz:
I’ve been struggling to find a decent job in my field lately. There are actually some openings abroad that really match my skills and interests.
If you manage to get a job in another country, there’s a chance you could end up paying taxes in both the U.S. and that country. Plus, not being a national may restrict your job options later on.
After you’ve lived in the new country for a certain amount of time, it’s possible to apply for citizenship, but you would need to pay a fee to give up your U.S. citizenship.
This is a big deal, though—it could mean losing my Social Security benefits that I worked hard to earn in the U.S.
On top of that, I’d have to completely reorganize my bank and investment accounts.
Clearly, many people change their nationality each year, but how do they manage to handle everything financially?
Answer:
I reached a somewhat interesting—and perhaps not entirely accurate—understanding about working overseas.
To start, let’s consider taxes. The U.S. tax system has certain provisions to help those working abroad avoid double taxation, like the foreign earned income exclusion (up to $132,900 in 2026) and the foreign tax credit. Although you need to file a tax return with the IRS each year declaring your global income, you might not have to pay U.S. taxes on most or even all of your income earned overseas.
Now, regarding nationality—about half of the countries, including the U.S., permit dual citizenship. So, if your new country requires you to give up your American citizenship, you still can collect Social Security benefits earned in the U.S.
However, it’s important to know that such renunciations are usually permanent. If you decide to change your mind later, you’d need a U.S. visa and would have to go through the entire naturalization process again, which can take quite a while.
As for your financial accounts, you can retain them as long as you hold onto your U.S. citizenship. But you might also need to open a bank or financial account in your new country. If you’re interested, Brian Dunhill’s book, “Living Without Borders: How to Create Freedom and Financial Security for Americans Abroad,” could be worth checking out.
